Channel Digest

Toshiba's Digital Products Division (DPD), division of Toshiba America Information Systems Inc., today announced the official launch of its new Web site designed to help small and medium-sized businesses make purchasing decisions, while providing them with access to Toshiba's wide range of award winning notebook computer products and accessories. The new site, located at www.toshibadigitalproducts.com will be a new community-based site focusing on product benefits and user experiences for the SMB, enterprise and SOHO customer segments. The site's official launch is accompanied by an advertising campaign, designed by The nFusion Group, an integrated direct marketing/advertising agency based in Austin, Texas, entitled "By Design." The print magazine, online and direct marketing campaign describes mobile solutions being offered by Toshiba and highlights the company's continued investment in research and development for notebook technology, which has made it a leader in notebook PC design and innovation. While focused primarily on the SMB and SOHO markets, the Toshiba DPD's campaign will also reach out to enterprise customers. "The technology market has experienced incredible growth and demand for notebook computers," said Taro Hiyama, vice president of marketing for Toshiba DPD. "In just a few short years, notebook PCs have started to challenge the dominance of desktop systems and we are starting to see demand for notebooks outpace the demand for desktops. Toshiba is capitalizing on this shift in demand, by reinvigorating brand awareness in our popular notebook PC systems through our new customer site."

SYNNEX Corporation, a global IT supply chain services company, announced today that it has appointed John E. Paget as President of North America and Chief Operating Officer of the corporation. Mr. Paget was most recently the Senior Vice President and General Manager of GE Technology Financial Services, a part of GE Commercial Finance, a General Electric company. GE Technology is an IT vertical company that includes GE Access, lease origination, inventory finance, trade finance, and remanufacturing business. Prior to GE Technology Financial Services, Mr. Paget was the President and Chief Executive Officer of GE Access, a worldwide distributor of Unix products, software and services. He fills a newly created role within SYNNEX and will work closely with Bob Huang, President and Chief Executive Officer, and other executive management. We believe this collaboration will lead SYNNEX to continued success. Mr. Paget will assume his responsibilities with SYNNEX later this month. "I am delighted to welcome John to the SYNNEX family," said Bob Huang. "John's skills, experience and depth of knowledge of the supply chain industry are greatly valued and will expand our executive management team's bandwidth to pursue greater opportunities." Before joining the General Electric companies, Mr. Paget oversaw the services, sales and marketing operations of a number of IT related companies, including CIC Systems (formerly Copley Systems), Compaq Computer Corporation, Digital Equipment Corporation, Intelogic Trace, Inc. and Xerox Corporation. "I believe SYNNEX is one of the most creative and dynamic distributors in the IT supply chain services industry today, and its success can be attributed to the strength of its leadership team and employee base. I also believe SYNNEX has the focus and strategic vision, key vendor partners and alliances and, most importantly, the right people to continue to capitalize on future success," said Mr. Paget. "I am honored to be included in the SYNNEX family and very much look forward to being a part of its future success." Mr. Paget, 55, received a Bachelor of Science degree in Administrative Sciences from Pepperdine University, School of Business and Management.

Pomeroy IT Solutions and Alternative Resources announced the signing of a Definitive Merger Agreement that will create a $735 million IT solutions provider with a national, multi-faceted service network. Under the terms of the agreement, which has been unanimously approved by both companies' boards of directors, Alternative Resources Corporation (ARC) shareholders will receive $0.70 per share in cash for each share of Alternative Resources Corporation common stock. The transaction is subject to the approval of ARC's shareholders. Robert Stanojev, ARC's Chairman and Chief Executive Officer, commented that, "Our association with Pomeroy represents a significant opportunity for our employees and stakeholders. For ARC's clients, the union of these two organizations represents an expanded value proposition- - one company offering a comprehensive array of technology services, competitively priced, expertly delivered. Together, we will have the resources and expertise needed to capitalize on a growing and changing Information Technology marketplace." Steve Pomeroy, President and Chief Operating Officer of Pomeroy IT Solutions said, "Pomeroy's resolve to expand the scope and breadth of its IT services offerings has not wavered and this merger is a testament to Pomeroy's commitment to execute on its long term growth strategy. We believe the overall compatibility of the two companies' business lines will create synergies that will positively effect our customers, partners and shareholders," Steve Pomeroy further commented that, "The service offerings of Pomeroy and ARC complement each other well, which makes the two companies a natural fit for a merger of this nature. With this move, we expect to enhance the Company's national, full-service delivery capabilities and improve the percentage of service-related revenues contributing to the Company's consolidated gross margin on combined sales. We believe the combined Company will be better positioned and prepared to exploit an array of new opportunities."

