Computer Reseller News Sa March 2008

March 2008

Inside This Issue Iomega scopes to broaden its offerings p8>> Adobe expands Middle East & Africa focus p10>> Intel punts new chip technology p12>> SA’s energy crisis opens up opportunities for resellers p13>>

Is consolidation in the local IT distribution space long overdue? Pundits share some insights on why the local distribution sector should consolidate. p18>>

EDITOR’S: NOTE

Consolidation in distribution

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s signs of an IT slowdown become more evident there have been increasing calls on local distributors to consolidate. The calls are not just getting louder but come at a time when many pundits in the local channel feel that Lightedge Technologies’ unceremonious exit from the local distribution scene in February is an indication that the distribution sector is under pressure. Faced with a channel credit crunch, high interest rates, volatile foreign exchange rates and an energy crisis which has led to load shedding, distributors are battling to survive. Is consolidation long overdue in the South African IT distribution sector? Should local distributors consolidate to become more relevant and compete on an international level with global distributors such as Ingram Micro and Westcon? While there are no easy answers to the questions raised, a confluence of factors suggest that a much smaller distribution industry with probably five big distribution powerhouses would benefit the local IT channel more than having numerous players that are not only diluting their own margins but are constantly engaging in meaningless price wars. History has shown that the South African channel market can typically support only two strong distribution houses irrespective of the vendor brands they represent. Any addition to the number of distributors has an effect on the whole sector in that the smaller, weaker ones tend to disrupt the channel by chasing after existing deals and not growing the market through new clients and transactions. So, as the local IT market continues to evolve with the retail sector taking centre stage, most vendors are seeing and using the retail channel as the best route for selling a lot of their commodity IT products. The big retailers not only have capacity to hold stock but have greater footprints giving vendors the countrywide exposure they need. With the retail sector emerging as the alternative “distributor,” smaller independent, regional distributors and subdistributors will find doing business a lot harder as they will not be able to compete with the big retail houses. By consolidating the distribution sector, the IT channel will not only see stronger and more resilient entities that will enable future growth but also reduce the over distribution and dilution of vendor brands. With most multinational vendors, such as Cisco, considering streamlining their distribution channels in favour of fewer partners that have a global footprint, it is vital for local distribution powerhouses to start thinking along universal lines if they want to remain relevant to their vendor partners. As I would like to engage more with you, please let me know what you think about consolidation in the distribution channel. I can be reached at [email protected]

Manda Banda – publisher

Contents News & Analysis 4

What’s News

5

Comings & Goings

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Demand Generator takes a look at how Petrow Food Ingredients implemented SAP Business One. By Dudu Shaba

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Hi Five

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Iomega has scoped to broaden its offering following the ExcelStor acquisition. By Kaunda Chama

10 CRN Contacts: Publisher: Manda Banda [email protected] Online editor: Kaunda Chama [email protected]

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Intel has made it its global strategy to place the majority of its focus on

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SA’s energy crisis opens up opportunities for the channel. By Dudu Shaba

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Cover Story: Is consolidation in the local distribution space long overdue?

ramping its recently launched 45nm chip technology. By Kaunda Chama

Experts share some insights on why the IT distribution space should consolidate. By Manda Banda

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Accounting Software: Accounting software garners momentum as new businesses are registered every year. The opportunities for savvy resellers to earn recurring revenues are vast. By Dudu Shaba

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Database Software: As businesses demand fast, secure access to their applications, database infrastructure has become

Designer: Spencer van Graan [email protected] Database and subscriptions: Daisy Mulenga [email protected]

12

Features

Brand executive: Nirosh Moodley [email protected] Sub-editor: Jenny Bastomsky [email protected]

Adobe sees great potential for software sales in emerging markets and has opened a SA subsidiary. By Kaunda Chama

Journalist: Portia Shaba [email protected] Intern: Dominic Khuzwayo [email protected]

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the central nervous system of an organisation’s IT infrastructure.

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By Dudu Shaba 30

Storage: The storage space has become more dynamic as products and solutions become much easier to use and manage. Companies of all sizes need to investigate the storage options available to them. By Dudu Shaba

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

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Servers: The server market continues to experience consolidation as virtualisation continues to receive wide acceptance. What opportunities lie ahead for solution providers server consolidation takes centre stage? By Stanley Chishala

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Dilbert

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Snap Shot: Peter Vieira, director, TallyGenicom SA

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

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WHAT’S

NEWS

Lenovo goes thin, light Lenovo unveiled its highlyanticipated ThinkPad X300 notebook PC. The ultra-thin, ultraportable notebook measures less than 1.85cm and has a starting weight of 1.33kg. Rashid Wally, Country Rashid Wally General Manager of Lenovo SA says, “Our customers told us that they wanted a notebook that was amazingly thin and light but that they still wanted their battery options, their USB ports and of course, their DVD burner”. Wally adds that the ThinkPad X300 combines a number of leading technologies such as solid-state drive storage, an LED backlit display, ultra-long battery life and enhanced wireless connectivity.

&

COMINGS

Bester to head Information Worker unit

Microsoft SA has appointed Albie Bester as the new head of its Information Worker division. Bester, who has been with the local subsidiary for 13 years, will take over from Cyril Belikoff, who has moved to Albie Bester Seattle to take up a position with Microsoft’s corporate head office. Bester is currently driving Microsoft’s “Heroes Happen Here” launch, which will see the company launch enterprise products later this year. The Information Worker division is responsible for Microsoft’s desktop productivity, unified communications and business intelligence products.

Reynolds to lead SMSP division

New D-Link Gigabit Switches D-Link launched new “environmentally-friendly” 16 and 24-port Gigabit switches. The DGS-1016D 16-port and DGS-1024D 24-port high performance desktop or rack mountable switches bring the benefits of DLink’s Green Ethernet technology line to small and medium sized organisaTobie van Schalkwyk tions. Tobie van Schalkwyk, Country Manager for D-Link SA says: “We encourage organisations to do the right thing by considering their carbon footprint when purchasing new networking products”. Both the DGS-1016D 16-port and DGS-1024D 24-port Gigabit switches feature a non-blocking switching architecture that filters and forwards packets at full wire-speed for maximum throughput.

Pinnacle launches graphics card Pinnacle Micro launched the MSI NX8800GT 512Mb graphics card. Shaun Welgemoed, MSI product manager at Pinnacle Micro, says:” It is the world’s first DirectX10 GPU with full Shader Model 4.0 support – and it delivers unrivaled levels of graphics realism and film-quality effects.” “The MSI X8800GT delivers up to two times the performance of a single graphics card and is configured for a stunning gaming experience by allowing two cards to run in parallel,” adds Welgemoed. The graphic card is designed to run perfectly with the PCI Express bus architecture.

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CRN SOUTHERN AFRICA • MARCH 2008

Mark Reynolds

Mark Reynolds, previously responsible for Microsoft’s anti-piracy business unit, has been promoted to Partner Lead in the company’s vital Small and Mid-Market Solutions &Partners (SMS&P) division. He will play a key role in driving Microsoft’s renewed focus on the small and mid-sized market.

Forbes is new Microsoft SA national technology officer

G O I N G S

Yasmin Forbes is the new national technology officer at Microsoft SA. Forbes, who has worked with several South Africa-based multinational IT companies, will support recently-appointed public sector director Yasmin Forbes Joshua Motjuwadi, as Microsoft looks to work with government across key initiatives such as improving service delivery, skills development and broadening digital inclusion.

Esquire keeps notebooks safe Esquire technology introduced an aluminium notebook case, designed for notebooks up to 17-inches in size. The case is built with lockable latches that enhance security and an adjustable padded shoulder strap, which has been ergonomically designed to offer greater carrying comfort. The two exterior hulls are made of solid aluminium providing sturdy, yet lightweight, protection of the contents. And with a robust and protective foam coating, users will feel assured that their livelihoods are safe.

Buffalo launches NAS drive Buffalo Technology announced the launch of its Network Attached Storage (NAS) external drive. The NAS drive offers a RAID 0/1/5/10 and Standard, Active Directory Support, gigabit networking. Available in 1TB, 2TB, 3TB and 4TB, the NAS drive provides Memeo AutoBackup and is simple to install and manage. The Buffalo’s Active Directory (AD) support will enable users to join an AD domain to utilise AD users and groups. It offers DFS (Distributed File System) support and has an easy setup wizard and system management through an intuitive web interface.

pany will be headed up by CEO Lucy Njoroge. “We are focused, with the support of Bytes Document Solutions, on providing superior delivery and implementation of Xerox products and solutions to our customers and to follow through with quality after-sales support,” says Njoroge.

HP appointed Axiz

SMC SA signs DCC SMC Networks SA appointed Drive Control Corporation (DCC) as the local distributor. “The agreement will allow DCC to deliver a wide range of quality, cost effective networking solutions to our reseller base, says Pierre Holtzhausen, networking specialist at DCC. “In addition, it will provide these resellers with a well-positioned brand that is well-known in the end user market.” “We are very excited about this initiative. “Users will immediately gain from a broader product range and an enhancement of logistic services and technical support,” says Paul Luff, country manager, SMC Networks South Africa.

BDS signs X&R as Kenyan disti Bytes Document Solutions appointed X&R Technologies as its new Kenyan distributor. Coenraad Ackerman, African operations manager at Bytes Document Solutions says that the operations of the newly formed com-

Axiz has been appointed, a distributor for HP’s Imaging and Printing Group (IPG). Axiz will distribute HP’s wide portfolio of IPG commercial and consumer products. Mark Perry, SPO Manager, HP RSA says “Axiz has the correct structures in place to add value to our reseller partners and their customers and also has an established distribution relationship with HP”. This highlights HP’s growing commitment to the South African market and further demonstrates that HP is continually looking for additional ways to reach and meet its customer demands, adds Perry.

Pinnacle, Verbatim part ways Pinnacle Micro and Verbatim end their distribution agreement. Tim Humphrey-Davies, national sales and marketing director at Pinnacle Micro, says that the contract has been terminated in an amicable way. “We believe it is a decision that will benefit both companies as the need to offer value to both supply partners and customers is of utmost priority,” says Humphrey-Davies. Humphrey-Davies also confirmed to CRN that Pinnacle Micro had been in discussions with RiDATA as an option to extend their Optical storage media offering.

DEMAND

GENERATOR:

PETROW FOOD INGREDIENTS SOLUTION

PROVIDERS

Petrow Food implements SAP Business One Saving time, and improving the company’s stock management. BY DUDU SHABA

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etrow Food Ingredients (PFI), the South African division of global supplier of spices, herbs, nuts and related food products, CJ Petrow International Limited, has implemented SAP Business One from SAP, the enterprise resource planning (ERP) solution for small businesses to improve its management of stock.

“To be truly competitive a small business needs to automate all its routine activities to be free to spot and exploit new business opportunities, and give continuously better service to its existing customers. SAP Business One makes that possible.” – Paul Vermaak, SAP According to Riaan Vorster, PFI financial manager, the company has one manufacturing facility, three administrative and sales branches, and 20 warehouses spread across all nine provinces. He says that SAP Business One replaced an accounting system that did not allow FPI to drill down to the costs of production or track products from source through production to customers’ shelves. “As a provider of food, we have to know exactly where our stock comes from and where it ends up, so that if there is a need to recall a given product we can do it easily. At the same time, it is essential that we know what any given product is costing us to produce so that we can refine efficiencies in the manufacturing process,” he says. Vorster adds that the company looked at a number of different software packages and the only one that promised the functionality the company needed for managing stock in a way that suits a manufacturing environment was SAP Business One. “We would have been happy if it had been merely good at that, but it has turned out, in practice, to be superb,” he says.

