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April 2008

This month CRN


profiles the top
channel execs
as voted by SA
resellers p25>>

Inside This Issue


NEC predicts a boom
this year p13>>

Economy slows down


IT spend p22>>

Chipmakers continue to
support local desktop PC p53>>

SA’s energy crisis opens up


opportunities for resellers p13>>
EDITOR’S: NOTE

HP touts
new specialisations
A
t this year’s Hewlett-Packard Preferred Partner Conference held in San Francisco
recently, the vendor urged its preferred partners to remain focused despite a
recession in the US economy and turmoil in global markets. The vendor was
quick to point out that remaining focused and maintaining vital customer
relationships during a tumultuous economy will help them to keep their
numbers on the upswing.
The vendor says its counting on partners to keep the company in growth mode.
To this end, the vendor has launched a new Virtualisation specialisation bringing to
13 the total number of specialisations it is offering its preferred partners.
Solution providers in the local channel have welcomed the Virtualisation
specialisation as it 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 server virtualisation, one of the fastest-growing
segments in the IT market, into their own gravy train.
HP has also unveiled a new Gold Specialisation for its partners on the HP
Preferred Partner Programme, which will come into effect on 1 November 2008.
The new Gold Specialisation is being mapped and readied for the financial
year 2009, and is part of the company’s broad initiative to upgrade the number
of partners on the Gold Specialisation and expand the number of partners in the
transactional business space.
According to the vendor, details of the new Gold Specialisation programme will be released in the EMEA region starting the
week of 5 May 2008 and partners will have until10 September 2008 to familiarise themselves with the stringent criteria, get
trained and certified as Gold partners.
Sean Gallagher, director SPO at HP in EMEA, says the introduction of the HP Preferred Partner Gold Specialisation follows
months of rigorous planning based on partner feedback.
Gallagher says the programme is open to both specialists and non-specialist partners although there will be more benefits for
partners with a specialisation.
Gallagher adds the programme will not only segment partners but also increase partner coverage in the various markets.
“Our partners have been telling us they can’t differentiate themselves and this programme has been designed with this in mind,”
he says.
Solution providers at the conference were delighted to see HP taking the bold stance of growing its business through the channel.
What’s your take on the two new specialisations from HP? Are you ready for the two specialisations? Let me know at
mandab@systems.co.za

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 Novartis SA has


upgraded to VoIP. By Dominic Khuzwayo
10
CRN Contacts:
13 – Display vendor NEC is predicts a boom this year with its newly
Publisher:
launched large format LCDs, plasma screens and Vista-compliant projectors.
Manda Banda
By Dudu Shaba
mandab@systems.co.za

14 – Networking solutions vendor starts creating a collaborative


Online editor:
channel. By Kaunda Chama
Kaunda Chama
kaundac@systems.co.za
20 – Intel still sees great potential in indirect sales model.
By Kaunda Chama
12
Journalist:
Portia Shaba 22 – State of the economy slows down IT spend.
portias@systems.co.za By Dudu Shaba

Intern: 25 -45 Channel execs: CRN profiles this year’s top


Dominic Khuzwayo channel executives
dominick@systems.co.za
Features
Brand executive: 48 – Monitors: Early indications in 2008 are that sales of
Hellen Murahwa wide-screen LCD display panels would start outpacing square and
23
hellenh@systems.co.za CRT displays in PC bundles. By Dudu Shaba

Sub-editor: 53 – Local Brands: A few years ago, the question was whether
Jenny Bastomsky local brands would take off. Today, this is no longer a subject for debate,
jennybee@telkomsa.net.co.za chipmakers AMD and Intel continue to support the local desktop PC,
notebook and server market. By Dudu Shaba
Designer:
Spencer van Graan 56 – Security: Although virtualisation is now officially
spencerg@systems.co.za mainstream, industry pundits are cautioning against a rush to virtualise
without considering the security implications of doing so. Traditional 54
Database and subscriptions: security architectures and products are inadequate for this
Daisy Mulenga new topology. By Kaunda Chama
daisym@systems.co.za
Product and technology
copyright notice 63 – Product reviews, Vosonic multimedia viewer, HP
CRN Southern Africa is published monthly by
Systems Publishers (Pty) Ltd. The copyright of all Photosmart A441, Microsoft ergonomic keyboard and mouse
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 Parting shots
of the newspaper print process, Systems Publishers
cannot be held responsible for colour variations
in printed advertising. Printed by Ultra Litho.
64 – Snapshot: Nicola Homewood, Ingram Micro SA 63
CRN Southern Africa is a licensee of CMP Media LLC.

Private Bag X12, Rivonia, 2128


Tel: (011) 234 7008 64 – Dilbert Scans in this publication have been reproduced
Fax: (011) 234 7025
Registered with the Audit on the EPSON PERFECTiON 2450 photo
Bureau of Circulation

2 • CRN SOUTHERN AFRICA • APRIL 2008


WHAT’S NEWS

What do you have to say?


HP recently launched its “What do
you have to say?” campaign aimed
at engaging SME customers in its

&
Print 2.0 strategy. Thierry Boulanger,
IPG country manager, HP, says the
strategy focuses on areas such as
delivering a next-generation digital
COMINGS
printing platform that increases print
Thierry Boulanger
speeds and lowers the cost of
printing for high-volume commercial markets. The Timm bids farewell to
campaign is designed to inspire HP’s customers and Faritec
empower them with new ideas and online tools to help Allan Timm, sales director at Faritec
them think about what they have to say. Holdings, a JSE-listed IT company, has
resigned from the board of directors. To
ensure a smooth transition, Timm will leave
Konica SA introduces bizhub
C650
Konica Minolta SA (KMSA) has announced the
Allan Timm the company at the end of April 2008.
This doesn’t mean the end of the world for Timm; he will
be pursuing other business interests with
G
completion of its InfoLine designed trio of devices, with
the introduction of the bizhub C650.
Marianna Gdanis, KMSA colour division manager says
the appreciation of the board.

New marketing head at


O
that the bizhub C650 printer targets CRDs and corporate
office environments with high volume requirements. She
claims that the bizhub C650 provides 100 percent duplex
Nokia Siemens Networks
Nokia Siemens Networks has appointed
Frederic Astier as head of marketing.
I
productivity for the fast completion of double-sided jobs in
both colour and monochrome. The automatic duplexing
is standard and includes the processing of 256 gsm from
Frederic Astier Astier will be responsible for overall
marketing activities in all the regions and across the entire
portfolio of products and services.
N
any paper tray says Gdanis. He was previously a management team
member of the Vodafone Customer
Business Team at Nokia Siemens Networks.
G
New Lenovo 3000k desktops
Tarsus Technologies has unleashed the new Lenovo 3000K
range of consumer-focused desktops. This comes after the
Nthabiseng Mokone joins
GoldenRule
S
launch of the highly anticipated Lenovo’s ThinkPad X300 GoldenRule, a company within Amabubesi
notebook. Brett Walter, Lenovo product manager at Tarsus, Yasmin Forbes Capital Technologies (ACT), has appointed
says that the 3000K range benefits from a mix of the Nthabiseng Mokone to its board. Holding a BCom Honours
highest-end components available on the market today degree with CTA, Mokone began her career in 1996 at
and a number of innovative advancements from Lenovo’s Transtel. In 2002, she moved to Transnet Group Finance to
Lab in China. According to him, Lenovo has dealt with this start her training outside public practice. Then, she joined
need by making the illumination of the desktop’s front ABC South Africa, a subsidiary of African Banking
bezel change colour according mode. Corporation Holdings.
Angus Young, CEO of ACT says, “Mokone has cemented
strong relationships across the board and brings with her a
Crystal laptop by Pinnacle wealth of experience from the banking and financial sector.
Pinnacle Micro launch MSI PR200 Crystal range of laptops.
It comes in a shiny UV glossy coating dominated by a white
and silver colour scheme and a finely detailed MSI logo.
Measuring at 30cm in length and 23cm in width, along Westcon provide skills programme
with a weight of 1.8 kg (including battery), the PR200 Confronted with the growing skills shortage in the ICT industry, Westcon SA has launched
Crystal Collection is slim and portable. According to the the Westcon SA Graduate Programme.
distributor the ACV technology gives the user the most Ben de Klerk, national sales manager at Westcon SA says: “To support the growth that
detailed and intricate images, resulting in high saturation Westcon SA is experiencing and aggressively driving, we need to ensure that the correct
and high definition quality for a luxurious visual sensation resources are incorporated into the company. And we made a strategic decision to
that’s easy on the eyes. invest in the industry and our own future by developing a graduate programme.”