VERITAS Software unveiled a new solution track for resellers focusing on small and medium-size businesses (SMB). This new segment of the VERITAS Partner Program builds on the success of the company's enterprise and government segments and provides partners with world-class tools, support, training and products to better meet the unique requirements of SMB customers. According to Gartner Research, VERITAS Backup Exec software is the market leader in server backup software used by small to medium-size businesses. "VERITAS is committed to its channel partners and consistently reinforces that position by offering tools and resources that promote the growth of our VERITAS Software business," said Ken Everist, vice president of sales and marketing, Softmart. "With the recent investment and infrastructure around specific market segments, VERITAS is helping key partners, such as Softmart, offer better-aligned, more targeted solutions to our customers."

Red Hat announced that a new version of the Linux operating system designed specifically for the corporate desktop user would be available within two weeks. Red Hat Desktop, considered a "companion product" to Red Hat Enterprise Linux, will be marketed primarily to "transaction-oriented workers" (e.g. call-center operators), rather than to engineers, software developers or CAD users. IT analysts are cautiously optimistic about the prospects for the new product offering's success: "The fact that Red Hat is already familiar to enterprises will help the product gain acceptance." On one hand, Red Hat Desktop boasts a number of advantages related to software management, security and licensing costs; on the other hand, "the lack of popular desktop applications, namely Microsoft Office, remains an inhibitor to widespread Linux adoption."

Black Box® said that its 2003-2004 BLACK BOX Catalog won the Catalog of the Year award in the Nineteenth Annual Catalog Awards competition hosted by Catalog Age magazine in Chicago. The Catalog of the Year tribute was in addition to a Gold award bestowed on the BLACK BOX Catalog earlier in the ceremony for highest excellence in its category. The awards, conferred as "tributes to catalog excellence," mark the first time Black Box has earned the uppermost honor, Catalog of the Year. And it's the ninth year in a row that Black Box has been recognized with top honors in its category of Computer Equipment and Software. The catalog was one of more than 200 entries in 27 categories and became one of 63 finalists. The awards are based on a point system given by a panel of judges, and the Catalog of the Year award recognizes the one catalog with the most points overall. The judging criteria encompasses areas that include cover, merchandising, creativity, services, and catalog effectiveness. The BLACK BOX Catalog's comprehensive offering has helped the Company earn its reputation as the largest provider of data, voice, and hotline services in the world. Black Box currently serves more than 150,000 clients around the world and has the largest footprint in the industry, serving every major sector. "We are truly honored by these awards," says Julia Leigh, Black Box's Manager of Publication Services. "These awards recognize not only the success of our creative marketing efforts but also the success of Black Box's primary mission: To deliver superior services to our clients worldwide. It is especially rewarding to have our Company's commitment to excellence and client focus recognized nine years running by Catalog Age's panel of catalog experts." To receive your free copy of any Black Box publication, call 877-877-BBOX (2269) toll free.

ScanSource has partnered with HP and Microsoft Business Solutions to provide a total retail point-of-sale solution that includes the HP rp5000 point-of-sale device and Microsoft Business Solutions Retail Management System. Available exclusively through ScanSource, the hardware and software solution enables Resellers' end-user customers to upgrade their POS systems at a low cost and with some of the industry's best-of-breed technology. The retail solution is available with a standard monitor or a touch screen, as well as with other ScanSource peripheral POS products. Through this relationship, HP, Microsoft and ScanSource are providing Resellers with the tools they need to help their customers harness the power of desktop automation in the retail market, allowing them to significantly reduce their IT budgets and provide better service to their customers. The overall pricing, features and services available through the combined solution help Resellers to be more competitive, as they assist their end-user customers in choosing a reliable, user-friendly, easy-to-maintain solution. The feature-filled hardware and software solution is purpose-built for the retail environment, providing Resellers with a flexible, proven POS offering. "Providing a turnkey solution with the HP rp5000 and Microsoft Retail Management System, coupled with the value-added services and support that ScanSource offers, ensures Resellers can provide their customers a simplified, cost-effective solution," said Mike Baur, President and CEO, ScanSource, Inc. "We're excited to offer this solution to the channel."

