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October 25, 2004   
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System Builder Summit & VARVision Fall 2004 Highlights

System Builder Summit & VARVision Fall Roundup

System Builder Summit & VARVision Fall Award Winners

Channel Digest




Maximizing the Channel: Emerging Technology and New Product Launches, Panel Discussion - Fall 2004 System Builder Summit & VARVision

Bits and Bytes: Increase click-through rates, small and mid-sized
businesses (SMBs) are adopting Voice over Internet Protocol (VoIP)

NPD: Best Selling Software


 
 
 

 

NEWS

System Builder Summit & VARVision Fall 2004 Highlights

By ChannelMedia Staff

ARIZONA - At a crowded and upbeat System Builder Summit & VARVision late last month, the focus of both boardroom and content presentations was constantly pointed toward building businesses that provide solutions to business problems. And, the roughly 500 vendors and 250 resellers in attendance acknowledged that the best way to deliver those solutions was by working together. In numerous boardroom sessions, resellers and system builders were treated to demonstrations of exciting new technologies. “We were very impressed by the number of innovative new companies coming to the event this year,” said Event Director Eric Lesonsky. “While it’s great to again have the sort of the leading vendors in the channel, like AMD, Intel, Nvidia and others, we believe that the new companies are keys to continued innovation and growth.”

One of the resellers agreed. “This was one of the best VARVisions ever,” said Oli Thordarson of Alvaka Networks. “My security boardroom presentations had the highest concentration of interesting and educational briefings. The vendor presentations were well matched to me and the other guests. The technology they presented was very pertinent to the business problems facing my clientele. And increasingly, the vendor solutions seem to be friendly to the MSP business model. The attendees also seemed to be at an all-time peak of confidence and upbeat. I think it showed in the parties at night.”

 

In the shows major breakout sessions (World Premiere’s) AMD, Intel, D&H and other major presentations all focused on working together by leveraging technology not as an end but as a means to an end. AMD, which used a football theme to promote the familiar themes of teamwork, scoring, winning, etc., pointed to the opportunities for partnership by jumping on its popular 64=bit platform. AMD 64, which offers a high speed processor that can run newer applications and is backward compatible and can support older 32- bit applications, has been scoring with some

major OEM wins. Attendees were shown how the past shapes the future by Dan Schwab, vice president of marketing at D&H Distributing and Michael Schwab, the company's vice president of purchasing. D&H chose a "Back to the Future" movie theme to communicate their long-standing commitment to the channel. D&H is the oldest continuous-running technology distributor in the U.S., with almost 88 years in the business. Their go-to-market strategy is based on the question 'Why do your customers do business with you?'"

 

Besides being easy to do business with, D&H offers the total solution-the best combination of price, service and product selection in the business. Over one-third of D&H is owned by its employees, which means everyone at D&H has a vested interest in the company's success, which is the same investment channel partners have in their businesses. Service features include an account dedicated sales representative for every account regardless of size, an award-winning website, industry association programs and credit and payment programs. D&H also offers world-class logistical capabilities with six

warehouses across the country that allow them to reach 80 per cent of the U.S. in one day and 99 per cent of the country within two days; plus they offer private label drop-ship capabilities. As the most diversified distributor in the country, D&H offers computer products, consumer electronics, software, security and surveillance solutions, home entertainment and video gaming products. This unique multi-divisional model has positioned D&H as the leader in the digital convergence market. As IT technologies merge with consumer electronics for use in digital home environments and digital business environments, the opportunity for both IT and CE resellers is tremendous. D&H is the only distributor that serves all of these markets, becoming a one-stop solution for their customers.

Gartner also provided access to many of their top technology analysts including their Channel Practice leader, Michael Haines – who presentation was, ”Optimizing the IT Channel Value Chain.” Used as a foundation a major research project he recently completed with data to support the needs for change in the reseller/integrator space and the additional requirements to move to the next phase of channel-vendor relationships. Relationships between partners in the IT channel need to become more strategic if the solutions developed via these partnerships are to continue to evolve to meet changing client demand. Resellers need to become more strategic to their vendor partners, Haines noted, and create a “true value chain relationship.” Haines said that resellers and vendors must also work to measure the satisfaction of their partnerships and the satisfaction of the ultimate customer. Measuring customer and partner satisfaction is directly relational to the success of the partnership. The higher the satisfaction level, the more likely the success of the partnership, Haines suggested. Larry Kesslin, President of Let's Talk Business, co-presented with Haines and noted that "many issues that are required to successfully evolve value chain approaches in the channel models and relationships between vendors and channel companies are lacking". Kesslin suggested that all parties in the channel need to improve business processes and partnering competencies in order to insure their success in a changing marketplace. Haines noted that as many as one-third of the industry’s resellers will be out of business by 2007 because of their failure to adapt to the changing market requirements. Start to push, work on changing channel org model, position need for vendors to look at channel at strategic partners, planted seeds – look at relationship as arms length, programmatic, volume-driven…supply chain but as a true value chain relationship. Haines’ presentation was made with Channel Consultant Larry Kesslin, President of Let’s Talk Business.

Another hot vendor who was speaking with the System Builders in attendance was Graphics player, XGI. According to Senior Sales Director Simon Pickard, Senior Sales Director the relative newcomer to the established market (dominate by folks like ATI and Nvidia) the company has found a niche in the “value” area of the market. The Company recently introduced a board product and is focused on OEM relationships.