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“Also, accounting packages have a way of averaging out the cost of stock, which makes it difficult to see which are your more profitable lines. With SAP Business One, I can see precisely what it’s costing us to produce each product we take to market,” he adds. Vorster says the implementation of the SAP Business One software system was a success besides one or two minor issues. “This is to be expected with any implementation of an ERP solution. Overall, we were very impressed with the implementation and the professional skills that were shown,” he says. Paul Vermaak, SAP SA solution manager for Business One comments. “To be truly competitive a small business needs to automate all its routine activities to be free to spot and exploit new business opportunities and give continuously better service to its existing customers. SAP Business One makes that possible, along with providing an order of useful information about the business that small businesses simply haven’t had access to before,” he says. Vorster adds that SAP Business One has also delivered business benefits through increased efficiencies at an administrative level, with inventory now being managed by only one person instead of the team of seven that used to be necessary. “We’re doing far more with less and no one is working any harder. In fact, we all go home on time now and, for the first time in many years, I’ve got time to play golf! So, on many different levels, SAP Business One has already paid for itself,” he concludes. Do you have demand generator stories to share with us? Please contact Dudu Shaba at [email protected]

HIGH FIVE: HOLTON & ASSOCIATES SOLUTION

PROVIDERS

Holton & Associates’ additional software maximises investments Reducing stress and allowing for a more enjoyable lifestyle. BY DUDU SHABA

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olton & Associates, distributors of computer software products, has introduced a new range of software products mainly designed for small businesses and home users. Grayford Holton, MD, Holton Associates says the products will be available in the best stores through its distributors TVR, World Computer Systems and its dealers. CRN spoke to Grayford Holton, MD, Holton Associates, to find out how they will market these products in the channel. CRN: What are these newly launched products? GH: The new range of software products are the following: Serif – provides a platform to share your imagination and achievements with your friends and family. EIOFFICE – looks like Microsoft Office and protects the content with output to PDF. T3 security key – ensures that data is stored and includes insurance against theft of the PC. Snagit – scans info off your computer or the Internet. Financial manager – serves as a financial manager for small businesses and home users. Mobilegateway – is a trip sheet that helps users to claim for travel expenses. Download Accelerator Plus – a file can be downloaded very quickly on the website and is free of charge. I don’think this makes sense. I can’t fix it because I don’t know what it should be Page Plus – designed for desktop publishing Movie Plus – takes digital video to the next level and produces outstanding photo shades. Holton adds that Bitdefender, which was introduced four years ago, has made its mark as a top seller in major stores. CRN: What is the importance of these products and how are they going to benefit resellers in the channel? GH: The products are mainly designed to reduce stress and allow small businesses and home users to have a more enjoyable lifestyle. They minimise stress by protecting against viruses, spam, automating backup of data, fine-tuning computers through a known program and have local, friendly service. These products explore new avenues, and are sold at affordable prices in comparison to our competitors in the channel, and they are of high quality, resellers in the channel will make good profits for themselves. CRN: How will Holton & Associates distribute these products? GH: We will sell the products through distributors and resellers in the channel, including retail stores. We have also gone as far as contacting the channel on a one-on-one basis, getting them to look at our products on the Web.

“We expect tremendous sales of these products because they fill a unique niche in the home market with a definate edge on the quality and prices of competitive products.” – Grayford Holton, Holton & Associates

CRN: Given the competiton in the channel, what strategies will the company apply to market these products? GH: When we launched Bitdefender it was unknown and we worked very hard to bring it to the market. People find Bitdefender very effective in that it does not slow down their computers. Similarly, this will also apply to these newly launched products. The methods we apply will be through direct training, technical service, group discussions, and extensive advertising through a variety of newspapers and magazines. CRN: What would you say are the challenges faced by small businesses? GH: They are faced with the myth that you need to be a professional to use IT products, which is not always the case. These products are very simple to use, resellers do not need to be specialists to sell them and end-users do not need to employ technicians to install their software for them. Instead, these newly launched products are advantageous in that they can enable small businesses to start their own processes and end- users to start up their own businesses.

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ANALYSIS: IOMEGA SOLUTION

PROVIDERS

Iomega

scope to broaden

ExcelStor acquisition will work for the better. BY KAUNDA CHAMA

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fter enjoying many years as one of the biggest global players in the data storage and protection space, Iomega has now positioned itself to become even bigger. On a recent trip to SA, Iomega sales director, focus markets, Simon Chamberlain said the company had entered into a definitive share purchase agreement to acquire ExcelStor Great Wall Technology Limited, a

Essentially, storage, much like security, is a sector that will continue to grow as digital content and legislation continue to increase the need for capacity. It will be interesting to see how storage vendors evolve to meet global demands, – Simon Chamberlain, Iomega

Simon Chamberlin, Iomega

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Cayman Islands company, and Shenzhen ExcelStor Technology Limited, a PRC company (collectively with their subsidiaries “ExcelStor”). As part of the transaction, Iomega will issue approximately 84 million shares of common stock in Iomega in exchange for all outstanding ExcelStor common shares, representing the aggregate 60 per cent of the fully diluted capitalisation of Iomega, to be measured as of the closing date. At the time of going to press, the boards of directors of both Iomega and ExcelStor had unanimously approved the share purchase agreement. This agreement will see Iomega broaden its product portfolio beyond its current range and add more consumer electronics products. The market could soon see Iomega-branded LCD and plasma screens as well as other consumer electronics gadgets. This is because ExcelStor designs, develops, manufactures and provides advanced digital storage technologies. Its principal product lines include hard disk drives (HDD), security storage and external storage. It also manufactures some of Iomega’s external HDD products and has manufactured Iomega’s REV products since 2004. ExcelStor markets its products primarily to OEMs as an electronics manufacturing services provider and also sells its own ExcelStor-branded products through distributors throughout the world. The company produces more than 20 million HDD-based devices per year. For the six months ended 30 June 2007, ExcelStor had revenue of US$371.3 million (US GAAP). As a subsidiary of Great Wall Technology Company Limited (GWT), it is part of the development and manufacturing of communication products, including computers and related components, portable terminals, software and systems integration, broadband networks and value-added system services.

ANALYSIS: IOMEGA SOLUTION

GWT is an indirect subsidiary of China Electronics Corporation (CEC), an information technology conglomerate which controls more than 60 second-level subsidiary companies primarily engaged in the areas of computer and component manufacturing, integrated circuit design and manufacturing, software development and systems integration, telecommunications, consumer electronics design and manufacturing. GWT and its affiliates will hold approximately 43 per cent of Iomega’s common stock, making it the largest Iomega shareholder.

Company make up Once the deal has been officially closed, Jonathan Huberman will continue to serve as CEO, Thomas Kampfer will continue as President and COO, and Preston Romm will continue as CFO. Eddie Lui, CEO of ExcelStor, will become executive chairman of Iomega. LY Chan, Senior VP, general manager of ExcelStor, will become chief administrative officer of Iomega. Stephen David, chairman of Iomega, will continue on the board and will become the lead independent director. “We expect the transaction to be accretive to our bottom line, and the combined company is expected to earn more than $1 billion in annual revenue for 2007 and have approximately 3 000 employees worldwide. We are excited about our potential to combine the vast computer and consumer electronics product development and manufacturing capabilities of ExcelStor with our global brand and sales channels, our 27 years of experience building a successful company in the Americas and Europe, and also the opportunity for the combined company to partner with GWT and CEC’s other China-based affiliates to address worldwide markets,” says Huberman. “We expect to be an integral part of the CEC family and accelerate our growth in our core Americas and European markets and obtain significantly greater access to the China market. Our ultimate goal is to build a thriving global leader in computer peripherals and other consumer electronics products,” added Huberman. Lui, CEO of ExcelStor, says: “I am looking forward to working with Iomega and see great potential in combining and leveraging

the complementary skills and products of ExcelStor with Iomega’s strong brand and sales channels. With solid execution by our collective excellent management and employees, I am optimistic that we can achieve our joint vision of the new Iomega as a leading innovator of technology products which greatly expand the brand equity and global reach of the Iomega name.” The transaction is subject to various closing conditions, including approval by the People’s Republic of China government and other applicable regulatory authorities, and is expected to close in mid-2008. Looking at Iomega’s major focus Chamberlain explains that storage needs continue to grow exponentially not just for Iomega but for all storage vendors in general. He says that the number of hard drives sold has tripled worldwide over the past 12 months, resulting in a doubling of the

PROVIDERS

30 per cent. The growth in the storage market is a result of the increase in the amount of content that is now in digital formats. In SA, 50GB external storage devices have become standard. In addition to this, Iomega has started shipping 1.5TB external storage units due to the increase in demand which is happening at the same time as the cost per gigabyte continues to drop. “Networking and multimedia devices also continue to gain popularity globally. Homebased networks are also growing at an impressive rate and home users are also looking at consolidating their storage drives,” explains Chamberlain. Regarding this, he reveals that the HDMI Iomega ScreenPlay is on its way. He comments that locally, the demand for external storage devices is growing even on the high-end corporate side and this

Our ultimate goal is to build a thriving global leader in computer peripherals and other consumer electronics products,” – Jonathan Huberman, Iomega

revenues earned by hardware vendors. Regarding this, he said the deal with ExcelStor is a natural transition in Iomega’s evolution, stating that the company has access to a broader product portfolio and technologies through its sister companies, while Iomega holds a brand that has very good reputation worldwide and access to global markets. He says that mid 2008 will see the company go public with a detailed plan of action. “As a company we have to remain focused, and avoid becoming a company that deals in so many products that we lose focus,” comments Chamberlain. He adds that SA is one of the fastest growing markets and that Iomega’s revenues tripled in the last financial year; this it attributes to its local presence as opposed to just dealing with overseas distributors and resellers. Chamberlain, says that the biggest volume movers are the retail outlets which account for about 70 per cent, while the traditional channel manages the remaining

could see Iomega’s hard-drive business improving even further. When asked what effects flash-based storage, dropping prices and increases in capacity of solid state drives is having on Iomega’s hard-drive business, Chamberlain says it is interesting that unlike what one would expect, the growth on that side is actually helping the increase in hard-drive sales. “We continue to sell more units per quarter because of the advancements on the flash and solid-state drive side,” he notes. He adds that the move to networked storage and improvements in multimedia devices will be the next wave of growth for companies like Iomega. “The network attached server (NAS) market is also poised for further growth in the near future,” concludes Chamberlain. Essentially, storage, much like security, is a sector that will continue to grow as digital content and legislation continue to increase the need for capacity. It will be interesting to see how storage vendors evolve to meet global demands.

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ANALYSIS: ADOBE SOLUTION

PROVIDERS

Adobe

increases MEA focus

Sees potential in software sales. BY KAUNDA CHAMA

S

oftware vendor Adobe sees great potential for software sales in emerging markets and has opened a South African subsidiary as a base from which it will represent the Middle East, Africa (MEA) and the Indian Ocean islands. Giuseppe Verrini, managing director, Adobe Systems (Southern Europe, Middle East, Africa) was in the country at the beginning of March for the launch and told CRN that although the company has a global strategy, it has to have a presence in strategic areas. He outlined Adobe’s reasons for investing in the market, new focus areas (such as the enterprise side of the business) and future plans. Although he was reluctant to divulge the number of employees at its local office, he said that it was in the double digits and that the number of employees the company has in the MEA region will double this quarter. “The potential for software sales looks

Giuseppe Verrini, Adobe Systems

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great, especially from an emerging markets point of view (Africa, Brazil and some Far East countries). This is actually one of the top investment priorities for us. “The world is changing because previously two thirds of software revenue came from the United States but the trend is changing and to stay ahead global companies have to move with the times,” explains Verrini.

stationed in SA so that the company can take full advantage of the potential it sees in countries like Nigeria, Zambia, Ghana and Botswana. “We are also going to use SA as a hub for getting more business in the Middle East region,” he notes. The company will continue to focus on its three main customer categories, which are the knowledge worker, creative

The company is opting for improving business with existing channel partners. Rather than growing the number of distributors it has, it is going to increase the amount of business it does with those that it already has signed up.

In terms of revenue, Adobe holds sixth spot in the world rankings of software vendors and managed revenues of about $3.16 million last financial year, 23% growth on the previous corresponding period. With that achieved, the company says in foresees more double-digit growth in the current financial year, a feat it attributes to the results of last year’s launch of Creative Suite 3 and the integration of its products with Micromedia, which it purchased in 2005. “Our goal at the moment is to integrate our solutions with popular technologies like Web2 and also keep pace with the fact that all content is being digitised,” he says. In addition, Verrini says that business confidence is backed by the fact that Flash Player and Adobe Acrobat Reader keep gaining popularity. “Another big trend that we are taking note of is the increase in the need for mobility and that is why we are tailoring solutions like Flash Player for mobile devices as more of them become connected to the Internet,” says Verrini. Regarding local operations, he explains that 60 per cent of the MEA staff will be

developers and corporates. Locally, the company landed a major deal with the South Africa Revenue Service (SARS) last year that enabled the authority’s e-filing system and, in turn, an increase in returns. Its distribution channel will remain the same with one enterprise reseller and distribution through Dax Data, The Core Group and Comztek. The company is opting for improving business with existing channel partners. Rather than growing the number of distributors it has, it is going to increase the amount of business it does with those that it already has signed up. Regarding the obvious high levels of software piracy in emerging markets, Verrini says the solution is education. Adobe believes that education about piracy should start at school level. The company also believes that giving special discounts to educational institutions, depending on circumstances, will also go a long way in curbing piracy. Meanwhile, on the corporate side, it continues to work with its partners and end-user customers with its compliance programmes.

ANALYSIS: INTEL SOLUTION

PROVIDERS

Intel punts new chip technology Vendor shifts focus to newly launched 45nm technology. BY KAUNDA CHAMA

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ith its technology refresh periods continually getting shorter, Intel has made it its global strategy to place the majority of its focus on ramping its recently launched 45nm chip technology. Tiny Maubane, the silicon chip technology vendor’s channel applications engineer South & Sub Saharan Africa says it is now able to fit much more of its technology into much less space, paving that way for smaller, more powerful devices.

The impressive thing with the newly launched 45nm technology is that it comes in at the same price as its 65nm predecessor. This is a smart move by the vendor as it should encourage adoption by even the biggest sceptics. “This gives our partners and customers the capability to get more and do more at the same price points,” Maubane notes. He adds that with this new technology, the performance per watt is more apparent.

