Computer Reseller News Sa May 2008

May 2008

p14>>

Inside This Issue HP reveals growth plans for EMEA p18>> Huber Suhner wants a slice of the SA market p20>> Siemens launches partner programme p22>> Roundtable discussion – Winning with customer service, support p26>>

EDITOR’S: NOTE

State of the IT market survey

T

his year CRN SA participated in the Global State of the IT Market Survey conducted by the institute for Partner Education and Development (IPED), a division of CMP Media, the owners of the CRN brand. This year’s Global State of the IT Market survey saw solution providers from different regions across the globe, namely the US, Canada, Brazil, China, India, Germany, the UK, Russia and South Africa participate in this important study, which generated a total of 7 409 responses. Unlike last year’s survey, which was conducted in partnership with local research firm Markinor, this year we decided to participate on a global scale to learn what’s happening in other markets and compare their businesses and IT trends to the local channel market. I must point out that we are delighted at the fact that we participated in this survey as the results have not only shown that partners across the globe are poised for growth, but also revealed that expected growth in the Europe Middle East and Africa (EMEA) region is not far from that expected in the areas of hyper products and technologies, moderate growth through targeting new markets and lifestyle products in other regions such as North America, Latin America and the Asia Pacific region. A key trend that emerged in terms of how partners go to market is that resellers remain a dominant force to be reckoned with in less mature and emerging IT geographies, where as solution providers and IT consultants are a major force in mature and advanced markets like North America and Western Europe. In SA, out of the 125 solution providers that participated, those that described their main business activity as reseller accounted for 30 per cent followed by 10 per cent for IT consultants. When you compare this to similar emerging markets like Brazil, China, India and Russia, you soon pick up a parallel trend as the countries are also dominated by resellers as the main route to market. In China, for example, 57 per cent of partners classified their main business activity as reseller with Russia accounting for 26 per cent, while India and Brazil each had 27 per cent of their respondents describing their main business activity as reseller. Although most of the results across the emerging markets in the areas of customer messaging, sales messaging, which services are profitable, the role services play, particularly in implementation, break-fix and after-sales consulting were similar, the same cannot be said about the investment partners are willing to make in marketing. The survey revealed that 50 per cent of all partners expect to increase their marketing expenditures for all areas outside of EMEA. This does not bode well for partners in EMEA. While there can be many reasons for this, channel partners need to do more and invest in marketing campaigns and marketing their companies beyond the vendor products they represent. Doing so will not only help them to build themselves as brands, but will ensure that they pitch their companies as brands first before enticing customers with the vendor solutions they sell. In the pages that follow, CRN highlights the business highs and lows of the 2008 global market. Let me know how the market is affecting you solution provider business. I can be reached at [email protected]

Manda Banda – publisher

Contents News & Analysis 4 – What’s News 6 – Comings and goings 10 – Hi Five 12 – Demand Generator takes a look at how BSS and ABSA are

08

turning ATMs on. By Dominic Khuzwayo

CRN Contacts: Publisher:

14 – CRN takes a look at what products are expected to earn resellers huge revenues in 2008. By Manda Banda, Dudu Shaba and Stanley Chishala

Manda Banda [email protected]

18 – HP taunts its new channel initiatives. By Manda Banda

Online editor:

of the pie. By Kaunda Chama

20 – Huber Suhner sees great potential in South Africa and wants a slice

Kaunda Chama [email protected]

24 – Galdon Datamakes plans to become the “go-to” company in the industry. By Dudu Shaba

Journalist: Portia Shaba [email protected] Intern: Dominic Khuzwayo [email protected] Brand executive: Hellen Murahwa [email protected] Sub-editor: Jenny Bastomsky [email protected] Designer: Spencer van Graan [email protected]

19

34 – Lenovo roundtable. By Manda Banda, Dudu Shaba and Dominic Khuzwayo

Features 50 – Printers: Printers are still the machines of choice and the demand increases daily. As these devices have improved in quality and performance, many jobs which used to be done by professional print shops are now being done by users on local printers. By Dudu Shaba

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54 – Presentation Solutions: Presentations are crucial to any business’ marketing strategy, and getting your message across in an effective way can be the difference between success and failure. By Dudu Shaba 57 – Software Piracy: When one considers software piracy, they rarely think of it as being theft; similar to taking another person’s car, purse or any other personal belongings. It is strictly illegal and infringes on other people’s intellectual property rights. By Kaunda Chama

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Database and subscriptions: Daisy Mulenga

Product and technology

[email protected]

62 – LG R700, Epson Stylus CX 4300, HTC Touch Dual 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

Parting shots 64 – Snapshot: Howard Valentine, Axis Communications 64 – Dilbert

Registered with the Audit Bureau of Circulation

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CRN SOUTHERN AFRICA • MAY 2008

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

62

WHAT’S

NEWS

Columbus aims at private sector Columbus Technologies is expanding its channel presence to increase its footprint in the private sector. “Columbus initially followed a dual approach to the South African market, selling directly and through a number of partners,” says Ferdinand Mabalane, channel manager, Columbus Technologies. “We found this was inappropriate as the attention of all parties involved was not fully focused and we could not ensure optimal customer service in support of our product.” “Columbus therefore decided to adopt a channelonly sales strategy and to focus its energies on assisting partners with training and technical support,” concludes Mabalane.

COMINGS

&

Axis appoints new channel manager

Howard Valentine

Axis, one of the global leaders in the network video market, has appointed Howard Valentine as new channel manager. Valentine previously worked at some leading brands in the local channel like Comztek as the local distributor’s channel manager. He has a degree in information systems which he attained at Rhodes University

Sasha to shine for Axis New Toshiba notebook Drive Control Corporation (DCC) has announced the launch of the new Toshiba U300-153 laptop in the local market. This sleek little laptop comes with a 13.3-inch widescreen display, which incorporates WXGA TruBrite TFT, Intel Centrino Duo (1.73 GHz) processing and a 200GB hard drive. It also features Dolby Sound Room for listening to music or watching movies; an integrated DVD super-multi drive; and built-in 1.3 megapixel webcam for face-to-face video calling. Dirk Booysen, Toshiba notebook specialist, DCC says: “Toshiba’s U300-153 is the ideal companion for the upwardly mobile user who requires strong functionality packed in a small, funky-looking laptop.

Epson releases Stylus CX 4300 Epson has released the Stylus CX4300 printer, which is ideal for small offices and home users. Hans Dummer, regional manager, Epson SA says a busy home or home office, will find the Stylus CX4300 an ideal cost-effective solution that doesn’t compromise on quality. He explains that the printer features Epson’s DURABrite Ultra Ink which provides laser-like text and glossy photos, and is resistant to water, smudging and fading, while four individual ink cartridges, priced at R129.99 each, make it cost-effective.

D-Link gets NetDefend certification Networking solutions provider D-Link has announced the certification of its NetDefend Firewall series for IPSec 1.2 . Karien Wood, marketing manager, D-Link Africa says the firewall provides comprehensive security features suitable for deployment within dedicated integrated platforms such as NetDefendOS, which integrates virtual private network (VPN). Wood says > p6 the ICSA Labs Firewall and IPSec

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CRN SOUTHERN AFRICA • MAY 2008

Sasha Davidson

Sasha Davidson has join Axis as an account manager. Davidson previously worked at Korbitec Solutions as an account manager. Sasha has a BA corporate communications and psychology from UNISA. Her keys to success are being highly ambitious, motivated, a positive attitude and hard work.

Quadrem appoints Mocke Quadrem International, one of the world’s largest supplier networks, announced the appointment of Deon Mocke as regional vice president of Quadrem Africa. Mocke, who was a general manager of Anglo Platinum’s Supply Chain, recently co-founded and served as CEO of Ess Sasha Davidson Cubed Procurement. “Deon’s deep expertise in procurement and his leadership within key African companies such as Anglo Platinum makes him a strong selection to head Quadrem’s Africa business,” says, Charles Jackson, CEO of Quadrem International. “He will be able to deliver the highest level of service to our customers in Africa and also support our growth initiatives in the region,” concludes Jackson.

Engelbrecht product manager for SalesLogix Johann Engelbrecht has been appointed product manager for SalesLogix at Softline Enterprise. “SalesLogix’s powerful customisation and configuration capability allows it to be easily tailored to meet the needs of a business more rapidly than any other CRM product,” says Engelbrecht. He adds that SalesLogix is the customer relationship management solution that enables small- to medium-sized businesses, and divisions of large corporate organisations to acquire, retain and develop profitable customer relationships.

Gradwell moves back to Annex Annex Distribution suppliers of mobile, wireless solutions and PC technologies has announced the interim appointment of Bill Gradwell to head its Midrand-based operations. This follows the departure of Wayne Britz, director at Annex Distribution. In an interview with CRN, Bill Gradwell Gary Naidoo deputy MD at Sahara said: “Bill used to head Annex and based on his experience and involvement in building development growth in other regions we think he is the right person to fill the position for now.” “He has a full understanding of our business, customers and vendors” added Naidoo.

G O I N G S

WHAT’S

NEWS

>> p4

certifications are recognised worldwide as the benchmark in the network security industry. The achievement of the latest ICSA Labs IPSec 1.2 Enhanced certification demonstrates D-Link’s ongoing commitment to network security.

New boards from Intel

Polycom, providers of unified collaborative communications solutions, has announced availability of the SpectraLink 8002 Wireless Telephone. It is the latest addition to its portfolio of standards-based enterprise VoIP endpoints targeted at small and medium-sized businesses. Dan Engel, regional sales manager at Polycom says that SMB owners and their employees will now have the freedom to move about the workplace without ever missing an important call, thereby improving accessibility, productivity and responsiveness. He says that the SpectraLink 8002 is an entry-level Wi-Fi handset that allows businesses to benefit from enterprise-grade voice-over-wireless LAN (VoWLAN) without requiring significant investments in network infrastructure.

Technology vendor Intel has launched three new motherboards: The Intel Desktop Board DX48BT2 Extreme Series, DG35EC Classic Series and D945GCLF Essential Series. These boards are aimed at the extreme gamer, the mainstream multimedia user and the entry-level PC user respectively. Tom Rampone, Intel’s Sales and Marketing Group VP, and Channel Platforms Group GM Tom Rampone says, “From ultimate gaming bliss, to crisp high definition, to the most-affordable Internet-centric desktop, Intel continues to push the boundaries of world-class desktop offerings. “As the demand for desktops across the board moves from strength to strength, we are also quickly moving towards more feature differentiation and innovation down our product roadmap,” concludes Rampone.

Loophold introduces web controllers

SecureData launches new Partner Programme

Loophold Security Distribution has announced the availability of Barracuda Networks’ application gateway, NC500 AG. NC500 AG, which is designed to be an enterprise-class Web application controller which is set to secure Web applications. Martin Tassev, Loophold MD says: “With the Barracuda Application Gateway NC 500 AG companies can rest assured that they are protecting their valuable information assets against the most severe Web application threats. “While PCI certification is not yet mandatory in SA, the gateway essentially offers a competitively priced plug-and-play solution to future compliance challenges,” adds Tassev.

SecureData Security, a division of SecureData Holdings, is introducing a new channel partner incentive programme called the Enterprise Security Partner Programme (ESP). “The programme aims to reward large specialist security firms and systems integrators with strong security practices for their performance across the SecureData product portfolio and to give them incentives to buy higher product volumes,” says Phil Allcock, channel director, SecureData Security. “We already have strong support for this programme from our toptier enterprise security partners. Some of these partners will be enrolling on the programme during our last quarter, but we are planning to roll it out more extensively during our next fiscal year,” adds Allcock.

Polycom announces SMB telephony solution

Microsoft adds to mobile computing Microsoft has launched software that lets enterprises manage mobile devices easily. It also unveiled a new mobile version of Internet Explorer that allows smartphones to display full-screen Web pages and multimedia. At CTIA Wireless 2008 in Las Vegas, Microsoft appeared hell-bent on showing the industry that Windows Mobilepowered smartphones not only have as much Web functionality as Apple’s much-vaunted iPhone, but also take advantage of backend enterprise features that Apple lacks. Cellular networks are an increasingly important part of Microsoft’s software+services strategy. Microsoft’s plan is to get its software onto devices that are applicable to both work and play.

XDSL opens channel opportunity XDSL is allowing its resellers to offer ISP services to their clients, backed by XDSL’s technical expertise, support and billing services. This move is aimed at overcoming an increasingly competitive South African IT marketplace, where resellers are scrambling to differentiate themselves and are endeavouring to provide products and services that won’t disappear into a maze of ‘more-of-the-same’ offerings. “Resellers are faced with shrinking margins and an increasingly competitive environment. This is driving them to seek out new revenue streams and opportunities that will augment their turnover,” says Danie Fourie, managing director, XDSL.

Axis releases new network cameras VMware VDI available locally The VMware division at Workgroup has announced the availability of VMware’s Virtual Desktop Infrastructure (VDI). This desktop manager allows users to connect to their virtual desktops securely. Angeline de Castro, business unit manager at Workgroup says: “Virtual Desktop Manager 2 enables users to access their virtual desktops using either a PC or thin client. “The product’s user-friendly interface allows administrators to manage thousands of desktops at once and reduces the time it takes to provision a new desktop from hours to minutes,” De Castro adds.

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CRN SOUTHERN AFRICA • MAY 2008

Axis Communications, one of the global leaders in the network video market, has introduced new AXIS P3301network cameras. These new network cameras are designed to offer outstanding image processing performance with multiple H.264 streams and superior image quality. “This together with discreet appearance, easy installation and intelligent video capabilities make the AXIS P3301 network cameras one of the best of their kind in the market,” says Anders Laurin, executive vice president, Axis. In addition, the AXIS P3301 network cameras are fixed domes specifically adapted for unobtrusive video surveillance in exposed indoor environments, such as retail, banking, government buildings, > p8 schools, universities and airports.

WHAT’S

NEWS

>> p6

Dell unveils global channel programme

EMC to acquire Iomega EMC and Iomega have extended their partnership. This follows an agreement in which EMC acquired Iomega in a cash tender offer of $3.85 per outstanding share, or approximately US $213 million. “Iomega will play a key role in EMC’s strategy to expand our information storage and management capabilities deeper into the high-growth consumer and small business markets,” says Joe Tucci, EMC chairman, president and CEO. “Iomega and EMC represent a powerful combination that ultimately will benefit customers through the protection, security and simplified management of their rapidly growing information,” adds Tucci. Jonathan Huberman, Iomega CEO says: “This begins an exciting new future for Iomega and its customers.”

Ingram Micro adds Samsung to its portfolio Ingram Micro SA has added the Samsung IT product range to the component portfolio it provides to local system builders and the OEM channel. The deal includes Samsung’s optical and hard disk drives. According to John David, head of product marketing, Ingram Micro SA, the new products complement the existing offerings in its stable. “As the Samsung appointment shows, we are attracting the top brands in the market. Samsung is synonymous with quality and value for money. As such, it has become one of the preferred brands in the market when it comes to LCDs, DVD drives and hard disks,” he says. David says going with Ingram Micro SA was a logical choice for Samsung. “For Samsung to get its component business into Ingram Micro is a great win. With the Ingram Micro name and its excellent go-to market strategy on our side, we are confident about our prospects in the country,” he concludes.

Dell appoints first local disti Dell has made its first move into the local channel and appointed Drive Control Corporation (DCC) as its first distributor. Stewart van Graan, local MD comments that the move includes an indirect sales model in its go-to-market strategy and is a way of extending its products’ reach and better serves its customers. “We have actually been using the indirect model in all emerging markets with the exception of SA,” notes Van Graan. Dell’s plan is to extend its reach beyond the corporate market that only represents 20% of the total PC market and will now offer solutions for both the SME and consumer markets through DCC.

Silver Lining hands Africa to Intelleca Silver Lining Solutions, one of the world’s leading developers of skills management software, has appointed Intelleca as its distributor for Africa. The agreement allows Intelleca to offer its customers innovative workforce optimisation solutions centred on Skills Manager, Silver Lining’s premier offering. “Intelleca has become one of the world’s leading companies in the speech technology and call centre spaces,” says Michael Renzon, CEO of Intelleca. “We will now build on this success and become a market leader in workforce and contact centre optimisation solutions,” he adds.