Gateway’s Director of Channels, Tiffani Bova laid her cards on the table: “For 2005, the channel is where we will get our growth.” We are driving awareness and helping VARs deliver demand. In the past we have not always done that. But the timing is right now.” In what is referred to as the “professional” side of the house (as opposed to its consumer/retail focus) the target is mid-enterprise, government, education and we want to capture more share through resellers. Now we have to work to overcome hurdles about perception - 50% of our products are going through the channel, and we have extreme loyalty with our approximately 300 partners.

AMD Packs the House - At the jam-packed second day of the Gartner System Builder Summit & VARVision Event, a standing-room only crowd enjoyed an NFL-themed presentation of "The World of AMD64," offered by "sports analysts" Mark Defrere and Gary Bixler (in real life North American commercial marketing manager and North American system builder marketing manager at AMD).

"The technology market is now a game between Team AMD64 and 32-bit technology," was how Bixler introduced the presentation. "AMD64 has been around since 1999, but it didn't really enter the league until last year, when it was Rookie of the Year. Now the market itself is evolving to become a 64-bit technology game."

AMD is a leader in the 64-bit space, with over 50 per cent of that market in North America, as well as growing from 0 per cent to 15 per cent of the North American server market last year.

"32-bit technology is a well-respected franchise," explained Defrere, carrying along the football analogy, "but it will hold its own only in the value segment. 64-bit owns the performance space."

Defrere and Bixler laid out for their audience the four key areas in which Team AMD64 leads 32-bit technology: offence, defence, intangibles and special teams.

"AMD64's offence is truly multi-dimensional," Defrere pointed out. "It can do both 64-bit and 32-bit. It's got speed (bandwidth) on its side, with AMD's HyperTransport technology going against Front Side Bus on the 32-bit side. It's game plan uses direct connect architecture to get the most of memory, I/O, and the CPU. Also, AMD64 scales unbelievably."

AMD64's defence, according to Bixler, lies in its new Enhanced Virus Protection technology, which works in conjunction with Microsoft Windows Service Pack 2 to provide protection against viruses and buffer overflow attacks for both notebook and desktop systems.

"Team AMD64's intangibles," added Defrere, "are the Athlon FX processor, and the new Cool'n'Quiet technology, which allows maximum performance at all times, very quietly and at cool temperatures."

AMD64's "special teams" are industry leaders such as Microsoft, HP, Compaq, Sun, ATI, and ASUS, among others, who are working together to support Team64 in the marketplace.

Larry McIntosh, director of North American channel sales for ATI Technologies, joined Defrere and Bixler onstage to talk about being one of AMD's "special teams."

"We're very excited to be in this partnership," he said, "and to bring exciting new technology to the marketplace. We also believe that ATI and AMD can do great things with the channel, such as training and promotions."

McIntosh was followed by Jobie Flores, national account manager at Sun Microsystems.

"Sun has made a big commitment to AMD Opteron 64," he said. "We are the only Tier 1 vendor to offer a full 64-bit solution. We're now shipping two and four-way Opteron, and we have just announced a new 64-bit workstation. We also have a new partnership with Tech Data that will help us extend the 64-bit market into the mid-market SMB space. Keep in mind that Sun has had ten years of 64-bit computing experience."

AMD's Bixler finished the presentation by reminding his listeners that AMD has just launched a new solution provider program, and will soon be launching the Way To Go marketing program.

"It looks like a clean sweep for AMD Team64," he said.

 




System Builder Summit & VARVision Roundup

By Keith Newman and Bob Straight

NASBA had its normal large contingent of product and service company vendors in its area of the show floor and President Doug Daniel was promoting the organization’s latest programs…….”we had 28 Vendors at the event.” Gartner continues to bring new vendors and new attendees to the event and this event is looked upon as the channel event by vendors and resellers. This event presents the opportunity to renew and solidify existing relationships and begin new ones. The participation by the Latin American VARs gave everyone a chance to further their knowledge regarding that market place. I would strongly encourage Gartner to continue this type of international exchange which is healthy for the channel. In addition to the vendors, NASBA had over 200 members participate in the Event. The continuous feedback that we get is that business market conditions get a little better each quarter and have done so for the past six to seven quarters. Our members expect this trend to continue for the remainder of 2004 and through 2005.

The event was a success, and every time I think the Event managers and their staff can't possibly do better, and every time they prove me wrong. The fireworks and the awards are all spectacular but you get your ROI from the networking.

ANTs, a developer of high-performance SQL database management systems, unveiled its ANTs Software Alliance Program, which was created to extend the capabilities of the high-performance ANTs Data Server to markets and customers serviced by VARs, OEMs and ISVs. The new program is aimed at increasing the margins of ANTs channel partners by lowering software, hardware and administration costs for heavy workload, update-intensive applications. The ANTs Software Alliance Program is targeted to reach specific markets that require a high-performance RDBMS, such as financial services, government, e-business, security and health care. The ANTs Data Server is an industry-standard RDBMS built on a breakthrough, high-performance SQL query execution engine that incorporates innovative lock-free operations. Its unparalleled performance in heavy workload, update-intensive applications can be added to turbo-charge existing applications, or it can provide a unique platform for applications being developed by solution providers for their target markets at price-performance levels unavailable until now. “Through our new Software Alliance Program, we offer partners a strong value proposition,” said Steven Messino, vice president of sales for ANTs Software Inc. “We help them support enterprise workloads with less hardware, delivering unprecedented application performance improvements and potentially significant total-cost-of-ownership savings to their customers. We provide this distinct market advantage together with a range of sales, marketing, technical and consulting support for our partners.” Partners will receive the ANTs Data Server, sales tools, training, technical tools, and certain technical and support services. ANT’s Software will turbo your database. The ANTs Data Server is an industry standard database management system based on breakthrough, high-performance SQL query execution engine. ANT’s channel message to VARs was how to increase the value they provide their customer while leveraging ANTs software into significant margins in the software and services. They are looking for VARs that can handle all aspects. The Data Server works with Solaris, Windows or Linux. Further information about ANTs’ new Software Alliance Program or Software, it can be found at: http://www.antssoftware.com or by contacting Patrick Moore at 650-692-0219 x13 or patrick.moore@antssoftware.com.