“For the betterment of our environment we have to make sure that we are Removal of Hazardous Substances (ROHS) compliant and have to be an environmentally responsible vendor,” – Tiny Maubane, Intel

Tiny Maubane, Intel

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With the reduction in sizes that the company is now working with, there was always a danger of current and other types of leakages, but he explains that the vendor’s IK technology has eliminated the possibility of this happening. He reveals that 32nm technology should hit the market in the fourth quarter of the current business year. As technology refresh rates get shorter and shorter, one wonders if this is affecting hardware vendors’ bottom line earnings. Maubane says from an Intel perspective it still makes business sense to keep the refresh rate at just under 18 months because the cost of production also keeps getting cheaper. Regarding the company’s Quad Core technology, which was introduced to the market with much hype but did not get the rate of uptake the company expected, Maubane says one of the biggest deterrents is that software developers are significantly behind the pace of hardware development. “There is not much software on the

market that allows users to maximise the full capabilities that Quad Core provides,” he notes. Maubane stresses that getting people to advance from 65nm to 45nm on Quad Core is quite a challenge. “Even with us bringing out impressive technology with so much potential, we still feel that software developers are not coming to the party quick enough with solutions that can maximise our technology, especially on the enterprise side,” he explains. Interestingly, Intel says that most of the advancements on the enterprise side are coming from the virtualisation space. This means that the vendor sells fewer chips, but it is the business segment that is taking full advantage of its new technology. “On the client side, development is still lacking, even on the gaming side, we find that only a few games are built for Quad Core technology, so the software side is lacking,” he says. Regarding current trends, such as green computing, Intel maintains that it is all for helping to make the environment safer and cleaner, stating that even with its Core 2 Duo strategy it did away with hazardous materials, such as lead in its CPUs and motherboards. “For the betterment of our environment we have to make sure that we are Removal of Hazardous Substances (ROHS) compliant and have to be an environmentally responsible vendor,” he says. In addition to this, he says that Intel is working around the clock to reduce the wattage both in passive and active mode for chips and motherboards. “Even on the server side, 45nm technology has reduced the wattage consumption to 80 and we are moving towards the 60 watts level with future releases,” concludes Maubane.

ANALYSIS: ENERGY CRISIS SOLUTION

PROVIDERS

Energy crisis opens up opportunities for the channel Vendors, resellers see potential increase in notebook and UPS sales.

T

BY DUDU SHABA

he electricity supply, nationally, is under severe strain. Eskom states that it finds itself in a position where the demand for electricity may exceed the available supply from time to time. So, to manage the situation in the best possible way, planned supply interruptions are being carried out by the company. Nationwide rolling blackouts continue to inhibit business operations as well as affect households. Not only is the hosting of the 2010 World Cup at risk due to power cuts, but these issues show no sign of abating until 2013, as fast increasing demand for electricity pushes power plants beyond capacity. Meanwhile, vendors, distributors and resellers are beginning to receive more inquiries from customers trying to find out what technologies they can implement to deal with the situation. According to Sheldon Hand, pre-sales consulting manager, Symantec, this means

faxes dependent on electricity to function, unless there is a business continuity plan in place that addresses communication specifically, a company could find itself unable to speak to the outside world,” she says. “Not only does it result in loss of productivity, sales and business but it also affects IT equipment which is key for business communication. One must remember that an organisation’s IT infrastructure is its backbone. Rendering it inaccessible means business grinds to a halt. When load shedding occurs, the power is immediately cut to all systems, including phone lines and email, meaning correspondence opportunities are lost. Most businesses today rely on their ability to communicate so a loss in communication results in a related loss in revenue,” says Robert Brandt, APC Product Specialist at distributor Drive Control Corporation agrees. “Being as dependent as we are on tech-

“This means that there is no internet connectivity, e-mail, which has become one of the most used business applications, and even access to telephony services.” – Sheldon Hand, Symantec.

that there is no Internet connectivity, e-mail, which has become one of the most used business applications, and even access to telephony services. “Without additional fail-over measures, load shedding could render organisations helpless from a communications perspective,” he says. Christelle Larkins, area manager, SA, East Africa and Indian Ocean, MGE Office Protection Systems, concurs that load-shedding can render a company’s communication system completely useless. “With telephone lines, networks and

nology, when companies experience load shedding, productivity comes to a complete halt. Companies are losing money every time there is load shedding,” says Lee-Anne Hutchins, portfolio manager, ASBIS Distribution.

Damages Every computer or server has a very specific manner in which it should be shutdown. According to Brandt, a sudden loss of power resulting in an instant shutdown of this equipment can cause a loss of data or even hardware failure.

Sheldon Hand, Symantec

John Middlewick, MGE product manager, Comztek also agrees that IT systems normally require a processed shutdown to avoid corruption of data. “In most cases, servers also need to be booted up and shutdown in specific order, but if software has been damaged, this may be difficult to do. Also, most computers run on a network, meaning that without power there is no connectivity, rendering the computers useless,” he comments. “Surges or spikes can happen at any time due to a number of causes, including lightning strikes, the on-rush of current following an outage, or even the presence of high-powered electrical motors such as air conditioners or other household appliances. These power fluctuations not only can cause permanent damage to expensive and sensitive electronic equipment, they often

CRN SOUTHERN AFRICA • MARCH 2008 •

13

ANALYSIS: ENERGY CRISIS SOLUTION

PROVIDERS

result in downtime, lost productivity and data,” says Rodney Callaghan, MD SA Critical Power and Cooling Services division of Schneider Electric.

Enquiries Brand, Middlewick and Larkins, say that they see an explosive growth in the number of people opting for UPSes and the number of enquiries is increasing everyday. Middlewick says that most IT users are extremely worried about being able to keep systems up for a minimum of two hours, and in many cases much longer. He says that there has been a high demand for UPS systems due to the damage caused by surges on their equipment. “We are getting every possible enquiry that one can think of. As the word about

“There is currently a need to not only protect computers against a sudden loss of power but also to enable the user to carry on working during power outages. Some of the APC range of UPSes allows users to connect up to 10 extended batteries which can give an additional runtime of over 12 hours, depending on the power load of the connected equipment,” comments Brandt.

The trend With the prevailing situation do we see more users turning to laptops or do they still prefer to use desktop computers? Also, is turning to wireless technology the perfect solution? In Larkin’s view, there is a definite trend towards protecting current infrastructure. “This means that most of our users have

“Notebooks and 3G ensure mobility because if the power goes down in a particular area one can always move to? WiFi premises. In terms of UPSes, an uninterrupted power supply will help businesses to continue working as usual for a short period, which will ensure a stateful shutdown.” – Robert Brandt, APC.

UPSes has spread, users have started phoning our offices non-stop, asking about everything from how to power their PC or office,” says Larkins.

offices with servers and desktops they have invested heavily in and are looking to use well into the future. UPSes are a viable option in this situation. That being said, different people have different priorities. If you were thinking of a more mobile solution before the power supply problems started, this is the perfect excuse to invest in a notebook and 3G,” she says. Middlewick believes that most officebased users still seem to be using desktop computers which require some form of UPS or generator backup. He says that the nature of an employee’s position seems to be the deciding factor when it comes to the type of computer they use. “The trend is to move to mobile devices and wireless technology which is less affected by power,” says Hand.

Sales opportunities

Robert Brandt, APC

14 •

CRN SOUTHERN AFRICA • MARCH 2008

Although businesses can be affected, this is not all bad news for notebook and UPS vendors, distributors and resellers. According to them, they are

looking at a potential increase in sales of laptops and UPSes. Middlewick says that UPS sales almost trebled in January, with a large number of back orders for stock that is landing soon. “Most resellers and users are aware of the need for backup power but estimating the cost of downtime can be difficult. Impulse buying in the last three weeks has been high as end-users have limited options for backup solutions that can be easily installed. This is why UPSes are popular, as many of them are plug and play requiring little technical or electrical know how from the user,” he says. “We’ve seen a phenomenal increase in both sales and interest generated around our products. Demand is increasing as people start realising there are viable, costeffective solutions available to them. As businesses and homes become accustomed to load-shedding they’re starting to ask what systems are priorities. They’re then phoning us to help them put solutions in place,” Larkin remarks. “Due to their onboard batteries, laptop sales should increase,” says Brandt. “Notebooks and 3G ensure mobility because if the power goes down in a particular area one can always move to a WiFi coffee shop or alternative premises. In terms of UPSes, an uninterrupted power supply will help businesses to continue working as usual for a short period, which will ensure a stateful shutdown. UPSes have become a necessity in today’s working environment,” he explains. “UPS sales have definitely increased. Many companies still see UPSes as a grudge purchase but are realising the benefits they offer. Due to laptop prices decreasing and more people being mobile and working from home, laptop sales have increased,” says Hutchins.

What is the best advice? To curb the power supply problem, Larkins says there are a number of options available to PC users. “As mentioned before, users have the option of investing in a UPS, either to give them sufficient time to save and shutdown or to continue working for a number of > p16 hours. The combination of a UPS

ANALYSIS: ENERGY CRISIS SOLUTION

PROVIDERS

and a generator is also viable. While most people are investing in and singing the praises of the generator, what they often don’t realise about having one is that they don’t always have an automatic start up. There’s a lapse in time from when the power is cut to when the generator kicks in during which you still lose your data. A UPS will keep you up and running during this time, allowing for a smooth switch between power sources,” says Larkins. “From a UPS perspective, one- or twohour solutions are the most cost-effective -

>> p16

against permanent damage caused by these power anomalies. The six tips cover the following: 1. Protect crucial electronics from harmful high voltage caused by power fluctuations (surges or spikes) by selecting surge protectors with lowlet-through voltage ratings. 2. Ensure the safety of electronic equipment by selecting a surge protector that protects all available surge paths, including electrical cords, telephone

“I don’t believe there are any real short-term solutions to the problem, as it’s one that Eskom and the government have assured us will be part of our lives beyond 2010.

while centralised solutions will aid in lowering the TCO over a fixed period such as four years,” Middlewick comments. To assist businesses and individuals to minimise any damage caused by load shedding, Callaghan says that APC, by Schneider Electric, has put together a list of tips, providing a simple, step-by-step guide to protecting valuable electronic equipment

cords, data lines and coaxial cables. 3. Determine which devices would benefit from continued operation in the event of a power outage and support that equipment with an uninterruptible power supply (UPS). 4. Select a UPS model with the option to add extra battery units to increase the runtime of critical devices. 5. Use power-management software to monitor the quality of power that equipment is receiving and set up the ability to automatically and gracefully shut down the system and applications when a power failure occurs. 6. Protect and manage structured wiring and networking applications with a UPS that enables remote management of automation functions and ensures protection in the event of a power outage. “Companies could also look at using a generator and UPS together. - Generators take time to start up, which means a break in power until the appropriate power level is reached. A UPS will handle this transition,” says Callaghan

John Middlewick, Comztek

16 •

CRN SOUTHERN AFRICA • MARCH 2008

Resellers Regarding how best resellers can make money from the problem, Larkins suggests that they look at providing solutions well into the future. “With winter just around the corner, resellers need to educate their end-users and help them to ensure business continuity no matter the power situation. They also need to make customers aware of the long lead time required in ordering UPSes because of the sharp increase in demand. Customers thus need to be planning three to four months ahead, and looking at what is mission-critical to their businesses,” she comments.

Solution It seems load-shedding is here to stay. When researching what the short- and long-term solutions are for computer users to curb the problem, Brandt remarks that the public is becoming more aware of alternative power products. He recommends that resellers should not sell the cheap products that are flooding the market as this will earn them a bad reputation. “They should stick to well-known brands which have less come backs and problems. “The only viable solution for the computer user is a UPS and, if their budget allows, a suitable SABS-approved generator,” he comments. According to Hand, resellers can supplement their income by supplying removable media, hardware and UPSes. “Short-term solutions for resellers can include UPSes which could last for up to three hours, generators, especially for SMEs and wireless connectivity. A long-term solution would be a standby data centre,” he says. “I don’t believe there are any real short-term solutions to the problem, as it’s one that Eskom and the government have assured us will be part of our lives beyond 2010. That being said, an immediate response has to be surge protection for your equipment, make sure you fit protective plugs that will absorb all voltage fluctuations to all devices. Beyond that though, companies have to look to the long term. Do an office audit. Ascertain which systems your business cannot do without, and start doing some UPS and generator research,” Larkins concludes.

COVER

STORY:

DISTRIBUTORS SOLUTION

PROVIDERS

To consolidate or not to

consolidate? Is the distribution sector falling apart? BY MANDA BANDA

M

emories reminiscent of the demise of Siltek Holdings in November 2001 may have reverberated in the minds of many channel players in the local IT distribution industry after the recent liquidation of regional distributor Lightedge Technologies. The IT distribution industry and the channel received the news with shock and concern, and braced itself for more uncertainty in the months to come.