4 • CRN SOUTHERN AFRICA • APRIL 2008


WHAT’S NEWS

McAfee, VMware advance marketing (Singapore), a Sony Electronics company. The BWU-200S
virtualisation security features a SATA interface. And the drive also supports recordings on
McAfee, has announced that it has entered into a standard single layer 4.7GB DVD±R/±RW/RAM disks, 8.5GB DVD±R
broad relationship with VMware to advance double/dual layer disks and CDs.
virtualisation security. Chris van Niekerk, regional
director, Africa, McAfee says as part of the
relationship, his company plans to embed the New Intel server processors launched
newly announced VMware VMsafe security Intel Corporation has introduced a two
Chris van Niekerk technology into future security solution offerings. low-voltage 45 nanometer (nm) processors for servers and workstations. It
McAfee has also signed an Original Equipment Manufacturer (OEM) is designed to run at 50 watts or just 12.5 watts per core and frequencies
agreement with VMware to utilise its VMware ESX Server 3i technology in as high as 2.50GHz. The L5400 processors are claimed to be 25 percent
future security solutions. In addition, McAfee has also announced the faster and have a 50 percent larger cache size than Intel’s previous-
availability of its new e-mail and web security virtual appliance, which is built generation, low-voltage Quad-Core Intel Xeon processors. Others include
from the ground up for the VMware platform. the quad-core L5420 and L5410 processors run at 2.50 GHz and 2.33
GHz, respectively.

Symantec Announces New


Norton AntiVirus for Mac New Sony E-Series LCD projectors
Symantec, makers of Norton security software announced Rectron has launched the latest video projection
the new Norton AntiVirus Dual Protection for Mac. It systems from Sony Electronics designed for use
features a vulnerability protection technology and in small to medium venues with limited space.
antivirus for Mac users running Boot Camp or Windows virtualization “The latest E-series business projectors are the
software. These programs allow users to run both Mac OS X Leopard and Sony VPL-EW5, VPL-EX50, VPL-EX5 and VPL-
Windows operating systems. This solution provides comprehensive ES5, all incorporating a three-LCD panel system
protection from both Mac and Windows-based vulnerabilities and viruses. that delivers consistently bright, true-to-life
With this dual protection functionality, Mac users are set to benefit by images of up to 2500 ANSI lumens of
Werner Kuhn
receiving both the Norton AntiVirus 11 for Mac and antivirus and brightness,” says Werner Kuhn, peripherals
vulnerability protection of Norton AntiVirus 2008 for Windows. business manager at Rectron. The new models except for the VPL-ES5,
feature Sony’s BrightEra technology. “BrightEra enables the Sony E-Series
display panels to be significantly resistant to the damage of UV rays
McAfee releases virusScan for Mac caused by projector lamps and allow for increased aperture ratios.
McAfee has released VirusScan for Apple Macintosh’s latest operating
system (Mac OSX) version 10.5 (Leopard). The VirusScan protects Mac
users from threats to their personal and private data wherever it resides. Esquire releases BenQ projector
Bernadine Botha, McAfee product manager at Workgroup says: Esquire Technologies delivers the new ultra-
“VirusScan for Mac protects Macintosh end points against malware and compact BenQ SP820 digital XGA projector,
other unwanted programmes that can target systems”. which has been specifically developed for
corporate and educational markets. Mahomed
Cassim, marketing director, Esquire
New Backup for Servers Technologies, says that the SP820 arrives with a
Symantec, one of the global leaders in providing security, storage and high brightness of 4,000 ANSI lumens, a
systems management solutions, announced its new Symantec Backup Exec 2,000:1 high contrast ratio, a 1024x768 XGA
Mahomed Cassim
12 for Windows Servers. The Backup Exec 12 comes with a ThreatCon native resolution and digital zoom function.
global security alerting system, Enterprise Vault to protect email archives Weighing only 3,71kg, he explains that the projector displays brightly and
and the new Symantec Protection Network for accessing offsite storage. features a compact housing with a convenient integrated handle that
It restores data from a single pass backup with patent-pending Granular allows users to carry it around easily or install it at a fixed location.
Recovery technology, which obviates the need to run mailbox backups to
recover individual Exchange emails.
HP boosts midsize customers
HP has introduced an “easy-to-manage” virtual storage disk array. It is
DCC stocks Sony Blu-ray writers designed specifically for midsize customers that need to reduce the costs
Drive Control Corporation (DCC) releases Sony’s second generation and complexity of implementing a storage area network (SAN). HP
Blu-ray disk writer drive, BWU-200S. “The advantage of the new BWU- Storage Works 4400 Enterprise Virtual Array (EVA4400) offers a combination
200S model is that it features a faster write speed, reducing burn time by of high-performance and availability features, virtualisation capabilities
up to 50 per cent when compared with its predecessor. It now takes and advanced provisioning software. This is set to be ideal for midsize
approximately 45 minutes to record a 50GB BR-R disc,” says Michael businesses that want to cost-effectively manage large amounts of data in
Tan, senior regional account manager, Sony applications & devices a SAN environment without investing in deep storage experience.