ChannelWare gets LG’s rights ICT distributor ChannelWare has been awarded the agency for the full range of LG Electronics IT products in SA. Although ChannelWare has access to the entire LG Electronics product offering, Damian Nelson, LG product manager says that a strategy is in place to capitalise on the brand and grow it in the market. “We will focus on rolling out optical CD-ROM and DVD-ROM drives and the professional range of LCD screens in the 17- to 22-inch categories,” says Nelson. “Firstly, the MB Technologies distributor?wants to start smaller to guarantee success for the brand. Secondly, it? plans creating maximum awareness for LG products and ChannelWare by getting the necessary support infrastructure in place before distributing the other products,” he concludes.

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CRN SOUTHERN AFRICA • MAY 2008

Dell is formalising and expanding its partner relationships to provide customers with increased choices in terms of where they can buy Dell products. The plan is part of a new global strategy, which comes after the PC Stewart van Graan, Dell maker announced in 2007 that it will start working with channel partners. To this end, the company will be working far more closely with the channel than it has done previously. Stewart van Graan, MD of Dell South Africa says the company is executing a global strategy designed to increase customer choice. “Dell’s evolving business strategy combines its direct customer model with new distribution channels to reach additional consumers and small businesses through retail partners and value-added resellers,” he says.

HP evolves Preferred Partner Programme Hewlett-Packard is to launch a new Gold specialisation for partners on the HP Preferred Partner Programme, effective 1 November 2009. The new Gold Specialisation is being mapped and readied for the 2009 financial year and is part of the company’s broad initiative to selectively upgrade the number of partners on the Gold specialisation and expand the number of partners in the transactional business space. The company also says the number of transactional and Gold partners will differ from country by country. The specialisation programme will be released in the EMEA region and partners have until 10 September 2008 to familiarise themselves with the stringent criteria, get trained and certified as Gold partners.

HP launches virtualisation specialisation HP has unveiled new virtualisation specialisation bringing to 13 the number of specialisations the vendor is offering its preferred partners.The virtualisation specialisation comes at a time when the vendor has been expanding its alliance with virtualisation software vendors, namely VMware, Microsoft and Citrix. In addition, the new specialisation has been launched at a time when solution providers are turning to server virtualisation. Sean Gallagher, director SPO, HP in the EMEA region, says the new specialisation is part of HP’s broader channel plan to continue evolving the Preferred Partner Programme and is designed to help partners drive more profitable business.

HIGH FIVE: NORTEL SOLUTION

PROVIDERS

Nortel predicts interconnectivity vision Addressing tomorrow’s communication. BY DOMINIC KHUZWAYO In this month’s high five, Nortel country manager, Magda Engelbrecht take us through Nortel’s communication vision. Since its founding in 1995, as Nortel. Nortel has grown to become a global leader in delivering communications capabilities, and securing and protecting the world’s most critical information.

CRN: What challenges is the communication industry facing? ME: The communications industry is at an historic turning point represented by the intersection of three mega-trends: hyperconnectivity, communications-enabled applications and true broadband. By 2010, Nortel estimates there will be 10 devices connected to the network for every person using them and the network will need to support five billion connection points. Customer and consumer demand for seamless “connectedness” at all times, and anywhere on any device is driving these trends. They also present challenges and an opportunity similar to those of the 1990s fibre, Internet and wireless revolutions, and with the 1980s’ digital transformation of communications. Of these trends, hyperconnectivity is the catalyst that is laying the foundation for change and a new era in the communications world. Hyperconnectivity is the trend in which anything that can be connected to the network will be connected - encompassing person-toperson, person-to-machine and machine-to-machine communication.

CRN: How will this affect or improve the communication industry? ME: Nortel believes the second mega-trend (communicationsenabled applications), which is the creation of a much richer communications experience and a more productive enterprise, will create significant opportunities. With the third mega-trend (true broadband) anywhere, anytime and on-any-device communication will become essential, for example, for people to be able to do on their mobile devices what they now do on their PCs, including the capability to view video. This requires instant, always-available, highspeed access to the Internet from everywhere.

CRN: What makes you think this will happen? ME: Hyperconnectivity is fuelling huge increases in bandwidth demand because of the complexity, diversity and integration of new applications and devices using the network. The complexity created by this explosion of devices and machine-to-machine traffic on the network is a challenge that businesses will have to face and solve. We are moving towards an era where anything that can be connected and would benefit from being connected will be connected. And with the exponential growth of information and applications crossing the network, the network itself will need to be upgraded to support these new high-bandwidth requirements.

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CRN SOUTHERN AFRICA • MAY 2008

“By 2010, Nortel estimates there will be 10 devices connected to the network for every person using them and the network will need to support five billion connection points.” – Magda Engelbrecht, Nortel.

CRN: Can businesses expect benefit from this? ME: Hyperconnectivity will place enormous stress on operators and enterprises to ensure their networks are deployed, managed and evolved to support the increased capacity and complexity – and to do so while containing costs. Businesses are moving outside their traditional four walls and we are about to see a dramatic increase in virtualisation across all fronts, tomorrow’s business will be a virtual enterprise.

CRN: What role will Nortel play? ME: Nortel is partnering with companies like Microsoft, IBM and SAP to bring together the richness of their applications with the power of the telecom world. We are transforming the enterprise with unified communications that bring together IP telephony, realtime multimedia, mobile and fixed desktops, and business process integration to eliminate delays that impact personal, workgroup and enterprise productivity. Our strategic direction across our business – R&D, marketing, customer service, choice of strategic partners, and mergers and acquisitions – is focused on making it simple and profitable for our customers to capitalise on this turning point and make these connections.

DEMAND

GENERATOR:

NOVARTIS SA SOLUTION

PROVIDERS

BSS & ABSA

turn ATM’s on

Implementing solutions for ATMs. BY DOMINIC KHUZWAYO

B

ytes Specialised Solutions (BSS), one of the official representatives of NCR solutions in South Africa has join hands with a giant bank ABSA, to develop an uninterrupted power unit supply to ATMs. This follows the power shortages and outages that is significantly impacting corporate South Africa, as they struggle to provide their customers with the required service levels during these dark times.

“Bytes SS does not simply sell and install ATMs but we also aim to provide additional value add to our clients both strategically and operationally and this initiative with our partner Absa is a prime example of such an initiative.” – Derrick Deyzel, BSS.

Derrick Deyzel, BSS

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CRN SOUTHERN AFRICA • MAY 2008

And as the ATM industry also ‘feeling the cold’, Absa were seeking solutions to stop electricity blackouts from blocking-off business growth. Allen Mahadeo, Absa general manager: self service channel and distribution says, “We are very excited about this initiative. I hope that this is an example of how, through innovation and smart partnerships, we can overcome some of our challenges.” “Our number one priority is our customers and our promise to them is accessibility and convenience. This commitment remains even during power outages,” adds Mahadeo. And now, an initial roll-out of approximately 1,900 units to Absa’s ATM installed base throughout South Africa has already commenced. In July 2007 Bytes SS made an agreement with Absa to replace all its existing Diebold ATM machines with the latest devices from NCR and partners. And ATMs are BSS core business, maintaining over 75% of the ATM market in South Africa and have now over 7000 ATMs installed. Derick Deyzel divisional executive retail ATM division, BSS says, “Bytes SS does not simply sell and install ATMs but we also aim to provide additional value add to our clients both strategically and operationally and this initiative with our partner Absa is a

prime example of such an initiative.” “The Intellipower range of Intelligent Uninterruptible Power Supply Systems was designed originally for domestic environments. However Bytes Technology together with Tedelex designed a device specifically aimed to provide a solution to the ATM environment. Then a system for ATM’s was developed to transfer from direct current to battery power when power is lost or power supply is unreliable,” he explains. According to Deyzel, the power unit was designed to transfer from direct power to battery power within milliseconds to ensure that the operational status of the ATM is not affected in any way due to time delays between power supply transfers .This was designed to ensure that the ATM remains in a state of constant operations even when power supply is not constant. “In simplistic terms the ATM will convert almost immediately to battery power when direct power is unavailable .The ATM is powered through the power unit into the direct power source .Therefore, when direct power is unavailable the ATM will convert to battery power and this process is reversed at the same speed once direct power is activated again .While the battery unit is not operational it will re-charge immediately to the required capacity,” he says. In addition, Derick explains that, “this solution was pioneered with Absa but we are currently piloting with various of the other financial institutions as well .The solution will also be marketed to other industries and not merely to the financial sector. And Bytes technology are selling and marketing the products through our established national infrastructure.” “There are a host of extremely exciting innovative solutions planned for the market but we are not at liberty to disclose at this stage,” concludes Derick. Do you have demand generator stories to share with us? Please e-mail Dominic Khuzwayo at [email protected]

COVER

STORY:

STATE

OF

IT CHANNEL SOLUTION

PROVIDERS

State of the

What products are expected to earn resellers huge revenues in 2008? BY MANDA BANDA, DUDU SHABA & STANLEY CHISALA

W

hat products and vendor solutions will help drive your sales and profits in 2008? This year’s annual CRN State of the Market

“The reason for printers being rated a highly preferred technology is because customers are getting more value for their money than ever before with less expensive products and more functionality, particularly in the multifunctional printing devices space.” – Deyan Stojcevski, Bytes Document Solutions.

channel survey has expanded as the South African channel participated in the global study, which drew participation from solution providers in Brazil, Canada, the US, the UK, Germany, Russia, India and China. The origins of the CRN annual focus on

Expected Top Revenue Earners in 2008 Printers PCs/entry servers Custom-built systems Displays Hubs, switches and routers Basic security Wireless LANs Processors Backup and recovery solutions VoIP

the market, the State of the Global IT Channel, is brought to you in partnership with the US-based Institute for Partner Education & Development (IPED), a subsidiary of United Business Media LLC, the owners of the CRN brand. Unlike like last year ?when we conducted the first Business Barometer survey, which focused on the local market, this year we found it prudent to partner with IPED, which has formalised relationships with channel brands around the globe. The study drew reseller participation from nine countries across the globe where CRN is published and well over 7 400 responses were received. In SA, a total of 125 reseller companies participated. Of these, some were also nominated for the CRN Reseller 100 list by local vendors and distributors as solution provider companies showing high sales growth and revenue turnovers over the past 12 months.

11.3% 9.3% 8.2% 6.9% 6.7% 5.8% 5.3% 4.7% 4.5% 4.4%

Business activity From the solution provider companies that participated in the South African analysis of the channel market, 33.7 per cent described their current business model as solution providers, 30.3 per cent as resellers, 10.1 per cent as IT consultants, 7.9 per cent as managed-services providers, > p16 6.7 per cent as system integrators,

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STORY:

STATE

OF

IT CHANNEL SOLUTION

PROVIDERS

6.7 per cent as custom-system builders and 4.5 per cent as ISVs. In addition to the current business models for South African channel partners, there were similarities in terms of reseller domination in less mature IT geographies with the Chinese channel market leading the charge with 57 per cent of that market comprising resellers.

>> p14

“As more and more printer vendors have continued to bring out resilient technologies in the printing space, resellers are reaping the benefits of these enhancements.” – Monica van Tonder, Bromide Technologies

The Indian and Brazilian channel markets are less dominated by resellers as the two emerging markets each polled 27 per cent

Top Managed Services Offerings Network infrastructure management services Desktop application management services Printer management Peripherals management services Customer relationship management services Help desk/call centre management

59.5% 57.1% 52.4% 40.5% 38.1% 38.1%

2007 Services Revenue Services during transaction: (installation, integration, implementation, etc.) 46.0% Services after transaction: (training, break/fix, etc.) 24.9% Services before transaction: (design, consulting, assessment, etc.) 21.2% Services after transaction: (measurement, change management) 7.9%

Factors Driving Investment and Expansion in Managed Services Consumer demand Sales options/revenue potential Scalability/flexibility

83.3%

in this regard. The North American and Western European channel markets are dominated by solution providers and IT consultants. In the North American region, solution providers account for 32 per cent of the channel market while IT consultants account for 25 per cent. In Western Europe, the split is even between solution providers and resellers as each business model accounts for 23 per cent of the channel business activity in this region.

2007 Revenues Respondents ranked product-centric solutions as one area where they earned higher revenues with these solutions accounting for 48.8 per cent of revenues in calendar year 2007. This was followed by consulting-centric solutions, which accounted for 17.9 per cent of revenues earned last year. Managed services-centric revenues contributed a total of 16.9 per cent with project-centric revenues coming in at number four with a 16.4 per cent revenue contribution. A big shift in this year’s key findings has been in the area of managed services. Unlike last year when most respondents in 2007 Business Barometer study felt that managed services was still in its infancy in SA, a different picture has emerged 18months down the line. This year, 43.9 per cent of the solution providers polled revealed that they were providing managed services to clients of different sizes across a section of vertical markets. A further 31.6 per cent of solution providers say they plan to start offering some form of managed services leaving 24.6 per cent of respondents indicating that they are not considering entry into the managed services game in the next 12 to 18 months.

71.4% 35.7%

Top revenue earners in 2008 Last year it was notebooks and one would

COVER SOLUTION

have expected this trend to continue, especially in SA, given the energy crisis that has gripped the country and the need by most businesses to remain connected. As with any survey, there are certain findings that tend to surprise. Resellers polled expect a lot of revenue to be made from printers in 2008. Deyan Stojcevski, channel manager, Office Printing Business at Bytes Document Solutions, says the reason for printers being rated a highly preferred technology is because customers are getting more value for their money than ever before with less expensive products and more functionality, particularly in the multifunctional printing devices space. Monica van Tonder, vendor relations manager at Johannesburg-based IT solution provider company, Bromide Technologies agrees and says as more and more printer vendors have continued to bring out resilient technologies, resellers are reaping the benefits of these enhancements. Van Tonder says the printing and imaging space is a huge focus for Bromide this year and, as an HP Preferred Partner with a specialisation in Office Printing Solutions, the company will be taking full advantage of the opportunities arising from improved printing solutions. The top five technologies are printers coming in at 11.3 per cent followed by PCs/entry servers at 9.3 per cent while custom-built systems came in third at 8.2 per cent. Displays and hubs/switches/routers came in at fourth and fifth after polling 6.9 and 6.7 per cent respectively. With most solution providers expressing confidence in the overall global IT outlook for 2008, companies that will cash in on the products that will bring in huge revenues this year are those that have the right value proposition for their clients, sell services on top of products and are able to provide IT consulting services.

STORY:

STATE

OF

IT CHANNEL

PROVIDERS

Reseller Growth Priority Areas Target new markets Expand product offerings/solutions Expand regionally/nationally Acquire another business Expand internationally Merge with another business Identify successor in order to reduce involvement or phase out of business Sell the business 1.9%

59.3% 55.6% 29.6% 13.0% 9.3% 5.6% 5.6%

Vertical Markets Focus in 2008 in South African Channel Retail Education Accounting Communications Health care/medical/dental Wholesale/distribution

48.1% 44.4% 40.7% 35.2% 35.2% 35.2%

Vendors Currently Represented and Recommended in SA Microsoft HP Intel IBM Seagate Samsung Lenovo AMD Symantec Cisco

92.6% 77.8% 74.1% 25.9% 64.8% 64.8% 24.1% 38.9% 37.0% 18.5%

IT Vendors resellers plan to focus on for growth in 2008 Microsoft HP Intel IBM Seagate Samsung Lenovo AMD Symantec Cisco

57.7% 48.1% 42.3% 19.2% 30.8% 32.7% 27.7% 23.1% 21.2% 19.2%

ANALYSIS: HP SOLUTION

PROVIDERS

HP touts new

channel initiatives Vendor reveals growth plans for EMEA. BY MANDA BANDA

H

P recently unveiled plans to upgrade and expand the HP Preferred Partner Programme with new initiatives focused on driving growth and market leadership for its top resellers in Europe, the Middle East and Africa (EMEA). The move to increase support of its partner ecosystem includes the addition of two specialisations, namely the Gold and Virtualisation specialisations, to its existing programmes. To this end, effective 1 November, HP will be investing in additional channel sales resources for its Preferred Partner Programme, while including the Gold and Virtualisation specialisations.