“Certain multinational vendors have made their intentions fairly clear - to reduce the number of distributors.” – Pierre Spies, Tarsus Technologies

Pierre Spies, Tarsus Technologies

18 •

CRN SOUTHERN AFRICA • MARCH 2008

The IT distribution sector is hoping that Lightedge Technologies’ liquidation is not going to have the huge impact the Siltek demise did, especially as it happened at a time when many pundits are forecasting a drop in IT spending. Like Siltek’s closure seven years ago, Lightedge Technologies’ unceremonious exit from the local distribution scene has been so chilling that major players (solution providers, VARs and distributors) are concerned that it could affect confidence in the IT distribution sector, thereby undoing the gains the entire distribution sector has made since the demise of Siltek. This has raised concerns that the IT distribution industry, which has been booming over the past five years, needs to consolidate. A confluence of factors stand to make the Lightedge liquidation challenging for local distributors as it not only coincides with the IT spending slowdown, but the distribution industry at large is grappling with the channel credit crunch which has seen liquidations of reseller businesses spiral.

To consolidate or not to consolidate? Pierre Spies, CEO at Tarsus Technologies, a broad product distributor, says consolidation in the IT industry could only be positive for the channel as a whole, if it were to happen particularly in the distribution space. Spies adds the recent Lightedge liquidation came as a surprise and will definitely have an impact on the perception of the distribution channel in general in SA. However, Spies says he would not venture to say that there should be > p20

COVER

STORY:

DISTRIBUTORS SOLUTION

PROVIDERS

cause for concern but adds that there is mounting pressure on distribution. “We could possibly see an impact on or changes to certain players in the short term,” he says. Paul Conradie, MD at Comztek, a specialist networking distributor, says consolidation should not worry local distributors. He says mergers often ensure that entities are stronger and more resilient to enable future growth. “Consolidation is not necessarily a problem; however, it all depends on the execution of the merger and the effect that unity has on the market,” he says. “It is important to have enough players of consequence to ensure continuity in all areas of the IT market.” > p18

Arnold Fourie, Pinnacle Micro Technologies

“Any liquidation not just in distribution but in the IT channel is worrying and not good for the well-being of the industry as a whole.” – Arnold Fourie, Pinnacle Micro Technologies

Arnold Fourie, CEO, Pinnacle Micro Technologies agrees and says the channel has seen a considerable amount of consolidation. “Unless the channel market comes to an abrupt halt, we don’t expect further consolidation to happen soon,” he says. Fourie says any liquidation not just in

aware of the financial pressure that some resellers are experiencing. Gary Naidoo, deputy MD at local OEM assembler Sahara Computers says while it would be reckless on the part of distribution to ignore recent developments in the sector, it is prudent to exercise caution as far as reaction and response is concerned. Naidoo remarks that relationships, value-added supply, product knowledge, skills, expertise, insight and advice should be the order of the day. “Essentially, businesses have to adhere to these practices and the mandate handed to them via the channel,” he says.

Margin pressure Zandre Rudolph, sales director at Rectron believes many sub-distributors and other “independent” distributors that have emerged on the scene and source their products locally seem to be under tremendous margin pressure. Rudolph says Lightedge, as an example, wasn’t an outright distributor. “The company was a system builder focusing on the corporate business buying the majority of its stock locally,” he says. “There is nothing wrong with the sub-distribution business model provided certain business fundamentals are taken into consideration such as cash flow management and stock control.”

“There is nothing wrong with the sub-distribution business model provided certain business fundamentals are taken into consideration such as cash flow management and stock control.” – Zandre Rudolph, Rectron.

Zandre Rudolph, Rectron

20 •

CRN SOUTHERN AFRICA • MARCH 2008

distribution but in the IT channel is worrying and not good for the well-being of the industry as a whole. He explains that it is important to look at the model Lightedge adopted rather than the broader issues that are challenges for the IT distribution sector. “Perhaps the market lost faith in its ability to service the channel,” he says. Fourie points out that industry demand seems strong in Q1 even with the anticipated drop in IT spending. He says distributors will have to refocus their businesses and be

Rudolph says in terms of the authorised distribution channel there is definitely some tension. “Some distributors are really under pressure from their multinational vendor partners on the one hand and the credit risk from some unworthy reseller companies on the other,” he says. Pinnacle’s Fourie concurs and says most of the big distributors in SA are entrenched in the local channel and hopefully are making money. He points out that Lightedge was operating mainly in the sub> 21 distribution space and its demise

SME core focus for Comztek Inside Significant growth ahead for Networks Business >> Getting stronger >> Poised for growth >>

COMZTEK: CORPORATE

FOCUS

Comztek’s big SME push Distributor upbeat about economy despite looming IT recession.

By Manda Banda Paul Conradie, MD at specialist networking and IT solution distributor Comztek,

which has really worked well for us here at home and in Namibia, Zambia, West,

is upbeat about the country’s economy despite a downturn in business confi-

East and Central African regions.

dence largely due to the high interest rates that the company has seen over the last 12 to 18 months. “There is no doubt in my mind that the market, not just the

Looking ahead, Conradie is upbeat that resellers will benefit from the company’s focus, especially in the SMB space.

IT sector, but in general, is reacting to the high interest rates,” he notes. Conradie says although industry pundits are predicting a slowdown in IT spending this year, government remains by far the largest IT spender, which is a positive sign for the whole industry. This, says Conradie, is an area that Comztek would like to address with its army of resellers. For Comztek, says Conradie, it is vital that the company together with its channel partners focuses on market segments that will augment their revenue streams and profits in tough economic conditions. “A significant part, we believe we can play in this, is to improve the management of credit to resellers ensuring that their payment cycles are better,” he says.

SMB push That said, Conradie says more focus is what channel partners can expect from Comztek as their trusted distributor. He singles out government and the public sector, SMB and the rest of the sub-Saharan market as segments that will receive a lot of attention in 2008. “For us, and certainly for our resellers, the SMB market is going to receive a big push,” he says. He emphasises that the SMB strategy does not in any way suggest that the company won’t be paying attention to corporate and SoHo clients. “Customers, depending on size, use time differently and require different ways of interaction,” he says. The SMB strategy has been developed to understand these clients better hence resellers that target this market will receive a number of options from us in terms of how best to support, interact and understand the needs of the SMB mar-

“Networking solutions have been our ‘bread and butter’ but you can’t sell a complex networking solution, especially into the rest of Africa, before selling a PC.” – Paul Conradie, Comztek

kets and tailor those needs to their specific clients.”

Product strategy Although the channel was taken aback by Comztek’s decision to enter the commodity space when it launched its Consumer Electronics Business Unit and took on Fujitsu-Siemens Computers’ PC and server range, Conradie says it is vital for resellers to know that when the company decided to expand into the rest of Africa, it needed a product that would give it economies of scale. “Networking solutions have been our ‘bread and butter’ from the start, but you can’t sell a complex networking solution, especially into the rest of Africa, before selling a PC,” he says. “Venturing into the PC commodity space was a strategic move

Paul Conradie, Comztek

BUSINESS

UNIT FOCUS:

NETWORKS BUSINESS

Significant growth ahead for Networks Business Comztek’s UPSes, consumer networking range to spur growth. By Manda Banda

BUSINESS

UNIT FOCUS:

CONSUMER ELECTRONICS

All eyes on consumer electronics Value adding to Best of Breed Products is key differentiator.

With best-of-breed brands that include 3Com, Cisco, Dialogic, D-Link, Envox, Legrand. Linksys, MGE Office Protection Systems, Netshield, Nortel and

By Manda Banda

Packeteer, Comztek’s Networks Business Unit is poised for growth in 2008.

Comztek’s entry into the consumer

Uwe Brandkamp, Networks Business Unit director at the distributor, says busi-

electronics (CE) market should not

ness in 2007 was okay despite some drop off at the start of the year but picked

be viewed as a move to become a

up well in the last quarter. This, says Brandkamp, was due to the erratic cyclical

broad-based PC distributor in SA

nature of project business. “Networks’ revenue contribution to Comztek’s overall

and the rest of the African continent.

business experienced a similar cycle although it was pleasing to see continuous

On the contrary, the distributor

growth in the SME products and networks business in the rest of Africa,” he says.

has ventured into the CE space as a

Brandkamp says Comztek’s reseller partners can expect significant growth in

strategic move that has been largely

all the network product lines, especially in the rest of Africa, VAR commercial,

influenced by the emerging trends

SME and consumer markets. In addition, Brandkamp says the company’s services

in the Home, SoHo, Retail, SME

business is set to boom.

and Corporate markets.

“In addition, we will be extending our reach into the mid market with a range of innovative programmes for resellers,” – Uwe Brandkamp, Comztek

Rapid acceptance of converged CE products and the commoditisation of traditional IT products have been key motivations for Comztek’s

Heinz Stephan

quest to become a strategic supplier Brandkamp points out that the unit’s UPS array, SMB and consumer products will receive a lot of attention this year because of current market demand for

of end-to-end solutions. Heinz Stephan, Consumer Electronics Business Unit director says Comztek’s

UPSes as a result of power supply problems. “Our consumer and SMB products

plan is not to become another broad-based PC distributor but rather to

are receiving more and more attention,” he says. “For the mainstream network-

complement its existing product portfolio with quality CE products that meet the

ing brands there are a number of opportunities and projects we are working on

needs of the company’s customers in the Home, SoHo, Retail, SME and

across various markets.”

Corporate markets. Remarking on recent acquisitions and merg-

entered the CE space to provide them with quality products, solutions and ser-

is a sign that the industry is consolidating,

vices that complement the company’s other business units. “We became actively

Brandkamp says resellers should look at the

involved in the CE space following two key happenings in the IT sector,” he says.

business benefits of the solutions they provide

“Rapid acceptance in certain aspects of CE products and traditional IT as well as

to their customers and align themselves to ven-

the commoditisation of most IT commercial products played a huge role in our

dor partner programmes which will differentiate

venturing into this arena.”

them. Certainly, from our perspective, we can help resellers to achieve this,” he says. Looking to the future, Brandkamp says dri-

Uwe Brandkamp, Comztek

Stephan says it is vital for reseller partners to understand that the company has

ers in the IT industry, many pundits have said it

He says it is for this reason the company has been very selective when signing vendors playing in this space. Stephan says in Microsoft, Creative, Imation, Fujitsu-Siemens Computers and Symantec, the company has brands that currently

ving the services business, continued focus on

fit its objectives. He adds that the company is continuously watching the market

the SMB business and partnering in project

and listening to their customers throughout Africa, looking to expand their foot-

deals will be top of the agenda in 2008 “In

print with additional blue chip brands. “The CE space in SA has for a long time

addition, we will be extending our reach into

been dogged by cheap, poor quality products, with after sales services lacking”

the mid market with a range of innovative pro-

he says. “That’s why when we decided to enter this segment; we focus on quality

grammes for resellers,” he concludes.

products, ease of use and superb technical services support.”

BUSINESS

UNIT FOCUS:

SOFTWARE INFRASTUCTURE

AND

SECURITY & STORAGE

Growing stronger Comztek hails software portfolio growth. By Manda Banda If anyone ever wondered why Comztek’s software infrastructure and Security & Storage businesses have been successful and grown tremendously over the years, one needs only to look at the brands that the distributor has in its stable. Having secured distribution rights for Adobe Software, Attachmate, Citrix, Microsoft, Novell and Virtualiron in the Software Infrastucture stable and Fujitsu Siemens Computers, Marshal, McAfee and Symantec in the Security & Storage stable, Comztek has moved from being a traditional networking solutions focused distributor to a software distributor of note covering solutions that include operating systems, networking software, infrastructure, server console, graphics and e-paper software. By growing its software portfolio with key brands for the commercial market space, Comztek has not only established itself as a solutions-focused distributor, but has also catapulted itself into the top three bracket of specialised software distributors in SA. Following the departure of Mark Dorfling and Nadine Barnard, the company is delighted to have brought in the services of David Caygill, who is not new to the IT distribution industry. As Software Infrastructure and Security & Storage Business Unit Director, Caygill says

David Caygill

he will focus the efforts within the business units on assisting solution providers to embrace holistic solutions selling enabled between the types of vendor brands carried in the two business units. “Strong vendor partnerships enable us to understand the growth opportunities in the market and we have the infrastructure and skills to deliver excellent service to our resellers so that they can realise their full growth potential. ,” he says. Coming from an IT hardware background, Caygill says key in the software space is

“Strong vendor partnerships enable us to understand the growth opportunities in the market. We have the infrastructure and skills to deliver excellent service to our resellers so that they can realise their full growth potential.” – David Caygill, Comztek

to understand business fundamentals in terms of how software is renewed, how businesses are licensing their software environments and software legalisation. In addition, it is vital that Comztek’s reseller base develops in all the solutions that

Caygill says that aside from the focus on growth and profitability, the company aims to grow its footprint in the SME space and to deliver excelling service to its resellers in

the company brings to market. “To this end, we are encouraging our reseller partners

both SA and the rest of Africa serving the ICT distribution market efficiently with its

to cross-sell between the four business units,” he says.

basket of solutions.

