Computer Reseller News Sa June 2008

June 2008

www.crn.co.za

Inside This Issue HP NAP creates secure infrastructure p16>> IBM SA launches innovation centre p33>> The rise and fall of ChannelWare p36>>

A look at the glitch in the distribution matrix p8>>

PUBLISHER’S: NOTE

Is mobile Internet taking off in SA?

I

s mobile Internet taking off in SA or is Telkom still holding the country back from deploying the latest wireless technologies and infrastructure that will revolutionise what industry pundits have dubbed the “mobile Internet” era? As the world’s telecommunications groups, including Vodafone, Verizon Wireless, AT&T and China Mobile, ready themselves to deploy 4G wireless broadband services over the next four to five years, consumers in SA are concerned that Telkom’s continued monopoly and dominance is holding the country to ransom as wireless broadband services and access are still way beyond the reach of the average household. While cellular service providers, such as MTN, Vodacom and Cell C, have made inroads and continue to do so with their own offerings of broadband wireless services and access, it is Telkom that holds the key to unlocking the mobile Internet market in SA. For starters, if mobile broadband services were to be made available at relatively affordable prices, the PC population, particularly the mobile PC and handheld IT devices market, would boom. This is not the case in SA as the costs of fixed DSL and ADSL services are still high and beyond the reach of many households that would like to have Internet connectivity. In fact, SA and certainly many other countries on the African continent have the opportunity to leapfrog to the new wireless technologies that provide the springboard for the mobile Internet era. Technologies that are leading the race in 4G wireless broadband services include WiMax, the 4G standard backed by Intel, Motorola, Samsung, Long Term Evolution (LTE) and Third Generation Partnership Project (3GPP). SA needs to invest in wireless infrastructure for it to be on par with other developed countries that have not only deployed the latest wireless technologies but even offer consumers WiFi-enabled hotspots in public places. With the potential that digital entertainment and mobility hold in SA, unlocking fixed broadband services and access would not only allow for steady PC population growth, but also open up the Internet market. WiMax seems to be leading the race, with real products coming onto the market. So what does this mean for businesses, mobile professionals and consumers? As telecommunications carriers discovered when they began to deploy 3G networks, most users didn’t care about the underlying technology. Instead, most were interested in and wanted to know about what applications and services the technology enables? Is this going to be the case with 4G? Although it is still early days, no one is really sure what killer applications will be enabled on 4G networks that are going to be commercially deployed in SA. According to a recent report on mobile Internet reported in the Financial Times, there appears to be general consensus that business users will continue to demand ever-faster mobile broadband access. This clearly indicates that there is willingness on the part of most South African businesses to embrace and deploy mobile broadband technologies if they can be packaged and priced affordably. Among the main reasons why it makes sense for businesses and mobile executives to deploy mobile enterprise applications is the spinoffs from increased employee productivity and availability as a result of being able to access information anytime and anywhere, and from any Internet-enabled handheld device. I would like to hear from you about how the mobile Internet is creating business opportunities for your solution provider business. I can be reached at [email protected] Enjoy the read.

Manda Banda – publisher

Contents News & Analysis 4 – What’s News 4 – Comings & Goings 6 – Dmoves 8 – Cover Story: The glitch in the SA distribution matrix. By Kaunda Chama

09

12 – Cisco plans to capitalise on the mobile market. By Dudu Shaba CRN Contacts: Publisher: Manda Banda [email protected] Online editor:

16 – HP extends identity manager product range. By Dudu Shaba 18 – Lexmark launches new Channel Value Programme. By Dudu Shaba 19 – Demand Generator: Itec monitors FNB’s printing solutions. By Dominic Khuzwayo

Kaunda Chama [email protected]

20 – HiFive: Novell introduces Open Workgroup Suite. By Dominic Khuzwayo

Journalist:

22 – Mweb Business launches software as a service for

Portia Shaba

SMEs. By Kaunda Chama

12

[email protected]

24 – Intel vendor sees light on the “dark continent”. Intern: Dominic Khuzwayo [email protected] Brand executive:

By Kaunda Chama

36 – The rise and fall of ChannelWare: MB Technologies redeploys subsidiary after slow growth. By Kaunda Chama

Features

19

Hellen Murahwa [email protected]

26 – Handhelds: The speed of collecting data and bringing it to a central point is the key advantage of handheld computers, which has

Sub-editor:

become a critical distinguishing factor in the competitive enterprise

Jenny Bastomsky

environment. By Dudu Shaba

[email protected]

29 – Desktop PCs: The South African desktop market can expect to see Designer: Spencer van Graan [email protected] Database and subscriptions: Daisy Mulenga

modest growth in 2008, as notebook sales continue to eat into the traditional desktop market. By Dudu Shaba

33 – IBM SA has unveiled the new Africa Innovation Centre in SA an initiative that will contribute towards IT skills

27

development in SA and the rest of the sub-Saharan Africa region. By Dudu Shaba

[email protected]

Products & Technology copyright notice CRN Southern Africa is published monthly by Systems Publishers (Pty) Ltd. The copyright of all material in this publication is reserved by the proprietors, except where expressly stated. The publisher, however, will consider reasonable requests for the use of material by others on condition that the source and author of the report are clearly attributed. Due to the nature of the newspaper print process, Systems Publishers cannot be held responsible for colour variations in printed advertising. Printed by Ultra Litho. CRN Southern Africa is a licensee of CMP Media LLC.

Private Bag X12, Rivonia, 2128 Tel: (011) 234 7008 Fax: (011) 234 7025 Registered with the Audit Bureau of Circulation

2 •

38 – Product Reviews. By Kaunda Chama

Parting shots

39

40 – SnapShot: Sasha Davidson, Axis Communications

40 – Dilbert.

CRN SOUTHERN AFRICA • JUNE 2008

Scans in this publication have been reproduced on the EPSON PERFECTiON 2450 photo

WHAT’S

NEWS

Acer releases SMB video projectors Acer SA has announced that it is bringing a new professional range of projectors to market to give SoHo and small-to-medium-sized businesses access to its DLP technology. Bongani Gumbo, product manager for LCDs and projectors, Acer SA says the range includes three new projectors, the Acer P5260i, P7270i and P7280. “All three projectors feature Acer’s empowering technology, making them easy and convenient to use. Each model also offers support for a range of digital content sources, making them versatile enough to cater for a host of office applications from presentations to highdefinition video,” he says.

HP introduces extreme online storage HP has announced a highly scalable storage system designed to simplify the management of multiple petabytes of data. Yesh Surjoodeen, business development manager, StorageWorks Division says new business services offered by Web 2.0 and digital media firms generate massive amounts of file-based data that needs to be stored, managed and retrieved instantly. He says that large enterprises in sectors such as oil and gas, security and surveillance, and genetic research have similar demands. Surjoodeen says the HP StorageWorks 9100 Extreme Data Storage System (ExDS9100) addresses these requirements by offering vast storage capacity and simplified, integrated management.

D-LINK expands green Ethernet D-Link has announced the expansion of its industry-first Green Ethernet technology series. The company has added eco-friendly features to its Gigabit Web Smart series of multi-port network switches to decrease energy costs by reducing power consumption. According to Tobie van Schalkwyk, D-Link SA, country manager, DLink Green Ethernet technology integrates innovative power-saving features that automatically detect links and adjusts power accordingly. Van Schalkwyk says the switches feature a fanless design (DGS-1216T and DGS-1224T) that provides a quieter environment and less heat dissipation.

Lexmark launches professional inkjet Lexmark SA has launched its professional series inkjet that comes with a five-year guarantee. Paul Rooke, Lexmark executive VP and president consumer printer division says the launch of the new series is in response to the needs of SOHO) users and small and medium businesses. The professional series will be the first inkjet allin-one line to include a five-year guarantee and high-yield cartridges. “Our new professional series delivers productivity tools such as wireless, integrated two-sided printing and higher capacity paper handling,” adds Rooke.

Axis, Bosch, Sony join force Axis, Bosch and Sony announced a joint force in the creation of an open forum aimed at developing a standard for the interface of network video products. “We are pleased to announce this cooperation

4 •

CRN SOUTHERN AFRICA • JUNE 2008

COMINGS Coetzee to head up Africa

&

McAfee Inc has appointed Trevor Coetzee channel manager for Africa. Coetzee joins McAfee from the network security channel, where he has spent six years in a number of commercial roles. “Trevor has worked with some of the major security vendors and disTrevor Coetzee tributors in the South African and African markets and has gained extensive experience in business development and the activation of security strategies at end-user level,” says Chris van Niekerk, regional director, McAfee SA.

Telemasters appoints new director Tele-management and business communication strategies company, TeleMasters, has appointed Jaco Voight independent non-executive director. Voight, founder of PerfectWorx Consulting, holds a Bachelor of Social Science degree from the University of the Orange Free State. “He has exactly the sort of skills and industry experience that will help TeleMasters to further its positive growth trajectory and presence in the market,” says Mario Pretorius, TeleMasters CEO. “This is the sort of skills mix that will add real value to TeleMasters,” concludes Pretorius.

G O I N G S

between our companies,” says Ray Mauritsson, president of Axis Communications. The aim is to facilitate the integration of various brands of network video equipment and to help manufacturers; software developers and independent software vendors ensure product interoperability. “An open standard will make it even easier for integrators and end-users to benefit from the many possibilities offered by IPbased video surveillance technology,” concludes Mauritsson.

CA, announces recovery software The CA division at Workgroup has announced the availability of the latest release of CA Recovery Management. It is a solution designed to enable companies to simplify management, tighten security and recover of critical business information speedily. John Thompson, CA product manager at Workgroup says CA Recovery Management includes new releases of CA ARCserve Backup, CA XOsoft High Availability and CA XOsoft Replication. “Our customers require recovery management solutions that solve their most pressing problems and are easy to deploy, use and maintain. CA has, with this release, enabled Workgroup to address these needs head on,” adds Thompson.

WHAT’S

NEWS

Progress boosts SOA management Progress Software has announced the availability of Sonic ESB 7.6. Rick Parry, MD Progress Software SA says this release offers greater productivity for developers and for managing a service-oriented architecture (SOA) infrastructure across heterogeneous environments. He explains that Sonic ESB offers enterprises a powerful alternative to centralised and monolithic middleware stacks by providing them with the ability to integrate new and existing business services across their organisational boundaries as well as connect to remote sites with low latency, high reliability and continuous availability.