PC Laptops today announced it was named the Top Integrator of Intel Centrino Mobile Technology among resellers for all of North America at this year's Intel Solutions Summit. The self-proclaimed maker of the "best laptops on the planet," PC Laptops sold more laptop computers running on Centrino Mobile Technology chips during 2003 than any other Intel Premier Provider in North America. Intel, the world's largest chip maker, recognized PC Laptops as the 2004 Intel Premier Provider of Intel Centrino Mobile Technology during the 2004 Intel Solutions Summit held in Las Vegas in March. The Intel Solutions Summit is held yearly for Premier Providers of Intel products. Intel Premier Providers are selected on an invitation-only basis because they are the top providers of Intel products and technologies. "We put Intel's Centrino Mobile technology in the best dang laptops on the planet because we love our customers," said Dan (The Laptop Man) Young, president of PC Laptops. "We integrate more Centrino chips than any other reseller in North America because PC Laptops has the best mobile laptops on the planet, and we have the best service techs on the planet to do it. Customers who get their Centrino-based laptop at PC Laptops know that when we say, 'we love you,' we mean it - especially for helping us get this award from Intel." Celebrating 10 years of building the "best laptops on the planet," PC Laptops designs, customizes and services laptop computers at five storefront locations in the Salt Lake City metropolitan area.

Systemax Inc. (NYSE:SYX), a leading manufacturer and distributor of PC hardware, related computer products and industrial products in North America and Europe, today announced results for the first quarter ended March 31, 2004. Net sales for the first quarter were a record $485.7 million compared to $426.5 million in the year ago quarter, an increase of 13.9% and 11% higher than fourth quarter sales in 2003 which is typically the Company's strongest quarter. Sales in North America increased 13.9% compared to the year ago quarter, fueled by strong Internet sales at the Company's Tiger Direct subsidiary. European sales increased 13.9% in US dollars and were generally above year ago levels in local currencies. Net income was $2.4 million ($.07 per fully diluted share) compared to $5.0 million ($.15 per fully diluted share) in the same period last year. Results in 2004 include $4.0 million of pretax restructuring charges relating to the Company's reorganization of its computer business. Excluding the effects of restructuring and other charges, net income would have been $5.2 million, or $.15 per diluted share, compared to $5.1 million, or $.15 per diluted share, last year. (Reconciliation between income from operations, as reported in accordance with GAAP, and pro forma net income, excluding the adjustments discussed above, has been provided.) Richard Leeds, Chairman and Chief Executive Officer, stated, "We continue to record strong sales in our North American computer business through our expanded e-commerce activities in the consumer market. I am particularly encouraged by the overall growth of our consolidated e-commerce sales, which amounted to 25.1% of consolidated net sales this year compared to 20.9% last year. Our previously announced computer business reorganization is almost complete. In the second quarter we should begin to see the effect of the reductions in personnel and expenses that we have made." Mr. Leeds added, "The pressure on gross margins eased somewhat during the first quarter, especially in Europe, improving overall to 15.4% of net sales from 14.9% in the prior quarter. However, it is still below the 17.0% achieved a year ago."

Black Dragon Software LLC, a leading provider of products and services that measure the strength of an organization's IT security, today announced that it has signed up AppTech Inc. to the Black Dragon Channel Partner program. Based in Tacoma, WA, AppTech is a full-service technology provider including IT security solutions. AppTech is introducing Black Dragon's security risk measurement tool proVizor SRM, to its battery of clients in healthcare, banking, state and local governments, retail and construction industries. Among the hundreds of AppTech customers are the American Red Cross, San Juan County WA, and The City of Fife in WA, Dels Farm Supply and Westside Community Bank. "We are excited about the opportunity to provide a quality risk assessment tool that allows our customers to measure the risk facing their IT environment," said Darrel Bowman, AppTech CEO. "Getting beyond the FUD (Fear, Uncertainty and Doubt) factor and into the CERTAINTY arena is where we believe all Security Management is headed. We are confident in working with Black Dragon using their proVizor SRM that we are leading the charge." Black Dragon Software's flagship product, proVizor SRM, is an appliance measuring the security risk in an organization's IT environment. The product simulates attacks against assets and performs statistical correlation and analysis based on input about those assets, the IT environment, and the output from existing security tools.