Antec has added the SLK1650 and SLK1650B to its affordable Solution Series line of PC enclosures for system integrators. The sleek black SLK1650B and beige SLK1650 mini-towers offer valuable features for building a powerful and customizable PC including an ultra-quiet 350 Watt SmartPower power supply and eight drive bays for maximum expandability. For convenient upgrading, these cases also come equipped with a quick-release drive cage allowing easy installation and replacement of 3.5" drives. Other features include a 120mm low speed rear fan, rubber grommets to reduce hard drive vibrations and noise and a Chassis Air Guide on the side panel for efficient CPU cooling. Two front-mounted USB 2.0 ports enable easy multimedia connections, and an additional mount for an optional 80mm front fan offers ample cooling capacity. Additionally, the SLK1650 and SLK1650B have been tested and proven to meet thermal performance requirements to be listed by Intel as Thermally Advantaged Chassis. Thermally Advantaged Chassis meet electrical, thermal, mechanical fit and functional compatibility standards to properly support the Intel Pentium 4 processor and Intel Celeron D processor based on 90nm process technology. "Today's system builders are dealing with increased pressure to uphold quality standards while sticking to shrinking budgets," said Scott Richards, Antec worldwide vice president of sales and marketing. "The SLK1650 and SLK1650B give integrators all the power and expandability they require without emptying the company wallet." The SLK1650 and SLK1650B are currently available for an estimated street price of $69.95 each through major retailers, e-tailers and distributors. Both cases are backed by Antec's Quality 3-Year Warranty. For additional product information and full technical specifications, please visit www.antec.com.

Founded in 1996, LaGarde is the leading global provider of e-commerce solutions for businesses of all sizes, offering businesses everything they need to build and run a business online and integrate it with an existing operation. LaGarde provides highly flexible e-solutions for b2b web commerce and b2c web commerce. LaGarde's 6th generation StoreFront e-commerce, web development software delivers robust, feature-rich solutions to develop, deploy and maintain e-business sites that deliver enterprise functionality at an affordable price point. The StoreFront platform powers nearly 50,000 web stores in over 70 countries around the world including Florsheim Shoes, The Boston Globe and
Panama Jack. LaGarde offers an extensive suite of complementary services, including design and customization at the code level. This allows LaGarde to work with VARs to integrate StoreFront stores with any system a business needs, including Point of Sale, Accounting, Warehousing and other systems. In addition, LaGarde offers middleware for e-commerce, including Microsoft Great Plains Accounting and RMS Retail/Point of Sale systems. LaGarde has flexible programs to work with VARs and systems integrators including the source code. Partners can do work themselves for clients or we can do it for them under private label or branded approaches. Profit opportunities are very lucrative in the growing e-commerce, e-solutions marketplace.

 

PowerHouse Technologies announced the introduction of a new Migo™ product line as a standalone software designed specifically for use with iPod® mobile digital devices. Migo Personal for iPod transforms the popular MP3 player into more than a mobile jukebox. It allows users to harness their personalized computer settings on any PC, providing the most productive and comfortable environment possible. The Migo software stores Outlook® email, calendar and contacts. Internet Explorer favorites and browsing history as well as data files, presentations and much more on the iPod’s hard drive. “The merging of our Migo software with the iPod digital music player creates a mobile productivity tool that encompasses the best of both worlds,” said Joshua Feller, president of PowerHouse Technologies Group, Americas. “iPod users can now enjoy their favorite songs while carrying their personalized computer settings wherever they go.” Plugging a Migo equipped iPod into a Windows®-based host computer instantly converts it into a virtual copy of the user’s PC. The user’s Outlook and data files, Internet favorites and desktop wallpaper appear on the host computer as if it were their own. The Migo software even carries Internet history entries and cookies, ensuring that nothing is left behind on the host computer.

LSI Logic Corp. announced plans to bring enterprise class products to the SMB market via the introduction of the LSIU320 entry-level Ultra320 SCSI PCI-X Host Bus Adapter (HBA), a general-purpose card ideal for attaching SCSI peripherals to workstations and servers. Featuring the LSI53C1020A SCSI processor, this single-channel half-size form factor HBA has a 64-bit/133MHz PCI-X host bus interface and is backward compatible to 32-bit/33MHz PCI expansion slots. “The LSIU320’s seamless backward compatibility with all previous SCSI generations and PCI host bus slot types allows it to deliver Ultra320 performance while protecting investments in existing hardware,” said Joe Leader, senior director of worldwide channel marketing and business development for LSI Logic. “This versatility enables selection of the right peripheral for your application without any concern over the SCSI interface supported by the device. The LSIU320 is a great option to attach JBODs, SCSI RAID arrays, tape drives or libraries, magneto optical drives, DVD libraries and other SCSI peripherals to workstations and servers.” The LSIU320 brings Ultra320 SCSI’s renowned reliability to applications not requiring Integrated RAID (0,1, 1E) – as offered by LSI Logic’s LSI20320-R, LSI21320-R and LSI22320-R HBAs. With LSI Logic TolerANT™ technology, the LSIU320 improves data integrity in less than ideal cabling environments. LSI Logic SureLINK™ domain validation further ensures data reliability, verifying that all devices are able to communicate at the negotiated SCSI transfer rate and optimizing the connection between the HBA and each device on the bus. Powered by LSI Logic intelligent Fusion-MPT® architecture, the LSIU320’s throughput can scale at nearly 100 percent as additional cards are added to a system, while enabling extremely high host processor efficiency. In addition to boosting performance, Fusion-MPT enables an exceptionally thin, common device driver for any given OS simplifying installation and allowing the LSIU320 to be effortlessly integrated into systems already qualified using other Fusion-MPT architected devices. The LSIU320 HBA complements the LSI Logic storage adapter family of SCSI and Fibre Channel HBAs and MegaRAID adapters for SATA II, SCSI and Serial Attached SCSI (SAS).

