Client Systems stands at community nexus

Exclusive distribution partner for 3000s considers futures without new hardware

In the aftershocks of HP’s November decision to step away from the 3000 community, one of its closest partners hasn’t moved from the crossroads of the North American community. Client Systems, whose only business revolves around HP e3000s, is thinking beyond the end of sales of new hardware.

The company won an exclusive contract to distribute the systems to official HP resellers in North America in 1999, and it’s branched out into the information business with its 3kworld.com Web site. But HP’s plans to get its 3000 customers migrated to other HP systems don’t appear to dictate the end of Client Systems’ business. The company knows that many 3000 sites — perhaps even more than its resellers’ installed base — will be looking for help in the years to come.

“We’re here to serve the end-customers,” said CEO Mike Murphy. “We’ve always estimated the secondary market is as large or larger than the primary market.” Migration consulting and advice on the Transition — including the sale of new systems over the next two years — are a big part of what Client Systems will offer to this secondary market. It’s also entered the software and services distribution business through a new program launched this fall.

“We are more than a distributor,” Murphy said. “As long as there is a need and we can provide a service, and it makes sense from a business standpoint, we’ll continue to do so.”

While the company won’t be able to sell new hardware beyond October of 2003, it will continue to answer the HP call center lines. Customers can also call Bryan McHugh (800.338.5112) for overall advice on the Transition or to help locate a reseller. The company also answers technical pre-sales questions for HP’s e3000 Customer Advantage Center, 800.637.7740, option 2. And if there’s any other service it can do for the community, Murphy said the company will pursue it.

“Taking customers to solutions, staying involved in the secondary [3000] market — all that will be determined on what the installed base is looking for, and can we can build a plan that makes good business sense,” he said.

The company is partnering with Managed Business Solutions (MBS, www.thinkmbs.com), an integrator and consultancy with a long history in the 3000 market, to deliver services that can help in the Transition era. MBS offers IT application assessment, support and integration services for implementing, managing and extending the lifecycle of enterprises based on the HP e3000. MBS will do an assessment of a 3000 company’s IT environment, help a customer down either migration or homesteading paths, and provide 24x7 support for business applications.

The MBS alliance is part of Client Systems’ recently introduced Solutions Center/Market Manager approach, which serves as a new distribution point for HP 3000 software and service vendors. Client Systems wants to work with MBS to extend the community’s e3000s while planning their migration path. And if that appears to be wanting it both ways, Murphy said it reflects where the community is today.

“Customers migrate, and we wanted to make sure that assessment was part of our service package,” he said. “I understand the difficulty of making this decision from a business standpoint. I fully support that. That’s something we won’t be able to control. What we can do is step up to the plate and do everything we can for the customers for as long as we can.”

Supporting a company trying to migrate customers to other platforms — systems Client Systems doesn’t support — is a familiar place, Murphy said. “HP has always had salespeople in the field trying to get the customers to migrate to NT or Unix, so this is nothing new,” he said. “They have a bit of information to call on the customer once more and make their pitch, but I think our customers are smarter than that. They understand this news will not accelerate any kind of migration in the near term.”

Murphy said early returns from its quick survey show a majority of the market “has no intention of doing anything with this news other than staying on the system. These customers will do the right thing for their businesses.”

HP 3000s power the Client Systems operations, and Murphy said the company’s not changing anything in its IT shop. “My applications will serve my needs for tens of years to come,” he said. And in the meantime, the resellers in the Client Systems stable “will have great deals for those who want to stay.”