ATIO aims at workforce optimisation ATIO, a specialised ICT service provider, has bolstered its resources, skills and product offering in a bid to aggressively target the workforce optimisation market sector. Scott Forrester, ATIO’s business unit executive says workforce optimisation has the pontential to deliver increased customer and call centre agent satisfaction as well as higher revenues and reduced costs. “ATIO has identified a market demand for workforce optimisation solutions rather than fundamental product shifting,” adds Forrester. According to him, workforce optimisation will improve performance and quality metrics which lead to cost savings.

Avaya scores for mobile Avaya, a global player in communication systems, applications and services has released Modular Messaging 4.0, which comes with Avaya one-X speech interface. This provides users with hands-free access to calling and conferencing capabilities, voice, email and fax messaging from any telephone. “Our goal is to ensure cost-effective solutions where companies and employees benefit from improved collaboration, responsiveness and simplified access to the wide range of communications media used today,” says Mary Dunlop, VP unified communication product management at Avaya.

Novell, Microsoft hold hands Novell has announced its partnership with Microsoft, which will see the two companies developing advanced Linux management solutions. This joint effort is aimed at maximising the value of customers’ IT infrastructure investments. “Customers are looking for solutions that enable them to manage heterogeneous IT environments, and Microsoft is pleased to extend its System Centre suite to offer management of Linux distributions like SUSE Linux Enterprise,” says Brad Anderson, general manager of the management and services division at Microsoft.

EMC unveils new products EMC, has unveiled two of its new documentum products. These products are designed to bring the power of eXtensible Markup Language (XML) technology to a broader range of enterprise information. Rita Knox, research vice president at Gartner says: “XML technologies and solutions are quickly becoming the answer for companies hoping to unlock the intelligence captured in all forms of information by

6 •

CRN SOUTHERN AFRICA • JUNE 2008

identifying their meaning and relationships. Far too often, companies cannot exploit their content, and are unable to break down the silos between unstructured and structured information.”

Nokia Siemens Networks launches partner programme Nokia Siemens Networks has announced a broad channel partner programme. The programme is part of its ongoing drive to extend its reach to new customers and markets as well as its effectiveness in bringing real solutions to them by 2015. “Today, the ability to develop market segment-specific solutions that truly respond to customers’ business challenges depends heavily on collaboration with partners who are experts in these segments,” says, Peter Kühne, Head of indirect channel, Nokia Siemens Networks. “This is why we have decided to set up a network of partners to complement our direct sales force,” adds Kühne.

Acer unleashes new desktops Acer SA has announced the availability of two new models in the Acer Aspire range of desktops. The entry-level Aspire M1640 is an affordable PC for home users who need a reliable desktop that offers good multimedia performance. The Aspire M5640 is designed as a high-performance entertainment PC for the digital home. The M5640 features an Intel Core 2 Quad processor as well as an integrated Nvidia GeForce 7100 graphics card and nForce 630i chipset for superior multimedia display quality.

ITEC expands abroad ITEC Distribution has announced it will be opening an office in the UK. The English operation will be headquartered in London and will be set up by Jacques Duyver, ITEC Group’s CEO. “Expanding the local business to the UK forms a key part of our global growth strategy,” says Duyver. Philip Perkins, ITEC Group COO and Bruce Arnold, the Group’s CFO will support Duyver in establishing the UK operations. “We have also started building a South Africa-based call centre that will serve as a help-desk for the group’s local and international support requirements. Additional employment and training opportunities will be created and we aim to retain much needed core skills in SA,” adds Duyver.

3Com supports partners for growth 3Com recently launched a Partner Resource Centre (PRC). Tracy Lawler, 3Com SA distribution and channel manager says this is a powerful tool that provides channel partners with visibility into their 3Com business and allows more efficient management for businesses. Using the PRC, Lawler says, partners can register opportunities, select qualified leads from the 3Com lead pool, track revenues and view earnings rebates, certifications and training. “More importantly, partners can specialise in vertical markets like VoIP, enterprise LAN, security, wireless, and the recently added small medium business (SMB) sector at bronze, silver, gold and elite levels,” says Lawler.

ANALYSIS: DISTRIBUTION SOLUTION

SAS signs Quantec SAS Institute SA, has signed Quantec Research, a consulting firm specialising in financial and socio-economic database development as one of its resellers. “Quantec has strong software development, database, data warehouse and quantitative analytical skills,” says Nathalie Ing, partner manager, SAS SA. “This, when combined with an impressive client list and fantastic supplier relationships makes them an ideal SAS reseller,” she says. “With SAS as a partner we can offer the ultimate array of software solutions and applications for the turnkey market,” says Claude van der Merwe, MD, Quantec.

Duxbury adds ProCurve to DuxBux Duxbury Networking has added the HP ProCurve Networking range of products to its “DuxBux” partner programme. Graham Duxbury, CEO, Duxbury Networking, says the inclusion of HP ProCurve alongside Netgear in the company’s partner programme places added emphasis on dealer support and underlines the investments that are central to the company’s successful ‘value-added’ philosophy. “It is our intention to support and reward partners’ efforts by adding substantial value to the HP ProCurve Networking and Netgear products they sell through Duxbury Networking,” he adds.

Core dumps TomTom Core Peripherals SA has terminated its contract with TomTom, the Dutch personal navigation company. “Since the inception of the relationship at the end of 2006 TomTom has continuously failed to honour its contractual obligations,” says RJ van Spaandonk, Core Group’s director in charge of navigation business. He explains that Core Group is disappointed that the relationship was not successful since it still believes that TomTom offers the world’s best personal navigation products and services. According to Van Spaandonk, the company had no choice but to terminate the relationship due to TomTom’s inability to supply a competitive product range and support it with appropriate marketing activities in southern Africa.

Ingram Micro to move Asus kit Ingram Micro has been appointed distributor of Asus components throughout SA and the sub-Saharan region. Tyrone Gruner, Asus product manager, Ingram Micro SA says, “We can now supply all

MOVES

PROVIDERS

the components needed for manufacture to our resellers. This has made Ingram Micro a true one-stop shop for computer components.” Even though Ingram Micro South Africa has access to the full range of Asus products, Gruner points out that it has a very specific go-to market strategy.

Lexmark appoints Smart Box Support Services Lexmark International has appointed Smart Box Support Services to manage its after-sales support. Branislav Zivkovic, MD, Lexmark SA, says Smart Box Support Services was awarded a long-term partnership contract after being invited to quote for the business with the objective of standardising Lexmark South Africa’s service delivery standards to its global model. “We required a partner who shares our passion for excellent and consistent service delivery. We congratulate Smart Box Support Services, and look forward to building a successful partnership with them,” he adds.

Obsidian Partners with EnterpriseDB Obsidian, a South African open source company, has partnered with EnterpriseDB, one of the world’s leading providers of enterprise-class products and services. The partnership will allow Obsidian to offer professional services and training related to EnterpriseDB’s Postgres Plus and Postgres Plus Advanced Server products. Muggie van Staden, MD, Obsidian says: “Obsidian is proud to be offering implementation and training services as an official partner of EnterpriseDB in SA.”

ATIO acquires Symetrix ATIO, a specialised ICT services provider, has acquired Microsoft gold partner Symetrix. Symetrix will be renamed ATIO IT-Services division and operate autonomously with its own sales and management teams. The deal sees all Symetrix staff moving to ATIO’s offices in Johannesburg and Cape Town over the next few months. Chris Van der Sande, CEO, ATIO says, the deal helps achieve the mandate to grow ATIO into a position where the company has several diversified business units, each offering their own, distinct niche services. “We are excited about the opportunity this transaction gives us to create a sustainable earnings stream and the ability to sell our services across clients,” concludes Van der Sande.

CRN SOUTHERN AFRICA • JUNE 2008 •

7

COVER

STORY:

DISTRIBUTION SOLUTION

PROVIDERS

There is glitch in the distribution matrix The state of the sector could be a cause for concern. BY KAUNDA CHAMA

T

he current state of the distribution space in SA seems to be quite a cause for concern for a number of players in the sector as certain elements in the entire ICT sector could be hindering its development and growth.

wanting. This has created a need for the distributor community to create a bank of skills, and stop the practice of poaching and recycling skills among themselves. Rectron CEO Mark Lu comments that the

“I must agree that as a broad based distributor, Rectron loses skills to the large system integrators because the IT space as a whole is facing a major skills shortage issue and the remuneration structure has been skewed for a while.” – Mark Lu, Rectron

Mark Lu, Rectron

8 •

CRN SOUTHERN AFRICA • JUNE 2008

Generally speaking, there is some unfair competition between the distributor-level companies and the large system integrators. Essentially, the structure and models on which the local channel is based is a good and very effective one, and many would agree that the issue is more about how the channel can be made to run more effectively rather than changing it. The channel clearly has a discrepancy because the top system integrators such as BCX, Dimension Data, Gijima AST and Datacetrix continue to thrive and grow, but there are no small or, better yet, mediumsized system integrators growing and the channel needs to be aware of this. The channel, and distribution space in particular, is slowly becoming a training ground that is losing skilled personnel at a worrying pace. The skills are being gobbled up by the big system integrators and smaller system integrators, and distributors are left

creation of a skills bank in the distribution space is a novel one, but with the current economic climate in the country, it will remain a novel idea for a while still. “I must agree that as a broad-based distributor, Rectron loses skills to the large system integrators because the IT space as a whole is facing a major skills shortage and the remuneration structure has been skewed for a while,” he comments. Although Rectron plays in a different space to the likes of Westcon, a company that has been hit hard by skills poaching by the large system integrators, Lu says he can relate to the company’s issues because the situation affects the channel as a whole. He says job hopping in the distribution space has slowed down considerably in recent years as companies have backed out of the salary or price war that gripped the sector in the early to mid 2000s. In addition, South African distributors need to embrace a culture of co-operating

COVER SOLUTION

on certain deals where they feel they do not have adequate skills to handle the entire project. Although this seems like a long shot it has proven successful in the US both in the distributor and reseller space. Meanwhile, Jacques Malherbe, Westcon SA’s CEO, says that he is quite worried about the state the distribution business in general will be in within the next 18 months because of the slowdown in business and the current state of the market. “Distribution is a scale and scope game and a company needs to have volume through the products and solutions it offers, I feel that for a distribution company to survive it has to diversify its offerings. You can’t survive as a niche distributor,” he says. He strongly believes the companies that will survive will be the broad liners because they have lowered their risk through having a broad product portfolio. “Everyone in SA has come to a point where they feel the boom is over; the distributors with a wide range of products will continue bringing in reasonable income, but the niche players will need to go deeper and create other revenue streams through support, services and consulting because a plain niche distribution model is no longer sustainable,” explains Malherbe. On the technology side, he comments that the advent of convergence and unified communications has brought complexity back into technology installations and made it harder for companies to carry out quick installations. “The commoditisation of technology is well and good and happening at SME level, but the same can’t be said for the higher level,” he comments. He questions the motives behind some “so-called” value-added distributors saying they simply use resellers to secure contracts and then move in and do all the work. “To really add value as a distributor, they need to understand that resellers need money (credit), training, joint marketing, bundling and segment specialisation so that they can cater for specific verticals. Once they cater to these needs, they can consider themselves value-added distributors,” he says. Lu strongly agrees with this and says that broad-based and real value-added