BUSINESS UNIT FOCUS: COMZTEK ZAMBIA / COMZTEK NAMIBIA

BUSINESS UNIT FOCUS: COMZTEK EAST AFRICA

Partnering at local level

Poised for growth

By Manda Banda

By Manda Banda

Having been set-up in August 2005, Comztek Zambia has grown its presence in the

It’s been four years since Comztek Africa was unveiled as part of Comztek SA’s

Zambian market and company MD Mark Stokes attributes the growth to the formali-

broader pan-African distribution strategy. In that time, the distributor has been able to

sation and maturity of the IT market in that country.

open branches in Zambia, Namibia and East Africa.

Stokes says the last 18 months he has seen the company expand its foot print in

The EA branch, which is primarily a Microsoft distribution house has a significant

the Zambian resellers while at the same broadened its product offerings to become a

market share of the entire East African region covering Tanzania, Uganda, Ethiopia,

“one stop shop.” “With the Zambian government having identified IT as key to further-

Rwanda and Burundi.

ing development, it will be soon before big networking and infrastructure projects get rolled out.”

Robert Allela, regional manager, says being a Microsoft house in this region has more positives than negatives. “Microsoft is such a powerful brand and I am delighted that we have a double-digit market share, and are poised for growth this year and beyond,” he says

Davel Botha

Mark Stokes

The Namibian office provides and supports a wide range of premium brands that Robert Allela

include: Fujitsu-Siemens Computers, Legrand, 3Com, Cisco, Nortel, Siemens, Netshield, Linksys, OPS, Imation, McAfee, MGE, Symantec, Creative and Microsoft

Allela adds that despite the slow uptake of Windows Vista and Office 2007, he

CPG. Comztek Namibia came into being in May 2004 as Comztek’s first West, East

remains positive that business in general will grow. “I truly believe that hardware sales

and Central Africa (WECA) regional office outside SA.

will be spurred on by Windows Vista sales,” he says.

Davel Botha, regional manager for the distributor’s Namibian operation, says

Allela says growing Comztek East Africa’s business will depend on how the com-

although business has been strong particularly in the government sector, the company

pany builds it channel in Tanzania, Kenya, Ethiopia and Uganda. In addition, he says

is still faced with the IT skills challenge in the solution provider community.

developing a structured sales approach within the company and the channel, and

Botha says part of the problem has been the fact that certification training programmes are held in South Africa and most resellers can’t afford to send their staff to attend. He adds that as the PC refresh cycle is nearing, resellers should be readying themselves to ride on this refresh cycle as it will create new sales and services opportunities.

getting more partners will be top of the list of things to do. He explains that the company is also working out a plan that will see it engage more proactively with Microsoft in developing the channel and the initiatives that go with it. Allela says despite margin pressure on software and hardware sales, there are a

Aside from the skills challenge, Botha would also like to see Comztek Namibia play

lot of deals in the telecommunications, public sector, government, education and

an active role in raising product, technology and services awareness to resellers.

SME arenas. “These are areas partners need to be focusing on,” he concludes.

BRANCH

FOCUS:

COMZTEK KZN

IP Telephony to the future SMEs to pioneer growth.

BRANCH

FOCUS:

COMZTEK CAPE TOWN

Solutions selling Delivering on the customer promise. By Manda Banda Ian Duvenage, Regional Manager at Comztek Cape Town is a firm believer in IT

By Manda Banda

solutions selling and not just box moving. It sounds simple, but putting this into

The last 12 months have seen Comztek SA KwaZulu Natal (KZN) branch grow its IP

action and creating a win-win situation from a vendor, distributor, reseller and end

Telephony (IPT) and wireless business.

user point of view can be daunting in the local IT channel particularly if the mindset

Chris Davies, Comztek’s KZN regional manager, says the main contributing factor to

is still that of box dropping.

the rapid acceptance has been the fact the saving is massive when businesses implement IP Telephony technology.

“Our resellers are telling us that there is a lot of deals and interest from SME clients in IPT.” – Chris Davies, Comztek KZN

Ian Duvenage

Duvenage says the distinguishing factor in this industry is to be ahead of the game and anticipate future or current hot trends and applications. In addition, he says there is need to steer resellers in the direction where they offer holistic solution to their customers and not just take orders. “This is enhanced and achieved by Comztek through providing leads, training, proof of concept, demo units, assisting resellers to get certified in order to receive preferential pricing and suggesting additional technologies and alternative products to satisfy requirements at end user level” he says. Chris Davies

Duvenage, who oversees the company’s four business units in the Western and

Of note, says Davies has been the leading role that SME have played in this. “Our resellers are telling us that there is a lot of deals and interest from SME clients in IPT. Yet, amid all this reseller enthusiasm in the IPT solutions, the company is still faced with the ever growing problem affecting most IT companies. Davies says Comztek in the KZN has played a pivotal role in urging resellers to get vendor training and certification and that is one sure way of becoming better business

The distinguishing factor in this industry is to be ahead of the game and anticipate future or current hot trends and applications.” – Ian Duvenage, Comztek, Cape Town

advisors to their clients. He explains that he is particularly pleased see most vendors put stringent requirements on reseller certification as this has help them to develop in-depth technical expertise. Looking to 2008, Davies says education and more channel education will be one of the branch’s focus with the channel. “We will be enhancing our training efforts in the KZN region. The training will be two fold and will cover sales and technical skills enhancement programmes comprising real life hand-on approach,” he says. Aside from that, Davies is bullish that PC hardware sales should pick up later

Eastern Cape says currently the Software Infrastructure Business Unit accounts for a significant percentage of company’s overall revenue in the Cape while the second largest contributor remains the Networks Business Unit, with the remainder being a split between the Consumer Electronics Business Unit and Security and Storage Business Unit. Duvenage says although the market in SA is definitely not buoyant at the moment, with most resellers feeling the credit crunch in the channel, now is the time they should be preparing themselves for the turn around. “Due to pent up demand

this year given the fact that SA is experience power supply problems with most

and hopefully improved economic conditions, we will see the market turning around,

people migrating from desktop PCs to notebooks. “I also do believe that the

especially in the second half of this year,” he says. “This should be followed by hard-

release of Windows Vista SP1 will have an impact on PC hardware growth in the

ware refresh cycles with Microsoft’s release of Windows Vista SP1 playing a huge

region,” he concludes.

role in this.”

CRN SOUTHERN AFRICA • MARCH 2008 •

7

COVER SOLUTION

could maybe be seen more as a confirmation that the local channel does not have space for the sub-distribution model. To this end, Fourie says Pinnacle Micro has been following its normal approach to its debtors and entire customer base. “We are cautious when providing credit and believe we have a ‘good’ system in place that enables us to rate the viability of our debtors,” he says. “We do trade in different sectors such as government, retail and the VAR channel so we are spread across the industry and not too exposed to one sector.” Conradie adds that from a corporate governance perspective, the distribution sector should, given current market conditions, be more focused on the creditworthiness of customers than 12 months ago. “Load shedding, high interest rates and petrol hikes will have a negative effect on the distribution industry,” he says. “However, we have seen such conditions in the industry before. Proper management is important during such circumstances.”

>> 20

tributed in the market, it can be one of the main contributors to the potential demise of such distributors. Tarsus’ Spies agrees and says this has been a bone of contention for quite some time now and this most definitely affects margins as well as the over distribution of various brands. “Certain multinational vendors have made their intentions fairly clear to reduce the number of distributors,” he says. This, he adds, is not a South African phenomenon as various territories around the globe are seeing vendors reduce the number of distribution partners. Sahara’s Naidoo adds that even though SA’s expertise and technology adoption is world class, vendors sometimes ignore the fact that the local IT market is unique and does not mirror most mature international markets. He says the channel has seen

STORY:

DISTRIBUTORS

PROVIDERS

Paul Conradie, Comztek

“Consolidation is not necessarily a problem; however, it all Diluting distributor margins Conradie continues to say that history has shown that the South African market can typically support only two strong distributors, irrespective of the vendor brand. He says any addition to the number of distributors has the effect that the weaker distributors disrupt the channel and ROI by chasing existing deals rather than growing the market through new transactions. “The typical result of this is that the stronger distributors often have less money available to invest in the brand, which ultimately harms the brand in the long run.” “Therefore, the long-term stability of a brand is more beneficial than the short-term gain of a vendor appointing a third or more distributors.” Conradie says regretfully, the main reason for the appointment of so many distributors by vendors is the fact that multinationals are driven by quarterly results and that strategic planning is not taking place at local level. He notes that multinational brands at the higher end of the supply chain are less prone to making decisions that are more for multiple distributors than commodity-based vendors. In addition, history has shown that some distributors rely on a single brand for revenue and that when that brand is over dis-

depends on the execution of the merger and the effect of that unity on the market.” – Paul Conradie, Comztek

constant shifts in various vendors’ distribution policies but ultimately, those distributors best equipped with local knowledge, expertise and relationships will triumph. He advises distributors to adapt to changing conditions. “Key factors to consider include stock management, warranties and services which must become more efficient,” he notes. Fourie says each vendor has different requirements for distributing its products. “I agree with the statement that multiple distributors can erode margin and that some vendors believe they can grow market share by appointing more new distributors to achieve this for them,” he says. He emphasises that margin is important and recent events bear this out but distributors needs to add value for the vendor. “Our vendors are beginning to understand that for a distributor to be sustainable they need to make margin,” he says. Infrastructure costs money to run. He explains that some of the challenges

that come from operating in an African environment include bad debts and distance from the manufacturers of products and as such require a different cost structure to the European model that some vendors are used to. “The more vendors understand the challenges the more they see the need for margin,” he says. With most pundits expressing the view that there is a need for the market to relook at the entire sector, particularly the viability and sustainability of IT distribution, there is also a need for vendors to get involved and address challenges that threaten the well-being of distributors. Addressing challenges that erode margins in the authorised distribution space could lessen the pressure that most local distributors are subjected to. Ultimately, consolidation in the channel will have to happen to avoid diluting the market and compromising the brands that are over distributed. When this will happen only time will tell.

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ACCOUNTING

FEATURE

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Accounting software has become proactive Addressing the needs of different sizes of the market.

M

BY DUDU SHABA

ore companies are registered every year and many businesses, especially SMEs, prefer solutions that enable them to focus on running a successful business using the accounting software, while they concentrate on other important issues. With the current economic scenario, traffic jams and power outages, companies also need accounting software that allows management to keep its fingers on the business pulse. According to Malcolm Granville, CEO, Accknowledge Systems, web-based accounting applications can be accessed safely via the Internet from any location, a bonus as more and more people begin their day working from home, only travelling to the office after rush hour. Ivan Epstein, CEO, Softline, maintains that the market, especially that of SMEs

Malcolm Granville, Accknowledge Systems

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and smaller organisations remains buoyant. He says the fiscal control and financial discipline that accounting software makes possible are now more critical than ever to ensure long-term growth and success. “Never before has a financial roadmap been more important in the SME space. With consumers tightening their belts, owners and

The accounting route Figuring out which route accounting software is taking this year, Cohen points out that what is becoming more exciting is that vendors are pre-integrating vertical solutions such as manufacturing CRM and BI into their core accounting products. He mentions that they are also integrating

“Web-based accounting applications can safely be accessed via the Internet from any location, a bonus as more and more people begin their day working from home, only travelling to the office after rush hour.” – Malcolm Granville, Accknowledge Systems.

managers need to be able to adapt their company’s roadmap instantly. Accounting solutions make this possible,” he says. “A comprehensive accounting package will not only show you where you’ve been, but more importantly, help you to navigate where you’re going. This is because of the visibilities that accounting solutions offer decision-makers in business. By providing them with both an overview and the specific details, owners can evaluate costs and revenues, and rethink these if need be,” he adds. We are also finding, for instance, that SMEs that have used accounting software to improve efficiencies now want to be more creative about how they manage their businesses and are moving towards add-on functionality such as customer relationship management (CRM), business intelligence (BI) and mobile solutions. So, overall, accounting software is giving companies more insight into their operations than was possible before,” Steven Cohen, MD, Softline Pastel.

operational activity into their products to make them more complete business solutions rather than only accounting solutions. “But the quality of the accounting core has to be preserved and SMEs, in particular, will only go with a business rather than an accounting solution if it is easy to use and can be implemented quickly and with minimum disruption to their operations,” he says.

The sales drive According to Gary Epstein, MD, Quickbooks, highly advanced, technical products that are quick, simple and easy to use will drive sales in 2008. “Products that meet specific industry standards and the needs of customers simultaneously will drive sales,” he comments. Adriaan van der Merwe, MD of 8thMan Consulting, a reseller company, says that one major aspect of accounting software that will drive sales is its reporting capabilities. “The better quality information that

ACCOUNTING SOLUTION

customers can get out of the software, the more it will drive sales,” he comments. Keith Fenner, strategic sales director, Softline ACCPAC, says that integration, collaboration and self-service will continue to differentiate leaders in the accounting and payroll space. According to him, only solutions that integrate fully and act as a subsequent platform for integration will give business leaders complete visibility throughout their business and enable real-time, dynamic decision-making and planning. In the same way, he adds that collaboration will remain key throughout 2008. Gary Epstein, MD, Quickbooks says that highly advanced technical products that are quick, simple and easy to use meet specific industry standards and the needs of customers simultaneously. When it comes to self-service, Fenner says that applications need to empower customers in the way they choose.

