You might have seen this already, Im going to post it anyhow
Monday November 9 11:02 AM ET
Users in catbird seat as hungry PC makers battle for business
PC Week
By Lisa DiCarlo, ZDNet
More than ever before, corporate buyers are in the driver's seat when it comes to ordering new PCs, software, equipment and services.
An increasingly cutthroat market is forcing major vendors to offer more sophisticated purchasing and service options to PC buyers. Compaq Computer Corp. (NYSE:CPQ), for example, next week will enhance its DirectPlus channel for selling directly to customers.
The goal for Compaq and its main competitors: Give customers what they demand.
"We want PCs configured with the software we want, not just [Microsoft Corp.'s] Office -- and we might need some special interface to the software," said Ted Dellavecchia, senior vice president and CIO at Capital Blue Cross, in Harrisburg, Pa.
In addition to competitive pricing, buyers such as Dellavecchia are persuading vendors to share their IT burdens and provide inventory management, custom hardware and software configuration, consulting, installation and Web-based procurement, among other things.
Keeping customers satisfied
Compaq is just one of the major PC makers working to keep customers satisfied. The Houston computer manufacturer is also enhancing activeAnswers, which will eventually provide businesses with online hardware and software integration expertise for a wide range of business applications, including, but not limited to, Lotus Development Corp.'s Notes, Microsoft Exchange, Novell Inc.'s GroupWise, Baan Co.'s Baan IV, SAP AG's R/3, PeopleSoft Inc.'s PeopleSoft 7.5 and Oracle Corp.'s Oracle8.
IBM Personal Computer Co. (NYSE:IBM), Dell Computer Corp.(Nasdaq:DELL), and Hewlett-Packard Co. (NYSE:HWP) are also bending over backward to meet the demands of the new corporate buyer.
"I want to sidestep the headache of trying to manage the whole [infrastructure]," said Capital Blue Cross' Dellavecchia, who is confident the company will get what it wants. It plans to solicit bids from leading PC makers in the near future.
A long list of demands
Another company in a similar situation to that of Capital Blue Cross crafted a long list of demands after deciding earlier this year to overhaul its desktop and notebook PC procurement process. The insurance company, which has 7,500 users, declined to be identified.
Among its most important requirements were large-scale Web-enabled purchasing, a near-guarantee of timely product availability, product stability and frequent updates on product life cycles. The company requested proposals from HP, IBM, Dell, Compaq and Gateway Inc. (Gateway later declined to draft a proposal.)
"We told them to find a partner [for channel-based companies] and give us a proposed solution based on all our needs," said a manager involved in the process.
After months of review, the deal --worth $10 million to $15 million -- was awarded to Dell, even though Compaq offered the best price.
"A lot of [the decision] was based on [Dell's] success at Internet-based ordering, although everyone offered to do it and said they could do it. Another thing is maintaining standard configurations," the manager said, referring to systems that use the same components over a long period of time.
Dell leads the pack
Dell, which claims to bring in about $4 million a day in online sales, is beefing up the process by offering workflow capabilities within its Premier Pages to large customers.
Workflow will save buyers time by enabling them to get requisitions approved electronically through a Premier Page -- Dell's Web-based buying service for corporate customers.
Dell is probably best-suited to adapt to these new requirements because of its flexible direct-business model. Conversely, Compaq, HP and IBM are forced to balance the customer's need for direct-vendor accountability with the channel partner's need to add value through integration and services.
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