ATI announced the introduction of RADEON^TM 9100 PRO IGP, a high performance platform product for both Intel® Pentium® 4 and Celeron Processors. The official launch of the RADEON^TM 9100 PRO IGP took place at Gartner System Builder Summit in Barcelona, Spain on May 5, 2004. Launch partners for the event included such industry leaders as Gigabyte, MSI, Sapphire, Shuttle PC, FIC, Jetway and Soyo. In addition to industry leading graphics, RADEON^TM 9100 PRO IGP provides users with a range of platform performance enhancements such as serial ATA, dual DDR400 memory channels, RAID, enhanced USB support, plus expanded memory and peripheral compatibility. SURROUNDVIEW^TM , a feature unique to ATI, enables users to combine the power of discrete and integrated graphics for multi-monitor support. Users benefit from simplified management of multiple windows and an immersive environment for gaming and multimedia. In addition to the launch of RADEON^TM 9100 PRO IGP, ATI also introduced a value-oriented, single memory channel integrated graphics platform, RADEON^TM 9000 PRO IGP. "With the introduction of these new platform products we broaden our portfolio footprint by offering customers a range of solutions to meet their needs," said Phil Eisler, Vice President & General Manager, Mobile & Integrated, ATI Technologies. "The market for integrated graphics continues to grow, and ATI is committed to delivering solutions that strike the balance between high performance and cost effectiveness." "The market for integrated graphics continues to grow and currently represents more than half of the PC graphics market," said Dean McCarron, Principal Analyst, Mercury Research. "By offering integrated PC graphics solutions, ATI continues to compete in a marketplace twice the size of the discrete graphics market alone."

Insight Enterprises CEO Tim Crown plans to relinquish his position as CEO and president of the company and replace his brother Eric Crown as chairman of the board. The company will immediately launch a search for a new CEO and Tim Crown will remain as CEO and Eric Crown will remain as chairman until a new CEO is in place. Net sales for the quarter ended March 31, 2004 increased 3% to $732.7 million from $711.3 million in the same period in 2003. Net earnings and diluted earnings per share for the first quarter of 2004 were $16.6 million and $0.34, respectively, compared to first quarter 2003 net earnings and diluted earnings per share of $7.0 million and $0.15, respectively. "I am pleased to report our fourth consecutive quarter of sequential growth in both net earnings and earnings per share," said Timothy A. Crown, chief executive officer. "The migration of Insight's small to medium-sized business ("SMB") account executives serving United States' customers to our new Maximus system was completed in January. Although the quarter got off to a slow start while our account executives were becoming familiar with the new system, March was a strong month and momentum seems to have continued into April." Insight North America's earnings from operations increased 242% to $13.5 million in the first quarter of 2004, compared to earnings from operations of $4.0 million in the first quarter of 2003. Excluding restructuring expenses of $2.3 million in the first quarter of 2003, earnings from operations increased 117%.

Programmer's Paradise said revenue for the quarter ended March 31, 2004 was $20.7 million compared with $15.2 million for the quarter ended March 31, 2003. This year-over-year increase of 36% reflects a more favorable IT spending environment, improved productivity and expansion of our account executive team. Bill Willett, Chairman and Chief Executive Officer, stated, "Our seasoned account executives continue to gain market share and with the improved market condition we will continue to expand our account executive team." Earnings per share for the quarter were $.10 compared with earnings per share of $.01 for the same quarter of 2003. Programmer's Paradise, Inc. is a marketer of technical software and hardware for microcomputers, servers and networks in the United States and Canada. Programmer's Paradise offers a wide variety of technical and general business application software, PC hardware and components from a broad range of publishers and manufacturers.

Research in Motion experienced the strongest growth among PDA vendors as its shipments increased 352 %. Its market share jumped to 14.8% in the first quarter of 2004, up from 3.1% in the first quarter of 2003. "In the last nine months there has been tremendous growth in the use of RIM BlackBerry devices. Given the number of e-mail messages sent or received each day by mobile professionals, it makes sense for many of them to have a pocket wireless device that can be used to keep up with e-mail," Kort said. "RIM has begun licensing its technology to Nokia, Siemens, and Motorola for use in mobile phones, as well as to several PDA vendors. This will undoubtedly provide a significant boost to sales of a wide variety of wireless handheld devices beginning in the second half of 2004."