STORY:

DISTRIBUTION

PROVIDERS

Jacques Malherbe, Westcon

“Everyone in South Africa has come to a point where they are feeling the fact that the boom is over; the distributors with a wide range of products will continue to bring in some reasonable income, but the niche players will need to go deeper and create other revenue streams through support, services and consulting because plain niche distribution model is no longer sustainable.” – Jacques Malherbe, Westcon

distributors will own the local space. Another big issue that local distributors do not agree with is the tender process, especially when it comes to large accounts where the customer asks for system integrators to be either a gold, platinum or diamond partner of a vendor such as Microsoft, Cisco or IBM. Both Lu and Malherbe say that the

CRN SOUTHERN AFRICA • JUNE 2008 •

9

COVER

STORY:

DISTRIBUTION SOLUTION

PROVIDERS

tendering process is flawed in that it does not create a fair playing field because the bigger system integrators have an unfair advantage. They say that it is easier for the bigger guys to invest in the training and development that make them gold, platinum and diamond partners, whereas the

At the end of the day, South Africa is becoming a freer market by the day and competition is getting stiffer as margins get smaller and the only way a distributor, system integrator or reseller will get and stay ahead is to be more competitive with products and services it takes to market.

Grant Bodley, Dimension Data

10 •

CRN SOUTHERN AFRICA • JUNE 2008

smaller companies might have the skills needed to meet the requirement of a tender but are unable to bid because they are not gold, platinum or diamond certified. “At the same time, SA is very brand conscious and by default large enterprises and sometimes government will opt to go with the likes of BCX and Dimension Data. As long as the country continues with this trend the smaller less known guys will be sidelined,” explains Lu. He adds that this is the main reason a lot of industries in the country are monopolised by either one major player or a small group of well-known and recognised players. Grant Bodley, senior GM in the outsourcing division at Dimension Data says that realistically speaking the entire ICT sector is under pressure when it comes to skills availability, development and retention. Recent research shows that locally there could be a shortage of as many as 38 000 skilled ICT personnel. “Although a good number of skilled people do move from the distributor space to the large system integrators, as the big guys, we are doing a lot to develop skills through initiatives like on-the-job skills development and learnerships,” explains Bodley. Bodley, who looks after the outsourcing business at Dimension Data, adds that even the bigger players, such as his company, are feeling the pressure of the skills shortage because even his company’s competitors are willing to offer skilled people “top

dollar” to have them join them or to retain those they already have. “The truth is that we do have a slight advantage by having more buying power than the smaller guys, but with the state of the economy, we are only paying marketrelated salaries. I also believe that another major reason people move from the smaller guys and join a company like ours is purely for career development,” he explains. Regarding the issue of the country not having small and medium-sized system integrators with the potential to grow and become part of the bigger guys, Bodley comments that the reason for this could be that most of the companies that play in this space prefer to remain niche and hence do not leave themselves with much room for growth because they narrow their business to certain areas of specialisation. “Sometimes, even companies like ours partner with medium-sized companies on business that requires some specialisation that we need from them and even on accounts that demand that we have BEE partnerships,” he says. Regarding the certification issue, Bodley says that even companies the size of his started off at a point and as the business grew, they had the capacity to reach where they are today and the smaller guys will get there with a lot of work and dedication. “We have invested a lot of money and time into getting certified by the big vendors because getting here requires a lot of training and development and the necessary training costs a lot of money,” he says. Meanwhile, Malherbe says that in an economy such as ours, which has a mix of first and emerging world economies working at the same time, distributors have a great opportunity to perform well and help their reseller partners do the same. SA is becoming a freer market and competition is getting stiffer as margins get smaller. The only way a distributor, system integrator or reseller will get and stay ahead is to be more competitive with the products and services it takes to market. At the same time, it is clear that there are issues, such as certification, that need to be relooked at if competition between the big and the small guys is to be truly encouraged.

ANALYSIS: CISCO SOLUTION

PROVIDERS

Cisco

plans to capitalise on mobile market Enabling users to personalise their experiences. BY DUDU SHABA

C

Rick Esker, Cisco

12 •

CRN SOUTHERN AFRICA • JUNE 2008

isco is on a mission to foster, drive and capitalise on the mobile market. The company has announced that it plans to advance the mobile experience for people whether they’re at the office, at home or on the go.

Rick Esker, director, Mobility Alliances Group, Strategic Alliances, Cisco, says mobility is a growing market and many innovative technologies are being developed by companies such as Nokia, RIM and Apple that are well-positioned in the space. Whether they are touch devices or applications, Esker says these mobile technology companies have one thing in common – the network. In order for people to enjoy innovative new devices, cool new software or greater productivity. Cisco is in a unique position to define and evolve the mobile marketplace. “Cisco is one of the only companies to have the breadth of expertise across all market segments, including SMB, consumer, service provider, enterprise and commercial. “Cisco is redefining the very notion of mobility. It understands that it is not about devices, technologies and services. It is about people being able to move freely throughout the world while maintaining continuous connectivity to content and people. “Mobility is really about always being connected wherever you are and being able to participate in the mobile experience,” he says. He goes on to say that Cisco’s vision of mobility is one where users can personalise their experiences by being able to access content on any screen and any device of their choice. “Social networking and streaming video go hand in hand when it comes to personalising a user’s experience. Enabling users to exploit video as a means of communication and entertainment >p14

ANALYSIS: CISCO SOLUTION

PROVIDERS

has prompted service providers to become experience providers, further enabling the connected life. They are enhancing both the experience and reach of the consumer by offering streaming digital video over many different screens,” he says.

>>p12

“In order for people to enjoy innovative new devices, cool new software or greater productivity, they need to be connected. Cisco is in a unique position to define and evolve the mobile marketplace.” – Rick Esker, Cisco

“When Cisco looks across global markets, it sees some interesting trends. As one of the African continent’s advanced economies, mobile adoption is similar to what is seen in Western European economies. However, there are other trends in Africa that may accelerate mobile services in SA. These are often related to payment and banking technologies. Also, as Cisco often sees in markets without extensive wired infrastruc-

and technology partners like AeroScout, Agito Networks and Airetrak, as well as industry-specific application partners like IntelliDOT, Johnson Controls and Philips Healthcare and OATSystems. “The Cisco Motion Vision enables our partners to enter new value-adding markets by unifying business applications with wireless networks and devices, while at the same time achieving efficiencies through the use of open APIs and standard IP architectures,” he says. He explains that Cisco’s partners develop their own business models and are responsible for their competitive advantages in the markets in which they operate. “Cisco offers technologies and services that capture market inflection points in rapidly growing markets enabling partners to build their businesses as they see fit,” he says. Cisco believes that an IP-based network serves as the most cost-effective, service-rich platform for mobile services and applications for both business and personal needs. “While the access medium can change depending on user location, an IP-based

“Cisco will carefully and continuously evaluate its market performance to ensure it meets the objectives of its shareholders, employees, partners and customers,” – Rick Esker, Cisco

tures, some areas in SA are leapfrogging technology,” he adds. Esker says that this plan is specifically targeted at emerging markets. “The emergence of new applications, such as voice-over-WiFi and location-based services, will continue to drive more pervasive deployments as will the sharp rise in Wi-Fi-enabled devices,” he remarks. To make sure that Cisco performs better in emerging markets, Esker says it will use a range of marketing tools, including partner demonstrations and proof of concepts, white papers and extensive outreach to industry influencers. He adds that Cisco has a partner system that includes HP, IBM, Nokia and Oracle,

14 •

CRN SOUTHERN AFRICA • JUNE 2008

network serves as the converged platform to connect different work and personal spaces. In addition, in the spirit of open standards, Cisco is embracing an open network platform which allows a wide range of ISVs to develop integrated applications. “The intelligent work services in the network, such as QoS, policy and security, transparently enable a seamless mobile collaboration experience for individuals and business professionals between wired and wireless worlds,” he says. “Cisco will carefully and continuously evaluate its market performance to ensure it meets the objectives of its shareholders, employees, partners and customers,” concludes Esker.

ANALYSIS: HP PROCURVE SOLUTION

PROVIDERS

HP NAP

creates a secure infrastructure

Vendor extends identity manager product range. BY DUDU SHABA

H

P ProCurve has extended its Identity Driven Manager product which allows granular definition of network policy to work with the recently launched Network Access Protection (NAP) functionality. Nick Hancock, technical consultant, ProCurve Networking Business, says that NAP comes standard with Windows Server 2008 Enterprise Edition providing health checking of clients as they attach to the network and Microsoft focusing on the client and Server OS components with HP ProCurve, providing network policy definition and enforcement. Hancock says that network access

more integrated client O/S solution. “The critical mass of software vendors working within the TNC/NAP solution arena means that it is quickly gaining acceptance as the most rapidly maturing solution with the greatest industry support, lower risk and provision of choice,” he explains. He goes on to explain that there are multiple components for responding to Network Access Control:  For Microsoft NAP at least one Windows Server 2008 Enterprise with Network Policy Server service running  Client device running Windows XP Service Pack 3 or Vista

“HP’s channel partners will have an opportunity to address a new audience and opportunities within their current client base who might not have considered access control before.” – Nick Hancock, ProCurve Networking Business.

control (NAC) is a term used to describe the process of enforcing who is allowed onto the network. He says that this was formalised by the Trusted Network Consortium (TNC) into a standard but is still used interchangeably by vendors to mean anything from simple access authentication right through to full health checking of the client. “NAP is a Microsoft term that describes the process of enforcement and health checking of network policy on a client from the network. NAC and NAP are technologies that challenge the user for credentials as they attach to the network and then applies policy,” he says. Hancock adds the drivers for ProCurve integrating identity driven management/NAC into the Microsoft NAP solution was to give customers access to a