6 • CRN SOUTHERN AFRICA • APRIL 2008


WHAT’S NEWS

Epson, Rectron partner Pinnacle closes Ritek deal

Epson SA has appointed Rectron, to distribute Epson’s Distribution giant Pinnacle Micro has sealed a deal with Ritek
products targeted at the SME market. Corporation to distribute its range of RiDATA optical media
Hans Dummer, GM, Epson SA says the agreement covers and flash memory products.
Epson projectors, scanners, dot-matrix printers, MFPs, inkjet The deal comes hot on the heals of the distributer ending
and photo inkjet printers, print consumables and other its distribution deal with optical media vendor Verbatim.
supplies. “We have been in discussions with Ritek for more than a
Dummer believes the expansion of Epson in the mid-range year and they have been doing an intensive investigation of
of their consumer products is attractive to the company, as Pinnacle Micro to ensure that we are the right company to
well as the national foot print that Rectron has. represent them in Africa,” says Hans Steyn, RiDATA brand
manager at Pinnacle Micro.
According to Steyn his company believes that the RiDATA
brand is going to make a big impact in the South African
Rectron lands Samsung printer industry and in Africa as a whole.
distribution

Rectron, has signed another premium brand to its stable and


is now the authorised Samsung distributor. SMC Networks SA signs DCC
In terms of the deals, Rectron will supply the local market a
complete range of Samsung’s mono and colour laser printers SMC Networks SA has appointed Drive Control Corporation
and consumables in SA. (DCC) as the local distributor for its next generation
Zandré Rudolph, sales director at Rectron, says both networking solutions.
companies understand that Rectron’s strength as a key The development is effective immediately and will result in
player in ICT distribution lies in its wide-ranging customer the local market having access to a wider variety of product
base and strong financial muscle. This will allow the two sets from a single supplier.
firms to work jointly towards a common goal that of Pierre Holtzhausen, networking specialist at DCC says: “The
becoming the number one player in the printing and agreement will allow DCC to deliver a wide range of quality,
imaging business adds Rudolph. cost effective networking solutions to our reseller base.
Paul Luff, country manager, SMC Networks SA says users
will immediately gain from a broader product range and an
enhancement of logistic services and technical support.
Ingram Micro now Microsoft disti

Ingram Micro SA has signed a distribution agreement with


Microsoft SA. The deal will allow Ingram Micro to gain official BDS signs X&R as Kenyan disti
OEM distribution status for the vendor’s client operating
systems, client-side applications and server solutions. Bytes Document Solutions, the authorised distributor of Xerox
Nicola Homewood, Microsoft product manager at Ingram products and solutions in 24 African countries, has appointed
Micro SA says: “This agreement is of considerable value to us X&R Technologies as its new Kenyan distributor.
locally as it allows us to offer our channel partners a more Coenraad Ackerman, African operations manager at Bytes
complete portfolio of products which now encompasses both Document Solutions says that the operations of the newly
hardware and software, aligning it with the one-stop shopping formed company will be headed up by CEO Lucy Njoroge,
experience Ingram Micro provides worldwide.” who co-founded, along with her husband, OpenView in
Kenya, an IT solutions company that services the corporate
market segment in East Africa.

8 • CRN SOUTHERN AFRICA • APRIL 2008


HIGH FIVE: PANDA SECURITY
SOLUTION PROVIDERS

Panda security secures PCs


Addressing the challenges of IT security.

BY DOMINIC KHUZWAYO
This month’s High Five looks at Panda Security, a creator and
developer of antivirus products that keep customers’ IT resources
free from virus, malware, Trojans and other computer threats.
Jeremy Matthews, head of Panda Security’s sub-Saharan operations
takes the high five.

CRN: How are computer viruses affecting the IT industry?

JM: Viruses lead to downtime, malfunctioning systems and loss of


both financial and intellectual data, while spam (which accounts for
approximately 90 per cent of emails received by companies) leads to
unnecessary consumption of bandwidth. Then there are bots –
programmes that go resident on a computer waiting for commands
from their creators, and can take complete control of the infected system.
Currently, there are 500 000 bot infections worldwide every day.

CRN: What other challenges is the industry facing when it


comes to security?

JM: As an industry we face two main challenges. Firstly, many


businesses lack the education and awareness of how to protect “Panda’s acclaimed TruPrevent Technologies has
themselves and their IT environments. While technology is a vital
been designed to protect PCs from unknown
component, the human element involved in risk reduction should
not be underestimated. Staff need to be taught, for example, to viruses and intruders.” – Jeremy Matthews,
avoid carrying out unsafe actions – such as opening mails from Panda Security
unknown recipients, opening links that arrive through mail instead
of typing them in the browser or downloading suspicious files
through P2P networks.
The other key challenge is virus attacks, the perception among JM: In terms of percentages, the number of new examples of
companies is that “it won’t happen to me”. This laissez-faire attitude malware that appeared in 2007 increased tenfold with respect to
results in companies sidelining security resulting in insufficient 2006 which, in turn, witnessed an increase of 172 per cent on the
protection. A study from Panda’s laboratory last year showed that previous year.
almost 72 per cent of protected networks with more than 100
workstations were infected with active malware. CRN: What gives Panda Security the edge?

CRN: What are the latest virus threats that the industry is JM: Panda’s acclaimed TruPrevent Technologies has been designed
facing? to protect PCs from both unknown viruses and intruders. These new
preventive technologies neither replace nor conflict with ‘traditional’
JM: Essentially, we face an onslaught of malware designed to steal reactive technologies used by antivirus solutions.
money. Leading the charge are Trojans (a quarter of all infections last TruPrevent analyses the behaviour of all the programs and files that
year). Banker Trojans, for example, are a very efficient tool for are running, blocking those that carry out damaging actions and
cyber-crooks, since these malicious codes steal bank details, account have unknown viruses.
numbers, etc. which are later used to empty users’ bank accounts. By doing this, all processes are optimised. The “traditional”
antivirus component of your protection filters known viruses that the
CRN: Looking at technology growth, which areas do you firewall has let through, while TruPrevent focuses on analysing the
see growing your business and offerings? behaviour of the rest of the programs that are free of known viruses.

10 • CRN SOUTHERN AFRICA • APRIL 2008


DEMAND GENERATOR: NOVARTIS SA
SOLUTION PROVIDERS

Novartis SA upgrades to VOIP


Standardising in line with parent company.

BY DOMINIC KHUZWAYO

N
ovartis SA, a local pharmaceutical company providing innovative medical solutions to
recently upgraded its LAN and WAN, and our markets,” says Thompson.
moved to a Voice over Internet Protocol
(VoIP) platform. This was done with the Wireless networK
assistance of KSS, a Johannesburg-based The company also needed to expand its
system integrator focusing on integrated wireless network at its head office in Isando
data, voice and/or video solutions, and to provide mobility for notebook users.
Cisco, supplier of networking equipment Another key requirement was to migrate to
and network management for the Internet. a VoIP platform as the telephone system was
This upgrade is said to have increased the not meeting the company’s requirements.
reliability and performance of the company’s Novartis provided a design specification,
networks, enhancing business efficiency and a list of hardware and required standards
communication, as well as enabling it to to four solution providers. Novartis’ global
meet the standardisation guidelines of its technology partner, BT, facilitated the
international parent company. project implementation.
In addition, the expanded wireless
“The implementation had to be carefully planned to ensure network required the installation of Cisco’s
4400 wireless controller with 16 LWAPP
minimal impact on operations through downtime.”
access points to facilitate the wireless IP
– Corne Sassenberg, KSS phones which replaced the older cordless
phones. Cisco 2800 ISR routers and C3560
Novartis SA is part of the global pharma- Power over Ethernet (PoE) LAN switches
ceutical organisation, one of the leaders in were also implemented.
the research and development of products “The implementation had to be carefully
to cure disease, ease suffering and enhance planned to ensure minimal impact on
quality of life. operations through downtime. The first
In 2006 the South African office had to phase of the implementation took place at
reassess its infrastructure due to new stan- the head office in Johannesburg,” says
dardisation policies abroad on compliance Corne Sassenberg, account manager at KSS.
to global standards. This led the local “The hardware was ordered, an asset
company to look at upgrading its existing count and a burn-in were completed. KSS
LAN and WAN, as well as upgrading its assisted with the pre-configuration, testing
telephony system to a VoIP platform. and designing of equipment at its testing
“Due to growth and change, our LAN facility in Midrand. The Johannesburg
and WAN networks were not functioning implementation took three days and was
optimally,” says Brigitte Thompson, service relatively free of challenges and hitches. The
delivery manager at Novartis SA. Durban implementation was next, followed
“We needed to connect with two by the Cape Town site,” adds Sassenberg.
branches in Cape Town and an additional According to Thompson, the network
two in Durban but found our network slow, now provides improved efficiencies due to
unreliable and lacking the functionality we faster access speeds to the servers and the
required. We also needed to upgrade our ability to find information quickly.
infrastructure to meet global standards.” “The IP Telephony solution has allowed
“In addition, our migration from a us to manage and contain costs. Reporting
Microsoft NT to XP platform further drove is now available at the touch of a button
the business case for a network forklift and with this information at hand,
upgrade. We felt this was essential to management of our telephony costs are
Corne Sassenberg, KSS support our branches and continue simplified,” Thompson concludes.

