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To: Chuzzlewit who wrote (87246)12/29/1998 1:58:00 PM
From: rudedog  Respond to of 176387
 
The article is incorrect, although correct about DELL's LAR status. CPQ is also a LAR. Both of these companies use the LAR relationship as a part of their service to large customers.

The writer also misunderstands what a LAR does. The LAR relationship allows a vendor to act as agent to MSFT in selling 'select' agreements which allow the customer to consolidate purchases of MSFT products to obtain volume discounts. The LAR gets a small percentage of the transaction as an agent fee. The customer always buys product direct from MSFT when using a 'select' agreement.

This is mostly done as a service to large customers. DELL was the first of the majors to figure out that offering this service was an additional benefit in penetrating large accounts.