16 •

CRN SOUTHERN AFRICA • JUNE 2008

Intelligent Edge Switches or wireless platform capable of supporting rich 802.1x features such as those from HP ProCurve  Identity-driven management software from HP ProCurve sitting on ProCurve Manager Plus to provide granular user policies.  ProCurve’s Identity-Driven Manager (IDM) product is a network access policy server which dynamically adapts network ports and the device(s) that connect to it to the needs of the user. “This is a clear way of defining user rights, resources on the network, assigning them in a common way, wired or wireless, and checking whether those devices are appropriate to come onto the network. Essentially, ensuring the integrity of the network environment in a simple way,” 

Hancock explains. He adds that HP’s channel partners will have an opportunity to address a new audience and opportunities within their current client base who might not have considered access control before. “As NAP capabilities are built into MS 2008 they can simply switch it on and quickly tailor the admission policy to their customer’s business needs. In addition, this an opportunity to further extend the offering made to those customers who are running ProCurve’s Identity-Driven Manager or Mgt? suite of products,” he comments. Hancock says that this integration will be incorporated into the main training courses offered around security within HP ProCurve as well as implementation guides and documentation. Additionally, he says that HP has been running seminars and webinars to educate the channel on the vision and the detail. “One of the other benefits of being a ProCurve skilled partner is that we provide seminar kits to assist in showing the value to the customer in a hands-on way, these packs are regularly updated in order to incorporate our solution offerings,” he comments. “There is a lot of opportunity. Many customers face huge challenges in controlling unauthorised, infected or unprotected devices, and this is recognised on all levels. This represents a good opportunity to work closely with a customer to develop a longer term relationship while mapping business policy to network security policy,” he says. Hancock says the TNC/NAP framework will be the industry’s fastest to develop and will undoubtedly bring a range of new features to the overall proposition. “This allows new testing methods to be developed for different client devices. Over 40 leading companies are actively working with the standard opening up lots of new technology opportunities,” he concludes.

DEMAND

GENERATOR: ITEC

WEST SOLUTION

PROVIDERS

Itec monitors

FNB’s printing solutions

Enhancing office automation. BY DOMINIC KHUZWAYO

I

tec, one of the fastest growing office automation, production printing and telecommunications providers in southern Africa, has secured a R15 million partnership deal with First National Bank, a division of FirstRand Bank Limited. This comes after FNB signed a three-year contract with Itec West for printing solutions, projected to save the financial institution between 15 and 20 per cent per annum. Recently, Itec made headlines when it announced its mission to conquer markets abroad by opening a new office in the UK. Coming back to the R15 million deal, FNB has leased 137 multifunctional devices from Itec West, replacing 656 desktop printers that were being used by FNB Shared Services’ 3 700 employees. These

Rodney Taylor, Itec West

18 •

CRN SOUTHERN AFRICA • JUNE 2008

employees are situated in seven buildings around Johannesburg and five buildings across the rest of the country. Prior to contracting with Itec West, the business unit had contracts in place with a range of printer, photocopier and fax suppliers, as well as a number of independent desktop machines representing a variety of brands. “This was complex and expensive to maintain, operate and support,” says

“Based on our findings, we compiled a proposal that outlined the structure of an enhanced office automation environment,” adds Taylor. FNB benchmarked the proposal against both existing and other suppliers, and awarded the contract to Itec West. “The savings have been significant, but the business case was an equally important consideration. We have onsite support,

“Based on the findings, we compiled a proposal that outlined the structure of an enhanced office automation environment for FNB Shared Services.” – Rodney Taylor, Itec West.

Neels Boshoff, chief financial officer, FNB Shared Services. “We wanted to find one supplier who would be able to provide us with a top brand at a competitive price. At the same time, Itec West took the initiative, carried out a print audit and presented us with a solid business case for the overhaul of our entire office automation system. Not only have we saved a substantial amount of money, but we have also streamlined our processes as a result,” explains Boshoff. Itec West’s print audit consisted of a full assessment of FNB Shared Services’ existing printing solutions as well as a full review that took into account monthly printing volumes per division and department, determined the need for colour and monochrome printing, and documented the printing requirements of individual employees. The report highlighted total cost of ownership, running costs and where money was being lost. “We found, for example, that many high-level multifunctional devices were being used only to make photocopies,” says Rodney Taylor, managing director of Itec West.

realtime monitoring of all machines so that technicians are alerted to problems before users are even aware of them, backup devices at all sites as well as an agreed turnaround time for fault resolution,” adds Boshoff. According to Taylor, Itec West provided FNB Shared Services with a standardised solution, so that only a single brand of toner and spare parts need to be kept onsite “Our entire operation is dependent on being able to deliver paper documents to customers within a specified timeframe, we simply cannot afford downtime. This not only cuts down on costs but makes the entire printing solution more manageable and easy to run,” explains Taylor.Boshoff? Phase two of the rollout saw FNB Shared Services rationalising its office automation equipment in its contact centre. It sent out a request for proposals inviting other suppliers to submit a proposal for the supply and management of multifunctional devices. Phase three of the rollout will incorporate additional FNB business units over the next 12 months. Do you have demand generator stories to share with us? Please e-mail Dominic Khuzwayo at [email protected]

ANALYSIS: LEXMARK SOLUTION

PROVIDERS

Lexmark launches new

channel Value Programme Incentivising channel partners.

P

BY DUDU SHABA

rinting solutions provider, Lexmark, has launched its new Channel Value Programme across SA and Europe. According to Lawrence van Namen, sales director Channel and Supplies, Lexmark International SA, the progression-based programme repays channel resellers and promotes best printing practice through a dynamic mix of sales support, rewards and special incentives. Van Namen says the Channel Value Programme is tailored to help individual channel partners to drive sales and bring added value through service offerings and knowledge transfer as well as to offer their customers smarter ways to boost productivity and reduce costs. “The Lexmark Channel Value Programme is a pan-European programme with the aim of rewarding our loyal channel partners for their support as well as to offer them tools to make their selling process easier and to differentiate their offering in the marketplace,” he says. “Our main objective is to assist our channel partners in offering their customers more than just a device. We want to help them to add value by using Lexmark’s ‘Print Less, Save More’ approach. By showing their customers ways to print less, more economically and to be more productive our partners are assured of continuous business. We also focus on profitability for both Lexmark and the reseller,” he adds. Any reseller can join the programme, depending on their hardware sales performance and will fall into one of three tiers. “For the entry-level tier, resellers need to register and join to be part of the programme, at the second tier there are more benefits and minimum quarterly revenue they need to maintain to remain in the tier. At the top tier there are even more benefits and minimum yearly revenue they need to maintain,” he says.

According to him, the partner programme recognises hardware sales and rewards partners in various ways, depending on their tier. “Rewards range from discounts, exclusive promotions, to points that can be redeemed for goods, and at the highest level – bonus plans,” he explains. He says that the first incentive they have is to increase their sales so they can move to a higher tier, thus getting more benefits. “At each tier the incentives and rewards differ and range from a kick-start promotion for first-time buyers to exclusive promotions and give aways, points and bonus plans. The more they sell, the bigger their benefits,” he says. Van Namen adds that the Channel Value Programme continuously provides training to its channel partners. “We take an informal approach and, depending on the reseller’s needs, we will train on specific products, our solutions or provide basic technical training. We’ve even gone as far as training our reseller sales people on how to sell Lexmark products. We have a standing open invitation to all resellers to use our showrooms in Durban, Johannesburg and Cape Town at any stage they need, either to book training for themselves or to bring prospective customers to see the products in action. With regard to the Channel Value Programme at the highest tier certain partners have to go through very extensive technical and after-sales support training to maintain their tier,” he explains. Registered partners can access various sales and marketing tools through a dedicated extranet. “Depending on their tier, they will also be able to personalise Lexmark brochures with their company logo and generate quotes online with their pricing. They will have easy any time access to key selling

Lawrence van Namen, Lexmark, SA arguments for Lexmark’s solutions. The extranet can be accessed at www.reseller.lexmark.co.za,” he says. He goes on to say that there is also an online technical support section within the extranet where the reseller can do basic trouble shooting. “Lexmark’s technical support hotline is also available to resellers who need assistance, and to make it easier, we’ve split our support lines into two, one dedicated to home users and the other to business users. This way we ensure our customers and resellers get dedicated and effective support from us,” he explains. With this partner programme, Van Namen believes that partners will be able to secure their margins and business growth. “With it being a brand-new programme, we hope that the future holds growth in member registrations as well as their sales. The future will see more benefits and support tools added,” he concludes.

CRN SOUTHERN AFRICA • JUNE 2008 •

19

HIGH FIVE: NOVELL SOLUTION

PROVIDERS

Novell introduces Open Workgroup Suite Increasing team workspace capabilities. BY DOMINIC KHUZWAYO Novell has recently announced the worldwide availability of Novell Open Workgroup Suite with Novell Teaming included. According to Matthew Lee Novell SA country manager, the release of Novel Open Workgroup Suite was in response to industry needs for costeffective, next-generation collaboration tools. In this month High Five, Lee tell us more about the Novell Open Workgroup Suite. CRN: What is Novell Open Workgroup Suite? ML: Novell Open Workgroup Suite is a flexible buying programme that accommodates platform and collaboration tool preferences. Novell Open Workgroup Suite enables organisations to increase employee productivity by adding collaboration tools to their existing IT infrastructure, without the higher costs or vendor lock-in typically associated with proprietary-only software bundles. With Linux, NetWare and Windows server deployment options, the fullest version of Novell Open Workgroup Suite delivers:  Novell Open Enterprise Server – a powerful, flexible platform to host collaboration data and applications  Novell ZENworks Suite – a cross platform systems-management tool to manage servers, desktops and applications  Novell GroupWise – a personal-productivity dashboard that provides secure and reliable e-mail and calendaring  Novell Teaming – a personal and team productivity tool that includes virtual workspaces and enterprise social software  OpenOffice.org Novell Edition – a full featured open source office productivity suite that runs on Linux or Windows  SUSE Linux Enterprise Desktop – a business-ready Linux desktop to support office applications

CRN: How does it work? ML: The Novell Open Workgroup Suite is available in five conveniently packaged versions: 1. Novell Open Workgroup Suite cross platform with Teaming 2. Novell Open Workgroup Suite Linux with Teaming

3. Novell Open Workgroup Suite cross platform

with Teaming for alternate messaging platforms 4. Novell Open Workgroup Suite cross platform 5. Novell Open Workgroup Suite Linux

Versions 1, 3 and 4 allow for server-side deployments on all supported operating systems. Versions 2 and 5 allow for Linux deployments only. Version 3 is for alternate messaging platforms and enables organisations using Microsoft Exchange, Lotus Notes or other messaging platforms to enjoy the business benefits of the suite. Versions 4 and 5 do not include Novell Teaming. In addition to being available as a license purchase with maintenance, the Linux versions are also available on a subscription basis. The subscription options include maintenance and require you to renew your subscription every year as long as you are using any component of the suite.

