To: jim kelley who wrote (78202 ) 11/11/1998 3:05:00 PM From: Mohan Marette Read Replies (2) | Respond to of 176387
Compaq's Direct Model-dead on arrival-Jumbled and confused. Yeah that is what I am saying. Jim: Have you had the time to take a look at CPQ's news release on the new initiative? I have a feeling though they might get some business through this approach at the expense of loses (most likely larger) elsewhere like from the VAR/Channel side. Your thoughts on this matter will be appreciated. I also heard Ingram is going to carry all the models offered through direct model. Also another important thing of note is that CPQ's direct model is devised in conjunction with the distributors/VARs, well hellooooo! Another thing is that not all products are offered through direct service and it is now only available in the U.S. Sure if successful they might extend it to other countries but that has to be seen depending up on how strong the VARs are in their respective markets and their influence in the market place-it is a culture thing you know. And here is a comment on the conflict between the CPQ & the VAR."One reason a VAR might choose distribution over dealing directly with Compaq is protecting their customer list, said Antone. "Resellers working with DirectPlus must give up clients' names to collect agent fees," he said. It all comes down to ownership. "I think the customer is mine. They [Compaq] think the customer is theirs. I think the customer is mine, and I think I'm his decision influencer," said Harper. As a result, Harper said he will not turn over all his customer names to Compaq. Instead, the VAR will buy some of the new systems through distribution and work with DirectPlus for other sales, he said. "I do want to buy through distribution, and Compaq knows this. I'm on record in their advisory council," Harper said. And if he could not secure the small-business bundles he needs through distribution, he may push other vendors into his accounts, Harper said.