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To: T L Comiskey who wrote (103650)	2/22/1999 10:07:00 AM
From: Calvin	Read Replies (1) \| Respond to of 176387

Now I get it! They're direct but direct with the resellers. ---------------------------------------------- Compaq Launches CTO Pilot By Craig Zarley, Computer Reseller News February 19, 1999; 4:28 PM EST Compaq Computer Corp. is ready to launch a configure-to-order (CTO) pilot program that will allow VARs to order products over the Web from Compaq but have co-located distributors configure and ship the systems. The pilot, which will be part of Compaq's PartnerDirect program that will be unveiled next month, is expected to include only those distributors that have set up co-location configuration operations at Compaq facilities in Houston, sources familiar with the plan said. Channel sources said details of the plan and the decision to launch the pilot were worked out following an SMB (small, medium business) reseller council meeting this week. VARs will be able to order and configure product online as if they were buying direct from Compaq but, in fact, co-located distributors will be taking and fulfilling orders, channel sources said. Currently, Tech Data Corp. and CompuCom Systems Inc. are the only two channel players with co-location configuration operations. Ingram Micro Inc. is on the verge of receiving such authorization, however, said Bob Fernander, vice president of Compaq's Commercial Business Unit. Fernander was unavailable for comment this morning. But he said in an interview last week that Compaq was striving for a "collaborative reselling model" with its new PartnerDirect initiative that will involve distributors in Compaq's DirectPlus program.