“Our partners have for a long time been telling us about how they can’t differentiate themselves and this programme has been designed with this in mind.” – Sean Gallagher, HP

Gold specialisation The new Gold, which is part of the company’s broad initiative to selectively upgrade the number of partners on the Gold specialisation and expand their participation in the transactional business space specialisation, has been mapped and is being readied for the financial year 2009. The vendor also says the number of transactional and Gold partners will differ from country to country, but is expecting the majority of its 1 200 partners that have specialised in the EMEA region to upgrade to the Gold status within the five-month window from 5 May to 1 November 2008. Sean Gallagher, director Solutions Partner

18 •

CRN SOUTHERN AFRICA • MAY 2008

Organisation (SPO) at HP in EMEA says the introduction of the HP Preferred Partner Gold Specialisation follows months of rigorous planning based on partner feedback. The Gold programme is open to both specialists and non-specialist partners although those with a specialisation will receive more benefits. Gallagher says the programme will not only segment partners but also increase partner coverage in the various market segments. “Our partners have for a long time been telling us about how they can’t differentiate themselves and this programme has been designed with this in mind,” he says. According to the vendor, partners wanting to upgrade to Gold status will have to meet the set country revenue thresholds and get certified. Specialised partners will enjoy further benefits that include the use of the Gold logo and exclusive access to a dedicated partner portal. Monica van Tonder, vendor relations manager at Bromide Technologies, a Johannesburg-based HP Preferred Partner, says as a partner on the HP Preferred Partner Programme, the company is delighted that HP has unveiled these programmes. Van Tonder says Bromide Technologies has three specialisations in Office Printing Solutions, Storage Works and HP Data Centre. “We will definitely be applying for the Gold and Virtualisation specialisations,” she says. “Hopefully, we should be on the programme next quarter as we will have received all the information and details by then.” With a limited set of criteria, the Gold level programme is designed for partners seeking a simpler engagement with HP, while taking advantage of the programme’s

ANALYSIS: HP SOLUTION

compelling benefits package, including direct HP account management, world-class training, use of the Preferred Partner logo and preferential pricing. With the addition of a Gold Preferred Partner level, HP is also upgrading the programme for partners who want to specialise or invest substantially with HP. Gold Preferred Partners will benefit from greater differentiation, and a higher level of compensation and marketing funding. In addition to exclusive access to certain HP programmes, they will also gain use of the HP Gold logo. The Preferred Partner Programme enhancements come after HP chairman and CEO Mark Hurd’s pledge to provide increased opportunities for partners driving the most growth, during his keynote presentation at this year’s HP Preferred Partner Conference, which was held recently in San Francisco. Mark Perry, country manager, SPO at HP in SA, says HP believes in its partner strategy now more than ever. “Our channel commitment is defined by business results, and we’re investing heavily in partners who share that vision, while making it simpler and more rewarding to work with us,” he says.

Virtualisation specialisation After launching its virtualisation specialisation, which has come at a time when solu-

Mark Perry, HP Enterprise Storage Solutions (ESS) and Personal Systems Group (PSG) solutions to market more benefits in terms of sales and demand-generation activities, training and certification, and increased compensation. “This new specialisation adds to an already

“We will definitely be applying for the Gold and Virtualisation specialisations.” – Monica van Tonder, Bromide Technologies

tion providers are turning server virtualisation, one of the fastest-growing segments in the IT market, into their own gravy train, HP has been quick to emphasise that the new initiative has been developed to assist qualified resellers to capitalise on this important market opportunity. Gallagher says the new specialisation is part of HP’s broader channel plan to continue evolving the Preferred Partner Programme and is designed to help partners to drive even more profitable business. Gallagher outlines that the Virtualisation specialisation will give partners that take

PROVIDERS

strong portfolio of specialisations currently on offer,” he says. “The benefits and opportunities will be massive for partners that specialise.” According to industry analyst firm IDC, the virtualisation services market is expected to reach US $11.7 billion by 2011. To help qualified resellers capitalise on this important market opportunity, Preferred Partners can gain entry to the specialisation from either relevant HP business group – PSG or ESG. This first cross-business group specialisation reflects HP’s focus on simplifying business operations for partners.

Bromide’s Van Tonder says HP has continued to strengthen the overall HP Partner Programme based on partner feedback and that’s what makes this programme unique. Since the Preferred Partner Programme’s launch in late 2005, HP has continued to strengthen its marketing investment in this select group of top resellers. Among HP’s Preferred Partners, who contribute an impressive 77 per cent of its total EMEA indirect revenues, more than 1 000 hold specialisations across HP’s comprehensive technology portfolio. Globally, HP has over 250 000 channel and retail partners in over 100 countries. In addition to the two specialisations, the vendor has launched a key new component to its long-term channel alliance with Microsoft. As part of the ongoing HP and Microsoft Frontline Partner Programme, the two companies are providing top channel partners with new sales and marketing benefits. Under this initiative, specialist partners from both companies will be jointly branded and endorsed as HP and Microsoft Frontline Partners and will receive increased training, sales rebate, and new business support.

CRN SOUTHERN AFRICA • MAY 2008 •

19

ANALYSIS: HUBER SUHNER SOLUTION

PROVIDERS

Huber Suhner

wants

a slice of South Africa Electrical and optical connectivity specialist sees potential in SA.

E

BY KAUNDA CHAMA lectrical and optical connectivity specialist Huber Suhner has set its eyes on the African continent and has officially announced that it is looking for channel partners to distribute and resell its wireless connectivity solutions. The company recently employed the skills of UB88, a Germany-based company to come to SA to meet with some of the country’s top networking distributors and resellers to introduce the company’s channel strategy and programme to them. Paul Holger Brée, associate partner at UB88 says the response from the local market has been quite impressive, but comments that it still needs to mature some more for there to be a major uptake of the solution. “We will have a three-tier partner strategy but all of our resellers will get training on the technology and will also be given assistance when developing applications for the technology,” he explains.

The company’s broad range of connectivity products includes solutions that help GPSes to communicate with cellphones and others that help passengers on high-speed trains to access the Internet.

Huber Suhner has initially targeted the local market with its Sencity Link product, which is a wireless Ethernet bridge designed to work as a point-to-point data link in the 60GHz unlicensed band. The solution supports a variety of shortrange wireless connectivity applications up to 800m. The signal absorption by oxygen and the narrow beam width of the high gain planar antenna allows for high spatial

20 •

CRN SOUTHERN AFRICA • MAY 2008

reuse and security levels. Brée explains that the product is comparatively easy to set up and takes about two hours to get up and running from scratch. “The concept of the Sencity Link allows the end-user to install it as easily as any other network component. The single cable solution reduces the complexity of installation. “The radio unit is connected to the network and supplied with power through a single outdoor-rated Cat5e Ethernet cable,” he explains. The visual alignment tool allows the user to install the link easily and enjoy immediate operation without the need for additional configuration. The company claims that users are guaranteed full duplex 100Mbps along the complete range, unlike typical wireless local area network (WLAN) equipment the user can transmit a full 100Mbps over the link. On the administration side, users can monitor the status and traffic by accessing the link statistics either via the HTML user interface or by integrating it into a network management tool via SNMP. “The proprietary radio interface doesn’t allow any other system to access the 60GHz transmitted data. A high level of data security is inherent in the product via signal absorption by atmospheric oxygen and the use of high gain/narrow beam width antennas,” claims Brée. Huber Suhner says the system has been approved for operation by the FCC and Industry Canada authorities. The company’s broad range of connectivity products includes solutions that help GPSes to communicate with cellphones and others that help passengers on high-speed trains to access the Internet.

ANALYSIS: HUBER SUHNER SOLUTION

Components engineered and manufactured by Huber Suhner help transmit both energy and signals in widespread applications in industry, aerospace and shipping as well as in the exploitation of renewable energy and mobile broadcasting. The Swiss company says its partner model has been developed with the specific requirements of the network components market in mind, particularly those that are selling innovative networking components to end-users as well as designing sophisticated networks that are secure yet cost-effective. The company promises partners a lucrative partner program that will open doors to a new and fast-growing market.





Authorised Reseller: To qualify, resellers need to have basic technical expertise as well as proven sales competencies with the company’s technology. The vendor expects the reseller to have part of its activities focused on its networking solutions and also provide a dedicated sales team. Certified Partner: To qualify as a certified partner, a company should be in command of deeper technical know how and offer the required market orientation of relevance. In this case, the company’s focus will be on larger

PROVIDERS

To get a partner properly launched, Huber Suhner will provide extra help and support the company’s initial marketing activities pro rata in kind or even financially. This it says is a way of helping partners with initial lead generation as well as giving its products a good start in new markets. Sales leads generated at events or by way of the Huber Suhner website will be passed on to its partners as a way of improving their business. The company’s training is the centrepiece of its partner programme. The training modules address both technical

As partners, companies will enjoy attractive terms and conditions, technical pre- and post-sales support, latest products as well access

The programme Huber Suhner says that its partner programme is built on three pillars which are terms and conditions that are designed to conquer the market; marketing and sales support as well as training and support. The vendor says the programme was designed to produce measurable success and profit because it believes success comes through joint ventures. As partners, companies will enjoy attractive terms and conditions, technical pre- and post-sales support, latest products as well access to the company’s roadmap, professional training, both technical and commercial, as well as multi-faceted sales support. There are three levels of partnership with different prerequisites: 

Reseller: This is the entry level that companies can use as a stepping stone towards building a continuously deepening partnership with the vendor. To qualify for this, a company does not need to meet preconditions on either a technical or sales level.

to the company’s roadmap, professional training, both technical and commercial, as well as multi-faceted sales support.

networks of greater technical complexity and its market orientation will lie with larger organisational entities. These companies will probably have an array of solutions and consulting services on offer.

Marketing, training and sales support The company says that besides products, its partners will have access to numerous support measures as a way of assisting them to succeed in the networking business. The marketing tools that Huber Suhner will make available include: product flyers, experience workshops, boiler-plate mailers, presentation materials, sales guides, partner logos, boiler-plate proposals and adverts, sales tool kits, corporate guidance, graphic materials, Web banners, videos, give-away articles, newsletters, and mock-up and demonstrator installations.

and commercial topics and are designed to prepare a partner company for the entire sales cycle. The topics covered include everything from an introduction to the company’s technology all the way to troubleshooting and network structures. On the technical support side, Huber Suhner, via its distribution network, will provide adequate technical support, including an online helpdesk and ad hoc back-up support by its product managers on a caseby-case basis. The company’s consultant partners have visited the country and are happy with the response and potential in SA as well as the rest of the continent. With the Sencity Link solution being suitable for many applications, including office parks, educational institutions and hospitals, it will be interesting to see what type of uptake its business gets.

CRN SOUTHERN AFRICA • MAY 2008 •

21

ANALYSIS: SIEMENS SOLUTION

PROVIDERS

Siemens

launches Global Channel Partner Programme Negative economic factors eroding reseller margins. BY DUDU SHABA

S

iemens Enterprise Communications has launched its new global channel partner programme, Go Forward! Fred Maurus, divisional manager, technology management and marketing, Siemens Enterprise Communications says the company aims to establish new partners while simultaneously improving cooperation with its current partners with a globally consistent programme.

“The key part of the programme is to help partners to strengthen their expertise with new training and certification programmes.” – Fred Maurus, Siemens Enterprise Communications

Fred Maurus, Siemens Enterprise Communications

22 •

CRN SOUTHERN AFRICA • MAY 2008

Maurus says the key part of the programme is to help partners strengthen their expertise with new training and certification programmes tailored to their needs and those of the market. “By building expertise, Siemens can also improve its partner levels, which also significantly influences pricing terms. The new partner programme was developed to reflect the wishes of Siemens partners around the world,” he says. The Go Forward! channel partner programme is divided into three partner levels: Select, Plus and Premier, which are calculated using an easily understandable and clearly structured points system. Besides sales, Maurus says that various measures, such as attending training courses and achieving certifications, or the number of salespeople who specialise in Siemens products, influence the partner’s status and the privileges they enjoy.

According to Maurus, the new channel programme means that sales partners can actively control their desired level without any major financial burden. “To enable this, a customised business plan that clearly defines the individual targets for achieving the level in question is created together with a Siemens partner manager,” he says. All accredited partners can use the ‘Siemens Approved Partner’ logo to prove their expertise and assure customers that they comply with the programme’s requirements. In addition, the partner programme allows them to gain specialised certification and advertise this alongside the partner logo. As a result, customers can identify the partner best suited to their needs. According to Maurus, the new programme will make it easier for Go Forward! partners to sell Siemens’ market-leading Open Communications products. “They will have access to a tried-andtested partner portal, technical support, and sales and marketing tools. In addition, Web-based training and Siemens experts will help them to optimise sales. Depending on their status, sales partners will receive marketing grants,” he says. Maurus adds that the sales relationship between international partners and Siemens Enterprise Communications will be regulated worldwide, with globally consistent contracts and standardised price lists. The partner programme is linked to the Open Communications Channel Certification Programme for sales, consulting and service staff. “Certification at Siemens focuses on the four fields of technology, strategy, business segments and products,” says Maurus.

ANALYSIS: SIEMENS SOLUTION

Partners’ employees can also specialise in solutions such as Open Communications systems for small and medium-sized as well as large enterprises, mobility solutions, unified communications and business process integration, as well as customer contact solutions. Maurus explains that the new Open Communications Channel Certification Programme offers three expertise levels for sales, service and consulting:

PROVIDERS

SOCA level, pre-certification, a Web-based training tool, helps partners to get into shape for the exam and doing business. There are also study guides for preparing for certification at all levels. Local courses round out the training,” he explains.

Open Communications systems for small and medium-sized as well as large enterprises, mobility solutions, unified communications and business process integration, as well as customer contact solutions.

 Siemens Open Communications Associate, entry level (SOCA)  Siemens Open Communications Professional, specialisation (SOCP)  Siemens Open Communications Expert, top level (SOCE)

“By launching Go Forward! and the Open Communications Channel Certification Programme, we are embarking on an interesting growth phase. We have

“All the certification is highly business-oriented and proves the holder’s expertise in technology, strategy and the Open Solutions portfolio. Siemens offers a flexible training programme for acquiring all the certificates. At

the right employees and strategy to secure our partners’ success and the right concept to ensure, with the aid of our partners, that end customers achieve success in a market where competitive pressure is constantly increasing,” he concludes.

ANALYSIS: GALDON DATA SOLUTION

PROVIDERS

Galdon Data builds up its name Bringing new products to the market. BY DUDU SHABA

G

aldon Data, a company that offers a range of products, including RightFax, Call Express, Message Mate, Teleform, Microsoft SharePoint, Microsoft OCS, GFX, Decade, Validator, Custom Applications and Unified Communication Solutions is implementing its strategy of becoming

“We are aiming for large growth in the industry by creating a unified communications environment and linking communication solutions with business solutions.” – Gary Ackerman, Galdon Data.

Gary Ackerman, Galdon Data

24 •

CRN SOUTHERN AFRICA • MAY 2008

the “go to” company in the industry by releasing new versions of its existing product range. Gary Ackerman his title? says the new product, which will make a big name for the company in the market is GFX3, which is actually a link between RightFax and SharePoint. Ackerman says the GFX 3 with RightFax has enabled it to bridge the technological gap by enabling customers to kill two birds with one stone. He explains that RightFax on its own, allows customers to store faxes but not for extended periods, by linking it to SharePoint with GFX3, the faxes can be moved and stored which allows for record management, archiving and regulatory compliance. He adds that the GFX3 also enables telecom billing which allows customers to calculate the cost of each fax accurately. Ackerman says the company has plans to market the product through its existing business partner channel where it has strong long-term relationships. The company’s business partners include Dimension Data, Siemens, T-Systems, BCX, Datacentrix and Abnoba. “We find that there are a number of organisations that would like to offer these type of solutions but do not know where to find the right partner. We are very open to welcoming these organisations as partners. “We will try to stay away from print in terms of advertising as our products and services require a great deal of explanation. For this reason, we try to market on a more > p33 personal level via methods

Eyeing the SMB market Inside Why Virtualize?