12 • CRN SOUTHERN AFRICA • APRIL 2008


ANALYSIS: NEC
SOLUTION PROVIDERS

NEC expects market boom


Educating the market to use display solutions.

BY DUDU SHABA

D
isplay vendor NEC is predicting a boom this “With these products, we aim to educate the market to start
year with its newly launched range of large
looking at proper and quality public displays, using the right
format LCDs, plasma screens and Vista-com-
pliant projectors, designed for corporates. products and also to stop using TVs as display panels”
Craig Butterworth, sales manager, NEC – Craig Butterworth, NEC.
Display Solutions SA says the unique style
and functional design of these new
products with their wide screens and digital In Africa, he says that the demand for ChanneLink+ Partner Programme include:
signage, combined with their many public displays is the same as in SA. System Builder Select – the programme
features, make them valuable tools for “What we do in SA is what we do on the provides unprecedented value and support
getting the right message or content across. rest of the African continent. We have started for all types of builders when selling
Butterworth says the company has been rolling out products in Kenya and are NEC’s products.
in the market for a long time and has hoping to stretch to other African countries Consumer Select – the programme
clearly secured its position. He says that as well because globalisation is the current supports solution providers that sell NEC’s
customer satisfaction has top priority in the influential factor,” he says. products into consumer/retail environments.
company and that NEC’s partners will “In SA, we have three distributors in the Display Solutions Select – brings integral
receive marketing support in terms of channel, which are Mustek, with 6 000 display solution components together, the
delivering the company’s best display resellers, Inchbook distributors with 200 programme provides solution-selling resources
solutions and support to corporates. resellers and Edge Interactive with 150 as well as access to NEC’s broad partner
“Corporates as well as business, resellers,” he comments. programme to help integrators sell digital
education, transport, mining, entertainment Butterworth explains that the company signage or other larger display solutions.
and other sectors want to see themselves has a partner programme called GovClub – is a membership programme
adapting to technologies that enable them ChanneLink+. Because most system integrators with exclusive pricing and other benefits
to communicate in a fast and effective way. do business in several vertical markets, such to resellers who sell to the state
With these products, we aim to educate the as financial, medical and digital signage, and government.
market to start looking at proper and NEC has several market-specific ProPartner Select – provides resellers that
quality public display solutions, using the programmes to address the unique target digital professional and other colour-
right products and also to stop using TVs as requirements of the various segments. critical markets with unprecedented value and
display panels,” he says. “The ChanneLink+ programme support when selling select NEC monitors.
Butterworth says NEC’s display solutions consolidates all of NEC’s channel “ChanneLink+ is in the process of
are already in the market and resellers will programmes into one comprehensive educating partners on how to apply these
have great opportunities for making profit offering, providing resellers and system display solution relevantly, and we have
and will also be trained so they are able to integrators with a single portal when selling more solutions that will be introduced this
sell integration products for themselves. NEC-DS LCDs and CRTs,” he says. year,” says Butterworth.
“We have also started to inform our Butterworth points out that key enhancements Michael Mc Callum, Mustek Electronics
distributors in the channel about our new to ChanneLink+ include the programme debit Mecer, external dealer sales executive, says
products through road shows and constant card, awards and incentives, business-building that more opportunities are coming
education,” he says. opportunities, marketing and sales tools for a through NEC’s public display solutions.
Butterworth states that the company has variety of markets, customised and secure “NEC has got the right solution. The new
also approached FIFA directly to negotiate extranet platform, and resource centre. solutions are exciting, educational and
supplying it with public displays for the FIFA He goes on to say that the NEC partner create awareness, and will bring success in
World Cup. programmes that have been rolled into SA,” he concludes.
ANALYSIS: CISCO
SOLUTION PROVIDERS

Creating a collaborative channel


Cisco encorages more partner alliances.

BY KAUNDA CHAMA

A t this year’s Cisco Partner Summit, perhaps


the other message besides the fact that the
vendor believes that the network is the
platform was a call for collaboration
The study, commissioned by Cisco and
conducted by Illuminas Research, was
designed to provide insight into the forces
shaping the reseller channel of the near
among its channel partners. future. It polled more than 1 300 cus-
After having recognised collaboration as tomers and nearly 500 Cisco channel part-
a necessity in meeting business demands, ners across 12 countries: Australia, Brazil,
the company has even set up what it calls China, France, Germany, India, Japan,
the Partner Exchange. Korea, Mexico, Russia, the United Kingdom
The exchange is a network that will help and the United States.
partners to increase their revenue, extend The study revealed that collaboration
their expertise and deepen their relation- among Cisco partners is generating 31 per
ships with customers. Cisco says that the cent of channel revenue and is growing by
move was a result of a global study it 15 per cent annually. Furthermore, 62 per
carried out that indicated that collaboration cent of the partners believe that collabora-
between channel partners is a large and tion will continue to grow over the next five
growing trend. years. Cisco partners work with an average
of eight other partners on a regular basis.
Cisco’s Partner Exchange is designed to
help Cisco partners find, connect and
collaborate with the right group at the
right partner. The collaboration network is
now available to more than 8 500 Cisco
Certified Partners, managed-services
providers, distribution partners and applica-
tion partners from all over the world.
The international study revealed that IT
customers are demanding a greater
breadth and depth of expertise from their
vendor resellers as solutions become more
varied and complex. It found that many
channel partners are choosing to fill the
expertise gaps by partnering with other
resellers in a “coopetition” relationship.
Cisco says the Partner Exchange enables
partners to find, connect and collaborate
with other partners that offer a comple-
mentary blend of technology, services, and
industry and geographic expertise. It helps
group leaders at partners start to develop
trusted relationships with the right person
at the right partner.