CRN: What benefits is it offering? ML: Novell Open Workgroup Suite enables organisations to reduce software acquisition costs by as much as 70 percent over competing solutions such as the Microsoft Professional Desktop Platform, anchored by Windows and Office SharePoint servers, while still improving workforce productivity and maintaining needed levels of service and support. The suite works with currently deployed platforms and applications, making it easy to use existing skills and IT investments and takes a phased approach to solution deployment.

CRN: What sort of training do you have for customers? ML: Novell SA has various training outlets that can assist with training around the country. The partners promoting the product can also deliver training to the customer.

CRN: What is the future of Novel Open Workgroup Suite? ML: Very bright indeed. The opportunities these developments present are breathtaking. Imagine being completely liberated from the constraints of time, space and those black holes caused by the lack of knowledge. This is the freedom that businesses must give their staff in order to unlock their potential. And as we all know, freedom is defined by the absence of limits.

ANALYSIS:

MWEB BUSINESS

SOLUTION

PROVIDERS

MWEB Business launches Hosted Exchange Software as a service for SMEs. BY KAUNDA CHAMA

M

WEB Business, the country’s largest ISP, last month announced the addition of Microsoft Hosted Exchange to its range of Internet-based solutions. According to the company. this is the first product to be launched in its suite of hosted messaging and collaboration tools. MWEB Business is offering a standard

“We are seeing more and more South African businesses seeking affordable technology solutions that will add value to their operations and increase their profits.” – Herman Jansen van Rensburg, MWEB Business

Herman Jansen van Rensburg, MWEB Business

22 •

CRN SOUTHERN AFRICA • JUNE 2008

2GB mailbox with this offering. Hosted Exchange delivers all the inherent features and benefits of Microsoft Exchange 2007, without the initial capital outlay. The company believes that by launching Microsoft Exchange in a hosted format, it opens doors for companies that previously, due to cost considerations, did not have access to the Microsoft Exchange platform and brings relief to those who are using an older version of Exchange but were putting off upgrading to the 2007 version because of the associated costs. By migrating to Hosted Exchange, these companies can benefit from cost savings by not having to upgrade, the company says. By eliminating a large upfront customer investment, the company says that it is able to provide an offering that caters to this segment. The service is completely scaleable, allowing customers to scale up or down on their service requirements according

to the needs of their business. The service is hosted in MWEB Business’ data centre environment, which is equipped with a fully redundant power supply and cooling systems. Furthermore, the company has extensive service hosting experience and claims that it hosts the biggest e-Commerce platform in the country. Customers also have access to MWEB Business’ 24-hour technical support team. Herman Jansen van Rensburg, Head of Product Management and Development at MWEB Business says: “We are excited to offer this technology solution to the market, we have been working extensively with Microsoft over the past few years to develop it and we are confident that it will meet the needs of the market. “We are seeing more and more South African businesses seeking affordable technology solutions that will add value to their operations and increase their profits.” Sean Oglesby, Hosting Lead at Microsoft South Africa added the company is excited about its relationship with MWEB Business. “We will be working closely with MWEB Business in the future to develop more solutions tailored for the needs of the business market. This product is one of the first we will be offering through MWEB. This partnership enables MWEB Business to always provide the latest Microsoft features and functionalities as soon they become available.” Van Rensburg says that the service, which has been launched on the Microsoft Exchange 2007 model, is targeted at small-and-medium-sized businesses and he is confident that the pricing around it will

ANALYSIS: SOLUTION

be affordable and competitive. “We will be offering a 2GB mailbox for R75 per month, which we think is very competitive,” he comments. Van Rensburg adds that as more companies start moving towards hosted services, a lot of them are also shifting from POP solutions and going the hosted exchange route. “We are offering the exchange solution to smaller companies that have the need for it but might not necessarily be able to afford it. We are confident that it will be a success because software as a service is becoming the norm and companies of all sizes are beginning to understand the benefits of hosted solutions,” he explains. He notes that Microsoft CRM and Sharepoint solutions are in the pipeline, adding that MWEB Business has noticed a considerable increase in both systems’ popularity. Van Rensburg says another advantage to the company’s customers is that it is offering flexible contracts that can be adjusted according to end-user needs and budgets. “The advantage is that customers pay per month and they only pay for what they use,” he notes. “When we look at the local market, companies that have between 15 and 75 employees are considered to be small-tomedium entities and with this service, from a pure IT budget point of view, they will realise some good cost savings,” he explains. Meanwhile, MWEB Business is also staking its claim on the assumption that hosted services will continue to become more viable now that broadband is becoming more available and affordable. The company also believes that the load shedding that affected the country recently will drive the adoption of hosted services because companies will still have access to

MWEB BUSINESS

PROVIDERS

critical services even when electricity in their areas is temporarily switched off. The company is taking this solution to market through the direct and indirect models and boasts about 400 business partners in the South African market alone. The company’s partners that resell MWEB connectivity will also sell the company’s hosted services.

MWEB Business is also staking its claim on the assumption that hosted services will continue to become more viable now that broadband is becoming more available and affordable.

Meanwhile, they will also enjoy a rebatebased commission structure through which they can earn additional revenue . Microsoft Hosted Exchange by MWEB Business fact sheet  Low, monthly per user rate, starting at R75 per user per month, including a 2GB mailbox  Business-grade product enables employees of a company to share company information seamlessly wherever they happen to be  Important data stored on each local PC and on hosted exchange servers, with back-ups to reduce the risk of data loss  Comprehensive multi-layered protection against viruses and spam from MWEB Business’ state-of-the-art server  E-mail, contacts, calendar, public folders, shared folders, meeting planners, task lists and more  Flexible access to data anywhere, anytime  No on-site maintenance required  All future software updates will be free of charge  Hosted exchange is completely scaleable.

ANALYSIS: INTEL SOLUTION

PROVIDERS

Intel stays bullish about Africa Technology vendor sees light on the “dark continent.” BY KAUNDA CHAMA

R

ecent statistics show that foreign debt in the southern African region is currently at the lowest it’s been in the past 30 years and this is beginning to create many lucrative opportunities for technology vendors.

“At the end of the day, for Africa to become a major player in the global economy, we need to create a knowledge economy and have an informed society which is on par with the rest of the world.” – Devon Naidoo, Intel

Devon Naidoo, Intel

24 •

CRN SOUTHERN AFRICA • JUNE 2008

One such vendor is Intel, whose southern African regional manager Devon Naidoo says the company is on a mission to be the most influential technology company on the continent. He explains that many countries on the continent have had their debt reduced or written-off recently and have been given a more optimistic outlook on the future. Naidoo points out that at least 11 countries in the region are involved in either oil or gas or both, adding that agriculture initiatives in many African countries are also developing at a very good rate. “At the end of the day, for Africa to become a major player in the global economy, we need to create a knowledge economy and have an informed society which is on par with the rest of the world,” he comments. He says the vendor, with the help of its channel partners, is on a mission to promote IT enablement and be part of the African solution. “We want to educate governments, channel partners and

consumers,” he comments. Intel is making a concerted effort to increase its presence on the continent and wants to be one of the companies behind increasing the use of technology on the continent in an environmentally friendly way. The company is partnering with its channel as well as other business partners to reduce the impact of technology development on the environment. To this effect, it is involved in the development of “green” products that enable users to be more eco-friendly. One of the ways it is doing this is by reducing the size of its chips and transistors, and putting an end to the use of lead in its chips. This reduction is also resulting in computers that give better performance but at the same time consume less energy. Currently working with its 45nm chipsets, Intel expects to bring its 32nm chips to market next year. Naidoo told Intel channel partners at a recent briefing in Johannesburg that as more people get connected to the Internet, online marketing is becoming more of a reality. “These days, a computer with no content or connectivity is just a hunk of metal and plastic,” he comments. Naidoo says that by 2012, online advertising could be worth close to $20 billion. He comments that the local trend is for consumers to purchase notebooks as opposed to desktops as mobility becomes the order of the day. “Looking ahead, I can tell you that you should expect a huge increase in unit sales, but this increase will also be accompanied by lower margins,” Naidoo says.

ANALYSIS: INTEL SOLUTION

He is calling on the company’s channel partners to lead the way in helping consumers to transition with the advancement in Intel’s technology by encouraging technology adoption on the continent. With the 40 countries in the sub-Saharan African region now no longer spending the majority of their budgets on servicing their foreign debt, Naidoo comments that the governments of these states now have funds they can use to promote ICT projects. “There is a lot of investment coming into sub-Saharan Africa from the Far East because India, the Philippines and China are no longer as cheap as they used to be. Africa has cheaper labour and more natural resources,” he explains. He comments that the fact that the majority of the population in this region is young might seem a problem in the interim, but it bodes well for the future. “The region needs to take advantage of this through ICT because it is seen as the foremost enabler of knowledge economies,” says Naidoo. He adds that Intel is confident that its Atom processor, which is based on 32nm technology, will do very well on the continent because it is designed for mobile Internet devices. “We are confident that the Atom will do very well on the continent just look at the way the cellphone industry is performing in Africa. Its growth has been proportionately faster that anywhere in the world,” he says. Another reason Naidoo believes the company’s channel partners will do well on the continent is because many governments on the continent have been under a lot of pressure from their citizens to deliver better quality social amenities. He says that to add to this the perception of ICT is changing because it is now being seen as a supplementary element in the provision of these services rather than complicating processes. Intel is confident that between now and 2010, it will, through its partners, cater to the next two million computer users. As green computing becomes a hot topic with every technology vendor striving to become as energy efficient as possible, Intel is equally keeping up with the pace and

PROVIDERS

ensuring that its future technologies have as little impact as possible on the environment. On the green computing side, Naidoo claims that Intel is the biggest user of renewable energy in the United States and has it as part of its policy to continually reduce the amount of carbon dioxide emissions in its production processes. The technology vendor says that it expects that in the next two years it would have reduced the amount of carbon dioxide emissions that will be equivalent to that produced by eleven million cars . Meanwhile, the technology the company is scheduled to release in Q3 and Q4 of this year will be Lead free.