>>p2

Services: Why virtualization offers huge revenue opportunities

>>p3

The VMware partner ecosystems

>>p4

VMWARE: EMEA

FOCUS SOLUTION PROVIDERS

Eyeing the SMB market Channel partners to aid VMware market reach in EMEA. By Manda Banda

If you are a solution provider exploring or wanting to venture into the lucrative virtualization space, you need look no further than a partnership with VMware, the pioneer of server and desktop virtualization. With solution providers turning server virtualization into one of the fastest-growing segments in the IT

Lewis Gee, VMware

market, VMware has been at the forefront of pioneering the virtualization of x86 servers and its product offerings have been tailored to its customer requirements from interaction and experience in the global market.

ultimately automation of the data centre. He believes

This has led to outstanding market success, with

some of the hottest solutions delivered by VMware are

VMware recently passing a billion dollars in sales

in the areas of disaster recovery, desktop virtualization

and its first quarter 2008 revenues growing by 74%

and software lifecycle management.

outside of its native US market.

As well as a wide portfolio, there are lots of engagement models and Gee states that in addition to the installation and configuration services offered by the company’s Enterprise and Professional partners

“We have recently launched partner programme enhancements that are intended to accelerate our partners’ businesses with a view to driving the relevance and accessibility of virtualization into the SMB customer base.”

there are a significant number of VMware service engagements are channel partner led through certified and trained Authorised Consultants. As a result of this, says Gee, the company is well aware of the potential the SMB market and Africa as a region holds. “Africa is a vast continent and our engagement model is based on the visible market

– Lewis Gee, VMware

opportunity evident through partner investment at both a reseller and distribution level as well as customer activity,” he says. “We support 33 countries in southern and eastern Africa from SA.” Gee points out that VMware has a channel

Not surprisingly, solution providers do not want to

programme designed around the SMB market and

be left out of the virtualization game and they are

has actively created bundles aimed specifically at

turning server and desktop virtualization solutions,

channel partners and customers in this bracket. “We

one of the fastest-growing segments of the IT market,

have recently launched partner programme enhance-

into their very own gravy train.

ments that are intended to accelerate our partners’

According to two recent exclusive CRN.COM

businesses with a view to driving the relevance and

Channel surveys in the USA, solution providers say

accessibility of virtualization into the SMB customer

server virtualization is becoming a larger part of

base.” he says.

solution providers’ businesses and also quickly

Remarking on the challenges VMware faces on the

becoming the catalyst for a wide range of other service

African continent, Gee says: “Simply put, distance,

offerings, including disaster recovery and data centre

credit availability, in-country skill levels, economic

consolidation, hosting, training and professional services.

challenges and political stability are some of the

The 2008 state-of-the-market study found that nearly

hurdles the company with its ecosystem of channel

one in five solution providers surveyed are selling or

partners will have to overcome.”

recommending virtualization products of some sort, including server and or storage virtualization. Lewis Gee, VMware’s VP northern region in

However, Gee says “VMware is committed to the region and excited about the opportunity it sees across the entire African continent. We are addressing

Europe Middle East and Africa (EMEA) says VMware

the IT skills challenges together with our channel

offerings have evolved off the company’s mature

partners by rapidly building course capacity through

hypervisor technology and have started to deliver on

the VMware Authorised Training Centres (VATC) in

customers’ requirements for management and

SA, which includes Torque-IT, Dell, IBM and HP.” 

CRN SOUTHERN AFRICA • MAY 2008

• 27

VMWARE: VIRTUALIZATION

FOCUS SOLUTION PROVIDERS

Why virtualise? The rush to virtualize pushes the technology into the mainstream. By Manda Banda

The benefits of virtualization are well-documented: consolidation of real estate, lower cooling costs that equal power saving and disaster recovery that works and can be tested in practice. Crucially, virtualization also provides great opportunities for savvy solution

Chris Norton, VMware

providers and VARs to consult, install and provide ongoing maintenance in clients’ environments. As the rush to virtualize continues to push the technology into the mainstream, solution providers

“The automation and control of the entire virtual

need to be sure they’re taking the same approach

machine’s lifecycle eliminates manual and repetitive

they would with any emerging technology by identifying

tasks that often introduce errors, and it also enables

and containing security risks.

the business to comply with IT policies and stan-

“In spite of the rush to adopt virtualization for server consolidation efforts, many security issues and

providers to jump onto the virtualization bandwagon

Norton, country manager at VMware South Africa.

as analyst statistics show that most organisations are actively looking for server, storage and network con-

presents both solution providers and the end-user

solidation. With the virtualized environment often

client with an opportunity to cut costs. “The main dri-

becoming the de facto standard, the opportunities for

vers from the end-user client’s side compelling them

solution providers to sell virtualization solutions and

to virtualize their server, storage or data centre envi-

services into the SMB market are huge.

ronments is consolidation. “Consolidation both

Norton acknowledges that, at the moment, most

reduces the number of physical servers reducing capi-

solution providers are embracing server virtualization

tal expenditure and it lowers operational cooling costs

rapidly because the enterprise environment is pushing

by saving power,”

for this. “It is vital for solution providers to look

Norton explains that while server consolidation may

beyond enterprise server virtualization as the rush to

reduce lower margin hardware replacements, virtual-

virtualise is pushing the technology into the main-

ization should not just be looked at from the perspec-

stream and onto the desktop,” he notes.

tive of 10 servers now running the same workload on

He sees the biggest challenge that solution

two servers. Rather those virtual environments running

providers face when selling virtualization solutions is

on higher specification hardware can immediately

that demanding clients are sceptical and require

create 10 services opportunities for solution providers

proof of concepts before even piloting the project. “A

to manage and maintain.

lot of clients suffer from what I would call healthy

Aside from consolidation in server, storage or net-

scepticism, even in the face of the large volume of

work environments, solution providers can earn recur-

customer endorsements which VMware has made

ring revenues by selling services around virtual envi-

publicly available” adding that “this can be a chal-

ronments. This, says Norton, could vary from the pro-

lenge for a solution provider.”

vision of solutions around business continuity, disaster

Norton points out that VMware has been quick to

recovery and life-cycle automation tools to training

assist solution providers with proof of concepts and

and consultancy opportunities.

even scoping a client’s environment for piloting pur-

Norton believes the availability of VMware

poses. He indicates that in SA, a lot of solution

Lifecycle Manager, a recently released product, pro-

providers in the channel are making headway in sell-

vides control over the entire virtual environment,

ing virtualization solutions to clients in various vertical

showing who owns a virtual machine, when it was

industries largely due to the pure Return On

requested, who approved it, where it is deployed,

Investment justification. “Companies would rather

how long it has been in operation and when it is

avoid costs related to managing their server and data

scheduled to be decommissioned.

centre environments,” he says. This, believes Norton,

He says VMware Lifecycle Manager also gives IT

CRN SOUTHERN AFRICA • MAY 2008

For its part, VMware has been urging solution

best practices shouldn’t be overlooked.” says Chris Norton says there is no denying that virtualization

28 •

dards,” he says.

is an environment where solution providers can thrive

managers the ability to measure and chargeback the use

providing they can show virtual solutions to suit the

of virtual machines to individual department owners.

client’s needs and environment. 

VMWARE: SERVICES

FOCUS SOLUTION PROVIDERS

Winning with services By Manda Banda

For far too long, solution providers have been bemoaning the declining margins on hardware and

opportunity for solution providers.” He says the VSPP incorporates a new licensing

software sales. Although the commoditisation of most

model that makes the VMware Infrastructure suite avail-

hardware products has led to erosion of profit, most

able to hosting providers on a per-virtual machine, per-

software sales still give resellers decent margins.

month basis. “With the VSPP, hosting providers can

However, the services opportunities that arise from

easily develop their own customised ‘virtual infrastruc-

a hardware or software implementation are significant

ture as a service’ offerings that effectively ‘rent’ VMware

for solution providers that have the right skills and

virtual machine capacity to end customers”

expertise to deliver high quality IT services. For solu-

.With the VSPP, hosting providers can enable end

tion providers using virtualization technologies, the

customers to benefit from hosted virtual infrastructure

opportunities to win by building and packaging ser-

that is more highly available and robust than tradi-

vices on top of the virtualization layeer are massive.

tional hosted services.

Not only do solution providers stand to benefit

Norton adds that hosting providers benefit from

from the opportunities presented by server and stor-

the ability to differentiate themselves through innova-

age consolidation, networking technologies and desk-

tive new offerings and better service level agreements

top virtualization but also the services opportunities

while increasing resource use and internal efficiency.

created virtualization are huge.

VMware has been working with a select group of leading hosting providers over the past two years and is still in the process of finalising a select number of partners it will work with in SA.

“With the VSPP, hosting providers can easily develop their

Norton points out that hosting providers can

own customized virtual infrastructure offerings that deliver

choose to license either VMware Infrastructure

VMware virtual machine capacity to end customers on a

vide a broad range of utility computing packages for

service basis.” – Chris Norton, VMware

Enterprise or Starter editions, enabling them to provarious customer needs, from high-end managed services to individual website hosting. Additional benefits of the VSPP include: High availability: In addition to hosting fully isolat-

Chris Norton, country manager at VMware South

ed virtual machines, VMware Infrastructure includes

Africa, says solution providers stand to benefit and

VMware High Availability (HA), which automatically

maximise their profits with VMware Professional

restarts a virtual machine affected by hardware failure

Services. He says solution providers that offer services

on a different physical server, ensuring minimal down-

around business continuity, disaster recovery and

time for end-users.

hosted virtual services not only create a win-win situa-

Resource optimization: VMware Distributed

tion for themselves but are also able to build stronger

Resource Scheduler (DRS), another component of

ties as trusted business advisers to their customers.

VMware Infrastructure, load-balances virtual

Norton says that through VMware Professional

machines across the pool of physical servers in order

Services, accredited partners are able to provide

to accommodate increased customer demand while

proven best practices and guidance through virtual-

ensuring the stability of physical hardware.

ization experts who assess, plan, design, build and

Scalability: VMware Infrastructure enables capacity

optimise customers’ virtual infrastructure environ-

to be easily added and removed based on fluctuating

ments, thereby maximising investment throughout the

customer needs. This is useful for customers that have

deployment lifecycle.

seasonal increases in computing demand, such as

In addition, he believes that VMware’s hosted com-

during holiday or tax seasons, because they can

puting services initiative, which was launched in June

increase computing resources without the time and

2007 through the VMware Service Provider Program

expense required to provide new hardware.

(VSPP), offers solution providers another opportunity to win and earn recurring revenues from the technology. Norton explains that the VSPP allows service providers, such as Web-hosting companies, telcos

Serviceability: VMware VMotion technology enables non-disruptive migrations of virtual machines from one physical server to another, ensuring that hardware can be serviced without any interruptions.

and outsourcing businesses to bring new virtual infra-

Cost savings: Virtualization enables significant

structure as service offerings to market. “Virtualization

increases in resource use while preserving customisa-

is not just about running applications that were previ-

tion for the customer. This allows hosting providers to

ously on ten physical servers on two,” he notes. “For

avoid hardware costs, enabling them to provide high-

every virtual machine out there, there is a service

er value to their customers. 

CRN SOUTHERN AFRICA • MAY 2008

• 29

VMWARE: PARTNER

PROGRAM FOCUS SOLUTION PROVIDERS

A program to meet VMware partner ecosystem.

By Manda Banda

Choosing the right partner program can mean the difference between success and failure in the IT solutions selling game. Most solution providers find themselves having to explore a range of options before deciding on partner programs. In a channel market that has so many different partner programs, it is vital for solution providers to select those programs that not only enhance and facilitate relationships with vendors, but also take their businesses to new profit heights. Virtualization leader VMware says it has developed a partner program that meets the needs of every reseller that engages with it because it emphasises certification and training both on both a sales and technical level. In order for a partner to progress through the program, they must meet the criteria of a tier’s and then maintain a minimum number of required skills. Partner, VMware Authorised Consultant (VAC) and VMware Academic Program. Norton says each program has been designed to

“VMware owes much of its success with the global VMware partner programs to its partners because they are the primary route to market.” – Chris Norton, VMware

suit the needs of each partner and covers entry-level partners to top-end, enterprise-focused solution providers. He explains that the TAP program offers several levels of membership for large and small partners who want to engage with VMware on everything from hardware certification to virtual appliances. Details of each membership package are as follows:

Access Partners This entry-level program is designed for companies Chris Norton, country manager at VMware, South

looking to establish a basic technology partnership

Africa, says the company is committed to offering world-

with VMware. Norton says examples of Access-level

class partner programs to meet the needs of every

partners include vendors who want to validate their

member of its partner ecosystem, regardless of where

product on the VMware platform, and organisations

they operate from. Norton says one of the main reasons

that simply want access to one of the other sub-offer-

the company adopted this stance when designing its

ings within the TAP program.

partner programs was to make it easy to do business and become more profitable by incorporating proven

Select Partners

virtualization solutions into their business models.

VMware has designed this program for companies looking to establish a closer relationship. Norton says

Partner ecosystem

TAP members with Select status receive software for

Norton adds that VMware owes much of its success

testing or creating a lab and standard technical support

with the global VMware partner programs to its part-

as well as additional technical support for technology

ners because they are the primary route to market.

integration. In addition, VMware also provides a host

The company has made it easy for partners to do

of marketing tools and benefits to help TAP Select part-

business with it and to realise their full business

ners to promote their solutions to the market.

potential. To this end, VMware has split its VMware

30 •

CRN SOUTHERN AFRICA • MAY 2008

Partner Program into four sub-tiers, namely VMware

Premier Partners

Technology Alliance Partner (TAP), VMware VIP

The Premier level has been designed for companies

your needs Some of the key benefits include:

 A strong financial incentive program  A complete training and certification curriculum  Access to technical support services  The opportunity to leverage the VMware brand  Best-in-class marketing, selling, skills enablement and technical support

VAC Program VMware’s VAC Program provides tools, methodologies and knowledge for channel partners who want to offer best-in-class virtualization services. This threetiered program delivers specific, measurable benefits to partners with varied skills and business needs, enabling them to adopt and offer virtualization services and VMware technology quickly. who are market leaders and/or rely specifically on

As members of the VAC Program, partners have

VMware infrastructure for a large part of their revenue

access to proven virtualization methodology and con-

stream. Norton points out that generally, these are

sulting materials that enable them to do the following:

well-established companies in the virtualization market who are looking to establish a closer relationship with VMware. He says Premier partners receive extended technical and marketing support with named technical support contacts, along with support for developing specific go-to-market plans, along with an increased number of VMware software licences for testing and integration.

Global Partners This level is for global market leaders who use the VMware product line strategically as part of their

 Gain the skills and expertise demanded by virtualization customers

 Access an extensive market of existing and new customers and partners

 Become a recognised leader in the virtualization market

 Increase opportunities via access to tools, methodology and expert knowledge

 Build and support their customer base with prepackaged content and materials

 Become the single source for well-designed and deployed virtualization solutions

overall product offering to customers. These companies are authorised to ship VMware products with their hardware or software directly to the customer.

VMware Academic Program

They build specific go-to-market plans with VMware

The VMware Academic Program is a comprehensive,

and require a deep level of technical support to grow

membership-based program designed specifically for

and maintain their business with VMware.

the academic community. The program enables qual-

VMware VIP Program

ifying academic institutions worldwide to gain easy

As the virtualization leader , VMware offers a tremen-

access to cutting-edge virtualization technology and

dous opportunity for resellers to increase profitability

resources at no charge.

with its award-winning portfolio and reap additional

The VMware Academic Program accelerates instruc-

benefits through the VIP Partner Program.

tion and research in the rapidly expanding area of vir-

Comprehensive, supportive and global,, the VMware

tualised infrastructure by providing faculties and stu-

VIP Partner Program provides resellers with industry-

dents with access to the virtualization technologies most

leading benefits and resources suited to their individ-

widely used in commercial production environments.

ual business requirements. Norton believes that being

In SA, Torque IT is VMWare’s authorised training

part of the program will help partners to generate

provider partner offering all the certification programs

revenue and increase customer acquisition.

to channel partners. 