IKON Office Solutions reported results for the second fiscal quarter ended March 31, 2004. Revenues of $1.18 billion grew modestly in the second quarter compared to the prior year, with foreign currency translation providing a 2.2% revenue benefit. "Our results reflect the investments made to strengthen our service offerings and to expand our sales channels into the higher growth areas of the market, such as color and high-end black & white technologies that continue to fuel the aftermarket," stated Matthew J. Espe, IKON's Chairman and Chief Executive Officer. "While the equipment market continues to be competitive, we experienced positive trends in our focus areas of color and high-end production, as well as our other two strategic areas: aftermarket and document services, which represent over 54% of the Company's revenue mix. For example, sales of color technologies grew 62% in the quarter, which will continue to provide a steady source of profitable aftermarket revenues from equipment service and consumables in the future. Furthermore, the added resources we deployed this fiscal year to support our national account program delivered over 100% growth in revenues over the prior year, making the initiative another contributor to the improvement in aftermarket we experienced this quarter. We are also benefiting from an increasing demand for our expertise in Professional Services. These services, as well as our portfolio of workflow enablers from a range of industry leaders, provide added advantage for IKON in the marketplace, as integrated workflow strategies gain increasing importance with customers.

Actuate Corporation announced positive momentum for its recently launched Reseller Partner Program. Since launching the channel in January 2004, Actuate has signed over 20 partners who have contributed over $0.5 million in sales to Actuate. In addition to expanding geographical coverage across the United States and Canada for Actuate's products, resellers complement Actuate by providing expertise in key disciplines such as financial management and compliance, customer self-service and supply chain management. Actuate's reseller partner channel is key to extending the reach of easy to use Enterprise Reporting Applications that can be adopted by 100% of the target user community. The focused domain expertise that Actuate's resellers provide, combined with Actuate's scalable Enterprise Reporting Application Platform, will ensure that customers realize improvements in their corporate performance through the increased availability and rapid deployment of targeted Enterprise Reporting Applications. "The Reseller Partner Program's stellar performance in just three months is an indication that the market is eager for targeted Enterprise Reporting Applications built on the leading Enterprise Reporting Application Platform," said Pete Cittadini, CEO and president of Actuate. "Our reseller partners are part of the Actuate family and we are proving once again that we are nimble enough to respond to market needs and leverage new channels for growth."

Allyson Seelinger, Symantec's vice president of North American channels, has been promoted to vice president, global channel sales and strategy. In her new role, Allyson will be responsible for developing and executing Symantec's global channel strategy. She will also lead the worldwide partner organization, continuing to deliver best-in-class programs and processes that provide value to Symantec's partners. Allyson reports to Tom Kendra, Symantec's senior vice president of sales. She will continue to be Symantec's channel spokesperson. Randy Cochran joins Symantec as vice president of North American channels. He has more than 23 years experience in leading channel operations for companies such as Computer Associates, PSI Net and Legent Corporation. He will be responsible for retail, distribution, corporate resellers, direct marketers, VARs, online, ISP, and OEM partners in North America. Allyson's promotion clearly demonstrates Symantec's commitment to its channel partners. She will work closely with Randy, and the other regional channel leads, and will continue to interact with partners, ensuring that Symantec's program provides them the tools and resources they need to successfully sell Symantec's solutions.

Procuro® Inc., a best-in-breed affordable operational monitoring and management solution for small and medium businesses, today announced their celebrated win of the Best of VARVision Award^TM in two coveted categories; Best Channel Partner Program, and Best Software at the premier reseller event - the System Builder Summit & VARVision event in Dallas, Texas in late March. "System Builder Summit and VARVision awards are chosen by system builders and VAR attendees that are at the very top of their industry" said Eric Lesonsky, Senior Director, System Builder Summit and VARVision. "Procuro has been recognized for their outstanding channel programs and software that has clearly made a mark on the industry both throughout this year and at the event." Procuro's Personal Information Management Monitor (PIMM^TM) provides a cost effective management platform specifically built for solution providers to offer a subscription based managed service to their install base of small and medium size businesses. PIMM^TM was developed to provide businesses with an easy to use tool to manage their operational resources in a cost-effective environment. While many competitors focus on IT related monitoring, PIMM^TM was designed to be platform agnostic by using open source probes for data collection -- allowing PIMM^TM to manage any resource using a digital or analog sensor. Therefore, in addition to traditional IT resources like servers; software; databases; and applications - PIMM^TM can also monitor customer's non-IT operational resources to manage operational devices in their facilities, warehouses, etc., i.e. temperature controlled environments; thermostats; surveillance devices; plant and hospital equipment and more. "Anything with a sensor can be managed by PIMM^TM" said Vince Gordon, Procuro Chairman and CEO. "What's more, the PIMM^TM technology and our lucrative channel program gives our partners endless opportunities to go to their customers, evaluate their pain points, and solve the issues all very cost-effectively while selling the solution under their own brand. We've had tremendous success with this model and it is an honor to be recognized by the 'big guys' in the industry." Gordon added.