“Fixed lines are no longer a viable option for the African continent that is why we believe WiMax is currently the easiest and most cost-effective way to take connectivity to rural areas.” – Devon Naidoo, Intel Naidoo also comments that IT companies have to work together to stop dumping outdated computers in Africa. The practice has been going on for many years where companies dump old computers on the continent under the guise that they are making donations while others simply buy areas for use as dumping sites and contribute to pollution in those areas. He says that even greenfields companies that adopt new technologies like Vpro will achieve cost savings and these technologies, because of their nature, reduce the company’s energy requirements. Naidoo explains that getting green computing right will involve a lot of education across all sectors of the IT industry, but he has seen a great deal of enthusiasm from vendors right through to end users when it comes to environmentally friendly computing. Looking ahead, he says channel partners should recognise that wireless broadband is the way to go when the next generation of Internet users gets connected. “Fixed lines are no longer a viable option for the African continent that is why we believe WiMax is currently the easiest and most cost-effective way to take connectivity to rural areas,” Naidoo concludes.

CRN SOUTHERN AFRICA • JUNE 2008 •

25

HANDHELD

FEATURE

SOLUTION

PROVIDERS

Handheld devices make inroads Provides leadership in mobilizing business professionals. BY DUDU SHABA

T

he speed of collecting data and bringing it to a central point is the key advantage of handheld computers, which has become a critical distinguishing factor in the competitive enterprise environment. This is

“Being able to combine functionality such as mobile voice and data, image capture, bar code reading capabilities and global positioning into one device, helps reduce the equipment complexity required to deliver the real benefits of mobile worker” – Sheldon Vermaak, Pinnacle Micro.

Sheldon Vermaak, Pinnacle Micro

26 •

CRN SOUTHERN AFRICA • JUNE 2008

according to Andrew Fosbrook, Group Managing Director of ProScan. He says that this is driven by the customer’s need to get information immediately. “The time lag of what’s happening in the field to input into the backend system has reduced dramatically, so transfer is literally in realtime. Examples are applications in courier companies for track ‘n trace, electronic Proof of Delivery (POD), where feedback can be given to customers immediately when the goods are delivered,” he says. “Enterprises are today extending their back office systems by utilising handhelds at the point of activity, enabling them to offer their customers increased levels of customer service and satisfaction, not to mention employee efficiency and productivity, says Sheldon Vermaak, Motorola enterprise mobility business product manager at ICT distributor, Pinnacle Micro. Cathleen Lester, Product Manager: HP Retail, Axiz, says that the demands created by the frantic lifestyles led by most students, business executives and home executives alike, are addressed with easyto-use digital hand organizers. “User satisfaction rates high as these ingenious devices enable us to stay connected, equipped and productive, anywhere and at any time” she says. She believes that handhelds combines the convenience of a cellphone’s mobility with a PDA’s organizational capabilities and, in some cases, the extra feature of GPS navigation, to provide a product offering that not only mobilizes business and personal management files but also maximizes results. “It is an all–in–one device that simplifies

HANDHELD SOLUTION

FEATURE

PROVIDERS

your life, offering first-in-class connectivity as well as customized accessories to expand your PDA capability and user satisfaction. Whether you are a student urgently needing important files, a doctor scanning literature to confirm a diagnosis, a business entrepreneur connecting your notebook to the internet for valuable competitive information or a home executive confirming the lift club schedule, with a handheld computer in the palm of your hand you can be connected, equipped and productive wherever you are,” she comments.

computers,” he says. “These EDAs and mobile computers now become business tools, effectively an extension of the enterprise’s core operational systems. Being able to combine functionality such as mobile voice and data, image capture, bar code reading capabilities and global positioning into one device helps reduce the

Trends in this space

with easy-to-use digital hand organizers” – Cathleen Lester, Axiz.

Lester says that the market in the space is demanding an all-in-one device where not only must the PDA be a cellphone and handheld organiser, but it must also operate as a Personal Navigation Device (PND). “Ultimately, what consumers want is ease of use, functionality, satisfactory after-sales service and convenience, for example, mapping software pre-loaded on the device. Customers demand a superior, out-of-the box experience with all they need already loaded and installed on the device, ready for use,” she says. Lester goes on to say that there is a definite move towards converged devices, those that offer the out-of-the-box experience. “Market leaders are pursuing aggressive marketing around this. It has been confirmed that mobile professionals are consistently choosing a converged device for its simplicity and the convenience of having the function of a cellphone, a PDA and GPS all in one,” she says.

Convergence Vermaak believes that being able to effectively run ERP or CRM-type systems on handhelds has made the selection of an optimum device that meets the durability, capability and stability criteria quite challenging. “PDAs do not necessarily contain all of the criteria required for true enterprise mobility. This is why we are seeing the convergence of the smart phone, PDA, digital camera, and GPS devices which has lead to the advent of the EDAs (Enterprise Digital Assistant) and ruggedized mobile

“The demands created by the frantic lifestyles led by most students, business executives and home executives alike, are addressed

equipment complexity required to deliver the real benefits of mobile workers staying connected to co-workers, customers and back office systems,” he adds.

Security As mobile devices are becoming more pervasive, security has become a concern for enterprises. According to Fosbroook, it is important to have security built in to applications and device management. “There are good tools available to ensure high security levels, as well as the remote ability to remove all data should the device be stolen,” he says. “Our mobile device management partner, HP, provides data and connectivity security, as well as a remote lockdown option should valuable information on a missing device need protection. This global carrier support centre also allows for remote diagnostics and over-the-air provisioning and software updates,” Lester comments.

fastest adopters Looking as to which vertical markets are the fastest adopters of handheld and portable devices solutions. Fosbrook believes that there are

Cathleen Lester, Axiz

CRN SOUTHERN AFRICA • JUNE 2008 •

27

HANDHELD

FEATURE

SOLUTION

PROVIDERS

big opportunities in transport and logistics, FMCG supply chain and retail markets. “Handhelds are used in these vertical target markets in-premise in warehouses and distribution centres, and in field at the customer’s contact points,” he comments. “With specific reference to EDA and ruggedized handhelds, the organisations

applications running off handhelds. “We’ve seen the birth of companies specialising in this area as industry standard tools become available from IBM, Sybase and Microsoft,” he comments

Looking ahead Fosbrook says that the future of handhelds lies in convergence, as well as more

“The future of handhelds lies in convergence, as well as more powerful capabilities in communications and imaging, more rugged design, and reduced costs as more applications come become available” – Andrew Fosbrook, ProScan

involved in field force operations have proven to be the earliest adopters of mobile deployments,” says Vermaak. Vermaak adds that the employees of these organisations use this one tool as a critical component of their day-today responsibilities, which may include field service, mobile sales, route accounting or logistics.

Opportunities

Andrew Fosbrook , ProScan

28 •

CRN SOUTHERN AFRICA • JUNE 2008

According to Lester, the vertical markets indicate great potential and adoption of this new technology. She says that aggressive marketing by various vendors has led to increased confidence and understanding of the benefits of handhelds in these sectors. “Handheld devices promise growth in corporate and government market segments, as well as in the retail market, where consumers are demanding a converged device that addresses all their personal and business lifestyle needs,” she comments. Lester says that the opportunity is definitely available for vendors to launch converged devices with all software packages related to the functionality of the device pre-loaded. Fosbrook says that there is great potential for software developers and value added resellers to develop specialised applications, as well as customized

powerful capabilities in communications and imaging, more rugged design, and reduced costs as more applications come become available. Meanwhile, Vermaak predicts that the mobile worker population worldwide will increase by approximately 30% between 2004 and 2009, which will result in a growth from 650 million mobile workers worldwide to more than 850 million in 2009. He says that these type of devices will be a necessity for some workers to facilitate their daily activities. “This is a huge opportunity. Solution Providers can expect the market for mobile enterprise applications to triple by 2010, providing yet another awesome opportunity,” he says. “As to what the future of handhelds holds for us? Only time will tell as the rapid development of miniaturised components continues apace we will see the capabilities and functionality of these devices grow beyond our imaginings,” he continues. Lester says that handhelds are the latest techno-rich devices for those wanting ultimate mobility while still being optimally productive and connected. “As notebook demand has escalated over the past few years, and the trend to be mobile continues to grow, handhelds may very well become that one essential tool nobody will be without!” she concludes.

DESKTOP PCS SOLUTION

FEATURE

PROVIDERS

Desktop PCs still essential Desktop PCs remain an appropriate choice for certain markets. BY DUDU SHABA

T

he South African desktop market can expect to see modest growth in 2008, as notebook sales continue to eat into the traditional desktop market. This is according to Michel Darebny, product manager for desktops and servers at Acer SA. He says that slight but sustainable growth can be expected in the desktop market as corporates refresh their PC infrastructures and high-end home users, such as gaming enthusiasts, continue investing in powerful desktop computers. “The desktop market is in no danger of extinction. In markets where performance and functionality are more important than mobility desktops are being created for specific purposes such as the ultra-small form factor,” says Darebny. While it is no secret that personal computing is rapidly going mobile, desktops are holding their own in SA, with well over one million still being sold annually. Kobus de Beer, Components Lead, Axiz, attributes much of this to the rapid emergence of entry-level users preferring desktops because of their cost-effectiveness and, more importantly, their customisation benefits. De Beer agrees that industry leaders are probably not far off when they predict global notebook sales will have reached at least 200 million by 2011. “Mobility is, after all, what users are demanding. Yet, at the moment, desktop sales are twice as high as mobile offerings in SA and hold great appeal as the only platform that still supports Quad-Core CPUs. We also have the benefit of a huge first-time buyer market that prefers desktops to mobile because of cost,” he says.

“Desktop sales are twice as high as mobile offerings in SA and hold great appeal as the only platform that still supports Quad-Core CPUs.” – Kobus de Beer,Axiz

Kobus de Beer,Axiz

CRN SOUTHERN AFRICA • JUNE 2008 •

29

DESKTOP PCS

FEATURE

SOLUTION

PROVIDERS

Although notebook sales have overtaken PC sales, Mandy Porter, Dell Business Unit Manager, Drive Control Corporation, comments that there is still a place for PCs. “This is reflected in a recent IDC report where 20 per cent growth in PC sales in the Central Europe Middle East and Africa (CEMA) region is predicted. There are three areas where PCs offer an advantage, for applications that require raw horse power, for gamers and users that are cost conscious,” he says. In addition to that, he says that certain markets will always require PCs rather than notebooks. “For example, financial services, education and government will always require desktops as their employees are usually office bound and a PC is the most appropriate

“Financial services, education and government will always require desktops as their employees are usually office bound and a PC is the most appropriate choice.” – Kobus Kitshoff, Comztek

Kobus Kitshoff, Comztek

30 •

CRN SOUTHERN AFRICA • JUNE 2008

choice. This ensures there is still a market for PCs,” he comments. “Despite numerous predictions of its eminent fall, the desktop PC market is still very strong, contributing up to 50 per cent of all PC sales,” agrees Kobus Kitshoff, Fujitsu Siemens Computers Channel Manager at Comztek Meanwhile, Gary Naidoo, deputy MD, Sahara Computers, comments that the desktop market continues to show steady growth as the PC attachment to South African households is still very low.

