To: D. Swiss who wrote (109374 ) 3/13/1999 9:34:00 AM From: TechMkt Respond to of 176387
The news is getting better and better for DELL in the channel. Fez _____________________COMPUTER RESELLER NEWS March 15, 1999, Issue: 833 Section: News ----------------------------------------Sleeping with the enemy? VARs push Dell David Jastrow Some elements of the channel may portray Dell Computer Corp. as public enemy No. 1, but more Dell desktops and notebooks are going through resellers than ever before. Small and midsize resellers cited Dell desktops as their best-sellers more often than any other branded system last month, according to the February 1999 CRN/Answers Research Inc. poll. The survey found that 12 percent of VARs cited Dell desktops as their best-selling systems vs. just 2 percent in the year-ago period. Fourteen percent claimed Dell as their best-selling portable computer, compared with 4 percent in 1998. "Dell has not been reseller-friendly in the past," said Don Bell, president and chief executive of Bell Microproducts Inc., a San Jose, Calif., distributor. "But when I tour major integrators and I see Dell boxes in the warehouse, I ask them about it and they tell me very simply that the customer has a preference and has asked them to supply Dell boxes." Still, many wonder whether IBM Corp.'s seven-year, $16 billion deal to provide key components to Dell will push the Round Rock, Texas-based computer maker more deeply into the channel. "IBM has trouble meeting demand for some of their own products, so I have to question how they will be able to keep up with Dell's product needs," said Timothy Sanders, owner of Sanders Software and Consulting, a Lawrence, Kan.-based VAR. Asif Hudani, regional director at Sarcom Inc., Columbus, Ohio, said the Dell-IBM deal may pose a bigger challenge to the channel down the road. "It will dictate that the company with the best services is ultimately going to be the beneficiary of anything that happens in this industry," Hudani said. "I don't think it helps the hardware side of the business, but the vendors are doing what they need to do. This [deal] is one of many other indications of what will happen in the next 12 to 18 months." Although Dell spends millions of dollars on its "Be Direct" marketing campaign, the vendor is easier to work with in some instances than it has been in the past, said Randy Wilcox, president of Sarcom. "In some locations, it has become easier to work with Dell, but in others it's still difficult," he said. "We may pick up more Dell business if they become easier to work with." But some VARs still prefer not to resell or service Dell computers-or any branded system for that matter. Forty-one percent of those surveyed cited white-box systems as their best-selling system, the highest percentage since last March. "If a client wants to buy direct, I may recommend it, but I never sold Dell and I don't ever plan on selling Dell," said Scott Hicks, owner of S & J Computers, Greenville, N.C. "I just build in components to the specifications of the client."