Lantronix recently announced a series of initiatives that will further strengthen the company’s channel presence, including the hiring of two channel veterans with extensive reseller and distribution experience. The management additions bolster the company’s commitment to develop and expand channel marketing and sales initiatives. Spearheading the company’s channel efforts, Lantronix hired Brad Painter as vice president of channel sales and Errett Kroeter as director of channel marketing. Painter will be responsible for overseeing the strategic direction and management of the Lantronix’ channel sales operations, including the growth of the company’s sales and support infrastructure. Kroeter manages the company’s overall channel strategy, including program development, product channel readiness, target-partner profiling and identification, and awareness building among resellers and solution providers. “Brad and Errett bring successful track records in channel development, management and marketing from leading channel-focused companies such as Hewlett-Packard and IBM,” said Marc Nussbaum, president and chief executive officer for
Lantronix. “Lantronix’ network-infrastructure and remote-management products open a wide range of revenue-generating, margin-growing opportunities for our partners, and Brad and Errett are ideally suited to communicate that message, demonstrate Lantronix’ commitment to the channel and ultimately grow our presence and sales. “Lantronix is focused on helping business flow through its channel partners and building the internal support structure to accelerate channel sales,” said Joe Serra, vice president Networking Product Marketing, Tech Data Corporation. “From strengthening its sales and support infrastructure to adjusting the margin structures of their programs, Lantronix is taking all the right steps to ensure the maximum profitability of its partners.”

Level Platforms, a relative newcomer to the marketplace, introduced an exciting to product that can help resellers and integrators more effectively and profitably manage their business and their customers’ business. Managed Workplace presents all customer site data through a centralized, consolidated web console – an intuitive central dashboard that provides integrated availability status, real-time alerting, graphical performance reporting, trouble ticketing, and asset inventory. The secure web-based reporting system ensures that the date is always timely and accurate.

Linspire - Representing the growing Linux market Linspire demonstratied their Linux OS. Their Linux OS is a stable and cost effective (about $10) alternative to XP for System Builders. The first thing you notice is that the OS has a very familiar look and feel. It literally takes minutes to be fully up and running. The system is fully compatible with virtually every program including Microsoft. Since it is open source the user gets application updates and new applications for free. Industry experts except Linux OS to reach double digit market share by 2007.

If success of Inspire is any indication, Linux may be here sooner than we think. Inspire is currently on PCs at TigerDirect, Frys, Micro Center and others. They also have launched a box version at Staples. They have also created more value by consolidated over 1,900 applications that the user can easily download for free. For more information go to www.linspire.com

Novell – Channel message was, grow your business and deliver more value to your customers by exploring Linux and open source. Novell’s award winning technology is now available to your small clients for FREE. Novell gives channel partners and integrators the Novell Small Business Suite 6.5 Starter Pack at no charge for small (5 or less) customers. This full feature version includes the latest Novell networking, collaboration, management, and security products.

Black Box - It is always good seeing our friends at Black Box. Being the world’s largest technical services company they come to the event with a simple mission, to find a few new products/opportunities. Black Box is dedicated to designing, building and maintaining today’s complicated network infrastructure systems and is looking for partnerships and products.

Kodak - Announced two new desktop scanners, the KODAK i30 and i40 scanners. The KODAK i30 and i40 scanners are loaded with innovative features common to high volume scanners to maximize productivity and value to customers with lower volume scanning needs. KODAK also announced the KODAK Capture Software 6.5 designed to unwrap the full functionality of the i30 and i40. The i30 and i40 are bundled with KODAK Capture Software Lite with the ability to upgrade to the full version.

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System Builder Summit & VARVision Fall Award Winners





Channel Digest

By ChannelMedia Staff

SANRAD announced that its V-Switch 2000 has been verified by Brocade Communications as interoperable with the company's Storage Area Networking (SAN) infrastructure, according to the testing requirements of the Brocade Fabric Aware Program, an end-to-end interoperability initiative for SANs. The program is a comprehensive testing and configuration initiative designed to foster SAN interoperability in multi-vendor Brocade-based SAN environments. Testing was conducted at the Brocade interoperability labs, which are state-of-the-art facilities supporting end-to-end interoperability and performance testing of SAN products in multi-vendor and large fabric SAN environments. The Brocade Fabric Aware Program has added more than 50 members since its launch in 2000.  In addition, as part of its investment in SAN interoperability, Brocade actively supports its member’s interoperability initiatives. According to Zophar Santé, SANRAD vice president of market development, Receiving Brocade’s Fabric Aware Program status allows us to better deliver to our joint customers a solution that is tested and certified to work without the additional headaches or problems that are often problematic in heterogeneous storage environments. SANRAD's iSCSI V-Switch 2000 enables simplified SAN deployment while allowing departments and mid-sized businesses to maximize their ROI by utilizing existing storage resources as shared storage on the iSCSI SAN. The storage management and virtualization functions protect a customer’s investment in existing DAS, NAS and SAN storage by gathering all physical storage resources (SCSI, iSCSI and FC) into a single pool. Network administrators can define new logical volumes from these pooled resources independent of physical barriers such as enclosures, physical disks, protocols and distance. We are pleased that SANRAD has successfully completed the Fabric Aware testing with Brocade fabric switches in multi-vendor SAN environments, said Jay Kidd, Brocade CTO, Infrastructure Systems Group.  Storage area networks are being deployed worldwide at a rapid rate as a scalable, high performance networking foundation for storage environments. The Fabric Aware program is an example of our continued commitment to delivering end-to-end interoperability to SAN customers.