Cisco Partner Exchange facilitates col-


laboration through three key features:
John Chambers, Cisco  Promote and Be Found: In less than

14 • CRN SOUTHERN AFRICA • APRIL 2008


ANALYSIS: CISCO
SOLUTION PROVIDERS

five minutes, group leaders can build a


customised profile to promote their Key findings of the study include:
group’s unique capabilities, ensuring  Larger Projects, More Revenue: Cisco partners who collaborate with others
that other partner group leaders can have developed deeper customer relationships and delivered more value to
easily find and do business with them. customers. Collaboration enables 78 per cent of these resellers to win larger projects,
 Find and Connect: Powerful search 75 per cent to acquire new customers, and 74 per cent to increase their revenue.
and networking capabilities allow part-  Customer Satisfaction and Loyalty: Customers overwhelmingly report that
ners to easily search, find and start to collaborative resellers reduced the complexity of their IT business solutions.
develop trusted relationships with the Customers also enjoyed the single point of contact with a partner versus working
right person at the right partner. with the different vendors individually. Between 80 and 90 per cent of customers
 Learn and Collaborate: All partners globally are satisfied with the collaborative partners’ technical, business and industry
have access to best practices, online expertise; the ease of doing business with them; and post-sale service and support.
events and discussion forums.  Broader and Deeper Expertise: Partner collaboration also helps resellers to
Cisco Partner Exchange is located within broaden and deepen their expertise and, as a result, differentiate themselves from
Cisco Partner Space, a virtual environment their competition. Specifically, due to collaboration, 56 per cent of Cisco partners
that enables connections and facilitates witnessed improved levels of service; 78 per cent achieved greater technical
collaboration between customers and part- differentiation; and 66 per cent improved industry-specific expertise.
ners, among partners, and between Cisco  Slow Adoption of Collaboration Tools: Despite the extent of partner-to-partner
and partners. collaboration, surprisingly few partners are taking advantage of collaboration tools
At the event, Cisco also announced its to work more effectively with other partners and customers. Only 33 per cent of
intent to purchase the remaining 20 per Cisco partners use Web-conferencing tools, 20 per cent use collaboration and
cent interest in San Jose-based Nuova document-management tools, 20 per cent use project management software, and
Systems, a start-up focused on the develop- 15 per cent use shared electronic calendars.
ment of next-generation products for the
data centre market.
At the same time, it also unveiled the recently introduced Cisco Nexus 7000 Series
Nexus 5000 Series, the first product switches through the sharing of a common
developed by Nuova. The Cisco Nexus product architecture, operating system and
5000 is a 10 Gigabit Ethernet “top-of-rack” other software intelligence. The Nexus 7000
switch that offers unified fabric capabilities is an internally developed, modular data
through the support for multiple data centre-class switching system designed for
centre networking protocols and 10 Gigabit Ethernet networks offering
software intelligence. industry-leading performance scaling up to
Prior to the acquisition, Nuova operated 15 terabits per second.
as a majority-owned subsidiary of Cisco,
which had invested $70 million and owned
80 per cent of the company. “To succeed in today’s marketplace and effectively deliver on our
The transaction is success based with the business strategy to capture key market transitions, Cisco drives a
total value primarily determined by the
combination of internal R&D, industry partnerships and corporate
revenue of Nuova products over three
measurement periods. The first measure- development activities.” – Ned Hooper, Cisco
ment period will commence in early fiscal
year 2010, the second measurement period
will commence in late fiscal year 2010 and
the third measurement period will “To succeed in today’s marketplace and
commence in mid-fiscal year 2011. effectively deliver on our business strategy
The existing relationship between the two to capture key market transitions, Cisco
has allowed both companies to collaborate drives a combination of internal R&D,
actively in the development of the Cisco industry partnerships and corporate
Nexus 5000 through technology sharing, development activities,” says Ned Hooper,
product evolution and driving overall senior VP, Corporate Development and
market acceptance of innovative data Consumer and Small Business Group,
centre technologies. Cisco. “In many ways, the efforts supporting
As a result, the Cisco Nexus 5000 is our Data Center vision are great examples
designed to be fully interoperable with the of this ‘build, buy, partner’ innovation

CRN SOUTHERN AFRICA • APRIL 2008 • 39


ANALYSIS: CISCO
SOLUTION PROVIDERS

framework in action.” “Cisco’s decades of Nexus family designed to support increasing


switching innovation and expertise have it I/O demands of multicore processors and
well poised to be the architect of the next- virtualised environments. With its support
generation, network-centric data centre, a for FCoE, the Cisco Nexus 5000 Series
vision defined as Data Center 3.0,” says consolidates local-area network (LAN), fibre
Mario Mazzola, current president and CEO channel and iSCSI-based storage-area
of Nuova Systems. “We expect the Nuova networks (SANs) and server cluster traffic
team to make significant contributions onto an Ethernet-based unified fabric. It
toward the realisation of this vision through also provides virtual machine (VM)
products and technology that help enable optimised services, supporting the Cisco
data center consolidation and virtualisation, Data Center 3.0 vision by allowing IT
while protecting customers’ current data organisations to respond dynamically to
centre investments.” changing business demands through rapid
provisioning of application and infrastructure
services from shared pools of consolidated
compute, storage and network resources.
“We expect the Nuova team to make significant contributions
SAVVIS, a leading global IT utility services
toward the realisation of this vision through products and technology provider specialising in hosting, network
that help enable data center consolidation and virtualisation, while and application services, is currently testing
the new Cisco Nexus 5000 switching plat-
protecting customers’ current data centre investments.”
form. “We believe the benefits to SAVVIS of
– Mario Mazzola, Nuova Systems a unified fabric are multifold, including the
ability to provide our customers with a
higher quality of service as well as total cost
The acquisition is expected to close in Q4 of ownership reduction within our data
of Cisco’s 2008 financial year and will be centre operations,” says Bryan Doerr, chief
the fifth one for the period. technology officer of SAVVIS. “ Cisco Nexus
Meanwhile, Cisco’s Nexus 5000 Series 5000’s ability to deliver this unified fabric
strengthens the company’s existing data today makes it an attractive platform for us
centre switch portfolio and builds on its and we are actively evaluating it.”
commitment to invest heavily over the next To further align with opportunities in the
18 months in new products and capabilities data centre, Cisco has also evolved its channel
to help customers architect the next-gener- programme to help allow partners to build
ation data centre, creating a new market a network-centric data centre practice. Part
opportunity for its channel partners. of this effort includes the evolution of the
The Cisco Nexus 5000 Series is designed Cisco Data Center Networking
for data centre consolidation with Infrastructure (DCNI) specialisation to DCNI
investment protection, helping to allow 2.0, which recognises partners with a
customers to transition to a unified fabric highly qualified data centre practice.
at their own pace. It also meets stringent Cisco DCNI 2.0 specialised partners will
customer requirements for operational be able to provide customers with in-depth
continuity, transport flexibility and scalability. data centre technology skills and a proven
With a unified fabric, IT organisations customer track record in selling, deploying
can simplify cabling infrastructure, reduce and providing sophisticated data centre
the number of required adapters, lower services and solutions.
costs, and reduce power consumption and In addition, for partners who decide to
their carbon footprint. The Cisco Nexus build a network-centric data centre practice,
5000 Series delivers line-rate, low-latency, Cisco will offer technical and business
10 Gigabit Ethernet switching, as well as enablement tools and enhanced financial
the industry’s first standards-based, incentives. This includes the introduction to
input/output (I/O) consolidation solution via the Cisco Data Centre Value Incentive
support for Fibre Channel over Ethernet Program (VIP), which rewards partners who
(FCoE), Data Center Ethernet and virtualisa- invest in a comprehensive business practice
tion technologies. focused on the data centre. Cisco is further
The switch is an extension to the Cisco enhancing its partner enablement > p18