CRN SOUTHERN AFRICA • MAY 2008

• 31

ANALYSIS: GALDON DATA SOLUTION

such as e-mail, directly calling and informing our existing customer base, personal marketing and demonstrations,” says Ackerman. He goes on to say that the company’s larger target markets are the midmarket and larger enterprises. “We always try to look at the whole picture when creating a solution for a client and make it work for them. We differentiate ourselves by fully understanding the customer’s pain and building solutions to suit their specific environment,” he says The company does not have a formal channel programme, as each business partner is unique and requires a different type of relationship. Ackerman says it tailors its business partner agreements for each partner. “This way we are not limiting the relationship. We have a dedicated customer relationship manager who deals with our partners on a regular basis. Our management team is also always available to work side by side with our partners. We also offer >> p24

PROVIDERS

training on each product that we develop and, once again, it is tailored to suit specific requirements,” he says.

“RightFax on its own allows customers to store faxes. By linking it to SharePoint with GFX3, the faxes can be moved and stored which allows for record management, archiving and regulatory compliance.” – Gary Ackerman, Galdon Data.

What the company finds pressing in the channel is the difficulty finding a partner that can add value on a continuous basis while maintaining dynamic flexible solutions to enhance relationships and not threaten them. Nevertheless, Galdon Data will continue striving for leadership. “We aim to be the leader in fax processes by offering value-add technologies, and allowing customers to take advantage of the power of SharePoint to bring their fax processes alive,” he concludes.

ROUNDTABLE: LENOVO SOLUTION

PROVIDERS

Attendees: Rashid Wally; Lenovo SA, Arnold Sharp; First Technology Group, Nico Meintjes; GijimaAst, & Gary de Menezes; Lenovo SA

Winning with customer service, support Leveraging vendor partnerships to the max. BY MANDA BANDA, DUDU SHABA, DOMINIC KHUZWAYO

H

ow do you create and sustain a win-win relationship in customer service and support? With vendors putting more emphasis on getting their reseller partners to become their extended sales arms, providing service

“Issues of trust, open, transparent and regular communication are vital if we are to succeed in creating stronger ties with our channel partners (distributors and resellers).” – Gary de Menezes, Lenovo SA

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CRN SOUTHERN AFRICA • MAY 2008

support, the reselling game is no longer just about dropping a box or installing software at a client. IT reselling has changed and continues to do so, and has become a game of adding value to products and services offerings around solutions that are sold and installed. With declining margins on hardware and software sales, survival in the channel is about solution providers who can add value, implement and support a solution, and sell services around the product and solutions they sell and implement. Recently, CRN chaired a Lenovo-sponsored roundtable at which the PC power> p36 house urged its channel

ROUNDTABLE: LENOVO SOLUTION

PROVIDERS

ecosystem (distributors and resellers) to rally behind it in SA in its quest to deliver win-win relationships in service and after-sales support to end-user clients.

>> p34

Win-win relationships With so many vendor and distributor partner programmes on offer for solution providers, deciding which programmes are worth joining can be the distinguishing factor in whether a reseller will benefit from such a relationship.

“To survive and later on succeed in the reselling space, solution providers need to embrace solutions selling and services that are tailored at value adding.” – Rashid Wally, Lenovo SA

Gary de Menezes, channel manager at Lenovo SA says as the channel landscape has changed from one that focused squarely on box dropping to one in favour of solutions selling and services, it is important

Rashid Wally, Lenovo SA

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CRN SOUTHERN AFRICA • MAY 2008

that solution providers choose vendor brands and programmes that put these two facets of reselling in the forefront. De Menezes says partners should not belong to a vendor or distributor partner programme if it does not benefit them in creating a win-win relationship between the vendor or distributor on the one hand, and the end-user client on the other. “Issues of trust, open, transparent and regular communication are vital if we are to succeed in creating stronger ties with our channel partners (distributors and resellers),” he says. De Menezes says in addition to trust and communication, there is a need for partners, especially those that still play in the volume space which has been largely commoditised, to always look for the right products and solutions which are correctly priced and offer value to the end-user client. Rashid Wally, country GM at Lenovo SA, agrees and says, as a multinational PC vendor, Lenovo is aware that for it to be successful in the channel in the long term, it must embrace the channel as its preferred route to market. Having said that, Wally adds that it is vital that the company manages its aftersales services and support in the same manner it does when it is providing support to channel partners when they are tendering or going after new business. “Clearly, the model of box dropping is long gone and if there are still resellers surviving in this space they will be squeezed out of the market,” he says. “To survive and l succeed in the reselling space, solution providers need to embrace solutions selling and services that are tailored to value adding.” Arnold Sharp, CEO at First Technology Holdings, a Johannesburg-based solution provider company and a Lenovo PartnerNetwork member, says win-win relationships are always desirable in the IT solution selling game. Sharp argues that it is vital for any solution provider company to understand its own business model before deciding on which brands to represent. He says closely related to this is the issue of understanding your clients’ needs. “Whether you are going to specialise in multinational brands or non-branded machines, it is always vital

ROUNDTABLE: LENOVO SOLUTION

PROVIDERS

to understand your clients’needs,” he says. Nico Meintjes, business unit executive: products at GijimaAst, a Pretoria-based LenovoNetwork partner, concurs and says in addition to understanding the end-user clients’ needs, it is vital for solution providers to ensure that they do not over or under deliver to them. Meintjes says meeting the client’s expectations and the ability to deliver on what you promised them not only drives your solution provider business to new heights and success but also helps to build customer confidence in your offerings. He says delivering service excellence and products as well as meeting customer demand will not only ensure that SLAs are complied with but will open up avenues where both the reseller and the client start building a win-win situation. “It is vital for resellers to go beyond just scoping and implementing an IT solution for the client. They need to win the confidence from clients as trusted business advisers,” he says.

Gary de Menezes, Lenovo SA

The changing role of resellers With the rapid commoditisation of IT products and the emergence of the retail market as a force to be reckoned with, the role of resellers in the traditional channel has had to change drastically. Most resellers have had to embrace services and solutions selling to compensate for the declining margins on hardware and software. This has been compounded by the fact that with commoditisation of most IT products, resellers have had to sell most hardware at cost price leaving them with little room to make margin if they are not selling or playing in the services market. Lenovo’s Wally agrees and says that resellers need to jump onto the services bandwagon if they are to survive and keep their businesses afloat. “The days of making double-digit margins on commoditised products such as PCs and other peripherals are long gone,” he says. Sharp adds that the role of resellers has definitely changed and now it is all about offering the customer the right product, at the right time and with the right service. “The IT boom experienced pre Y2K will not occur again,” he notes. Having said that, Sharp is well aware that it is vital for resellers to remain consistent as

they try to adjust and reinvent themselves in a market that has not only become highly competitive but the pace at which technology is being churned out is also proving to be a challenge for some.

“Value-add reselling should be about being available and creating mutualism between your reseller company and the client.” – Nico Meintjes; GijimaAst

Sharp is a firm believer in a simple rule in business and that, of course, is sticking to basics and what works. Meintjes concurs and is quick to point out that at the top end of the market, where the big solution providers, system integrators and VARs play, there is a lot of maturity and changes taking place but the same cannot be said about the SME sector, which is where a lot of vendors need to assist their partners. He believes that value adding is about standards and sticking to them.

CRN SOUTHERN AFRICA • MAY 2008 •

37

ANALYSIS: CISCO SOLUTION

PROVIDERS

Value add reselling

Arnold Sharp, First Technology Group

According to Meintjes, value-added reselling should be about being available and creating mutualism between your reseller company and the client. “This is a win-win situation and it all has to happen at the top and lower end of the market,” he says. Wally believes that to become a good service provider, you need to have good skills so that you are able to keep your partners for longer. “In April this year, we revamped our partner programme. Resellers will be trained on products so that it will be easy for them to educate their customers. It is vital that the reseller base is educated because by doing that, you are adding value and giving resellers the tools to enable them to operate on their own.

Skills in the local channel Skills and training enable resellers to close more deals, build stronger customer rela-

“Resellers have to define their businesses and be capable of deciding as to what their training needs are and who they will be servicing.” – Arnold Sharp, First Technology Group

Nico Meintjes; GijimaAst

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CRN SOUTHERN AFRICA • MAY 2008

tionships and allow them to achieve real business results. According to Sharp, resellers are faced with the challenge of making sure that they skill themselves up if they want to see their businesses succeeding. “To be able to sell, you need to have the skill so that you are able to grow your business easily,” he says. “As long as you tell a customer what to expect, there is a clear understanding,” says Wally. “Resellers have to define their businesses and be capable of deciding what their training needs are and who they will be servicing,” says Sharp.

Vendor-reseller partnership management Vendor-reseller partnership management enables both parties to measure their issues directly, especially those related to a product or service. De Menezes says that Lenovo recognises that the channel is a key strategy for maintaining good relationships worldwide. “We maintain our good relationships by being consistent in communication, product training and product availability. Also, we are executing a strategy that is based on trust by listening to what our partners want. Vendors and resellers should have a mechanism whereby they can engage each other in a better way,” says De Menezes. “A large number of our customers have become channel centric. We have continued to listen to our customers’ input and in South Africa we have become 100 per cent channel centric. We have experienced partner growth in the past eight quarters, we are not yet in the consumer segment, but we have got a lot of it right in the commercial segment,” Wally adds. Mentijes says that maintaining good vendor relationships is a good thing but resellers also need to learn to be independent and start looking after themselves. Sharp agrees.” Companies have to start understanding their businesses and know exactly what they want to achieve without depending on their vendors. Our business has matured and we have taken ownership of what should rightfully belong to our business,” he concludes.

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Printers

>>>

SURVEY

top in 2008

Enable solution providers to earn their biggest revenue. BY DUDU SHABA

P

rinters have been voted by solution and business partners. In addition, it backs its prodproviders in the channel as the preucts with extensive warranties that include technical ferred technology that customers assistance and advice. spend their money on. This is based on “Our Premium partners are also privy to the latest global research conducted by CRN to information from our local operation and global determine which technology solution principals. We are the distributor and have a dediproviders believe they can make money cated partner programme with two restricted webfrom. About 11.5 per cent of resellers believed that printers are the best technology as they enable them to earn their biggest revenue. Deyan Stojcevski, channel manager, Office Printing Business at Bytes Document Solutions, says the reason for printers being rated a highly preferred technology is because customers are getting more value for their money from printers than ever before with less expensive products and more functionality, parEsna-May Hattingh, Dcc ticularly in multifunctional devices. To maintain an unbroken supply of printers and to keep them as highly rated technologies, Esna-May Hattingh, HP printer product specialist at DCC says that it has been a DCC and HP initiative to identify customers that specialise in specific product ranges and to focus on those ranges and drive sales in order to grow their business. “HP and DCC always ensure that stock is available and that resellers sites that extend the latest market intelligence from Xerox and Bytes and their customers’ needs are met. This is done by identifying the Document Solutions to our Premium partners throughout Africa. We best options for them and making sure they are available,” says supply partners with the latest sales collateral and training on new Hattingh. technologies. They can also access, through the websites, any technical information they may require and sales tools such as product comparisons and techniques,” says Stojcevski. Hattingh says that DCC assists its resellers with the design of solutions for their end-user customers based on their specific requirements and environments. The company also assists with the sales process of HP’s Enterprise printer offering as well as technical specifications on printers. “DCC believes in providing its customers with the correct tools to sell HP’s printers. We host breakfast sessions for our resellers in all our regions and train them on the new products and technologies in the market. The Imaging and Printing Group (IPG) team at HP also makes avail“We have a range of initiatives from rebate programmes to prodable data sheets covering all its products to its in-house sales force, uct incentives, general sales incentives and training programmes for assisting them to provide resellers with information pertaining to our resellers and concessionaires,” says Stojcevski. specifications, features and highlights of HP’s printers. This ensures Stojcevski says the company is playing an enormous role in offering resellers make the correct choices for their end-user customers when training programmes on printers that are mandatory for its resellers purchasing our printers,” concludes Hattingh.

“HP and DCC always ensure that stock is available and that resellers’ and their customers’ needs are met. This is done by identifying the best options for them and making sure they are available.” – Esna-May Hattingh, DCC.

“Customers are getting more value for money from printers than ever before with less expensive products and more functionality, particularly in multifunctional devices.” – Deyan Stojcevski, Bytes Document Solutions.

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CRN:

PCs

STATE

OF

IT CHANNEL

SURVEY

>>>

come out second

Emerging markets with Internet access demand more PCs. BY DUDU SHABA

P

Cs have taken the second position ments for IT systems directly linked to the World Cup. from the votes cast by solution “Associated investments will also be a large opportuniproviders in the channel. This month, ty within the infrastructure, construction and transport CRN conducted research investigating which industries. Local analysts are also promoting opportunitechnology solution providers in the channel ties in the security, and law and order industries in prefer to spend their money on. About 9.3 2008. This means that the drivers will be there, but they per cent of resellers believe that PCs should will need to be investigated and farmed by resellers in occupy the second position as they enable order for them to take advantage of them,” Braum them to earn the highest revenue. comments. Graham Braum, country manager, Acer He adds that space and power saving are two areas SA defines a PC as a computer designed for that will drive desktop notebook?sales, if the right techuse by one person at a time and can be nology is available. either a desktop or a notebook. “Acer’s Veriton 1000 PC, an ultra-compact desktop “Within both the desktop and notebook PC designed for the corporate market, is one example. road ahead, the situation looks healthy for This features Intel vPro technology and an external Gary de Menezes, Lenovo the Acer group, and hence for resellers in power supply, which contributes to a reduced cost of the channel. The Acer Group, with its multibrand strategy, continues ownership while simplifying maintenance and management,” he adds to re-engineer itself to fortify its ability to innovate, and is completely Braum says PCs remain strong with a number of new productivity committed to creating a new wave of “Empowering Technology” designs, but notebook growth will continue to outgrow desktops as while integrating hardware, software and services,” says Braum. consumers strive for more flexibility and instant-on communication. According to Gary de Menezes, channel manager, Lenovo, SA, in the “Low-cost PCs will be a new wave to hit the IT market on a global emerging market with Internet access becoming more ubiquitous and scale. Since most people use their computer for e-mail, Internet chataffordable, there is a healthy demand for notebooks and desktops. ting and browsing, and some occasional word processing, technolo“Business user requirements differ from consumer requirements. gy is definitely shifting to becoming smaller, lighter and more conveLenovo has traditionally played in the business market with its ‘Think’ nient,” says Braum. range of notebooks and desktops. This has changed with the introThe other factor that contributed to putting the technology at the duction of the consumer-focused ‘Idea’ range. forefront is the company’s engagement with partners. Users are driving PC technology, demanding a feature rich, always De Meneze says it provides its Lenovo Partner Network (LPN) with connected computing experience, with integrated features such as benefits and higher rewards across SA. “Lenovo’s business model is built on innovation, operational efficiency and customer satisfaction, and we will continue to deliver feature rich and energy efficient business and consumer PCs to the South African market,” he comments. De Meneze says that PCS will continue to maintain a dominant position in the market. “We see the demand for notebooks and desktops targeting both the business and consumer markets to increase over the coming years. There will be increased demand from new Internet users as well as the education sector. This is excellent news for the channel from a volume and margin perspective,” he says. “Acer has been a leader in the IT industry for more than 30 years and understands the market’s demand for more advanced technolo3G/HSDPA and face recognition. This translates into demand in the gy by constantly providing innovative and unique solutions that suit channel, where I believe the PC is no longer just a commodity, with consumers’ individual needs. Tapping into various market segments vendors like Lenovo catering for niche computing environments such within SA and offering affordable solutions that meet the needs of as design, gaming, portability and business,” he says. these different market segments will be the focus for 2008,” The 2010 World Cup will have a major impact on hardware requireBraum concludes.

