NA distributor launches software channel

Client Systems introduces ISV tool vendors to new plan

Hewlett-Packard’s exclusive distributor of HP e3000s in North America opened up new sales territory for software companies at HP World, offering a plan that adds third-party tools to authorized new HP e3000 sales quotes.

Client Systems president Mike Murphy told a packed room of HP e3000 tools suppliers their products could be part of the authorized resellers’ quotes. Murphy said the new Client Systems Solutions Center puts third-party products on the same quotes as new and upgraded e3000 servers.

“We’re expanding our channel,” he told the tool software vendors. “It is a marketing program, and there is some fee for service type of activities. We’d like to sit down and figure out what is the best fit for you.”

Companies who participate in the plan with HP’s only North American e3000 distributor can have their products on the same quote software the resellers use to sell new e3000s. While it’s not precisely the same thing as being on the HP price list, it’s as close as a third-party can get to being at the closing when new systems are sold.

Murphy, who told the crowded room that as much as 85 percent of new e3000s flow through his business to authorized resellers, said the program lets customers order tools through Client Systems.

“What we have not done traditionally is engaged with the many other partners out there who provide critical tools and services which sustain the viability of this platform,” Murphy said. “This creates the longevity we see around this product. We want to improve the efficiency and effectiveness of the way those products and services are delivered to our customers.”

Murphy announced strategic alliances between Client Systems and Lund Performance Solutions, Printronix, Bradmark Technologies, and a letter of intent with ROC Software. Bradmark will have the company distribute its DBGeneral IMAGE/SQL database utility for e3000s, as well as its NORAD product suite for Oracle, Sybase and SQL Server hosts.

“Coupling Client Systems’ distribution network with the reliability of Bradmark’s products ensures that we will continue to offer the best data management solutions to the broadest audience,” Bradmark CEO Larry Boyd said in a press release. Client Systems’ arrangement with Lund distributes that company’s e3000 software, as well as its solutions for non-3000 hosts.

Murphy also mentioned another part of the distributor’s program, a joint marketing plan with Cognos to promote a 40 percent discount in PowerHouse and Quiz license fees during new e3000 sales.

Competing products will apparently be welcomed in this new part of the channel. “We’d like to extend an invitation for other partners, and see if there’s not a way for Client Systems to help you extend your reach into the marketplace,” Murphy said. Third party ISVs can use the distributor’s logistical positioning and relationship with the authorized resellers, he added.

“The end result is we’re going to ease a lot of pain of the customers trying to get a total solution through a single channel,” Murphy said.

The distributor is formalizing a revenue channel for the third-party suppliers as well. When tools ISVs refer a customer for a hardware sale to Client Systems, the software companies will be compensated for the referrals. “We’ve clearly recognized the importance of these tools,” Murphy said. “They play a vital role in the viability of the 3000.”

Software vendor representatives at the meeting asked if the new arrangement was a business Client Systems was launching with ISVs, or a service offered to the 3000 community. “It’s a service we’re offering,” Murphy replied. “We want to put together some programs that allow channel partners [other than application or integration resellers] to engage.”

“This is the aftermarket, basically,” SIGSOFTVEND chairman Birket Foster commented at the meeting. “This comes down to tool vendors to do aftermarket sales to the people who already own HP 3000s. During the buying process, add a few more things to the basket.”