Top storage industry analysts are increasingly bullish on the positive impact that Information Lifecycle Management has on transforming corporate data management and the allocation of storage resources. ILM provides a platform for dramatic cost savings, and highlights the ongoing demand for tape storage technologies as part of a multi-tiered storage hierarchy, according to Maxell Corporation of America, the technology and marketing leader in advanced recordable media products. ILM is an important business process that can significantly streamline costs and management efficiencies relating to enterprise storage, said Steve Duplessie, Founder and Senior Analyst at the Enterprise Strategy Group. Significant cost savings can be realized having the right data on the right infrastructure at the right time. ILM is not a single hardware or software technology. Rather, it is a collection of processes and technologies that enable IT administrators to effectively manage critical corporate data by recognizing that the value of information changes over time. When properly implemented, ILM allows IT managers to improve data utilization and reduce the total cost of managing corporate storage management. ILM is a multi-stage process by which an organization categorizes information based on its value, and then assigns the information to the most cost-effective storage platform. As the value of the information changes over its lifecycle, it is migrated to other storage platforms based on a set of pre-defined policies. ILM uses sophisticated analysis to categorize information and set migration policies, giving IT managers the ability to prioritize information based on business requirements such as the importance of the application, the sensitivity of the data and the impact of downtime on the business if the primary data copy is corrupted. ILM brings into focus the importance of cost-effective removable media and the critical role tape technologies play in an enterprise storage hierarchy, said Steven Pofcher, senior marketing manager at Maxell. An ILM-based hierarchy demonstrates the complementary roles that fixed disk and tape play in helping organizations to reduce the total cost of ownership of storage by effectively prioritizing and matching backup and recovery speeds to the proper class of storage. An objective of ILM is to effectively match specific information to the appropriate class of storage - primary, secondary or tertiary - based on its assigned value. For example, high-value, frequently-accessed data should be more accessible and stored on high-speed hard disk technology, while older data is more cost-effectively stored on tape, such as DAT 72, LTO and Super DLTtape media.


RESEARCH

Maximizing the Channel: Emerging Technology and New Product Launches

Panel Discussion - Fall 2004 System Builder Summit & VARVision

Moderated by:  Shari Marion-Hoff, CEO/Chief Channel Strategist

When it comes to introducing new technologies to the channel, it all comes down to what’s in the mix. Planning, packaging, presentation, bundling, education, and incentives can all influence the success of a new product launch to the channel, according to a recent System Builder Summit & VARVision panel discussion moderated by Shari Marion-Hoff, president of channel marketing firm Hawkeye | Cohesion. Joining Marion-Hoff were a group of channel players that included vendors, VARs, system builders, and distributors.

To create “maximum velocity at launch,” NEC-Mitsubishi deploys a “ready, set, go” model that begins over a year in advance of the launch itself, says Jeff Blanksensop, a regional sales manager at NEC-Mitsubishi. The process, which includes building awareness both in the channel as well as among end users, is designed to allow for “the highest potential for profit” earlier--rather than later--in the product launch cycle. 

Laying the groundwork includes clearly communicating the value proposition not only to the channel, but also to the end user community to build demand. “We spend 80 percent of our time calling on the end user community to get the product on the radar,” Blankensop says. NEC-Mitsubishi also uses a “bounty” program to encourage resellers to get in front of customers, with the promise of additional revenue if that reseller closes the deal.

Both Doug Phillips, vice president of Products and Solution Development for Seneca Data, and Taheri Rangwala of En Pointe Technologies, concur on the importance of customer education. “Educating the end user is key to helping them understand the technology and its value,” Phillips says.

Demand aside, not every new product is right for every partner - it must fit the partner’s business model as well as the end customer’s needs. For its Digital Home initiative, Intel has used a combination of advisory councils, field coverage, and email communications to inform the marketplace about its new offerings - and to get their feedback on whether it’s right for them, says Frank Raimondi, strategic channel alliance manager for Intel. “Our model is very flexible and we don’t expect all resellers to accept all products.”

“It has to fit into the product mix,” agrees Steve Harper, president of the value-added reseller Network Management Group. “I also look to my colleagues and peers for validation. VARVision is an excellent forum for validation.”

Distribution can play a key role in helping manufacturers find the right partners. “We see ourselves as a match maker between vendors and solution providers,” says Dan Schwab, vice-president of marketing for D&H Distributing.

For finished goods, sometimes the manufacturer can play the matchmaker too. “We look for ways to sell a complete solution,” says NEC-Mitsubishi’s Blankensop. “Within our display solution partner program, we recruited 25 manufacturer partners.” The combined product line creates opportunity for solution providers to sell a complete solution.

Intel also identifies potential complementary products to its new technologies and creates bundled promotions “to make people aware of what products work well together,” says Raimondi.

Channel feedback helps manufacturers determine what kind of sales and marketing support will help resellers drive sales. Using reseller councils, vendor Trend Micro involves its partners early in the product launch cycle, to better assess market readiness and the appropriateness of different kinds of marketing and sales tools.