Antec, Inc., the leading manufacturer of computer hardware and accessories for the upgrade and BYO markets, has expanded its affordable Solution Series line of PC enclosures for system integrators to include the ultra-quiet SLK2650-BQE. Incorporating features from Antec's award-winning Sonata quiet PC case, the sleek black SLK2650-BQE mid-tower case features high-end enhancements for a value price. Quiet computing features include a 120mm fan for efficient low-noise cooling, rubber grommets to absorb hard drive vibrations and a 350W SmartPower power supply that is optimized for quiet operation. Other premium features include eight drive bays for maximum expandability, along with easy installation and replacement options for each drive. The case features screwless drive rails and locking sliders for the four 5.25" drives, as well as quick-release drive cages for the four 3.5" drives. Two front-mounted USB 2.0 ports allow for easy multimedia connections and the protective cover for expansion slots comes with a hardware compartment for convenient storage. "For people who spend all day in an office full of computers, noisy PCs can quickly become a headache-inducing distraction, and system integrators must increasingly be able to meet customer demand for quieter machines," said Scott Richards, Antec worldwide vice president of sales and marketing. "The SLK2650-BQE offers system builders a quiet, stylish PC enclosure that won't break the bank." The SLK2650-BQE is currently available for an estimated street price of $79 through major retailers, e-tailers and distributors. The case is backed by Antec's Quality 3-Year Warranty. For additional product information and full technical specifications, please visit www.antec-inc.com.

AEP Systems, the high-speed security company, announced today that it is actively recruiting distribution partners for AEP SureWare A-Gate, a suite of Secure Sockets Layer (SSL) VPN hardware appliances. AEP Systems is building on its existing channel program to target resellers and distributors who sell to small and medium-sized businesses (SMBs) in the US. AEP SureWare A-Gate provides remote access to Web-enabled or Windows Terminal Services applications and full access to client-server applications. AEP SureWare A-Gate AG-600 is designed specifically for small and medium-sized businesses (SMBs), and for departments within large organizations. The product sells into a variety of verticals and businesses with anywhere from 10 to 2500 employees. "AEP Systems' aggressive pricing structure makes AEP SureWare A-Gate a channel-friendly product. The one-time cost of $8995 per unit, which handles up to 400 concurrent users, is unparalleled by our competitors," said Helen Kenny, Vice President of Marketing at AEP Systems. "A similar solution may be priced at $25,000 or more, making AEP SureWare A-Gate an affordable yet robust solution for any SMB looking to deploy a secure, remote access solution." MasStor Technologies, which sells to mid-market companies in Eastern Canada, is the newest reseller to join the AEP Systems' Partner Program. MasStor is a solution integrator that focuses on managing data storage, availability and recovery of business-critical information. According to Jerry Preziuso, VP of Sales at MasStor, AEP SureWare A-Gate provides an exciting reseller opportunity. "There is increasing corporate demand for secure remote access, which makes SureWare A-Gate a good reseller product," said Preziuso. "We researched the market for a secure remote access solution and when we evaluated A-Gate we found a very complete package that surpassed our expectations on price and functionality. It provides all the key features, like high availability and load balancing, and is still affordable for the price-sensitive markets we deal with, particularly healthcare and government."