Trends Tracking the route that desktop PCs are taking, Kitshoff says that the introduction of dual-core processors about two years ago proved to be very popular in both the desktop and notebook markets and this soon became the standard in all new desktops sold. “Although relatively new, quad-core technology has seen significant uptake in the market. Like its predecessor, quad-core processors are set to become an industry standard in desktops but it will be a while before they become mainstream,” he comments. Jason McMillan, GM, HP PSG, Tarsus Technologies, says that few customers understand how cost-effective dual- and quad-core processors are. “Many companies have steered clear of these technologies perceiving them to be more power hungry than single-core processors. In reality, the exact opposite is true, Intel and AMD have made their processors extremely power conscious,” he comments. He goes on to say that today’s dual-and quad-core processors are, in fact, more power efficient than their single-core predecessors. “Astoundingly, if the power savings that an organisation can realise by going dual or quad core is factored out across a fleet of 25 000 units, the savings in electricity would go a long way towards absorbing the cost of the roll-out,” he says. De Beer says that consumers are demanding more powerful computing applications and that they are increasingly concerned about energy efficiency. Intel, he

DESKTOP PCS SOLUTION

FEATURE

PROVIDERS

says, is leading the field here, with its current generation of desktops, notebooks and mainstream server processors based on Intel Core micro-architecture being the most energy efficient it has ever produced. “The need to use less energy is increasing everyday. Intel is the driving force in new designs to support this initiative, and we eagerly await the introduction of the Atom CPU, Intel’s smallest processor built with the world’s smallest transistors. “It is based on an entirely new design, built for low power and designed specifically for a new wave of mobile Internet devices and simple, low-cost PCs,” says De Beer. “We see more speed, storage, lower power consumption, typical of modern multimedia demands. The Internet continues to drive technology,” comments Naidoo.

Windows Vista Despite the hype, De Beer does not predict that the release of Windows Vista SP1 will spur growth in desktop sales in the second quarter of this year. “This is just speculation and it comes with the perception that Windows Vista will become the operating system of choice, especially in the SME and corporate markets but only time will tell. In my opinion, SP1 will not directly increase the sales of desktops but it will make users consider going the Vista route. We are starting to see some adoption from the consumer space but corporate customers are choosing to stay with Windows XP for as long as possible. And some people never want to change, we still get requests for Windows 98,” he says. “We started to see improved growth in the first half of the year and believe that we will see significant growth in the second half,” says Naidoo.

Security As mobile devices are becoming more pervasive, security is another concern among PC users. Kitshoff says that remote support and additional hardware security are important for protecting PCs from viruses and other security threats. “The cost implications of adopting new security platforms does impact the purchasing decision and most ICT managers will

Gary Naidoo, Sahara Computers

“The desktop market continues to show steady growth as the PC attachment to South African households is still very low.” – Gary Naidoo, Sahara Computers

base their decision on overall pricing rather than features,” he says. Porter also raises her concern, she says that security is a risk with desktops, notebooks, and servers, and adds that even cellphones are vulnerable to viruses and security threats. “Dell has included a three-year licence for Symantec’s Norton Anti-Virus software on its notebooks and desktops to address the concern,” she says. “Vendor choices, together with more sophisticated software, address this very important business requirement,” adds Naidoo.

Battle between OEMs and multinationals Looking at the battle between OEM PC brands and multinational brands in the local market, Porter believes that competition is healthy and there is always room for

CRN SOUTHERN AFRICA • JUNE 2008 •

31

SOFTWARE

PIRACY FEATURE

SOLUTION

PROVIDERS

competitive products, including OEM brands. However, Porter says that the first-tier brands often offer value adds. “Dell’s threeyear next business day warranty and its stringent factory testing make it extremely competitive. This is beneficial to resellers as it allows them to concentrate their energies on business instead of having to resolve maintenance and repair issues,” says Porter. According to De Beer, the multinationals continue to dominate the desktop market, and he predicts that local manufacturers will find it increasingly difficult to maintain this momentum. He states that international vendors have adopted an increasingly aggressive approach to the South African market, and emerging markets in general. “The international vendors have changed their marketing strategies and have become aggressive in terms of pricing,

“Astoundingly, if the power savings that an organisation can realise by going dual or quad core is factored out across a fleet of 25 000 units, the savings in electricity would go a long way towards absorbing the cost of the roll-out.” – Jason McMillan, Tarsus Technologies

Jason McMillan, Tarsus Technologies

32 •

CRN SOUTHERN AFRICA • JUNE 2008

features, after-sales support and innovative solutions. While I foresee the multinational brands continuing to gain traction locally, there is still a great deal of opportunity for OEM brands and much room for valueadded services here,” he says.

Effects of mobile computing Does mobile computing have effects on the traditional desktop PC platform? According to Porter, mobility, 3G, wireless LANs and Bluetooth are all driving sales of notebooks and mobile computing. She believes that this is what increases productivity as it allows people to work anytime, anywhere. However, there is still a requirement for desktops as not every job or position requires mobility. “Think of office or administration staff that does not need to be ‘mobile’. Government and the education market are other examples of where there is still a requirement for PCs and this is unlikely to change in the foreseeable future,” Porter comments.

Future MacMillan believes we will continue seeing growth in the desktop market, although he says that channel players will have to work hard to capitalise on it. “Furthermore, I believe that technology will become even more commoditised over the coming years, which is something that will truly separate those who can add value from those who can’t. “Those who can add value will continue to thrive and reap the rewards of their efforts,” he concludes. According to Kitshoff, the biggest change in buying behaviour is with the consumer market moving towards notebooks as they become increasingly affordable. He says that 3G connectivity has also made notebooks more attractive than desktops. “Nonetheless, the corporate environment still prefers desktops due to applications usage and network connectivity,” he comments. “Desktops will always have a place in the market. Specialised applications and offices will continue to use desktops. The desktop market size will surely decrease in years to come but it will still be a long while before this happens,” concludes Kitshoff.

ANALYSIS: IBM SOLUTION

PROVIDERS

IBM Afrika Innovation Centre A vehicle for business growth and skills development. BY DUDU SHABA

I

BM channel partners will benefit from the IBM Africa Innovation Centre launched at the IBM premises in Sandton this month. The innovation centre, the first of its kind on the continent is aimed at driving information technology skills development and addressing business challenges in the economic growth of sub-Saharan Africa. Steven Mills, Senior Vice President and IBM Software Group, says that the innovation centre is an enabling facility for crucial ICT skills such as software development and will transfer skills to channel partners. “The innovation centre will also enable resellers to differentiate themselves and bring more value to their customers. The centre is not only for members of the IBM community, but for all partners as we aim to build capacity in the channel,” he says. The new centre is part of IBM’s $120 million, two-year investment through to 2009 that includes new market expansion initiatives and houses Africa’s first cloud computing centre. The centre will showcase business approaches and open technologies such as cloud computing, Web 2.0 technologies, service-oriented architecture (SOA) and systems management. It will also demonstrate next-generation banking systems offered at the Banking Centre of Excellence as part of the new innovation centre, and environmentally friendly computing designs. In cloud computing, dynamically shared computing resources are virtualised and accessed as a service, making it a particularly attractive proposition for small-to-largesized companies in Africa. Speaking at the launch, Mrs Phumzile

“We see this investment as game changing and creating enormous opportunities for skills development, industry promotion and economic growth.” – Mark Harris, IBM Sub Saharan Africa.

Mark Harris, IBM

CRN SOUTHERN AFRICA • JUNE 2008 •

33

ANALYSIS: IBM SOLUTION

PROVIDERS

Mlambo-Ngcuka, the Deputy President of the Republic of South Africa said that innovation is a critical weapon for enabling emerging markets to compete successfully in the global market. “However, innovation requires awakened minds for it to manifest. And this is where the symbiotic relationship between quality education and relevant skills development becomes a critical intervention. ”We face a big challenge in the world of scarce skills and talent, and also in reinventing the way we can learn and educate in line with the global skills crisis,” she said. The key elements at the Africa Innovation Centre include:  Technical Exploration Centre (TEC) – provides an environment to test drive and gain hands-on experience.  IBM Innovation Centre for Business Partners (IIC) – enables access to the latest open standards-based and open source technologies and innovation through cross-boundary collaboration.  Software solution Lab (SSL) - helps IBM customers throughout Africa to understand and implement the latest IBM solutions to achieve their business goals.  Kaleido – The IBM Innovation Experience- enables the development of

“The Africa Innovation Centre is a landmark investment for IBM because it represents our commitment to being a partner in the continent’s growth agenda.” – Steve Mills, IBM Software Group.

Steve Mills, IBM Software Group

34 •

CRN SOUTHERN AFRICA • JUNE 2008

Phumzile Mlambo-Ngcuka, lateral thinking skills, provides space for creative thought to emerge and deepens the quality of collaboration  Systems and Technology Solutions Lab (STSL) - executive briefings, skills transfer and mentorship, and architectural design sessions  IBM Global Technology Services (GTS) South Africa –fosters collaboration by partnering with business partners and ISVs in building innovative solutions Joe Ruthven, SOA and Open Standards sales representative, IBM, said that clients will gain hands-on experience of IBM software free of charge and be given advice on solutions to address their business needs. “IBM representatives will guide through demonstrations and answer questions and give any information needed. People will be provided with an easy and fast way of getting close to technology and new ideas,” he said. In addition, Ruthven said that IBM will advise businesses on the green issue. “We will advise our clients on how to cut costs and go green with energy-efficient offerings, consolidation and virtualisation,” he said. The new IBM Africa Innovation Centre will offer an array of resources not only for IBM business partners, but also for IT professionals and academia, enabling them to develop skills and deliver solutions to global markets using IBM’s open architecture. Mlambo-Ngcuka, outlined that government’s need to show agility in policy mak-

ANALYSIS: IBM SOLUTION

ing to ensure industry growth is promoted. “The Information Age demands new thinking in government, the same way it does in the business sector. We are faced with the lingering question of to create an economy that thrives domestically, keeps pace with change, yet also competes on the global stage? This is crucial for Africa to trade as a major, equal partner with the rest of the world. ”The other reality is the task for all of us is to build an enduring economy that can hold its own in the midst of the global economic turmoil. Working together we must empower poor Africans to take their fate into their own hands,” she said. “The Africa Innovation Centre puts SA on the global radar of IBM’s business strategy as we continue to be an active partner in the continent’s economic transformation into a major global player,” said Mark Harris, MD and Country General Manager of IBM Sub Saharan Africa. The South African lab joins a global net-

PROVIDERS

work of seven specialised IBM facilities, including China, India, Japan, UK, US and Brazil. “My hope is that this will also encourage other global and local organisations to follow suit. Certainly, the vision I have of Africa is one of a continent abuzz with commerce within itself and flourishing in trade with the rest of the world. I see a continent that is in full control of its resources, both natural and intellectual.