Accounting applications With the business applications space undergoing consolidation, how can solution providers go about choosing the right software vendor? In answering that, Granville says that solution providers should choose accounting applications which are right for their businesses, which grow business and don’t have to be replaced because the company has reached a new level of growth. Elington believes that businesses need to understand their requirements exceptionally well, and know what they need to succeed and grow. Van der Merwe believes that the biggest aspects solution providers must take into account are the vendor’s track record and product roadmap. “The vendor’s product must appeal to a broad market. Because of market consolidation the product must be attractive to a wide range of customers, including SMEs,” he says. “Buy from the big guy, the one who is totally focused on business applications and tends to be consolidating, not being consolidated. Do your homework, look at track records, application focus and successes, and find out about service levels and support,” Fenner remarks. Jumana Helal, head of Microsoft Dynamics business at Microsoft SA, says

FEATURE

PROVIDERS

that solution providers have a pressing need for partner support they can trust and solutions they can use. “Don’t pick a popular product, check the details of after-sales service. Be wary of a one-package solution for accounts and payroll because the local payroll space has to carry out a vast number of changes annually and should have specialist input,” Teryl Schroenn, CEO, Accsys remarks.

A good accounting system When looking for a good accounting system, Cohen says that customers should be sure that they buy a system that gives them solid after-sales service, good vertical products, and software development kits (SDKs), particularly for the integration of legacy systems. “This is a trend Pastel has seen escalate over the past two years. About a year ago the requirement for interoperability in even the smallest of businesses became so noticeable that Pastel embarked on a process of building its own SDK for its Pastel Evolution product. Also, your accountant and auditor should know the package. And there should be a solid existing user base in the geography

Ivan Epstein, Softline you to drill for the information you need. Shop around for a proven solution that will empower your business well into the future,” he comments.

Decent margins For VARS to earn decent margins for themselves, Ellington believes that it’s all about the service they offer. “I believe they need to work smarter. If

“Never before has a financial roadmap been more important in the SME space. With consumers tightening their belts, owners and managers need to be able to adapt their company’s roadmap instantaneously. Accounting solutions make this possible.” – Ivan Epstein, Softline.

you operate in, because it automatically guarantees easy access to support,” he says. Fenner says the starting point for choosing a solution should be to look at where you are now and where you want to be in three to five years’ time and how the solution will enable this. “Don’t invest in anything that isn’t integrated, that’s made up of components that can’t and don’t speak to each other. Know about all of the software’s components. Look at how these will enable your business strategy. See what functionality is offered, check that the application is functionally rich in the vertical space, that it will enable

you’ve implemented an application at a certain company, there are not only definite resale opportunities there, but you should be using what you learnt during the implementation to make your next project that much more cost-effective. By building up your expertise on specific products, you become much more competitive. This is an opportunity I don’t really see the channel taking full advantage of at present,” he comments. “To earn high margins, it comes down to either volume or quality, with the latter being more important,” Van der Merwe comments. He agrees that solution providers can sell

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quick and cheap products, but ultimately they won’t meet customers’ needs. “Customers are demanding that accounting solutions provide them with insightful and quality information, and if they are offered superior products that have everything they need, the solutions will sell themselves and will offer VARs higher margins,” he says. “Accknowledge Accounting dealers receive up to 50% annuity income on the retail price of the software sold and can charge for service revenues, training and configuration.

By using accounting software, Helal says SMEs can be more strategic about their business planning and free time to focus on innovative new business approaches. Cohen says the move to an automated accounting system for SMEs is a smart one. “There’s an urgent need to differentiate your business quickly, relevantly and affordably. But to do that, you need to spread your information based beyond the admin office and on to the desktop of every employee. Applications specific to disciplines other

“What will drive sales this year is ERP solutions, they will continue to offer that much more of a sophisticated option to companies wanting to differentiate themselves and boost their competitive advantage.” – Ashley Ellington, Softline Enterprise.

There is also the option for dealers and accountants to brand the accounting software as theirs,” says Granville.

than accounting such as human resources, CRM, BI and ERP enable you to do that,” he says.

SMEs Today, small companies can work in the same way as massive multinationals, using technology to coordinate their operations.

Ashley Ellington, Softline Enterprise

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CRN SOUTHERN AFRICA • MARCH 2008

Offerings for channel partners Granville says that Accknowledge Systems has a number of offerings from accounting and financial software vendors. He goes on to say that training is one of the revenue services dealers can offer to end-users. “Because each application module follows the same process, once the end-user has mastered one module, they can use all the modules easily. Training material is supplied,” he says. “From a Softline Enterprise perspective we expect to continue boosting the channel with our CRM SalesLogix solution. The product’s capabilities have placed us in a unique situation in the channel based on what it offers customers,” says Ellington. “Our focus at Quickbooks this year will be to ensure our dedicated channel partners are given the product information they need so they can assist customers to choose the right solution for them. While we’ve seen high levels of technical knowledge in the channel, I believe in many cases there is still a lack of specific product understanding,” says Epstein. He goes on to say that smaller vendors

are going to continue seeing opportunities in the channel, as it ultimately translates into the vendors’ sales force. He also adds that partnerships with the channel are going to become more critical than ever in maximising revenue opportunities.

Skills A diverse skills set is an asset in this industry. Fenner says that solution providers need a deep-rooted set of skills that encompass a real understanding of business that complements their technical and applications knowledge. “Softline ACCPAC has worked extremely hard to ensure its partners are both software and industry experts. This means we’ve developed a highly skilled channel of partners who understand the specifics of mining, warehousing and so forth. They’re thus not only well-equipped to implement our solutions, but they also understand the industry processes involved, and where and how to maximise efficiencies,” he says Ellington says solution providers need more than applications skills. He believes they should develop a team of skilled resources that will be made available to their customers. “They need accounting and a wide range of business experience so that they can add value, rather than simply letting a user know that the debits are near the window,” says Schroenn.

Future of the accounting software Helal says that the future of most software lies in the software-plus-services model. “It will give customers unprecedented flexibility in the way they source, deploy and use mission-critical business software. Depending on their specific business and IT needs, customers will be able to deploy accounting software either as a traditional on-premise solution, a web-based ondemand solution, or as a flexible mix of on-premise software and on-demand services,” he says. “It will continue to be mission critical and continue to expand from the purely accounting domain into the operational domain. I also believe that the Web will become the major delivery platform in the medium term,” Cohen concludes.

DATABASE

SOFTWARE FEATURE

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PROVIDERS

Databases is the central nerve of business Businesses demand fast, secure access around their applications. BY DUDU SHABA

T

he need to safely store and manage data is of paramount importance especially to large enterprises that handle massive amounts of data. Simon Jeggo, IBM Software Group sales and marketing information management

“Database software does not only store mission-critical information, but delivers the right information to all of its users and reduces the time and cost involved in managing data” – Manoj Bhoola, Microsoft SA.

products, says that a database management systems (DBMS) is designed to store, organise and retrieve data. He says that the benefits that can accrue to an organisation when using the correct DBMS strategy includes the ability to store vast amounts of data and more importantly the ability to retrieve this data almost instantaeneously. “Once the data has been stored and organised in the correct manner it is possible to analyse this data and get insight into your business, have an understanding of how your business is performing an improve it to be more competitive,” he says. Manoj Bhoola, head of the server and tools business at Microsoft SA says that the database software does not only store mission-critical information, but delivers the right information to all of its users and reduces the time and cost involved in managing data. “We want to help our customers better manage mission-critical systems. Organizations need security and a trusted platform that can support their most demanding applications,” he says. “It is easier for companies to farm their existing client base than it is to search for and develop new accounts,”Mark Musto, Microsoft Channel Manager at Comztek.

The state of the market

Manoj Bhoola, Microsoft SA

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CRN SOUTHERN AFRICA • MARCH 2008

According to Bhoola, the state of the database software market globally is a $15 billion dollar one that is dominated by IBM, Oracle and Microsoft. “We’re extremely proud of the success we’ve seen with SQL Server 2005. Most recently SQL Server experienced yet another quarter of double-digit growth with a 15

DATABASE

SOFTWARE FEATURE

SOLUTION

percent revenue increase from Q1 FY07 to Q1 FY08. Several reports from independent analyst firms also show SQL Server gaining market share around the world as adoption rates for SQL Server continue to outpace the industry and the performance of other vendors,” he says. According to Jeggo, there will be more emphasis around service, capability and

PROVIDERS

able to deliver the expected performance,” he adds. He goes on to say that another area that is growing in significance is around the archiving of data. “This is really due to two major factors, the growth in the volumes of data and the emergence of strong corporate and data governance requirements. The ability to

“The database arena has grown over the years to include new technologies that are appearing on a more frequent basis. Any reseller that has good skills and a good understanding of these technologies can build a healthy business.” – Simon Jeggo, IBM SA.

efficiency but the requirement to store more and more data will continue. “There are still a lot of large organisations with legacy applications that use nonrelational databases. We are seeing moves to migrate these applications to more modern technology,” he says. “There are a number of exciting announcements in the pipeline for 2008. The industry has been on an upward swing and it definitely looks like it will maintain this growth pattern,” says Musto.

Key Drivers According to Jeggo, there are a number of drivers in the database market currently. “As you may expect one of these is scalability. As I mentioned before there has been exponential growth in the amount of data that needs to be managed. Many current databases were designed 30 to 40 years ago when we talked about data in megabytes and dreamt of gigabytes. The techniques required to handle today’s data volumes are very different to those needed to handle much smaller data volumes. Many databases have architectural limits on the amount of data they can handle effectively. The ability for a database to offer virtually unlimited scalability is therefore important,” he says. “Along with scalability comes performance. A database may be able to physically store vast amount of data but can it still deliver that data at the required speeds. Scalability tends to go hand in hand. As the amount of data grows will the database be

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have effective, real-time archiving and data lifecycle management strategies will become more important,” he says.

enterprise data management, developer productivity and business insight, Microsoft is reaching out to the core technology community through its Independent Software Vendor (ISV) ecosystem that will provide best-of-breed solutions to support SQL Server 2008,” he says. Bhoola adds that Microsoft has several channel initiatives to encourage ISVs to bring their applications to market effectively and in a timely manner by offering incremental technical and marketing offerings to early-adopting ISVs. “The quantity and quality of the applications that ISVs develop for the platform and have available for deployment in a corresponding timeframe will be a measure of success for Microsoft’s goal of helping customers get more from their technology investments,” he says.

Skills

Growth opportunities Whilst there is no doubt that the market is dominated by the major application vendors such as SAP, Oracle, Microsoft and Softline, Jeggo says that there are still opportunities for solution providers to develop niche and specialised solutions aimed at the SMB market. “There is a burgeoning need for people to supply services and solutions that help manage the vast amounts of data business needs to handle. I have already mentioned archiving, but this also includes areas such as data quality, data integration, integration between structured and non structured document management systems and finally the whole arena of data warehousing and business intelligence,” he says. Musto says that the launch of Microsoft SQL Server 2008 is going to take the market by storm. “We have already been inundated with requests for trial version software,” he says. As Microsoft has launched the Microsoft SQL Server 2008, Bhoola says that the company is taking additional steps to ensure that the industry is ready for the new version of Microsoft’s complete data-management and analysis platform. “To help the database industry understand the significant enhancements to

According to Musto, the database management software is relatively easy to install. He says that a basic installation can be done by just about anyone using the Smart Wizards. However, for customisation, he says that one would definitely need to contact a specialist. Most Gold Certified companies will have resources available to provide this assistance,” he says. “Much of training on database is left to the suppliers. This has led to technology centric training rather than a generic understanding of data management techniques. An understanding of relational theory and data management concepts should be the starting point. Once these concepts are understood it is relatively easy to learn the different technologies of different database vendors,” says Jeggo.

Resellers According to Jeggo, the database market is a healthy and growing one. By selling the database software, he says that resellers can build good businesses for themselves. “The database arena has grown over the years to include new technologies that are appearing on a more frequent basis. Technologies such as quality management, archiving, integration, data compression and backup technologies. Again any reseller that has good skills and a good understanding of these technologies can build a

DATABASE SOLUTION

healthy business,” he says. Musto believes that resellers should begin by selling the right product at the first time. “Products that are tried and tested are stable and make purchasing a pleasurable experience for the buyer, resulting in repeat purchases. Also, maintenance, customisation, and performance enhancements, to name just a few, are places resellers can add additional value to their customers and generate decent profits for themselves,” he comments.