NASBA AWARDS:
Top System Builder, Top VAR, New Business Innovation, Customer Care and Community Service

Top System Builder Award

• Paragon Development Systems (Milwaukee, WI) (Winner)
  
  
• MicroStandard Distributors (Seattle, WA) (Finalist)
  
  
• Kontron America (San Diego, CA) (Finalist)
  
  

Top VAR Award

• Future Tech Enterprise, Inc. (New York, NY) (Winner)
  
  
• Tenet Computer Group, Inc. (Toronto, Canada) (Finalist)
  
  
• Data Networks (Hunt Valley, MD) (Finalist)
  
  

New Business Innovation Award

System Builders

• Honor International, Inc. (Miami, FL) (Winner)
  
  
• Ace Computers (Chicago, IL) (Finalist)
  
  
• Chipco Computer Distributors (Columbia, SC) (Finalist)
  
  

Value-Added Resellers

• Tenet Computer Group, Inc. (Toronto, Canada) (Winner)
  
  
• Missouri Information Solutions, Inc. (Kansas City, MO) (Finalist)
  
  
• Audcomp Computer Systems (Ontario, Canada) (Finalist)
  
  
• Seneca Data, Inc. (Syracuse, NY) (Finalist)
  
  

Customer Care Award

System Builders

• PC Laptops, L.L.C. (Salt Lake City, UT) (Winner)
  
  
• MicroStandard Distributors (Seattle, WA) (Finalist)
  
  
• Christian Dimension, Inc. (Wichita, KS) (Finalist)
  
  

Value-Added Resellers

• Alvaka Networks (Los Angeles, CA) (Winner)
  
  
• The Ram Group (Toronto, CA) (Finalist)
  
  
• Data Networks (Hunt Valley, MD) (Finalist)
  
  

Community Service Award

System Builders

• Paragon Development Systems, Inc. (Milwaukee, WI) (Winner)
  
  
• Chipco Computer Distributors, Inc. (Columbia, SC) (Finalist)
  
  
• Kontron America (San Diego, CA) (Finalist)
  
  

Value-Added Resellers

• Computer Aid, Inc. (Allentown, PA) (Winner)
  
  
• Future Tech Enterprise, Inc. (New York, NY) (Finalist)
  
  
• Voda Computer Systems, Ltd. (Kamloops, British Columbia) (Finalist)
  
  

To See Full Story and Photos go to:
http://www.nasba.com/nasba_news/news_sbs-awards_04-23-04.asp

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RESEARCH

PDA Update By Gartner

Worldwide PDA shipments declined 4.6% in the first quarter of 2004, but the battle for the PDA operating system market has heated up as PalmSource and Microsoft were in a virtual tie in shipments in the first quarter of 2004, according to preliminary results from Gartner, Inc. Palm OS shipments declined by 20.7% in the first quarter of 2004 compared with the same period last year (see Table 1). Palm OS market share slipped to 40.7%, while the Windows CE market share increased to 40.2%. Microsoft licensees have been steadily chipping away at the Palm OS lead since 2000, when Microsoft accounted for 11% of the PDA market. "The decline in Palm OS market share in the first quarter of 2004 is not unexpected because many Palm OS users have delayed PDA purchases until they can evaluate PalmSource's upcoming operating system Cobalt," said Todd Kort, principal analyst in Gartner's Computing Platforms Worldwide group. "Palm OS has also been impacted by Microsoft's bundling of Outlook with every Pocket PC, and the preferred status that Microsoft Windows enjoys with enterprise application developers."

Table 1
Preliminary Worldwide PDA Shipment Estimates by Operating System for 1Q04 (Units)
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	1Q04	1Q04	1Q03	1Q03
Company	Market	Share Shipments	Market	Share Growth
		(%)		Shipments (%)	(%)
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Palm OS	1,113,089	40.7	1,403,418	49.0	-20.7
Windows CE	1,099,931	40.2	1,051,401	36.7	4.6
Research in Motion	405,000	14.8	89,500	3.1	352.5
Linux	52,300	1.9	52,967	1.8	-1.3
Others	64,490	2.4	268,278	9.4	-76.0
Total	2,734,810	100.0	2,865,564	100.0	-4.6
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Note: Totals include cellular PDAs such as RIM BlackBerry 7230, but not smartphones. PalmOne results include Handspring PDA shipments.
Source: Gartner Dataquest (April 2004)

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COMMUNITY

Where's the Focus?
By Jill Kerr

The following article is the first in an ongoing series featuring vertical market opportunities for resellers. In a recent wrap-up of 2003, I wrote about the need for resellers to seek out and embed themselves in niche market opportunities. I reported then that many SMB resellers know that they need to focus their business and realize that they aren't. "I pretty much go after anything and everything that pays," said one reseller. "In short, I lack focus...focus on a specialty, focus on a vertical market and focus on where I want the business to go in the future." This is a true statement for many resellers who are attempting to be everything to everyone just to keep their heads above water.