“There will be increased demand from new Internet users as well as the education sector. This is excellent news for the channel from a volume and margin perspective.” – Gary de Menezes, Lenovo.

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>>>

Displays

CRN: STATE

OF

IT CHANNEL

REP ORT BAC SURVEY K

due for an upgrade

As prices drop demand increases. BY KAUNDA CHAMA

C

RN recently took part in a global survey on what technology resellers see as major revenue spinners this year. This intense procedure involved all aspects of IT incorporating both hardware and software solutions, and produced some interesting results as to what is going to increase earnings for local and global resellers. Even though CRT displays/screens are becoming quite niche and the battle seems to be between plasma and LCD, there seems to be a general perception, especially among consumers, that LCD is better than plasma. Sarah Fraser channel manager at InchBrook DS, an official distributor of NEC visual display products, says the Werner Kuhn, Rectron past six months have seen an increase in the number of display panels purchased. “There has definitely been a notable increase in the demand for multi-sync units,” she comments. Fraser adds that from an NEC point of view, the demand for LCD units has taken off in a big way, adding that plasma units are lagging a bit behind due to the misconception that they are not as good as the LCD alternatives.

Even though CRT displays/screens are becoming quite niche and the battle seems to be between plasma and LCD, there seems to be a general perception, especially among consumers, that LCD is better than plasma.

She points out that besides the needs of individual users on the desktop and corporates on their workstations, a lot of demand is also coming from the new era of digital signage at corporate premises and in public areas such as shopping malls. “Although stadium displays have not yet taken off there is a lot of

potential for these going forward,” Fraser says. Werner Kuhn, Sony display product manager at distribution giant Rectron agrees with Fraser saying that the potential for displays is huge and continues to grow.

“With digital signage becoming such a huge market for display units, this year will surely see an increase in sales of both LCD as well as plasma screens,” – Werner Kuhn, Rectron

“On the PC side, the price of LCD screens has come down quite considerably and this has resulted in good demand for the technology,” he says. Kuhn further says that the CRT space is fast becoming a niche space and consumers and corporates are beginning to move in the LCD direction because the price difference is becoming negligible. “A 15.4-inch wide screen is almost the same price as a CRT screen of the same size and even on the higher spec models, the prices are coming down to the extent that they are becoming preferred models for users,” he says. He adds that even end-users are opting for flat-panel screens as opposed to conventional televisions. “We have seen that consumers are even purchasing display units that do not come with built-in TV tuners. This is for two reasons: the first is that they come at a much lower price; and one can use a DSTV decoder as an alternative to a TV tuner,” says Kuhn. With plasma screens taking second place, he explains that LCD screens that are 32 inches or higher have seen quarter-on-quarter growth in sales of between 15 and 20 per cent. “With digital signage becoming such a huge market for display units, this year will surely see an increase in sales of both LCD as well as plasma screens,” he concludes.

CRN SOUTHERN AFRICA • MAY 2008 •

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Custom-built

gain momentum

Customers still looking for quality. BY DUDU SHABA

C

RN conducted a survey both globally and in SA aimed at finding out where resellers find their biggest revenue from technology. Interviews were conducted with150 resellers. According to the research results, custom-built systems were rated as the third preferred technology by the 8.2 per cent of resellers who responded. Gary Naidoo, MD, Sahara Computers says the reason for Bill Gradwell, Annex this technology occupying the third position is because resellers work closely with their customers and are in tune with their needs. “Custom-built systems are very much based on customer needs. South Africans are early adopters of technology but are also sensitive to quality, price and availability. They are looking for greater computing power and higher storage capacities to facilitate growing multimedia applications,” he says. Although custom-built systems are based on customers needs, Bill Gradwell, director, Annex, comments that there are still people who are sceptical about the lack of service and prefer to go for branded and known units.

“South Africans are early adopters of technology but are also sensitive to quality, price and availability. They are looking for greater computing power and higher storage capacities to facilitate growing multimedia applications.” – Gary Naidoo, Sahara Computers.

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CRN SOUTHERN AFRICA • MAY 2008

“Because of more competition from the multinationals that always have good products to offer, the demand for custom-built systems will drop, but there will always be a place for both, where multinationals will gain more market share.”– Bill Gradwell, Annex. “There are customers that still prefer to go for multinational comfort because they have support structures,” he says. Nevertheless, he adds that customers will still go for custom-built systems because of the flexibility and are happy to have their computers configured to suit their needs. “If you build up very well for customers, you can be more profitable and get more customers, but if you don’t do it well, much of your money will be spent working on the losing side. Our company will continue to assess what our customers require from their applications and guide them to avoid overspending,” he says. Naidoo says that Sahara has always strived to supply Gary Naidoo, quality technology, and make Sahara Computers. it affordable for all. “We will continue doing that and being first to market with new technologies,” he adds “Because of more competition from the multinationals that always have good products to offer, the demand for custom-built systems will drop, but there will always be a place for both, where multinationals will gain more market share,” Gradwell concludes.

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Switches, routers and maybe hubs Networking remains a growth area. BY KAUNDA CHAMA

R

ecent global research carried out by CRN involving a large number of resellers revealed that switches, routers and hubs are an area of networking where they see reasonable revenue generation in 2008. Besides the fact that some may feel that hubs are in their last days, switches and routers are considered definite money earners. Johan Krugell, D-Link channel manager at distribution house Comztek says that particularly in the company’s product range, a lot of small and medium businesses are looking at networking hardware that is more energy efficient, especially with the Lorna Hardie, HP country’s energy crisis. “Not only will the end-user be able to reduce power consumption, but the range of SME-targeted routers and switches also provide reasonable revenue opportunities for the reseller,” he says.

At the end of the day, the network as a whole has become such an integral part of the IT infrastructure that it will remain, for a long time, one of the major money earners for resellers globally.

According to Krugell, from a corporate point of view, more and more companies are investing in routers and switches which are becoming more popular, while hubs are slowly being phased out. “This is also evident in the number of companies that have their

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employees using 3G cards to access their corporate networks remotely or wirelessly,” says Krugell. Another reason that he sees that will help to move more units in networking solutions is that a lot of vendors and distributors are bundling security solutions with their networking offerings. “The potential for reseller revenues is huge because end-users and corporates are getting more involved in the technology they purchase and are therefore demanding more from the reseller,” he explains. He sees potential coming from both companies upgrading their networks as well as Greenfield operations, adding that with the home-targeted products there are a lot of sales generated purely on word-ofmouth referrals. Lorna Hardie head of HP’s Procurve business in SA agrees that there is definitely a wide area of scope for growth and profit in networking solutions and services. “There is a lot of growth in demand from end-users for solution and consulting skills, and resellers have a huge opportunity here to earn some good revenue,” she comments. She says that beyond just moving the hardware in the form of switches, routers and hubs, there is a lot of scope for added revenues through consulting, services and support where a reseller becomes more of a business partner. According to Hardie, purely on the hardware side, switches provide the highest growth potential, with routers following close behind. She, however, agrees with Krugell’s statement that hubs are definitely on their way out. “Hubs are no longer a viable technology because they come with operational and security concerns that are done away with if a company opts to go with a switch and router solution,” comments Hardie. She adds that another reason users are demanding more from resellers is that networks are becoming dynamic, and that the need for implementation, maintenance and support is increasing. At the end of the day, the network as a whole has become such an integral part of the IT infrastructure that it will remain, for a long time, one of the major money earners for resellers globally.

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Basic security makes top six As trends evolve, so do needs. BY KAUNDA CHAMA

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s expected, when asked what technologies resellers expect to make money from this year, security made it into the top 10. Although it was not top of the list, as most would expect, it did get a high percentage of votes. The need for security continues to grow because as vendors develop more solutions, malicious individuals find ways to break barriers and infiltrate even what would be considered secure IT environments. Sacha O’Reilly channel manager at security vendor McAfee’s local office says there will be plenty of need for security, especially in the data protection space. “Data protection has become a necessity for all corporates because attacks are becoming more specialised and on top of

Sacha O’Reilly, McAfee

“Data protection has become a necessity for all corporates because attacks are becoming more specialised and on top of that the trend has moved from not only monitoring the information that is coming into the company but to also understanding the data that is leaving its parameters,” – Sacha O’Reilly, McAfee

that the trend has moved from not only monitoring the information that is coming into the company but to also understanding the data that is leaving its parameters,” she explains. Recognising the need for data protection early, McAfee recently acquired Safeboot, a company with expertise in this space.

“Keeping confidential information safe has become even more important in the competitive business environment,” she comments. O’Reilly adds that this, in turn, provides another revenue stream for resellers because as security needs evolve the end-user will need support and services from the reseller. Intrusion prevention solutions also need to be developed with a collaborative approach so that they can maximise the ability of old and new solutions. “As you can see, security has many areas that can help resellers to increase their revenues streams but they have to take into account that security now is more than just about anti-virus software, it has taken on a more holistic approach,” explains O’Reilly. She adds that all of the company’s consumer products now come standard with built-in technology that prevents threats like identity theft. She says, essentially, there will always be good revenue potential for resellers in the security space because it is like physical security in homes; there is no one who can claim they are happy without it. Riaan Otto GM at security distribution company 10Net also says that content security is becoming as necessary as anti-virus became in recent years, and that resellers have also recognised it as a way of increasing their revenue. “Spam is also becoming a big problem and companies are seeing the need to put in place content filtering solutions to prevent unwanted or unsolicited mail from ending up in their employees’ inboxes,” he explains. He adds that large corporations are exposed to both internal and external threats on a daily basis and it is important for them to stay protected from both if they want to maintain some sort of competitive edge. “Legislation and the need for compliance with international business practices is also playing a major role in ensuring companies keep up to date with security trends,” he says. “Because spammers are working overtime we are seeing more companies investing in content filtering, at the same time they are working hard to prevent sensitive information from leaving their companies,” adds Otto. He says the need for better security solutions will continue to grow at a rate of 20 per cent year on year and stresses that companies need to employ tools to help them to manage employee access on their networks.

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Wireless networks in need. BY KAUNDA CHAMA

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t’s no secret that totally wired networks are no longer the order of the day as people continue to demand more mobility. Mobility brings with it a certain level of freedom and convenience that eases the stress of today’s fast-paced business environment. Chantel Davy, 3Com product manager at distribution house Comztek says that the days of wires are numbered and wireless is the way to go and hence why resellers see a lot of potential in the technology. “Basically, wireless is the trend now and it is also the way forward, and the direction in which the market is going,” she says. Davy adds that the mobile worker has

Load shedding and petrol price have also had quite a significant impact on SOHOs and small businesses, and wireless networks in this space are bound to see significant adoption From a reseller point of view, Davy says that besides the sale of hardware, resellers will earn increased revenues from the post-sales services and support that come with implementations. She adds that even though initially there were security concerns with wireless networks, especially on the local area network side, vendors are now building encryption into their solutions that protect them from intrusion and hacking. “The way forward is wireless. In the end, wires will only be found at the core of the network but connectivAndy Robb Duxbury Networking ity to it will all be done in a wireless manner,” says Davy. Andy Robb CTO Duxbury Networking says that wireless LANS are dues for some good uptake because issues such as security and bandwidth have been done away with and these networks are able to handle everyday business applications. According to him, the days of the wireless LAN being an overlay to the wired one are over because it now matches on performance and security. “Security issues have been taken care of as long as the network is properly set up from the onset,” he comments. Robb states that coming of 803.11n has added much more capacity to wireless LANs making them suitable to be installed as first tier networks for running day to day business applications. become common place with the proliferation of broadband and wire“There has been and will be for a while a lot of demand for voice less devices, which is increasing the demand for wireless networks over wireless LANs because of the performance that is available from both on the local and wide area side. this technology now,” he comments. “Recent examples are the price of petrol and the problem of load Robb adds that there is a lot of business potential in the small shedding: these two elements are causing people to work remotely and medium sized business space with wireless LANS and beyond without having to travel to their offices. The best way for them to do just implementations, resellers can make additional revenue because this is through connecting to their corporate networks through wirethey can do more implementations in the same time period with less networks,” she explains. wireless technology.

“There has been and will be for a while a lot of demand for voice over wireless LANs because of the performance that is available from this technology now,” – Andy Robb, Duxbury Networking

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Printers making a strong comeback MFP giants are now dominant in the market. BY DUDU SHABA

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rinters are still the machines of choice and the demand increases daily. As these devices have improved in quality and performance, many jobs which used to be done by professional print shops are now being done by users on local printers.

“Organisations of all sizes are standardising on MFPs, combining four traditional office devices into one makes good business sense.” – Boudje Giljam, Amvia. There was also a great move towards the paperless office a few years ago but the truth is more people use paper now than ever before. “The role of printers has increased from machines that press dots on a page to highly sophisticated machines that print high-quality colour photos, scan, copy and fax. Go into any office and you’ll find a printer,” says Werner Kuhn, peripheral business manager, Rectron. Michael Powell, product marketing manager at Kyocera Mita SA agrees that printers are making a strong come back; he says that the volume of laser devices has pushed away from copying of originals to printing. “End-users are becoming smarter, and they now realise that they do not need a high-end copier, if 90 per cent of the volume is going to be printer based. Why purchase a large MFP when you can split the volumes on a small copier and mid-sized printer. This solution offers you redundancy, costs the same to run, and nine times out of 10, your capital outlay is much lower,” says Powell.

Trends Boudje Giljam, Amvia

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While people continue to use printers as

their machines of choice, the trends are changing and people are being influenced by certain factors in terms of buying. Kuhn believes that the biggest trend is the move to multifunction machines. He says that the quality of these machines is improving and prices are decreasing, making them almost the same price as their single-function counterparts. He mentions another trend – the photo printer. “With digital cameras becoming increasingly cheaper and widely available, people are creating their own photo albums at home with programs like Photoshop, Illustrator, Corel Draw, Indesign and many more. The fact that photo paper prices have decreased means that amateur photographers can printout professional-looking prints on a relatively low budget,”comments Kuhn. According to Powell, printer manufacturers are putting more pressure on the markets, which were traditionally dominated by copier companies, by manufacturing and selling low cost, small MFPs. “This has forced margins down in the lower segments, and at the same time it has pushed the traditional copier manufacturers to compete in the print production space. Copier speeds are increasing and production costs are decreasing. Specifications are no longer the key differentiators, what will make you different now is the solutions and service you provide,” says Powell. On the other hand, Hans Dummer, GM, Epson mentions there has definitely been a move towards colour printing in the office environment. He says sales of colour laser printers have been increasing steadily over the past couple of years as the ever

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decreasing cost of these products makes them more affordable. “Epson has seen growth in the use of photographic inkjet printers. There is a growing trend towards home photo printing which is driving this segment. These products are also becoming more affordable and the quality of the photos printed on them is excellent,” he remarks.

New technologies Powell believes that most printer technologies are focused on making the devices eco-friendly. “Devices which require little or no maintenance, no dumping of used parts, produce no ozone or perhaps have toner-only cartridges,” he says. Dummer states that Epson has launched a range of business colour inkjet printers, which have been designed with affordable printing costs in mind, are very fast and provide an alternative to colour laser printing. Ronnie Oeschger, divisional manager, office systems group and channel operations, local Xerox distributor Bytes Document Solutions, quotes InfoTrends, an industry research and consulting firm, saying that the research company’s survey results show that the photo speciality printing market is expected to grow at a compound annual growth rate of 24.5 per cent through to 2010, reaching US $800 million in revenues. “Recently released advanced JPEG plug-in technology makes it easier and faster for commercial printers, photo labs and photo retailers to produce photo books, greeting cards and calendars. In the past, when customers submitted raw JPEG files for photo speciality products, print providers were required to pre-process each photo through photo-editing programs. This new technology simplifies the photo production process by allowing print operators to use the image files in the same format they receive them, eliminating steps from all stages of the production process and improving efficiency,” he says.