Consolidation Jeggo says that there is no doubt that the database market has consolidated, in his view, there are now only three major database suppliers left IBM, Oracle and Microsoft. “In some ways this has meant less choice for buyers, however with only three major players it does mean that all three can be evaluated when making a database strategy decision. With just 3 major suppliers in the market, there is very close competition between them. This is good for the market and drives both development of database technology and competitive pricing,” he says. According to Muggie van Staden, MD, Obsidian, consolidating allows you to focus your skill set on only supporting one database server, as opposed to being an expert in two, three or more database servers. “This allows for higher efficiency, and ease for software development and support. Consolidating business intelligence allows the software developer to have control over those functions within one application. Doing this frees up other developers from re-inventing the wheel, lowers development costs and time, and provides a single entry point for applications. What we are seeing on the open source development platform is open source databases being at the front of the string pulling in other open source applications,” he says. Musto believes that consolidation enables products to get better and faster by the day, giving users more relevant and up to date information. “This enables companies to analyse results and react accordingly, with the confidence the business market has never experienced before. This can only result in a bet-

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ter product or service offering for the client, and greater growth for the market as a whole,” he says.

Hottest technologies in virtualization Jason Oehley, Lead Systems Engineer, Citrix Systems, claims that Citrix’s Delivery Centre product suit is definitely at the top of the virtualisation space at the moment. “There are lots of great technologies out there that can do similar things. Where Citrix differs is the ability to stream or virtualise applications dependant on user profiles or policies. These products also offer an option to failback from a streamed application to a virtualised application if problems are experienced,” he says. Bhoola says that virtualization loosens the direct reliance between the hardware, the operating system, the applications and the user interface, he says that this opens up for big opportunities as well as many challenges in IT. “Microsoft’s virtualization strategy contrasts with current alternatives for virtual machine management, which tend to be complex, expensive and require specialized skills. We look at virtualization as key technology to help customers achieve self-managing dynamic systems. Across the platform, operating system, applications and management layers we’re delivering functionality and capabilities that enable our customers to significantly reduce operating costs, drive up server utilization and achieve better ROI through full featured virtualization solutions,” he says.

What’s new? According to Bhoola, the big news from Microsoft is undoubtedly SQL Server 2008, “Your Data, Any Place, Any Time.” SQL Server 2008 will bring that vision to life, and there is something in this to meet the needs of companies of all sizes. We make it easier for organizations to store and manage many types of data, including XML, email, time/calendar, file, document, geospatial, and so on, while providing a rich and trusted set of services to interact with the data such as search, query, data analysis, reporting, data integration, and robust synchronization,” he explains. Frikkie Bosch, product marketing manag-

er, says that the SQL server is very intelligent in that a lot of enhancement has been made to it. “This server has special capabilities, you can instill any type of data, any organization can use it and their size does not matter. It is a secure database, it protects and looks after your data and ensures business connectivity,” he says. Derek Diamond, CEO, Diamond Software Concepts, a Micrososft partner says that Microsoft SQL Server opens up business intelligence, he says that their company uses Microsoft products to develop solutions and he believes that their company has found a secure platform to deliver their solutions. “This is a bandwagon at the moment. There is huge demand from tracking industries, mining and housing. We leverage Microsoft for our solutions and we will work with them to market SQL Server 2008” he says. “The recently announced collaboration between Microsoft and Citrix is an indication of how the industry is poised to embrace virtualisation. The interoperability and cross functionality between database software and virtualisation software will help customers gain greater value from their investments in both virtualization and database software,” says Musto. Jeggo says that there are a number of new major areas of database that are being addressed at IBM. “These are areas such as XML and combining a relational database and XML database in a single technology, the concept of data federation, or the ability to provide a single view of data irrespective of where it is stored and what technology it is stored under and the ability to abstract or virtualise the data. This implies the capability to supply information as a service irrespective of where or how it is stored and irrespective of the type of data, structured, unstructured,” he says.

The future According to Van Staden, the current and future trends will see open source databases becoming more widely used. “There will be a strong focus on data consolidation and integration based on open standards and open source,” he concludes.

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STORAGE

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Storage continues to grow Data is growing with no signs of slowing.

T

BY DUDU SHABA he storage space has become more dynamic. As products and solutions become much easier to use and manage, companies of all sizes need to investigate the storage options available to them. Jim Holland, HP product manager, Axiz, says that data remains a critical driver of business. “With more data being kept for longer, storage has become vital for business. As

as HP and its partners,” says Day. Sagaran Naidoo, storage solution strategist at CA, says that data protection, security and governance remain at the core of all storage solutions, mobile or not. According to him, the nature of mobility means that solutions must be automated, web-based, non-intrusive and bandwidth friendly. “This is to accommodate employees such

“The storage growth is quite simply because storage solutions are being used for a variety of applications. From file-sharing within workgroups, to the centralised storage of business information and

Jacques van Zijl, Ingram Micro SA

even backup and archiving of sensitive information.” – Jacques van Zijl, Ingram Micro SA.

the market becomes increasingly competitive, customer data has become a crucial means of driving strategic advantage. Storage is thus receiving more attention from management both from a security and manageability point of view,” he says. Adam Day, StorageWorks product manager, HP, agrees that there is an ever-increasing move to digitising both personal and corporate information. He gives a recent example which is new to SA that of the South African Revenue Service (SARS), which allows tax payers to make use of eFiling. “Consider losing this data, the repercussions could be disastrous,” he says. However, he explains that what people need to understand is how and where they need to store their data as not all storage repositories or data is created equal, he says this needs to be addressed when investing in a storage solution. “Companies storing data critical to their business should involve experts in selecting the right solution, whether internal resources or outsourcing this function to vendors such

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as those with home-based work contracts who are unlikely to be vigilant about data protection, security and governance. Data should be backed-up according to schedules whether connected to a network or not. Locally backed-up data should be transparently and efficiently transferred to the file server when convenient for the user,” Naidoo says.

Trends With regard to the emerging trends in storage, Day cites the Meta Group, which predicts that data is growing at 125 per cent a year with no signs of slowing down. “The prediction is that there will be 26 times the amount of data there was 10 or 12 years ago. Keeping these factors in mind, the trends are still very much towards consolidating storage for better use and driving down purchase costs in line with data growth. The demand to manage existing storage and data growth will drive increasing investment in management tools and virtualisation products to reduce the

cost associated with large repositories of information in terms of manpower and capital expenditure,” he says. According to Sheldon Hand, Symantec Storage Specialist, there are three main trends at the moment. “Firstly, organisations are investigating storage technologies to reduce power consumption. These technologies require minimal power to store infrequently used, nontransactional data. The objective is to introduce a tiered storage strategy, where the final tier could include technologies such as tape or disk drives that only spin up on demand. Almost 90 per cent of the information on disks is not accessed on an ongoing basis. Secondly, organisations are looking more and more at storage virtualisation to improve storage usage rates. Thirdly, avoiding duplication remains a focus area for many organisations. Eliminating de-duplicates improves capacity use and enhances performance,” he says. Andre Hurter, storage software products manager at distributor Drive Control Corporation believes that storage entails more than saving information onto > 31

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servers, though it encompasses different types of storage such as network attached storage and storage area networks (SANs), and approaches such as information lifecycle management (ILM). He goes on to say that ILM and de-duplication are two major storage trends at the moment. “When you look at all the data that is generated within a company, it begs the question, what do I do with it all? ILM manages data from cradle to grave and selects the most appropriate data to be stored in the most appropriate format. De-duplication is another trend that has filtered down to the local market. Numerous copies of the same document can circulate within the network, taking up a significant amount of storage space. De-duplication eliminates those additional copies,” he explains. Jacques van Zijl, storage solutions product

encompass de-duplication, backup, archiving and management tools that lower the total cost of ownership. Meanwhile, Day believes that the characteristics of a comprehensive storage solution are difficult to define as they will vary on a case-to-case basis.

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Virtualisation

Adam Day, HP. their data is secure and tamper proof in an attempt to avoid Enron-type collapses and force accountability onto business leaders,”

“Companies storing data critical to their business should involve experts in selecting the right solutions for them.” – Adam Day, HP. manager at Ingram Micro SA, says storage growth is quite simply because storage solutions are being used for a variety of applications. Apart from the fact that buyers believe their money is being well spent, since SAN infrastructure is 100 per cent focused on the storage space, the fact that these networks are very scalable means that organisations can start small and grow their SAN as their requirements change,” he adds.

Sales drivers Holland says that data mining capabilities as well as lifecycle management are the key drivers in the storage space. “This is a result of increasing demand for data capacity as a result of legislation,” he says. Day adds the main drivers for investing in storage solutions vary from case to case and customer to customer, but some of the most prevalent are regulatory and legal requirements. “Corporates are being forced to ensure

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he says. He says another key driver is consolidation. “While this is nothing new as a strategy for customers, with the maturity of the storage solutions now being offered is has become easier to deploy comprehensive storage networks rather than point solutions or SAN islands, as has been the case previously,” he says.

A comprehensive solution Holland believes that a comprehensive storage solution is one that includes management tools that make the application easy to use and enables users to manage data appropriately. “Companies must, however, ensure that the storage solution they invest in meets their direct business requirements everything from replication to performance,” he comments. Hurter’s view is that a comprehensive storage solution or approach, such as ILM, will consider information at all points of its lifecycle. He also adds that it must

Hurter believes that this is another emerging trend which consolidates a business’ spare storage capacity. “Businesses are not using their storage effectively and view the segments individually. The spare bits and pieces of storage capacity from different servers can be consolidated and used more effectively. Viewing storage as a single entity means you can use the storage investment better,” he comments. Hand says that a key influencer for selling storage virtualisation products is reducing power consumption. “Physical server consolidation can reduce power consumption significantly and slow the growth of new hardware installation. Storage tiering can also play an important role as non-critical data can be moved to less energy-demanding tiers. There are a number of steps that data centre managers can take to reduce power consumption in existing data centres without making a huge investment or sacrificing performance or availability,” he says. “The convergence of storage, security and IT governance concerns is in line with IT’s evolution from a traditional support function to a service provider that functions as a business of its own. The services that business demands from IT will typically use a multitude of technologies from different technological silos to address a specific business need,” says Naidoo.

Storage in the SME market Storage management has become as important for SMEs as it is for larger corporates. Holland says that uptake throughout the business space is being driven by ease of use and management. “Vendors are also acting very progressively in this area, HP, for example, has made its storage essentials portfolio available > 34 for all user levels,” he comments.

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Hurter highlights that SMEs are also realising they need to manage their storage more efficiently.

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Margins “Combining different technologies and not focusing on one specific point will assist resellers to sell more and better resolve customers’ storage challenges,” he says. Hurter says this will show the value the reseller can add and also assist as price is very competitive and margins are eroded. He adds that offering services such as implementation, maintenance, support and even outsourced services can assist to take the burden off the client and generate revenue for the reseller. According to Day, solution providers need to provide comprehensive solutions that meet the customer’s requirements and the VAR really needs to add some value to customers placing their purchases with them. “At HP we leverage our partners and VARS on a regular basis in the storage arena. This is due to the fact that they

one to keep ahead of the game,” he says. He goes on to say that ILM promotes multiple certifications as the reseller must understand each phase of the lifecycle of data, where it resides and how it should be supported and maintained. Day believes that this specialisation is selectively opened to their most skilled HP Preferred Partners focused on providing enterprise account customers with highavailability solutions, supporting servers, storage and business critical applications. “Skills needed to address this market would require the partner to invest in high level sales professionals, consultants, presales, system engineers as well as obtain the ASDP (Accredited Service Delivery Partner) and ABSP (Accredited Business Solutions Partner) specialisation, which will give the partner the competence to provide the complete solution, installation and start up as well as break fix,” he says.

Reseller challenges “Challenges faced by the channel at this time are primarily around skills shortages

“A comprehensive storage solution will be the one that includes management tools that make the application easy to use and enables users to manage data appropriately.” – Jim Holland, HP.

Jim Holland, HP hard disk drive is the 500GB Iomega. The products are so easy to use that consumers are happy to install them on their networks at home. So our challenge in this market is meeting the demand,” he remarks. “Staff retention continues to be a real challenge, as well as keeping up to date with the latest certification. Resellers are also being forced to go beyond box dropping when it comes to storage, it’s no longer enough to merely supply the hardware, they have to offer some sort of management software and support,” says Holland. Hurter comments that decreasing margins are a huge issue as the local market is price sensitive.

Looking ahead often have key and niche skills, and expertise that we can leverage to provide customers with the correct solution. Once we have this level of solution offering in place, price often becomes a secondary consideration for customers as they only have one offering that meets their requirements,” he says.

Support and skills Hurter says that resellers need to know how to install, configure and maintain the plethora of storage solutions that are available. He says that the ICT and storage architecture of a business no longer includes one brand but rather reflects the trend to move towards a heterogeneous environment with mix-and-match technology. “This means that resellers need to gain certification from a few vendors rather than just

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and competition,” says Day. He states that there are very few experienced and skilled resources available in the storage market and the trend seen in this skill is that it often rotates around the channel. “There is also a trend by customers to push partners to compete for the business with each other in an attempt to drive down costs, this is something they can avoid by bringing a complete solution to the partner and leveraging HP’s entire portfolio rather than bidding point solutions as this will most likely just end in a price war,” he comments. Neil Watson, MD, Digital Planet says that the adoption of storage units in the consumer space has exploded. “As digital media adoption in SA takes place, the natural result is that people will require storage. Our top selling external

Holland predicts that utility-based storage and storage on-demand is likely to continue influencing this space well into the future. “As data volumes continue to increase and legislation starts to come into effect regarding managing and storing data, storage will remain a huge area of positive growth in the IT industry,” he remarks. According to Day the future for storage is definitely interesting. “Data is growing, businesses are changing to leverage the new technologies and this is most certainly going to be the case for some time to come. The focus areas will remain to standardise technologies in an attempt to reduce costs and complexity with solutions like tiered storage, and to implement management systems to allow an understanding of data,” he concludes.