“Our role is to put out effective programs,” says Dana Testa, senior channel marketing manager at Trend Micro. “We need your feedback in order to understand how we can create business opportunities.”

Hawkeye | Cohesion is a leading provider of channel marketing solutions to technology manufacturers. With a tight integration of marketing and technology, Hawkeye | Cohesion designs and deploys custom solutions that streamline complex marketing processes and enhance the channel customer experience. The result is greater partner satisfaction, lower operational costs, and the ability to optimize programs based on solid reporting, backed by industry knowledge. Details about Hawkeye | Cohesion services can be found at http://www.cohesioninc.com.




Moves Color From the Corporate Office to the Small Office

By: Jake Wang
Current Analysis, Senior Analyst, Multifunction Printers
 

In late 2003 and early 2004, most workgroup multifunction printer (MFP) market leaders such as Canon and Ricoh, to technology leaders in production color such as Toshiba and value leader Kyocera-Mita, highlighted color in the office as a strategic direction, focusing on driving color migration in corporate office environments. For many workgroup MFP manufacturers, the key to revenue growth in 2004 is tied to the success, adoption, and widespread use of color printing and copying in the office. Large workgroup MFPs offering occasional and office color capability with color print speeds from 8 pages per minute (ppm) to 30+ppm reached price points as low as the $10,000 for asset costs, and running per click costs of 8-12 cents a page. The expansion of product offerings and pricing strategies for replacement products priced near or at comparable mono MFP solutions have helped to drive color adoption in the office.

With workgroup products driving color usage in the corporate offices, small and medium businesses might seemingly be left out of the color game as entry prices for workgroup MFPs are high. However, price erosion during the same period in the single function color laser space accelerated, with significant price declines occurring in the last quarter for the entry level 4 to 12-ppm color laser segment. These price drops increased speculation by industry analysts that a color laser desktop MFP might be released soon. The recent price decline of four-pass color laser single function printers to below $499 (effective prices of $349-$499) provided a catalyst, enabling manufacturers the ability to build an affordable desktop color laser MFP.

Currently, there are a number of single function color laser print engines that could be integrated with a scanner/copier/fax unit to create a desktop MFP priced under $1,000. The most obvious candidates are the Samsung CLP-500, Konica Minolta 2300W, and HP LaserJet 2550, all of which provide color laser print speeds between 4 to 5-ppm at effective prices below $499. The price to performance ratio continues to improve for single function color laser printers as about a month ago the Okidata C5150 dropped in price, offering 12-ppm color print speeds using LED technology at $599, and just recently its effective price fell to $499 after Staples’ $100 mail-in rebate offer.

Product Specifications

In a major twist that surprised even the most seasoned analyst expectations, Canon has emerged as the market innovator. Canon’s announcement today of the MF-8170C at $999 heralds the creation of the desktop color laser MFP segment. The MF-8170C will offer flatbed copy, print, fax, and scan capabilities utilizing a color laser copier engine, the first of its kind in the desktop category. The MF-8170C will be based on a four-pass 16-ppm mono and 4-ppm color laser copier engine offering, 48-bit 1,200 x 2,400 dpi resolution, 33.6 kbps Super G3 Fax capabilities, 50 sheet automatic document feeder (ADF), built-in networking, and a 250-sheet cassette and 125-sheet multipurpose tray. From a strategic perspective, Canon has traditionally entered markets after maturation and its launch of a new product sub-category, innovating on current offerings, while providing a new and unique value is a welcome change. As a supplier of color laser engines to HP, Canon is uniquely suited to launching the first ever desktop color laser MFP targeted at the SMB market.

The new offering will allow SMB buyers the flexibility of deploying MFP capabilities with the quality of laser text and color graphics, and in turn, reduce the number of devices needed to support small workgroups. The utilization of a color laser engine will provide increased long term cost savings, when factoring in consumable costs relative to inkjet alternatives. SMBs looking for color output from an MFP will now have an alternative to high priced workgroup MFPs and expensive consumables from inkjet MFPs. Street prices for the desktop color laser MFP segment will decline quickly, mimicking the recent steep decline observed in low end single function color laser segments as manufacturers launch color laser desktop MFPs in 2005. A historical look at average flatbed price erosion highlights the steep initial decline that will likely accelerate as Dell’s presence continues to expand in the printer category.

Trending & Forecast

The introduction of a new sub-category in the desktop MFP space is a rare event, the last of which occurred in 1999 with the introduction of the mono laser flatbed MFP. However, the continued decline of laser pricing and upcoming addition of color laser MFPs under $1,000 has made color laser print solutions a reality for the SMB market, which brings into question if and when laser will replace inkjet technology for home printing. Aggressive pricing activity in the single function color laser segments points to the likelihood of effective prices at $299 for four-pass entry level single function printer by year’s end, and $199 in 2005.

The advent of the desktop color laser MFP is long overdue and the SMBs healthy appetite for inexpensive color laser print devices will ensure their success. Competitive pressures will build quickly for this new sub-category, causing accelerated ASP declines in 2005. Increased speeds and capabilities will complement price declines, offering increased utility for small workgroups sharing a single device. The adoption of color laser in the office and continued price erosion will likely spur adoption in the home office markets as prices fall below $600 for multifunction and $300 for single function.