16 • CRN SOUTHERN AFRICA • APRIL 2008


ANALYSIS: CISCO
SOLUTION PROVIDERS

>> p16 portfolio with the introduction of optimise branch offices of all sizes, allowing
the Cisco Data Center Partner Practice companies to customise branch networks
Builder, a proven, simplified and repeatable to meet their unique business needs.
approach to building a Cisco solutions- It has done this by opening its Integrated
based practice, along with Steps to Success, Services Router (ISR) and Cisco Wide Area
a business building platform that provides a Application Services (WAAS) platforms to
step-by-step customer engagement model customers and third-party application
and associated resources designed to enable developers, Cisco enables its customers to
partners to sell, deliver and support Cisco optimise the branch infrastructure while
advanced technology business solutions. extending their accessibility to business
resources. It also provides Cisco channel
partners with new opportunities to deliver
With more than 80 per cent of its annual revenue being sold by differentiated solutions and services that
channel partners, helping to preempt a skills shortage is a major better align with customers’ business needs.
Cisco also introduced an array of new
business imperative and one in which Cisco is investing substantial
security, wireless and unified communica-
time, money and resources. tion products and service innovations that
elevate branch-office worker productivity
and deliver information technology (IT)
“With a proven history of success in operational efficiencies.
delivering innovative network solutions in Recognising the global shortage of skills in
data, voice and communications, video and the channel Cisco has also launched several
storage networks, Cisco and its channel talent innovations, including its next-generation
partners are uniquely positioned to lead the partner talent platform, the Partner Talent
transformation of the data centre into an Network. This new platform uses advanced
agile and efficient network that revolu- social networking capabilities and interactive
tionises how our customers adopt new IT video to transform how channel partners
strategies and respond to changing attract, develop and retain employees.
business needs,” says Edison Peres, VP “As I meet and talk with partners around
worldwide channels at Cisco. “With a full the world, they consistently tell me, regard-
portfolio of data centre solutions, channel less of location, that their top growth issue
programmes and enhanced financial is attracting, developing and retaining tal-
incentives through Data Center VIP; we are ent,” says Celia Harper-Guerra, director of
helping to create extraordinary opportuni- Worldwide Partner Talent at Cisco. “This
ties for our partners to accelerate their global feedback is the foundation of our
growth, differentiation and profitability.” talent strategy, which was validated in a
Cisco has also expanded its services recent study we commissioned in North
offerings to help customers realise the full America. That study identified hiring skilled
potential of a unified fabric and take the sales and technical talent as the top barriers
next step in data centre transformation. to growth in the IT channel.”
Cisco Services provide the expertise and With more than 80 per cent of its annual
experience needed to address the entire revenue being sold by channel partners,
data centre architecture and is designed to helping to preempt a skills shortage is a
support an organisation’s growth, server major business imperative and one in which
performance as well as storage and Cisco is investing substantial time, money
virtualisation goals. and resources. Cisco invested early on,
In addition, Cisco Capital offers financing more than 18-months ago, to work to
solutions to support customers with the enhance the validity of its primary route to
development of their data centres, including market. The company’s new talent-building
technology adoption, migration and lifecycle initiatives include: The Partner Talent
management. It offers competitive rates, Network: scheduled to launch in second
high residuals and flexible terms for Cisco quarter of calendar 2008; Recruitment
data centre equipment and services globally. Services Solutions; Professional Career
The networking solutions vendor also Accelerator; and the Talent Pool
announced new solutions that further Connections.

18 • CRN SOUTHERN AFRICA • APRIL 2008


ANALYSIS: INTEL
SOLUTION PROVIDERS

Intel has strong channel belief


Partners still keep paying dividends

BY KAUNDA CHAMA

I f there was one thing that was certain at


this year’s Intel Solutions Summit (ISS) held
in Rome, it was the fact that the hardware
vendor considers its channel partners critical
Dallman, Intel’s sales and marketing group
VP and worldwide reseller channel
organisation GM, said the company is more
committed than ever to the channel.
design manufacturers in several bare bone
and complete notebook configurations.
More offerings are coming online
towards the end of the year and in 2009.
to its success in all markets. Reinforcing Intel’s 45nm High-K Intel says the goal is for the ingredient-
Thomas Rampone VP sales and market- Transistor technology as the cornerstone of based ecosystem to be mature enough to
ing group and general manager of the opportunity, Dallman is encouraging support a broad distribution model for
channel platforms group stressed that the channel partners to embrace new all customers.
channel is Intel’s best customer because of technologies and programmes such as Intel as well as other industry partners
the reach and the advantage of flexibility Intel’s latest mobile motherboards that will offer Intel Mobile Boards based on Rich
Creek 2 that will launch time-to-market
with the Intel Centrino 2 platform. Initially,
“As the demand for desktops across the board moves from the boards will be available in a bare bones
configuration from OEMs and local integra-
strength to strength, we are also quickly moving towards more feature tors but not as a stand alone product.
differentiation and innovation down our product roadmap.” According to the company, the desktop
– Tom Rampone, Intel business remains vibrant, accounting for
about 50 per cent of its business

that respective channel partners have in extend its channel mobile initiative and a Three new desktop mother-
their local markets. new loyalty programme for its channel boards
While a lot of corporates might be of the partner members. Keeping with this Intel has some new
opinion that the desktop is fast dying and pieces of hardware for the desktop space.
the notebook is taking over as the PC of Getting the channel ready for The vendor launched three new desktop
choice, Rampone said that Intel is confident ’Montevina’ motherboards aimed at the extreme gamer,
there is plenty space left for penetration in Dallman explained that Intel continues to the mainstream multimedia user and entry-
the desktop market. work actively with multi-national level PC user.
In his keynote at ISS recently, Steve companies, local and regional OEMs, the The vendor claims that the new mother-
channel and the PC ecosystem at large to boards, individually, enable a number of
promote notebook PC adoption. innovative features for PCs such as greater
Dallman rallied the channel to get ready performance, clearer definition video and
for the next-generation Intel Centrino 2 low-powered technologies.
processor technology platform, previously The new boards are the Intel Desktop
code-named Montevina and expected to be Board DX48BT2 Extreme Series (formerly
available in June this year. code-named ‘Bone Trail 2’), the Intel
Saying that mobility is a huge Desktop Board DG35EC Classic Series
opportunity for the channel, Dallman (formerly code-named ‘Eva Cove’), and the
announced Rich Creek 2, the code name Intel Desktop Board D945GCLF Essential
for a new mobile motherboard form factor Series (formerly code-named ‘Little Falls’).
specification that expands Intel’s ongoing The D945GCLF will use the new Intel Atom
efforts with the industry to develop Processor and will be available towards the
interchangeable building blocks for note- second half of the year.
book components. “From ultimate gaming bliss, to crisp
Rich Creek 2 products will be rolled out high definition, to the most affordable
in a phased approach starting with select Internet-centric desktop, Intel continues to
Tom Rampone, Intel local integrators, local OEMs and original push the boundaries of world-class desktop