Resellers who have the "I need to focus my business" epiphany are beginning to look at ways to target their business on lucrative vertical markets. For those of you who haven't found a vertical yet, the articles in coming months should provoke some thought about your existing customer base, areas of expertise and potential launch points into new markets.

Opportunities in Healthcare
Distributors like Ingram Micro and Tech Data are doing a great job of bringing training and information on the healthcare market to their channel partners. Vendors as well are delivering both general and product specific information to their partners. My intent here is to point out ways that you can begin to slowly turn the ship and capture business in the healthcare market. The process will not take place overnight, and it will require a dedication of time and resources. I spoke to a reseller friend a few weeks ago and asked him if he was selling into healthcare. His reply was, "I have a couple of dental and medical practices but I can't figure out how to grow the business." I think there may be a lot of you like him. Perhaps I can spur you on to think about focusing on the healthcare market with a few simple suggestions to get your foot in the door of existing customers or potential new ones.

Resellers looking for a lucrative vertical can count on the healthcare market to be around and to be a niche worth pursuing. Any time the government regulates an industry - i.e. HIPAA the Health Insurance Portability and Accountability Act - there is money to be made. While many resellers today may have a doctor's or dentist's office in their client database, few have determined how to really profit from the healthcare vertical. Industry research firm Gartner anticipates healthcare IT Spending, including HIPAA, to increase from $61 billion in 2000 to approximately $96.8 billion in 2005. This represents a significant opportunity for resellers.

The Components of HIPAA
HIPAA mandates three components for national health information processing:

• Uniform standards for electronic transactions
  
  
• Security for information transmitted
  
  
• Privacy rights for individuals regarding transmitted information

So how do those elements translate into technology solutions that improve HIPAA compliance? There are three basic areas of focus - security, storage and imaging.

Security-The need for information privacy is probably the most familiar element of the HIPAA regulations. Personal medical information may not be disclosed inadvertently. Violations can take place anywhere from the computer monitor, where human eyes can view the information, to a full-blown security breach where electronic data may be intercepted. Thus, any technology solution that serves this spectrum may address HIPAA security compliance from anti-virus software, firewalls, encryption and intrusion detection the whole way up to biometrics.

Storage-The need for information to be both private and portable necessitates new storage solutions. The stacks of manila folders in healthcare offices need to convert to uniform electronic files that can be sent from provider to provider. Storage needs will be dramatic, and the electronic transaction requirements will require major system upgrades. Backup, disaster recovery and networked storage offerings are needed as part of the equation.

Document Imaging-Before the healthcare records can be stored or sent they will need to be converted. Scanners, networked cameras and document management solutions will be employed.

Turning an Opportunity into Cash
The real question is how to take the information supplied here and change your business.

Get Your Foot in the Door-Something as simple as a privacy screen that fits on a monitor and prevents unwanted eyes from seeing patient information can be an effective way of introducing HIPAA regulations to existing or potential new healthcare customers.

Conduct an Audit-Position yourself as an expert and provide audits of HIPAA compliance. Obtain a HIPAA Professional Certification and analyze a healthcare provider's HIPAA readiness. Consider Ingram Micro's security assessment tool that resellers can use to analyze security solutions (from a both business and technical processes perspective) to lend credibility to your practice.

Demonstrate Your Expertise-Provide continuing education information to both customers and prospects. Conduct seminars that talk about the law and expose healthcare workers to the technology solutions that can make them compliant. Many distributors and manufacturers have seminar programs that they will extend to your customers.

Get Asked Back - Resolving ongoing security issues and upgrading existing technology will generate recurring revenue. Stay on top of the technology and sell the latest solutions. It's reported that every $1 spent on HIPAA-related hardware yields $5 in related services and software.

It's the Law
Healthcare providers are notoriously behind in their administrative processes. HIPAA compliance is said to be 80% administrative and 20% technical-so support the administrative tasks with technology solutions! Healthcare providers have no choice but to comply. It's the law. So take a fresh look at your customers and the healthcare businesses in your local market. If a focus on healthcare resonates with you, the opportunity is undoubtedly there.

Jill Kerr consults with technology organizations that want to enhance their relationships with resellers. She may be reached at jill@kerrandcompany.com 703-927-8204.

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