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COMMUNITY

Bits and Bytes

By ChannelMedia Staff

With more than 5.6 million small- and medium-size businesses (SMBs) in the US, the market represents a significant opportunity for technology vendors. In fact, small businesses accounted for 31% of all US IT spending last year, and roughly 53% of the growth. See how upcoming changes in small business could mean big opportunities for your business in eMarketer's new Trends in SMB IT and E-Business Spending spotlight report. The Trends in SMB IT and E-Business Spending spotlight report delves into the diverse and fragmented world of small and medium-size businesses (SMBs) to uncover a huge growth opportunity for technology vendors over the next several years. While individually SMBs don't spend much on technology, with millions of them out there, they represent a multi-billion dollar opportunity. In addition, tax law changes now allow them to deduct as much as $100,000 annually in fixed capital expenditures from taxable earnings -- that's up from $25,000 prior to 2003. Hardware, software and IT services providers are all looking at how they can sell more effectively into the SMB market.

Email marketers seeking to increase their open and click-through rates would be wise to keep subject lines short and hyperlinks plentiful, according to a new study from EmailLabs (The company today announced the release of an analysis of key variables involved in the delivery of permission emails from more than 650 companies during the first quarter of 2004. The EmailLabs study compared and tested message size, the number of embedded links and the length of the subject line. The findings: subject lines shorter than 50 characters in length, as well as an increased number of hyperlinks, led to increased open and click-through rates. Message size did not appear to be a significant factor in boosting rates, although messages in the 20 to 79 kilobyte (KB) size range had slightly higher open and click-through rates than messages from 3 to 19 KB. Subject line lengths were divided into zero to 49 characters and 50+ characters. When analyzed, the zero to 49 character subject lines had an open-rate 12.5 percent higher than the 50+ character subject lines. Click-through rates for the zero to 49 character group were 75 percent higher than the 50+ group. The differences in open and click-through rates were smaller but still distinct when evaluating the number of hyperlinks contained in the email. Emails with 25 or more links had an open rate of 12 percent higher than those containing fewer than 25 links, and a click-through rate of 29 percent higher than for emails with fewer than 25 links. "These results support some long-held beliefs among email marketers," said Loren McDonald, Vice President of Marketing, EmailLabs. "In general, email marketers should limit the length of their subject lines to less than 50 characters, and should include as many hyperlinks as possible. In addition to a shorter subject line being visible in its entirety in most email clients, recipients comprehend shorter subject lines more easily and quickly. "The more links there are, the greater the chances that one or more will resonate with the recipient and motivate them to click through," McDonald said. "While 25 links may sound like a lot, navigation and administrative-type links in best practices newsletters can easily reach 15-20 links by themselves." For message size, 43 percent of client messages sent were in the 20 to 79 KB range, followed by 28.4 percent for 10 to 19 KB, 25.9 percent for three-nine KB, 1.4 percent for less than three KB and one percent for 80 KB or larger. Messages in the 20 to 79 KB size range had open rates and click-through rates of 4 percent and 8 percent higher than messages in the three-to-nine KB range. Interestingly, although only 1.4 percent of messages sent were less than 3 KB, those messages had the highest average open rate, bounce rate and unsubscribe rate. "Marketers shouldn't be too concerned with the size of their messages, with our analysis not revealing any negative affect on performance from larger-sized messages," McDonald noted. "That being said, the general rule of thumb to try to limit messages to 40 to 50 KB is not a bad idea, due to size limits on the receiving end. "While we believe these findings are compelling, it is essential that, email marketers conduct split tests across key variables to determine what works best for their specific customers and subscribers," he advised.

With local and long-distance charges increasing yearly, small and mid-sized businesses (SMBs) are adopting Voice over Internet Protocol (VoIP) at a rapid rate, stated the Information Technology Solution Providers Alliance (ITSPA), a national, non-profit alliance that helps SMBs understand how technology and local technology providers can help them succeed. "VoIP offers both long-term cost savings and improved productivity," said ITSPA Advisory Board member Darren Spohn, CEO of Spohn & Associates in Austin, Texas. "Unlike regular phone service, VoIP conversations are transformed into digital information and sent over a broadband data network. "This means VoIP callers don't have to use public phone lines and can avoid expensive long-distance charges," said Spohn. "Another advantage is that SMBs that use VoIP can rely on a single data office network rather than having to maintain separate networks for data and phone systems." VoIP Offers Many Features Traditional phone service simply doesn't match the advanced features offered by VoIP. Unlike early versions of the technology, today's VoIP service offers much greater voice clarity and advanced features such as conferencing, dialing the phone from a PC contact list, and video chat, for instance. "SMB employees who use VoIP are more productive, too, whether they be at home or traveling," said Spohn, "because they can place and answer calls from any location using a VoIP handset. Features such as follow-me messagin enable them to forward messages to several numbers, and it's easy to access e-mail and voicemail from their PCs." To set up a VoIP network, SMBs that already have data networks need only buy new telephone equipment that connects traditional phones to the Internet. "However, SMBs with data networks that may be over-extended should consider upgrading their equipment before VoIP is introduced," Spohn added. "Sometimes, this can be an expensive proposition and it may be practical for an SMB to turn to an IT solution provider for help. "Solution providers can help make the transition to VoIP easier by evaluating the transition and recommending workplace solutions," said Spohn."For example, it's important to evaluate whether an SMB's current phone system is obsolete, and whether the company is nearing the end of its PBX lease or service agreement. "SMBs that use IP Centrex lines for both Internet and phone service are prime candidates for VoIP, which will significantly reduce line charges," Spohn said. "Companies that move to new offices where no wiring has been installed can use VoIP to create new data/voice networks. And VoIP will completely eliminate toll charges for SMBs that have offices in different area codes, or have employees who place a lot of long-distance calls in the U.S."