MFPs making the most of the status quo Technology evolution pretty much sums up what the MFP market is going through, it’s

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a dynamic industry that continues to tailor itself to suit the most direct and immediate needs of its users. According to Esna-May Hattingh, HP printer product specialist at Drive Control Corporation, the MFP giants, such as laser photocopiers, continue to dominate the market when it comes to sheer critical mass, however, Hattingh says that it is also the smaller devices that are making some serious headway.

“Why purchase a large MFP when you can split the volumes on a small copier and mid-sized printer?” – Michael Powell, Kyocera Mita.

“It’s not only the more established multifunctional ranges that are enjoying support, photo printing, associated with higher quality inkjet printing is also morphing from single to all-in-one devices,” says Hattingh. Boudje Giljam, marketing and sales director, Amvia says that organisations of all sizes are standardising on MFPs, he says that combining four traditional office devices into one makes good business sense. “All offices need a printer, copier, scanner and fax machine, and having them in one device saves money, space and electricity. It improves control and if the device is reliable it can boost productivity,” he says. He goes on to say that there are thousands of organisations that have opted for MFPs, but in most cases, they are missing a trick. “By using the fax device supplied as standard with the MFP, these organisations are out of synch with best practice in terms of fax management, and they are almost certainly losing an opportunity to save money,” he comments. Giljam states that this is because of the following reasons:  Each MFP, being a standalone device, needs its own dedicated analogue telephone line, supplied either via a switchboard or Telkom. This carries obvious cost implications in terms of line rental and hundreds or thousands of individual dial-up calls a month.  The MFPs tend to be equipped with technology equivalent to a traditional

Michael Powell, Kyocera Mita

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fax machine, which cannot be integrated into business processes.  Higher costs: the fax module tends to cost between R6 000 and R15 000, far more than a standalone fax machine.  These fax devices carry all of the technology and business processes issues of a standard fax machine: pages need to

“Ink printers have always been seen as expensive when it came to their cartridges but this is not so much the case anymore. The cost per copy of ink printers are always on the decline. Researchers are now calling for regulations on printer emissions,” – Werner Kuhn, Rectron.

be scanned; privacy is compromised, with fax pages able to be read by anyone; low throughput (far lower than that achieved with a fax board); and lack of automation. In addition, MFPs in this scenario lack storage and archiving capability, along with final proof of receipt. All of this means the MFPs fall outside the requirements of good corporate governance, which require organisations to have full auditability and traceability in place.  Most organisations of substance have several MFPs, so this scenario is replicated at several sites, with consequent duplication of costs.

The digital photo evolution

Werner Kuhn, Rectron

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Digital photography has changed just about everybody’s world. It isn’t just a trendy niche anymore, it is becoming the dominant platform and sales of digital cameras to both professionals and consumers have grown rapidly. With the demand for creative printing, Patrick Reeves, HP marketing manager, Axiz, says that HP has gone to the extent of providing the individual user with revolutionary printing opportunities. “With scalable printing technology and the options to print from SD cards, wireless and Bluetooth connections, printing has never been easier. With the easy use of printer touch screens it is easy for users to be creative without the use of a PC.

Creative writing elements include font selection, adding borders and frames, and changing the colour schemes,” he explains. “With the red eye removal button, now available on the printer, it is easier to edit and ensure high-quality photographs. HP has also ensured that selected printers, such as the C8183, have lightscribe-DVD burning capabilities,” he adds. “Vendors are focusing their attention on better, longer-lasting inks. They are also putting a lot of emphasis on quality photo paper. In the case of Epson, it has merged these two technologies to give the best results when using its photo paper and inks with images lasting up to 200 years when stored under album conditions,” says Kuhn. Dummer says that Epson offers a wide range of photo printers from four-colour entry-level units to eight-colour professional units. He says that the quality of these products is largely due to the Epson patented Micro Piezo technology which allows its products to produce a perfect dot on the paper, thereby improving the quality of the print. “Our combination of colours covers a wide spectrum allowing the printing of a wide range of colours. Other features that have been developed are on-board SD/USB and compact flash slots which allow the user to print photographs without having to connect the printer to a PC. LCD panels on certain models allow the user to view photos before printing them. All this technology is complemented by an extensive range of photographic media which give the user a great deal of flexibility in the type of photo they wish to print,” he explains.

Are resellers winning in the printing and imaging space? According to Dummer, there are two types of resellers. “The first is only interested in selling a unit at the lowest possible price. The second will do a proper needs analysis with every customer and supply the correct printer for their needs, not necessarily the most affordable. It is the second type of reseller, who will generate repeat business and win in this space,” he explains. He says that the lowest cost per unit reseller will be making very small margins but the value-added reseller, the one that

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will install, conduct product training and supply media, will be able to command a higher margin and the likelihood of repeat business as a result. “The HP reseller has been winning in the printing and imaging space by offering managed print solutions. The print solutions incorporate optimising their infrastructure, managing the print environment and improving their workflow,” says Reeves. Venter says that resellers are winning by selling more supplies and paper to their customers. “This is because more people work and print from home, especially photos from their digital cameras. Even professional photographers have commented on the quality of Epson photo paper saying that it is streaks ahead,” he adds. He goes on to say that the only resellers that will win are those offering true valueadded services and solutions to customers. “By doing a quick needs analysis they can offer their customers the correct solutions to satisfy their needs. The resellers that explain the benefits of original consumables will retain their customers for longer and reap the benefits of repeat sales,” adds Kuhn.

Resellers Branislav Zivkovic, title?Lexmark International SA, believes that there is a big opportunity for resellers to educate their customers on the different features of the devices they purchase, and the productivity and cost savings benefits in implementing them will have on their business. “There is a big difference between the success rate of a reseller that just sells the hardware and one that takes the opportunity to educate their customer, show them how to use the features and print less, reduce their waste and, ultimately, their costs. Just by looking at an old and standard feature in a new and fresh way, a whole new world of selling is opened up,” he says. Powell agrees that the most important thing for resellers is the ability to do a proper needs analysis. “Ask the right questions so as to supply the right product to the customer,” he says. According to Neil Watson, MD, Digital Planet, printers are a low-margin product.

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He says that printer companies make money on the ink and as a result the printers themselves are seen as a commodity which the manufacturers want to move without making too much margin. “It means there is margin squeeze for the retailer as well and as a result printers don’t always get the highest priority in terms of sales. Brand is very important and slowly we’re seeing that design is also becoming a more important factor. Cost per page is an important buying factor for customers although it is hard to compare apples with apples in terms of the specifications from different manufacturers. As a result, the sales person has a heavy influence on which product is actually sold.

“We will continue seeing vendors such as HP driving down cost per page, and offering products that are rich in productivity and are affordable.” – Esna-May Hattingh, HP

Looking ahead Powell predicts that the 2010 World Cup will cause an increase in sales of printers. “With the administration of such an event being extremely paper intensive, it should open up interesting opportunities for providers who can offer an end-to end-solution,” he comments. Kuhn also believes that pubs, clubs and hotels will welcome the extra patrons and will need to have the latest POS systems to keep up with the demand. “Ticket vendors like Computicket as well as the stadiums are going to print thousands of tickets everyday during the world cup. Sport stores are going to sell hundreds of sports jerseys and all the slips will be printed. At airports the POS printers will be going crazy with all the entering and exiting tourists. There are countless opportunities offered by 2010 in the printer industry,” Venter says. “We will continue seeing vendors such as HP driving down cost per page, and offering products that are rich in productivity and are affordable. Furthermore, MFP brands will continue to differentiate their value proposition by offering tailored functionality that suits niche, yet important,

Esna-May Hattingh, HP

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Quality presentation solutions bring success Successful presentations lead to good business results. BY DUDU SHABA

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resentations are crucial to any business’ marketing strategy, and getting your message across in an effective way can be the difference between success and failure.

“A high quality, quiet, bright projector is an essential part of the presentation solution. It is also important to establish, depending on the brightness of the room, what resolution is required for a successful presentation.” – Hans Dummer, Epson.

Hans Dummer, regional manager, Epson, believes that the first important step is to make the right impression on clients when presenting. “A high quality, quiet, bright projector is an essential part of a presentation solution. It is also important to establish, depending on the brightness of the room, what resolution is required for a successful presentation,” he says. Mark Forbes, product manager, Axiz, adds that the key to remaining profitable in the presentations game is not to compartmentalise your offerings. “We are often inclined to offer everything, from the projector to the notebook and more, separately. Your customer is, in fact, looking for a presentation solution, so you need to offer a combined solution. By identifying your customer’s needs, you are able to compile a bundled solution that reflects value as a whole,” he says.

Key trends

Hans Dummer, Epson

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As presentation needs increase, so does the customer’s desire to eliminate lugging around cumbersome equipment in order to deliver a quality presentation. According to Forbes, products like PDAs are drawing nearer to being mobile presentation devices, and the likes of the HTC X7500 allow for just such an opportunity. Dummer, states that one of the key trends in the presentation solutions market is the move towards mobile and wireless technology. “Epson has a complete range of portable wireless 3 LCD projectors which are designed to operate in most presentation environments. These units can also be used

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without a PC, by running the presentation off a USB flash drive. The presenter is able to concentrate on delivering a good performance without worrying about the projector running smoothly,” he says. “It is becoming evident that more people will use presentation solutions as the technology becomes more affordable, and they get to experience it and feel more comfortable with it,” says Craig Butterworth, sales manager, NEC.

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have the ability to be more efficient, and reduce operational costs and time when converging their technologies. Dummer says the company has developed a product that converges three technologies into one device, namely projection, DVD player and sound. “An example of this is the Epson EMPTWD5, which has been developed for business presentations as well as for home use, and is an all-in-one presentation solution,” he says.

New technologies Forbes continues to explain that the HTC X7500 is a mobile phone which offers the added benefit of being a presentation device. “Equipped with 8GB internal storage, the phone has a 5-inch display, is wireless, has 3G connectivity and a removable keyboard. With this device executives can easily take their office wherever they travel and present on an external monitor or projector. With the help of the HTC X7500 docking station, the user can connect to a television through the composite port or via VGA to a monitor or projector,” he says. For those who prefer using a notebook, Forbes adds that the HTC has introduced the HTC Shift. “The HTC Shift features SnapVUE, an always-on mode that provides instant access to critical information, including email previews, local weather, calendar and SMS, even if the device is not switched on. Push e-mail gives you instant alerts whenever you receive e-mails, and through Wi-Fi or 3.5G high-speed connectivity, you can enjoy the ultimate in productivity,” says Forbes. According to Butterworth, changes to the technology include the introduction of Microsoft Vista, which makes it easier for people to use wireless technology when doing presentations. “Up to now, you would have to load some software on your notebook, but with Microsoft Vista having drivers pre-installed, you no longer have to be a technocrat to use wireless networking for your presentations,” he comments.

Technology convergence Organisations, businesses and end-users will

“As technology is becoming affordable more people will opt for presentation solutions.” – Craig Butterworth, NEC.

“With units being able to attach to a network, you no longer have to have the PC or notebook in the same room. I could be in London doing a presentation which is on a PC or server in SA. “Mobile phones that have wireless capabilities enable you to use your phone to transmit the presentation to the projector,” says Butterworth.

Budget constraints There is a wide range of options to meet customers’ presentation and budget needs. One example is given by Dummer, who states that Epson’s entry-level projectors are affordable and can be used for business and home applications. He believes that high-end projectors, with higher resolution and brightness are ideal for use in larger venues and fixed locations. “Customers must ensure that they are aware of their presentation requirements before making a decision based on price. There are often cases where price is the sole factor used in making a purchase decision and, more often than not, the customer ends up with an unsuitable solution,” says Dummer. Forbes says that a complete or bundled solution that is presented to a customer can rate the proposal as a complete value offer and also allow the reseller to increase its opportunity for margin.

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“A combined solution is designed to offer value. By doing all the legwork involved in building a working solution that meets the customer’s needs, you are also creating a single area of support when help is needed. Most importantly, the confidence generated by creating a bundled solution for the customer adds credibility, which can easily turn into bigger profits,” says Forbes. Things to consider, adds Forbes, when tailoring and end-to-end solution include identifying needs like level of portability required, size of boardrooms used as well as warranty. Many companies have a projector or form of presentation device at the

“The confidence generated by creating a bundled solution for the customer adds credibility which can easily turn into bigger profits.” – Mark Forbes, Axiz.

site being visited, but quality and compatibility as well as the correct cables are always a concern. “By tailoring your own solution, you eliminate that risk and are assured that you know your way around the equipment. What is important is that you understand connectivity requirements like wireless and 3G,” says Forbes “Budgets are always a limiting factor, but you have to balance quality with quantity,” remarks Butterworth.

Decent margins

Mark Forbes, Axiz

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For solution providers to earn decent margins, customers’ needs should be prioritised. Dummer suggests that they need to ensure that they provide a value-added package and not just a box-dropping service to customers. “This includes advising on the right product to suit specific needs, product demonstrations, and delivery and installation,” he says Meanwhile, Craig says that installations are also a viable area for dealers to make decent margins. Unfortunately, there are still those fly by nights that make a mess of

installations, making it more difficult for customers, which ends up costing them more in the long run. Nevertheless, he mentions that there are opportunities in the video conferencing, digital signage and visual markets.

Leaders When it comes to leading vendors, Forbes remarks that Acer is currently one of leading vendors of projectors in SA. “The vendor offers solutions from entrylevel 2000 ANSI Lumens to the powerful 4500 ANSI lumens projector with colourwheel technology for accurate colour interpretation and the latest HDMI input. Those prepared to sacrifice a bit of space can get a projector for R4 599 and the Acer Extensa 5220 for R5 999, both including VAT. With these purchases, the user makes a small investment to achieve a huge goal a quality presentation!” Forbes comments. Meanwhile, Dummer states that Epson has always been a leader. “Epson has been the major player in the projection market for the past seven years. Epson has had the highest share in the global projector market since 2001 and in the EMEA region since 2003,” he remarks.

Resellers Adriaan Vlok, MD, Presentation Solutions, a reseller company based in Cape Town, says the disadvantage of selling presentation solutions is when stock that will satisfy the company’s customers is not available in the country. Vlok says the company is profitable in terms of selling presentation solutions, but the current challenge is the management of cash flow. “No matter who you deal with, you will always have outstanding debts that need to be paid,” says Vlok. He goes on to say that presentation solutions have been in demand from customers since last August. “There has been an influx of requests for presentation solutions and I think our good BEE-managed plan and rating, and highlevel corporate referrals are to our advantage,” he comments. There is strong evidence that businesses, government and end-users are now looking for presentation solutions that are easier to use and create a good impression.

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Software Still costing the IT industry billions BY KAUNDA CHAMA

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hen one considers software piracy, they rarely think of it as being theft; similar to taking another person’s car, purse or any other personal belongings. It is strictly illegal and infringes on other people’s intellectual property rights. The Business Software Alliance (BSA) has made considerable efforts to get end-users to legalise their software but there remains a large amount of software out there that is not legal. At the same time, software vendors have stepped up the fight against software piracy as most of them are embedding activation codes and product activation keys, although a lot of these product validation mechanisms have either been breached or failed to curb software infringement. It almost seems that while the software vendors are working hard, the software pirates are working twice as hard. According to a recent economic study by the IDC, spending on hardware, software and IT services in SA will have reached R61 billion in 2007. The IT industry employs more than 355 000 people, and for every R1 that Microsoft earned in 2007, partners working with the company earned R9.69. However, software piracy threatens the ability of the industry to continue contributing to the economy. A 2006 IDC study reported that piracy of business applications in SA cost commercial software publishers R1.117 billion in 2006. The reported piracy rate in SA in 2006 was 35 per cent. John Newton, Manager of Interpol’s

Intellectual Property Crime Project, says the criminals behind counterfeit syndicates are organised, resourceful, and willing to spend large amounts of money to develop and ship pirated goods to markets all over the world. “Piracy is a crime, pure and simple, and it is imperative we coordinate our efforts across the globe to stop these criminal syndicates and their illicit trade,” says Newton.