“IBM’s investment directly responds to the government’s call for increased private sector investment in sustainable initiatives that advance priority technical skills.” – Phumzile Mlambo-Ngcuka, Deputy President of the Republic of South Africa

I see the great continent, Africa, finally taking centre stage for progressive reasons, especially using ICT to change the future,” Mlambo-Nguka concluded.

ANALYSIS: CHANNELWARE SOLUTION

PROVIDERS

The rise and fall of

ChannelWare Distribution group redeploys after slow growth.

BY KAUNDA CHAMA

M

B Technologies recently announced the redeployment of all ChannelWare’s resources back into the group and at the same time launched channel distribution centres.

“In the long run I foresee better returns from the distribution centres as opposed to the larger entity that was the original ChannelWare.” – A.C.T. MD Anton Herbst

Anton Herbst, A.C.T.

36 •

CRN SOUTHERN AFRICA • JUNE 2008

The move was the result of a decision made by senior executives to embark on a resource redeployment exercise, which saw it restructuring most of The ChannelWare distribution company. As a result, some of ChannelWare’s product lines were absorbed into other group companies and the balance was deployed into new business initiatives. At the time of going to press, MB Technologies was in the process of creating a fleet of regionally focused, cash-on-delivery-based channel distribution warehouses, designed expressly to serve the needs of the SMB reseller channel. Bruce McGregor, MB Technologies CEO says: “ChannelWare, which is effectively the old Storgate, had the core of its business extracted to form the nucleus of our joint venture with Ingram Micro. We were optimistic to believe that what was left in

ChannelWare would be sustainable as a stand-alone distribution business. We will therefore be re-directing the ChannelWare business to drive this initiative, which we’ve had in the pipeline for the past 18 months.” The company reports that the move was the brainchild of A.C.T. MD Anton Herbst, who will take up the role of strategic director of ChannelWare (while retaining his A.C.T. position) and will be responsible for the strategy of the company as it rolls out over the coming months. Herbst explains that after the changes that came with the Ingram Micro venture, expecting ChannelWare to survive was quite a long shot because all of the component business was removed from it, leaving it with mostly storage and a little networking business. “When we did the Ingram deal, all the Storgate component products were moved to Ingram Micro and ChannelWare was launched to keep the remaining product ranges from the likes of 3Com, Fujitsu Siemens, Lexmark, LG and Brokade,” he says. However, not too long after the deal, some of the product sets like LG optical were moved to the Ingram Micro business, the Brokade business went to Tarsus while the Fujitsu Siemens and Lexmark business was terminated. Essentially, ChannelWare was left as a shell and Herbst is not shy to admit that

ANALYSIS: CHANNELWARE SOLUTION

the company’s business model failed. He says the biggest issue with the way the company remained was the fact that it was stripped of all its biggest earners. “I think we were a little too optimistic at the time,” he says. With this situation at hand, 18 months ago Herbst decided to investigate ways in which he could use the ChannelWare resources to target the SMB space. The company then opted to open about 30 ChannelWare distribution centres nationwide. “ChannelWare was only launched two years ago and I think its performance has been affected by the current economic climate. A lot more companies could be affected in the sector if one looks at the current rate of consolidation that is taking place. I still feel that the distribution space is rather overtraded,” he explains. However, rather than close the entity, the company has decided to keep the name and redeploy its resources. Herbst says: “In the long run I foresee better returns from the distribution centres as opposed to the larger entity that was the original ChannelWare.” He is confident that the new business model will bear better fruit because all the products will be sourced from companies within the MB Technologies group and will be sold to small-and-medium-sized businesses on a cash-only basis. McGregor also admits that although ChannelWare was no longer sustainable after the Ingram Micro deal, it has a track record of having numerous distribution agencies that will go a long way in ensuring that the new model succeeds. He adds that it has taken a while to get the new system to a point where it can become operational because the company has faced some challenges such as getting the systems up and running, and ensuring optimum efficiencies. “This time we are confident that the business will do well because it will be centred on fast-moving goods that can be picked up for cash. It will operate almost

like a retail cash-and-carry business,” explains McGregor. A lot of these outlets will be located in relatively remote areas with the first ones being opened in Nelspruit and Durban. According to him, the changes that have been brought about by the redeployment of the ChannelWare business have and will not result in any staff rationalisation because the company and the sector as a whole need skills. “Our model of acquiring products internally will also help in getting products to the channel much faster, but even with this, it is still too early to say whether this venture will be a major profit generator. We have to consider that we are shifting the business model from a credit to a cash one and this comes with its own challenges,” explains McGregor. Herbst says that MB Technologies has ambitious plans for the new venture. Over the next three years it plans to roll out several more channel distribution warehouses. “Our aim is to ensure that we’re in every SMB reseller’s backyard, and that we’re able to give them both the product variety and

PROVIDERS

Bruce McGregor, MB Technologies

“This time we are confident that the business will do well because it will be centred on fast-moving goods that can be picked up for cash. It will operate almost like a retail cash-and-carry business.” – Bruce McGregor, MB Technologies

competitive pricing they need to be successful in their particular region. “We believe that regional availability of inventory, on a collection basis, is a significant addition to our service to the channel and we look forward to providing more innovation in the channel environment by focusing on what our customers need to do business better,” he concludes. With this change, one only hopes that the market will react positively to a cashonly business in these times when interest rates are squeezing the life out of large, medium and small businesses.

CRN SOUTHERN AFRICA • JUNE 2008 •

37

Highly Recommended

Reviews by: Kaunda Chama

Microsoft LifeChat LX 2000 Once again Microsoft has brought out a great piece of hardware, the LifeChat LX2000 Headphone, for use with voice over Internet Protocol. This headset is perfect for users who spend a lot of time chatting on services like Microsoft Live Chat or Skype and is easy to carry around. The LX-2000 is designed to fold up and fits comfortably around a user’s head, and provides high-quality acoustics with outstanding sound. It is a great plug-and-play accessory that works flawlessly with a desktop or notebook PC as it requires no set-up procedure. For those that use their notebooks on the go, it is easy to carry around as an accessory because it folds up and fits into its carrying case which fits into a handbag or big pockets. For even louder and clearer sound, the device features inline volume which make for quick adjustments. It also has a flexible microphone. Its biggest advantages are that it is a plug-and-play device and is compatible with all the popular chatting services like Windows Live, AOL Instant Messenger, Yahoo! Messenger Microsoft Office Communicator, Skype and QQ.1. In addition, it’s compatible with Windows Vista and previous version of Microsoft’s operating systems. Most people would argue that headphones are headphones, but in this case I must give Microsoft credit for the sound quality as well as the design because not only do these headphones provide good sound quality, but they are also comfortable.

Silky smooth laser mouse from Microsoft With Microsoft and Logitech still battling for real estate on my office desk, as the two companies continue to outdo themselves all the time and the one thing I can’t make my mind up about is a mouse. My latest is Microsoft’s Wireless Laser Mouse 6000 and I must say it does not disappoint. This optical mouse comes with most of the bells and whistles a user would want from a new-age mouse like Microsoft’s tilting scroll wheel for horizontal as well as vertical scrolling. The new Microsoft toy also features a high- definition laser with intelligent-tracking system; this means it has a 1 000 dpi resolution, perfect for use in tight spaces (a capture rate of 6 000 frames per second). With the 6000 Microsoft has also added a magnifier tool that allows users to move a virtual magnifying glass or zoom window over the screen. On the looks side, a jet black and dark grey finish makes it look good alongside most domestic and professional notebooks on the market today. It comes with two AA alkaline batteries, which Microsoft claims can last for more than six months if the device is used and stored properly. Much like previous models, the 6000 uses a mouse-sized wireless USB receiver. Like most of today’s wireless accessories, the mouse and receiver sync automatically the receiver is plugged into a PC USB port with no need for frequency synchronizing; however, its range performance was far from impressive. Being that my desk is quite messy on the best of days, I found that the clutter on my desk affected the mouse’s performance a little, depending on which side of the PC or notebook the receiver was placed. However, when placed in the right position the mouse performs well, even when used on programs where the accuracy of the mouse pointer is of utmost importance. Under such conditions the 6000 does not skip or skew. Finally, the 6000 only has problems on very glossy paper or glass but other than that you can place it on any other solid surface and it is good to go.

38 •

CRN SOUTHERN AFRICA • JUNE 2008

PARTING: SHOTS

DILBERT

www.dilbert.com

by Scott Adams

S n a pshot Company: Axis Communications Position: Key account manager Age: 25 Best personal achivement: Completing my degree

through correspondence at UNISA. Presenting at the annual

Sasha Davidson

Top Property conference alongside Michelle McLean. Management style: Lead by example Most admired company: Blue Lable Investments Most admired executives: Warren Buffet Best IT product: Garmin Street Pilot, Apple Ipod, Google and of

course IP cameras Most pressing local business issues: Power crisis Key to success: To be highly ambitious, motivated, a positive

attitude and hard work. Favourite car: Range Rover Sport, Ferrari F430 Spyder Your car: Opel Tigra Favourite author: Greg Behrendt Where do you live: Craigavon, Fourways Birthplace: Sandton, Johannesburg Hobbies/sports: Bikram yoga and gym Favourite periodicals: Cosmopolitan, Top Billing and Elle Pet hates: Traffic, arrogance, bad attitudes and load shedding

40 •

CRN SOUTHERN AFRICA • JUNE 2008