Walk, Don't Jump, Into VoIP
Selecting the best -- and least expensive -- VoIP workplace solution can be challenging. Members of ITSPA's Technology Committee, made up of IT directors from the nation's most successful solution providers, offered VoIP survival tips to SMB decision makers:

-- Review your current network. Before converting to VoIP, evaluate everything -- from the system's memory and computing power to your servers and routers -- especially the amount of bandwidth coming through your high-speed connection. The latter should have sufficient capacity to handle voice traffic. If it doesn't, this could negatively affect call quality, slow Internet traffic and result in lost calls. -- Get help, if needed, from a solution provider. Most technology solutions offered today claim they will produce cost savings and increase productivity. Figuring out which solutions really deliver on their promises is difficult without help. Local IT solution providers are available to offer expert professional evaluations, advice and help with your VoIP plans.

-- Test your network when it is stressed. After setting up your VoIP network, determine when things are busiest, in terms of employees answering e-mails and listening to voice mails, to see whether the network has sufficient bandwidth to handle every contingency.
-- Train your IT staff. Switching to VoIP requires understanding of new technologies and management techniques. Is your present IT staff prepared to handle the changes? It may be necessary to provide staff members with new
training.
-- Do you require managed VoIP service? In addition to (re)training your IT staff, consider purchasing a managed VoIP service that includes software and equipment and is either hosted by a provider or installed on your facilities.

WatchGuard Technologies has launched a special educational resource section on its Web site that includes network security educational guides and tip sheets for small to mid-sized enterprises in recognition of National Cyber Security Awareness Month, an initiative spearheaded by the National Cyber Security Alliance throughout October 2004. As part of an ongoing effort to help both IT administrators and business users in SME organizations worldwide become more knowledgeable about network security and optimize security plans, policies and solutions, WatchGuard is kicking off its participation in National Cyber Security Awareness Month by providing online access to a wide range of educational resources at www.watchguard.com/awareness/ . The site includes content such as 'The Practical Guide for Better Security,' which covers topics ranging from how to analyze sources of risk and identify system vulnerabilities, to how to develop a tailored security plan and mid-sized enterprises, who recognize that they are no longer 'flying under the radar' when it comes to security threats," said John Stuckey, vice president of marketing for WatchGuard. "For example, a report issued recently by the Yankee Group indicated that 87 percent of SMEs had experienced some kind of security problem in the past twelve months. We've been providing educational content in addition to vulnerability alerts to subscribers of our LiveSecurity Service for years. The feedback from customers has been so positive that we wanted to make these resources available to a wider audience of SME organizations worldwide. We hope that our materials will help ease the burden of IT administrators in growing businesses who are constantly challenged to meet changing security requirements under tight resource constraints." For more information on National Cyber Security Awareness Month or the National Cyber Security Alliance, (NCSA), a not-for-profit public-private partnership focused on driving awareness and education of cyber security for home user, small business, and education audiences, please visit www.StaySafeOnline.info

Phoenix Technologies announced Phoenix FirstWare Recover Pro 2004, an innovative recovery software application for mobile workers and small and medium businesses that includes built-in security protection for a PC user's critical data and applications. Viruses, worms and other infections continue to barrage PCs, yet 60 percent of all data still resides on the individual PC as opposed to the network. Additionally,mobile users, and small and medium businesses typically don't have access to a dedicated IT staff, and are most susceptible to security breaches and infection. With Phoenix FirstWare Recover Pro 2004, users can automatically back up their PC operating system, applications, user settings, and data files and easily recover them in the event of a virus attack or system crash. There is no need for IT support or training or to connect to the Internet for recovery assistance. Because the backup and restore functions are built into the PC's hard drive as a "pre-boot" application, additional CDs, DVDs, or a separate USB devices aren't necessary to get back to business. After an attack, users are guided through the recovery process by using an easy graphical user interface (GUI) that requires just a few keystrokes to restore the PC to its pre-attack condition. With Recover Pro 2004's flexible backup options, users choose how and when their automated backups are created. Users can recover their systems to an incremental restore point (created monthly, weekly, daily or hourly), to a static restore point, or to the original factory image. Recover Pro 2004 stores the backup of the PC system image in a hidden partition of the hard drive that is safe from the threat of viruses, worms and other forms of contamination. It allows the recovered system image to be isolated and protected from all threats, including operating system crashes, where vulnerabilities and file corruptions are common. In the event users contract a virus, they can use Recover Pro 2004 to restore their systems to a point prior to infection and can safely return to work with recovered data that is free from infection, contamination, or corruption. Recover Pro 2004 is a vital addition to any company's IT security protection regimen, complementing network protection and virus scanning with the industry's most convenient and powerful PC regardless of virus attack, OS failure, or accidental file deletion," said Calvin Lam, President, Avus, LLC, a major provider of technology products to value-added resellers and white-box integrators. "The Phoenix FirstWare Recover Pro 2004 application allows us to help businesses quickly recover their PCs and restore user data, which saves time and reduces IT costs."




Top-Selling Software
Week of September 19– September 25, 2004
Business
1 MS Office 2003 Student/Teacher Ed Microsoft $141
2 QuickBooks 2004 Pro Intuit $256
3 QuickBooks 2004 Intuit $256
4 AD Guard Valusoft (THQ) $19
5 MS Office 2003 Pro Upgr Microsoft $315
6 MS Office 2003 Microsoft

$390

7 MS Office 2003 Pro Microsoft $475
8 MS Office 2004 Student & Teacher Ed Microsoft $143
9 1000 Best Fonts JC Cosmi $8
10 Defender Pro 5 in 1 Global Star Software (Take 2) $20
 
List is based on units sold by twenty-three channel partners. For more information, please contact The NPD Group at (703) 376-6226.


 

 

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