20 • CRN SOUTHERN AFRICA • APRIL 2008


ANALYSIS: INTEL
SOLUTION PROVIDERS

offerings,” says Tom Rampone, Intel’s Sales $300, these desktop boards are targeted at
and Marketing Group VP, and Channel entry-level computer users in the emerging
Platforms Group GM. “As the demand markets, as a second or basic home PC for
for desktops across the board moves mature markets or customised for unique
from strength to strength, we are also usage models in vertical markets such as
quickly moving towards more feature home-lifestyle, banking or education.
differentiation and innovation down our The D945GCLF will use the new Intel
product roadmap.” Atom Processor and will be available
For extreme gaming performance, the towards the second-half of the year.
Intel Desktop Board DX48BT2 Extreme
Series board unleashes the fastest native Behold Flex +
1600 MHz front side bus and memory sup- As far as channel activity goes, between
port providing powerful performance and 20 and 30 per cent of all Intel processor
extreme overclockability. unit sales go to the channel, and emerging
Supporting Intel Core 2 Extreme proces- markets account for 60 per cent of these
sors featuring quad or dual-core processing channel sales. Steve Dallman, Intel
and a faster 1600/1333/1066/800 MHz Ensuring that these figures continue to
FSB, it is built with the Intel X48 Express grow, the vendor announced a new technology demo units. They can also
Chipset with ICH9R that is validated for programme that is the latest of a compre- redeem points for benefits such as travel,
chipset-level overclocking. hensive array of benefits for Intel channel iPass WiFi access, Priority Pass airport lounge
There are two DIMM sockets designed to partner programme members. privileges and travel insurance.
support up to 4GB of DDR3 1600 MHz In an ongoing effort to enhance Other award redemption options range
memory or four DIMM sockets designed to membership value, Intel added Intel Flex+ from free health and fitness memberships,
support up to 8GB of DDR3 1333/1066/800 to recognise and reward resellers for build- electronics vouchers and access to Formula
MHz memory. ing their solutions on Intel technology. One racing activities for anyone in their
The board has 2 IEEE 1394a ports and Announced in SA two weeks earlier, the organisation.
12 USB 2.0 ports, dual full-speed PCIe 2.0
slots + x4/x16 PCIe slot, 2 PCI expansion
“Intel says the goal is for the ingredient-based ecosystem to be
slots and 6 SATA 3.0 Gb/s ports. Further
included in the DX48BT2 board are Intel mature enough to support a broad distribution model for all
Matrix Storage Technology and Dolby customers.” – Steve Dallman, Intel
Home Theatre.
The Intel Desktop Board DG35EC Classic
Series board is built with sharpest perform-
ing integrated graphics supported on Intel programme was launched to the European “The Intel Flex+ Program offers Intel
architecture. Based on GMA X3500 inte- region at the solutions summit. partners another opportunity to benefit
grated graphics, the board supports a range The benefits programme will roll from their collaboration with Intel, in addi-
of processors, including Intel Core 2 Quad out worldwide to more regions in the tion to the Intel Inside Program,” says Chief
and Intel Core 2 Duo processors. coming months. Purchasing Officer Sven Bauer. “This
Besides delivering outstanding perfor- Intel Flex+ is available at no cost to programme has allowed us to reinvest the
mance and stability, the integrated graphics Premier and Associate members, who can points acquired toward a variety of business
and connectors meet a variety of digital enrol quickly and easily online. Once and lifestyle awards such as telephone
needs, including 1080p video playback for enrolled, they can begin earning points for surveys of customers conducted by Intel,
movie clips, media streams and the latest selected qualifying purchases through Intel webinars that boost employee knowledge
generation of HD video cameras, without authorised distributors. and free hotel room charges for the Intel
the need for an add-in video card. Members can also accrue points for Solutions Summit being held in Rome.
Intel claims that this is the first board to participation in a range of qualifying While the programme is in its infancy, there
have integrated Microsoft DirectX10 capa- activities such as online training, channel are clear signs that channel partners will be
bility and it also supports OpenGL 2.0. events and promotions. able to enjoy considerable benefits from it
The Intel Desktop Board D945GCLF is an Through the programme, Intel offers a in the future.”
“affordable” motherboard that integrates a broad range of redemption options, giving Intel could be poised for some impressive
single unit of compute with a microproces- members the flexibility to select the rewards growth in the EMEA region due to the fact
sor, chipset, motherboard and heat sink. they most want. Members are free to use that the SME space is showing healthy
Ideal for traditional channels to build and their points for business rewards such as demand on the notebook, desktop and
package into a full PC system for under consulting services, Intel merchandise and server side.

CRN SOUTHERN AFRICA • APRIL 2008 • 21


ANALYSIS: IT SPENDING
SOLUTION PROVIDERS

Economy slows down IT spending


Negative economic factors eroding reseller margins.

BY DUDU SHABA

T his year’s budget was delivered at a tough


time. In recent months, there has been an
increasing perception that revenue growth
would moderate in line with economic
interest rates to a near five-year peak,
saying price pressures were spreading.
Governor Tito Mboweni said the decision to
raise the repo rate by half a percentage
activity, which has been greatly affected by point to 11,5 percent was also driven by a
the Eskom debacle. In addition there has deterioration in inflation expectations,
been a slow down in IT spending due to the which predict the 3%-6 percent official
economic slow down and credit crunching target range would be breached for three
is as well busy eating on people’s budgets. more years.
Also, the Reserve Bank has also raised Given these prevailing economic circum-
stances, CRN interviewed resellers in the
“Over the last few years we’ve spent a lot of our time diversifying channel to find out how they are fairing in
the market.
so that we’re not just exposed to a single area of the market. Although the IT spending continues to
As a result, we find that when certain areas of the economy slow down, Neil Watson, MD, Digital Planet,
are struggling, our business remains robust.” says that their company had a very good
start this year. “We’ve had a great start to
– Dave Hardy, TitanIT the year. January and February saw strong
growth versus last year. We are finding

22 • CRN SOUTHERN AFRICA • APRIL 2008


ANALYSIS: IT SPENDING
SOLUTION PROVIDERS

March and April a bit slower as the many they, together with the distributors are
negative factors such as public holidays and offering more flexible pricing,” he remarks.
load shedding have an effect,” he says. Watson says that online marketing is a
Dave Hardy, MD, TitanIT says that their growing percentage of Digital Planet’s
reseller company has seen some margin online spend.
erosion in the last few months, driven largely “Each media has its own place and
by smaller, opportunistic resellers. online is great for call to action. We think
“Customers are delaying larger infrastruc- the sky’s the limit for our online spend as
ture projects but we continue to attract we see a great Return on this spend. We’re
new business,” he comments. still investing heavily in radio and print
Given these contributing factors that are however,” he remarks.
slowing down reseller businesses, Watson “We focus on the small to medium
says that they find that their customers are corporate sector offering leading brand
still spending money on new IT equipment. name technology, superior support services
“Over the last few years we’ve spent a lot and trained certified staff in all divisions of
of our time diversifying so that we’re not the business.
just exposed to a single area of the market. We believe that direct, focused sales and
As a result, we find that when certain areas marketing activities, supported by our
of the economy are struggling, our business vendor partners, provides us with a unique
remains robust,” he says. go-to-market message. All of our offerings
Watson goes on to say that their retail have a high degree of value add and we do
business is doing well although not grow- not spend much time on commoditized
ing as aggressively as they like. products and solutions,” he says.
“We see this as an indicator that the gen- He adds the online marketing is also
eral consumer is feeling the pinch. Our cor- becoming more important and several of
Neil Watson, Digital Planet
porate business is as strong as ever. People their technology partners have recently
seem to have high activity levels and are begun online initiatives, we aim to take
being aggressive in new ventures and advantage of.
opportunities,” he comments. Watson predicts that there may be
In spite of the tightening economy, Hardy slowed growth over the next few years.
says that TitanIT is on a growth path. “We He says that Digital Planet’s aim is to
remain convinced that loyalty to our cus- constantly invest in future growth.
tomers and primary vendors coupled with “We are also finding that our ROI has