Piracy a major hurdle “Piracy remains one of the major obstacles to realising the potential of the information economy in SA and the rest of the continent,” says Alastair De Wet, chairman of the Business Software Alliance (BSA). “There is great concern in our economy that over a third of software in use is illegal.” Microsoft SA’s Mark Reynolds says anecdotal evidence from the channel

How, then, can a company get and stay legal? There are a number of steps to follow:  The fundamental first step is to conduct a computer software audit, which entails establishing what computer software is running on your computers and how many licences you have.  If you have a licensing shortfall, you may need to contact a computer software vendor or distributor to establish how you can go about purchasing the additional licences at the most cost-effective rate.  Record the serial numbers of the computer software that is running on each machine.  Conduct a computer software audit on at least an annual basis.  Ensure that your acceptable computer usage policies regulate the ability to load computer software onto your machines. Microsoft has encountered a number of instances where employees have loaded Microsoft Golf and Microsoft Age of Empires onto their machines, the installation of which could result in the company being liable in terms of the Copyright Act for having the software installed without the requisite licences. Although these steps relate more to best practice than legal requirements in terms of the Copyright Act, by conducting an annual computer software audit, a company will ensure that it is meeting its legal obligations under the Act as well as doing its bit for the South African economy.

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suggests that recent “name-and-shame” campaigns against rogue dealers are starting to drive a greater sense of compliance among the system builder community. The company will continue cracking down on counterfeiters and rogue computer dealers found installing illegal software on new computers being sold to their customers. “We want to protect legitimate computer businesses and resellers who do the right thing by selling genuine software. Microsoft won’t stand by and allow its businesses and employees to be undermined by unscrupulous vendors,” says Reynolds.

PROVIDERS

Education is key “Key to protecting consumers and reducing software piracy is education. The best way to protect consumers is to raise their awareness of the issue, equip them to be able to spot counterfeit software and help them to understand what they should do about it,” says Reynolds. As part of its overall effort to raise awareness, Microsoft is working with industry partners to make consumers aware of the increasing risks associated with acquiring and installing counterfeit software. While the Internet facilitates commerce, it has also been adopted by software pirates as a new vehicle for peddling

“We want to protect legitimate computer businesses and resellers who do the right thing by selling genuine software. Microsoft won’t stand by and allow its businesses and employees to be undermined by unscrupulous vendors.” – Mark Reynolds, Microsoft SA

“We intend making it increasingly difficult for dishonest resellers to succeed at the expense of those who are running their businesses lawfully.” The move is part of Microsoft’s Genuine Software Initiative (GSI), which aims to help protect legitimate distributors and customers from the effects of software piracy. In recent months, Microsoft SA has reached settlements totalling hundreds of thousands of rands with at least 16 rogue computer dealers found installing illegal software on new computers being sold to their customers. Reynolds says the GSI initiative will focus increasing investments across three strategic areas: education, engineering and enforcement.

their illegal wares. The possibility of being infected by spyware or other malware, such as viruses, or receiving incomplete code increases when consumers are sold counterfeit software over the Internet. Microsoft has also seen instances of credit card theft by selling software online that later turned out to be counterfeit. On the engineering front, Microsoft is continuing to invest in anti-counterfeiting technologies and product features that protect its intellectual property and alert consumers to the presence of counterfeit software. This includes improvements in programs such as Windows Genuine Advantage. The company believes activation gives customers an early warning sign that the

Mark Reynolds, Microsoft SA installed product may not be genuine. From a vendor’s point of view, activation technology can be constantly updated to block any efforts hackers make to “crack” product activation, limiting the impact of illegitimate product keys. “We’re also seeing customers increasingly reporting activation failure to us and as a result we can identify rogue dealers, take the appropriate action and ensure more customers aren’t duped,” the vendor says. Like many other businesses, the system builder channel is experiencing the impact of current macroeconomic factors, and exposing dealers who sell pirated goods removes one obstacle to the legitimate system builders’ business. The push is raising awareness among customers and the channel, ensuring customers demand genuine software and make sure they get what they’ve paid for.

SOFTWARE

PIRACY FEATURE

SOLUTION

Microsoft says its OEM distributors are all tremendously supportive of its anti piracy activities, supporting the use of genuine product, assisting in training, educating their partners and highlighting potential piracy issues.

Effects on local channel Alastair de Wet, Chair of the Business Software Alliance South Africa Committee, says the effects of software piracy are felt throughout the local distribution channel.

PROVIDERS

their staff and save on marketing costs. But with high software piracy rates, vendors are finding it increasingly difficult to fund channel programmes, leaving resellers to bear the brunt of marketing costs on their own,” comments De Wet. Even though the cost in lost marketing support can be substantial, it does not compare to the cost of lost customer confidence. When using illegal software, endusers lose many of the vendor guarantees that come with every licensed software

“We have instituted several practical measures to prevent fraudulent registrations. All to dissuade callers from their attempts to access our software illegally.” – Philip Meyer, Softline’s anti-piracy champion

He adds that while local and international software developers are also victims of piracy, it is South African distributors and resellers supplying end-user that are most adversely affected by piracy. In IT circles, the link between the developer (also known as a vendor), distributor, reseller and the enduser is known as the channel. For developers, every unlicensed copy of software in use means lost revenue and less money to spend on activities such as product development, marketing and training, and channel development. Many vendors have implemented various channel programmes to encourage resellers and distributors to promote their products and assist them with marketing. “Such programmes are particularly important to smaller software resellers because the resultant boost in sales and the shared marketing expenses from these programmes help small businesses to upskill

copy. In most cases, they are unable to access vendors’ service centres for assistance, leaving them stranded with faulty software that can’t be fixed. Such bad customer experiences can drive existing customers away and, through word of mouth, even potential customers can be discouraged. “For software resellers, the sales transaction does not end when the customer walks out of the door with their software package. There are additional services such as custom design, installation and other support services that may be required by customers. Because such support services are generally not available on unlicensed software, local resellers are robbed of this additional source of revenue whenever unlicensed software is purchased,” he explains. He comments that the software distribution industry is a major part of SA’s overall IT industry, adding that to keep the

industry growing and presenting further opportunities to local entrepreneurs looking to get a piece of the technology pie, it is imperative that software piracy be fought and eradicated. Warren Weertman, associate at Bowman Gilfillan, claims that 35 per cent of all computer software used in SA is thought to be unlicensed or pirated; this equates to a staggering annual loss to the economy of R1.5 billion. He adds that recent studies have suggested that if the software piracy rate was reduced by 10 per cent, this would result in an additional spend of R6 billion in the IT sector, plus the creation of more than 1 000 high-income jobs. Not only does software piracy have economic consequences; it also has legal consequences. Computer programs are protected as copyrighted works in terms of the Copyright Act 98 of 1978. Accordingly, the unlicensed use of software amounts to copyright infringement – which means that vendors, such as Adobe, Symantec and Microsoft, can sue users of unlicensed software in both the criminal and the civil courts. The penalties imposed by the criminal courts for the use of unlicensed software are R5 000 per illegal copy and/or imprisonment for the first offence, and R10 000 per illegal copy and/or imprisonment for the second offence. Hence, if, for example, you are using 100 illegal copies of Microsoft Windows XP, your fine will be R500 000 - a number that would bankrupt most businesses. Since the penalties are high, why pirate computer software? Because software is often perceived by companies as expensive. True, software can be expensive when you look at prices in computer retail stores. “What companies often forget, however,

SOFTWARE SOLUTION

is that most software vendors have volume licensing programmes in terms of which software can be bought at a discounted rate. Not only can companies make use of volume licensing but they can also look at making use of open source solutions such as OpenOffice. “While OpenOffice may not have all the ‘bells and whistles’ of the likes of Microsoft Office, if basic word processing is all you need, then maybe a program like OpenOffice would suit your needs better than Microsoft Office,” explains Weertman. Softline’s anti-piracy champion Philip Meyer says that the new enemy facing software companies is not just piracy, but also fraud: “Thanks to the extensive research and development done by most of the leading software vendors, piracy at a computer level has been drastically reduced. Unfortunately, software fraud doesn’t stop there. We are seeing a new trend emerging; that of increased fraudulent registration attempts.” Meyer says the progress made by soft-

“We have instituted several practical measures to prevent fraudulent registrations. All to dissuade callers from their attempts to access our software illegally,” says Meyer. One such example is the presentation of an original company letterhead. Meyer says anyone wanting to upgrade their software will need to present an original company letterhead with the necessary registration information as opposed to simply calling or emailing the request. In doing this, the software vendor is able to verify the request, knowing it is legitimate. “In promoting a safe and legal digital world we unfortunately have to ask lawful users to go through the same process of supplying additional information. This is not unusual if you consider a bank as an example. Whenever you want to do a balance enquiry you have to supply information confirming that you are the lawful owner of the account you are doing an enquiry on. With software it will be no different and it

Genuine software users enjoy a range of benefits, including access to greater capabilities and easy integration with a variety of hardware, software and services. Genuine, licensed users of software are able to access the latest product features, updates and ongoing improvements to keep their PCs performing better.

ware vendors to combat piracy is both innovative and forward thinking: “The new approach to software installation has positively impacted on piracy; however, people installing on multiple machines or at various branches often falsify information to avoid purchasing additional licences. This has seen the rise of fraud, making it one of the new enemies to watch out for.” Fraud is all too often perceived as a victimless crime; however, Meyer says that in the case of software it has an immediate effect on the piracy rate if the fraudsters are successful. Combating it begins with knowledge and awareness. It’s often impossible to prevent fraud (or to discover those committing the crimes) without understanding what fraud is and how it is perpetrated.

will assist in combating piracy,” says Meyer. Meanwhile, Microsoft SA recently reached settlements totalling hundreds of thousands of rands. Twenty-one dealers based in Cape Town, Johannesburg, Durban and Pretoria, and a number of smaller regional locations, were found to be selling computers to customers loaded with unlicensed Microsoft software. The action forms part of the company’s worldwide efforts to protect its customers and partners from the risks of counterfeit software. “The crackdowns are part of Microsoft’s global Genuine Software Initiative, which aims to help protect legitimate distributors and customers from the effects of software piracy,” says Microsoft SA partner executive

PIRACY FEATURE

PROVIDERS

Mark Reynolds. “The criminals behind software counterfeiting networks are organised, shrewd and willing to spend large amounts of money to develop counterfeit products and introduce them onto the world markets,” says John Newton, director of the intellectual property rights programme at Interpol. “First and foremost, piracy is a criminal offence and it is of utmost importance that we coordinate our efforts on an international scale in order to dismantle these criminal networks and put an end to their illegal activities.” “Microsoft’s actions, in coordination with law enforcement agencies and other associations, represent an important effort in its ongoing effort to protect customers, partners and our intellectual property from dishonest dealers,” says Reynolds. “We want to protect legitimate computer businesses and resellers who do the right thing by selling genuine software. Microsoft won’t stand by and allow their businesses and employees to be undermined by unscrupulous vendors.” Every year, millions of consumers and businesses are hurt by counterfeit software that they have acquired unwittingly, and many companies that offer legitimate software have difficulty competing with low prices offered by software pirates. Reynolds warns consumers to be sure that the new computers they buy are not loaded with pirated software. “Hard-disk loading is one of the most common forms of piracy,” says Reynolds. “What might be seen initially by consumers as a saving is actually a loss in the long run. Illegally loaded software is not upgradeable, users will not receive support and there is always the threat of a virus wiping out their computer’s hard drive.” Genuine software users enjoy a range of benefits, including access to greater capabilities and easy integration with a variety of hardware, software and services. Genuine, licensed users of software are able to access the latest product features, updates and ongoing improvements to keep their PCs performing better. They also get access to additional add-ons and tools that make their computers run better and do more things, including useful downloads, add-ins, templates, learning tools and more.

CRN SOUTHERN AFRICA • MAY 2008 •

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Highly Recommended

Reviews by: Kaunda Chama

LG R700 notebook

Epson Stylus CX 4300

When most people purchase notebooks, it is usually for the convenience of their portability and weight. LG’s R700 notebook is a different case altogether. This 17” widescreen powerful business notebook is not built for that, it is definitely a desktop replacement and a good one at that. On the performance side, the notebook runs on Intel’s Centrino Duo mobile technology based on the chip vendor’s Core 2 Duo processor. Although the one I tested came basic with Windows Vista, I managed to get Microsoft Office on it and put it to the test with plenty of applications running at the same time and it did not disappoint. However, when I attempted to do some high-definition video editing on it, the PC did take a little strain. The screen size has to be one of its best attributes because 17 inches is very decent, even for the fussiest user; besides, it is WSXGA and comes with Fine Bright Technology for added clarity. I don’t even feel this device should be at the office unless one’s work is of a multimedia nature. Besides its performance with a decent sized hard drive, it also comes with added and enhanced multimedia features, and decent sized screen. The security features and the design alone make it very appealing. Other than its weight, there was really nothing negative I could find to say about this product. It would be an overstatement to say that it is the best notebook on the market or the best I have ever used but, overall, I can conservatively say that it is a very nice machine.

The Epson Stylus CX4300 All-in-One printer is definitely a device suited for home and small office users The printer is a very affordable printing and copying solution that produces reasonable quality direct printing using either memory card slots or PictBridge. It can also be used as a PC-free colour photocopier. This is yet another simple plug-and-play device that provides easy printer, scanner and copier functionality, and is small enough to fit in any small office or even a home study or business area. It makes scanning, copying and printing documents or photos as simple as it should be. I found it extremely easy to make high-quality prints, scans and copies in a very short time with the simple push of a button. Although it is an inkjet, it comes very close to providing laser-like text and glossy photos, which are resistant to water, smudging and fading. It also proved to be relatively cost-effective because there are four individual ink cartridges, so users need only replace the colour that runs low. As far as low-end small and home office printers are concerned, this is one of the better ones.

HTC Touch Dual At first sight it looks like its predecessor, but no, this is the new and improved Touch from the handset vendor that has brought you some of the industry’s best phones. Just like most of HTC’s handsets, this one is well designed and eye candy for every handset geek. Unlike the previous model (The HTC Touch), which I found to be unrefined, this one is very functional and all the software applications and utilities that have been added to it make it a device to be reckoned with and sets it apart from competing brands in the same price range. However, I am not a big fan of what I call PDA phones and it seems HTC can’t let go of that with the Touch range, I think it’s pointless to have a touch screen sensitive enough for one to use finders, but have a stylus and a keypad on the same device. Why not just make it smart and keep it smart, there is no need to dumb down a phone it this competitive industry. For those that are used to standard keypads or those with smart phones, the Touch Dual comes with a little surprise - its sliding keypad in 16- or 20-key versions, which can be confusing at first. The xT9 system helps users to get used to its workings quickly. When one starts typing a word, options promptly appear at the bottom of the screen. But why is there a physical keypad and a choice of touchscreen keypads? And they are not that easy to use, the word “overkill” comes to mind. Slide detection on the device is quite impressive, on opening the slide, a menu appears with common activities like SMS, contacts or even email and the good thing is that it closes if a choice is not made within a few seconds. Essentially, this is a good 3G phone that still has room for improvement. I hope the next one has WAN connectivity.

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CRN SOUTHERN AFRICA • MAY 2008

PARTING: SHOTS

DILBERT

www.dilbert.com

by Scott Adams

S n a pshot Axis Communications Position: Key account manager Age: 25 Best personal achivement: Completing my degree through correspondence at UNISA. Presenting at the annual Top Property conference alongside Michelle McLean. Management style: Lead by example Most admired company: Apple Most admired executives: Steve Jobs Best IT product: Any product that changes/enhances the way we communicate. Most pressing local business issues: Load shedding Key to success: Dedication. Know what you want and keep your eye on the prize. Favourite car: Porsche Carrera GT Your car: Ford Focus Favourite author: Cormac McCarthy Where do you live: Fourways, Johannesburg Birthplace: Grahamstown, Eastern Cape Hobbies/sports: Rugby (watching), Basketball, Reading Company:

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CRN SOUTHERN AFRICA • MAY 2008

Howard Valentine