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Server virtualisation heats up End-users poised to gain from memory and processor advancements. BY STANLEY CHISHALA

S

olution providers are turning server virtualisation, one of the fastest-growing segments of the IT market, into their very own gravy train.

“The Intel Modular Server is a flexible and powerful system for the small to midsize business.” – Chris Coetzee, Rectron

According to two recent exclusive CMP Channel surveys in the USA, solution providers say server virtualisation is becoming a larger part of their business and it’s

also quickly becoming the catalyst for a wide range of other service offerings, including disaster recovery and data centre consolidation. Multinational vendors such as HP, Sun, IBM, Fujitsu-Siemens, EMC and Hitachi have jumped on the server virtualisation bandwagon and have over the years introduced to the market entry-level offering that compete with the non-branded machines assembled mainly by OEM assemblers such as Pinnacle Micro, Axiz & Rectron. Although in the past the support that accompanied non-branded servers was seen to be inferior to what the multinationals were offering, this picture has changed.

State of the Market

Chris Coetzee, Rectron

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Chris Coetzee, Intel server product manager at Rectron says the local server channel market is in a pretty good position with Intel pioneering growth with the release of the Intel Modular Server. Coetzee says the Intel Modular Server enables business in a box with seamless installation, migration, and growth capabilities. “It has the ability to support up to six Server Compute Modules and 14 SAS 2.5-inch hard disk drives, as well as two Ethernet Switch Modules, integrated SAN, and a Management Module,” he says “The Intel Modular Server is a flexible and powerful system for the small to midsize business.” Steve Buck, MD at Edgetec, a Johannesburgbased solution provider company concurs and points out that blade server sales worldwide and in SA have been phenomenal. Buck says no new server technology has ever seen the acceptance and growth of blades in recent times. “IDC notes that the blade server market is the fastest growing segment and will generate US $11 billion in

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revenue by the time the Soccer World Cup reaches SA,” he says. Chris Norton, regional manager, southern Africa at VMware says server virtualisation is becoming the catalyst aiding solution providers, system integrators and VARs to start selling and packaging a range of services around DR, business continuity, lifecycle automation tools and data centre consolidation. “Server consolidation should not just be seen from a perspective of reducing 10 servers to run on two machines,” he says. “The greatest opportunities for solution providers are the services they can sell around the virtual environment they populate.” He points out that for every server that is consolidated into a virtual environment there is a service that can be sold “What this means is more revenues for savvy solution providers,” he says.

OEM Partnerships Virtualisation software vendor VMware has scored major partnership deals with Dell, Fujitsu-Siemens Computers, Hewlett-Packard, Sun Microsystems and IBM in which the industry heavy hitters agreed to embed VMware ESX 3i software in the companies’ servers, the company recently announced. Norton says the ESX Server 3i is a smaller version of the company’s ESX Server virtualisation software which was shrunk so that it could be embedded in servers. Norton says the ESX 3i has all the functionality of ESX Server, but can fit in 32 MB of memory instead of the previous 2 GB in order to let it be embedded on server motherboards. According to the vendor, the VMware ESX 3i hypervisor is the industry’s smallest hypervisor (32MB), enabling high levels of security and reliability, and is the only OSindependent virtualisation platform. Norton also adds that VMware ESX 3i provides single-server consolidation with fast deployment, and is the first virtual machine that can operate within minutes of booting a server with pre-configured and optimized hardware configurations. Edgetec’s Buck says according to Worldwide Virtual Machine Software 2006 to 2010 forecast, it is predicted that the already strong x86 server virtualisation software market will expand to more than US$1.8 billion in 2009.

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What you can do with VMware Lifecycle Manager: • Create a catalogue of standard IT services. Users can select from a pre-defined menu of virtual machines with different properties such as processor and memory. This standardization allows infrastructure administrators to maintain control over the IT environment and minimize risk. • Streamline requests and approvals. VMware Lifecycle Manager establishes a consistent and scalable mechanism to route and approve all requests for virtual machines, ensuring compliance with internal policies. • Track and control virtual machines. VMware Lifecycle Manager provides an easy to use Web interface for tracking virtual machine deployments so IT administrators can know exactly when requests were made, approved or denied; when and where virtual machines are deployed; and how long they have been in operation. • Eliminate manual, repetitive, and error-prone tasks. As virtual environments grow, automation is critical in helping IT do more with less. VMware Lifecycle Manager automates each step in the virtual machine lifecycle based on predefined policies. • Assign Chargeback Metrics. VMware Lifecycle Manager enables IT to associate chargeback metrics to specific virtual machine deployments and resource pools. These chargeback metrics can be assigned to specific business groups, and tied in to existing financial systems. • Integrate with existing management tools. VMware Lifecycle Manager provides APIs for integration with other IT operational tools such as trouble ticketing, change management, and asset management. Source: VMware

“IDC notes that the blade server market is the fastest growing segment and will generate US $11 billion in revenue by the time the Soccer World Cup reaches South Africa.” – Steve Buck, Edgetec

He explains that the driving force that is making x86 server virtualisation software so popular is causing a major surge in x86based hardware sales. “Businesses are also going green by creating data centres that are energy-efficient and environmentally friendly, which is underpinning x86-based hardware growth,” he says.

Market leaders Buck says if one looks inside most enterprise data centres today, one will probably find x86 servers running VMware virtualisation software. He says VMware continues to dominate the market it has created. “When EMC bought the company in 2003, VMware revenues were around US$100 million a year. But at the end of 2007 the company hit $1.5 billion,” he notes VMware is pushing server virtualisation by opening up its code so that partners, such

Steve Buck, Edgetec

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integrators and channel partners by providing a fully supported, seamlessly integrated solution from these two leading technology providers.

Main drivers

Chris Norton, VMware SA as application vendors, can integrate better with its virtualisation software. It is also pushing for virtualisation standards wanting ultimately to turn x86 virtualisation into the foundation for the new data centre.

“Server virtualisation is becoming the catalyst aiding solution providers, system integrators and VARs to start selling and packing a range of services around DR, business continuity, lifecycle automation tools and data centre consolidation.” – Chris Norton, VMware SA

Norton says in addition to dominating the market it has created for itself, VMware continues to benefit from the OEM partnerships it has with hardware vendors IBM, HP, Dell, Fujitsu-Siemens and Sun Microsystems. To this effect, Sun is offering the VMware Infrastructure product suite on Sun hardware systems with full support from Sun. This helps enable customers to capitalize on the high performance, scalability and energy efficiency of Sun’s x64 servers while leveraging VMware’s groundbreaking virtualisation solutions to improve asset utilisation, operational efficiency, and business agility. The agreement also benefits systems

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Buck says the main driver of server virtualisation is the green issue. He says that by using fewer servers it drives the effective utilisation of server capacity and from a green perspective it helps reduce electricity consumption as less power is needed to cool the consolidated servers. Rectron’s Coetzee agrees and goes on to say that massive savings are driving rapid acceptance of server virtualisation. “In an era when ROI means everything, huge savings that are created as a result of consolidating a lot of servers into a few will always be preferred,” he says. Buck agrees and says the space issue is also driving server virtualisation as fewer servers means a smaller footprint is made. This is especially true with blade servers as they take up less floor space, he says. Hewlett-Packard has also expanded its footprint in the virtualisation space with the release of HP ProLiant iVirtualisation, a server that integrates virtualisation technologies from Citrix XenServer, and in seperate versions, VMware and Microsoft into the ProLiant platform. iVirtualisation technologies are embedded directly into the ProLiant server, so when powered on, it is automatically and immediately configured into a fully-capable virtualisation environment. HP ProLiant iVirtualisation is designed for small-tomedium-size businesses as well as enterprise customers. The iVirtualisation portfolio includes the new HP ProLiant Virtual Console that provides manageability of a virtualised server from a local console or remotely via the Buck says that indications are that the market is moving in the direction of server virtualisation. With most businesses heading towards this route, solution providers that are unable to service these clients will unfortunately be left behind. Norton agrees and says the beauty about virtualisation is that even SME type companies are embracing the technology. “With this in mind, resellers can have peace of mind know that there are solutions to suit enterprise and SME type clients,” he concludes.

Reviews by: Kaunda Chama

Highly Recommended

Iomega eGo 160GB portable hard drive

Microsoft wireless notebook laser mouse 7000

Best hip flask ever

A little pleasure

The time has surely come for portable and desktop storage, and the stylish Iomega eGo USB 2.0 portable hard drive is a perfect example of advances in this field. The eGo drive USB 2.0 is a fast and fun notebook hard drive that delivers on form and function. On design alone, the drive is elegantly curved and comes in a number of colours all with chrome end caps, which makes it stand out in a room full of hard drives. This design will definitely set the benchmark in making portable hard drives more attractive to look at, especially because they have moved from the office and are now prominent features in a lot of homes. Besides that they do pack quite an impressive amount of capacity – the 160GB 2.5-inch drive is USB-powered for simple operation (no power supply required), and it comes with EMC Retrospect HD software for automatic, scheduled or on-demand backups. The DropGuard technology also protects the drive from damage caused by drops of up to 51 inches. You can safely carry around up to 640 000 highresolution photos, over 2 900 hours of music or 240 hours of video. The device is compatible with Microsoft Windows 2000 Professional, Windows XP Home/XP Professional/XP Professional x64 and Vista. It is also compatible with Mac OS X 10.1.5 or above.

On cosmetics alone, the grey-on-black design of the Microsoft wireless notebook laser mouse is great. The smooth contours enable it to fit easily under any hand. Its size is also a plus because it is small enough for those with small hands and not too small for even users like me that have slightly large hands. For those with Vista driver issues, this little device is certified for the operating system and works well with no lag or compatibility issues. This advanced ergonomic 2.4 GHz wireless mouse is designed to provide a more comfortable, responsive computing experience for users on any given surface. The High Definition Laser technology makes it even more precise and responsive, delivering smoother tracking. The MagnifierPoint on the device also allows users to click to enlarge and edit detail. The Four-Way Scrolling makes for greater efficiency and comfort with Tilt-Wheel Technology. In addition, the Flip 3D makes it easy to flip through all open windows. Besides the fact that you can actually customise all five of its buttons, its most impressive feature is that you can use the mouse with your left or right hand, its ambidextrous design makes it comfortable either way.

Logitech AudioHub Clear and crisp sound on your desktop To start with, the look of these speakers is quite misleading in that you don’t expect the quality of sound that they produce. The compact 2.1 one-piece design might fool many, but what they lack in size they make up for in exceptional audio quality. The AudioHub Notebook Speaker System with Integrated USB Hub (three integrated high-speed USB ports) fits neatly behind most notebooks. It offers exceptional digital audio with its adjustable one-piece, three-chamber speaker system with an integrated subwoofer that creates balanced audio with clear highs and solid lows. For those unexpected interruptions, it comes standard with a mute button that turns off the sound without cutting power to the integrated USB hub. To help in peripherals management, the AudioHub offers three built-in, high-speed USB ports. And when you want to take your notebook with you, the AudioHub makes it easy to disconnect the setup by simply unplugging the USB cord attached to the computer. On the base of the AudioHub, a convenient cable management system allows you to pass cables from your devices to a USB port easily along the back of the AudioHub; a cable hook efficiently manages cable clutter. At a height of just three-and-a-half inches, the AudioHub presents a sleek, low-profile design that fits almost anywhere in the home or the office.

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PARTING: SHOTS

DILBERT

www.dilbert.com

by Scott Adams

S n a pshot Peter Vieira Company: TallyGenicom South Africa Position: Director Age: 33 Best personal achivement: My awesome little family Management style: Management by objectives, if we all know where we’re headed, how we going to get there and are motivated to do so, it makes the job that much easier. Most admired company: Coca-Cola, talk about a company getting it right and keeping it right. Most admired executives: Maria Ramos, her no-nonsense attitude gets the job done. Best IT product: Colour laser printers, they have changed the way we communicate. Most pressing local business issues: The negative impact that “power outages” are having on domestic growth and, more importantly, foreign perceptions of SA. Key to success: Passion, it delivers all the attributes needed for success. Where do you live: Douglasdale Favourite car: Bentley GT Your car: BMW 325i Favourite author: Not much of a reader. Birthplace: Vereeniging. Hobbies/sports: Cycling, soccer, golf and poker. Favourite periodical: Bicycling Pet hates: Law flaunting taxi drivers

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