“We focus on the small to medium corporate sector offering


leading brand name technology, superior support services and
trained certified staff in all divisions of the business.”
– Neil Watson, MD, Digital Planet

our strong service, certification and consult- declined a little over the last few quarters
ing differentiators will continue to see us representing a slow down in investment
grow,” he says. and a drop in confidence. We’re still very
He adds that their company has had optimistic about our prospects and we
several large orders recently for desktops believe we’re on a good wicket,” he says.
and servers and our other key areas are In conclusion, Hardy believes that these
performing as expected. uncertain times offer opportunities for
“There are signs of a real growth in all growth as others begin to focus inwards or
areas of the business in the next ten are forced out of the market.
months. Licence renewals and support “For us, this means we have to continue
contracts are particularly strong performers. focusing on our primary markets and tech-
Also, all of our primary vendors are nologies and we have set aggressive expan-
aware of the current market conditions and sion goals in all areas of our business”.

CRN SOUTHERN AFRICA • APRIL 2008 • 23


ANALYSIS: SUN MICROSYSTEMS
SOLUTION PROVIDERS

Sun microsystems
builds a strong ecosystem
Opening up big opportunity for partners.

BY DUDU SHABA AND DOMINIC KHUZWAYO

S un Microsystems has seen a 40 per cent


increase in the number of attendees at
its Tech Days developer conference, aimed
at building a strong partnerships and
strategic to Sun Microsystems in that
it opens up big opportunities for its
partner community.
According to Martins, the Sun Partner
creating developer community awareness Advantage Program offers its partners a
of its technologies. number of resources to help them become
This was said by Michael Schroeder, MD, more competitive and profitable. She
Southern and Eastern Europe, Middle East explains that partners gain support such as
and Africa, at the Sun Microsystems sales and marketing.
developer conference which celebrated “Partners are able to join forces with Sun
its tenth anniversary. and other partners to close sales all over
Sun Microsystems provides a diverse the world, and to take advantage of the
range of software, systems, services and many sales and marketing tools available to
microelectronics that power everything Sun Partners, including logo offerings that
from consumer electronics, to developer leverage the Sun brand,” she explains. Patricia Martins, Sun Microsystems
tools and some of the world’s most powerful Sun offers a broad range of industry-
data centres. The company’s brands include leading hardware, software, services and Martins says Sun Microsystems has a
the Java technology platform, Solaris products for channel, OEM and integrator two- tier partner model, VARS and channel
developer partners.
“If you follow government trends, you
will see that it needs to go open source,
“The Sun Tech conference opens up big opportunities for our
which means that doors are open for our
partner community.” – Patricia Martins, Sun Microsystems partners to develop software solutions
that will make it easy for people to work
and add value to the development of
operating system, StorageTek and partners to add to their product portfolios. the country.”
UltraSPARC processors. In addition, Martins says partners can This is also applicable to universities,
Schroeder says the 2 500 developers that also expand by doing Web-based product, their partnership with SunMicrosystems will
registered for the event is evidence of the industry, solutions selling and Java create young business leaders who will
excitement around its technology and that Enterprise System training, and global develop their own solutions in the near
the number of partners is increasing. worldwide competency programmes. future,” she says.
“We have seen the attendee numbers “The focus of the conference this year is Molebogeng Yende, marketer, SPS ICT
growing from event to event since the to work with ISVs, system integrators, the solutions, says its software developer com-
inception of the Tech Days Conference developer community and resellers. The pany based in Pretoria, signed a partnership
10 years ago. This sends us the message current trend is that technology is being agreement with Sun Microsystems last year
that we are helping our developers to commoditised and only partners that sell and is looking forward to strengthening its
carry their heavy stuff, that our brand is competititive solutions will be successful. relationship with Sun Microsystems.
growing and more people will embrace A lot of our partners also have their own “Attending this conference is imperative
SunMicrosystems in the near future,” developers who create their own solutions for our company because our aim is to
he says. by bundling with our solutions who remain competitive and enhance our skills
Patricia Martins, channel manager, Sun can make good profits for themselves,” as well as continue to network with other
Microsystems said that the conference is she says. developers,” Yende concludes.

24 • CRN SOUTHERN AFRICA • APRIL 2008


Anton Herbst, MD at local consumables specialist distributor, Advanced Channel
CONTENTS >>
Technologies (A.C.T) has scooped the most influential Channel Executives Award for 26 Anton Herbst, A.C.T
2008. And while all executives that made the top 21 list in the 12th CRN Channel have
some influence in one way or the other, Herbst humility and a willingness to listen and
28 Craig Brunsden, Axiz
understand his company’s reseller channel seems to have put him in good standing with 30 Reggie Nxumalo, Microsoft
the channel at large.
32 Zandre Rudolph, Rectron

Herbst features in these awards for the third consecutive year and what a befitting 32 Graham Duxbury, Duxbury
honour for him to have received the most influential award. Networking
These award honour executives at vendor and distributor level, individuals who are
influential in their execution of day-to-day channel duties. 33 Rudi Pheiffer, Softline Pastel
The executives featured in the pages that follow are not only going out of their way to 33 Malan Voster, Omi Accounts
assist partners to close deals, embrace new business models and grow their businesses
34 Matthew Lee, Novell
to new profit heights, but they are at the forefront of championing partners to innovative.
A month of electronic polling on www.crn.co.za and CRN Flash, assisted the editorial 34 Graham Vorster, Westcon
team to tally the votes and pick 21 top channel executives for 2007. 35 Stefan Diedericks, Oracle

Resellers in the local channel voted for executives involved in channel management at 35 Patricia Martins, Sun
middle and senior management level. Each executive needed to receive a minimum of Microsystems
10 votes to be considered for nomination. The following was the criteria solution
36 Sally Berimbau, Novell
providers used:
38 Mark Perry, HP.
 Availability of channel executive
40 Uwe Brandkamp, Comztek
 Pro-activeness & dedication to address channel hurdles
 Commitment to helping partners win business deals 42 Carl Kleynhans, APC
 Influence on ho partner explore new business ventures 42 Steven Kramer, Tricon
 Relationship/team building style
43 Lisa Kelynack, Citrix Systems
 Openness of channel executive
44 Ron Keschner, Channel
The editorial team checked though the votes, eliminating any nominations that were
Capital, MB Technologies
invalid. In addition the results were audited by an actuary.
In the pages that follow CRN showcases the 2008 Channel Executive Awards winners. 44 Hans Dummer, Epson
From the entire CRN team we congratulate the winners. 45 Imi Mosaheb
2008 CHANNEL EXECUTIVE
2008 CHANNEL EXECUTIVE

A lesson in being humble


A.C.T’s Herbst gets channel nod. A.C.T’s Herbst gets channel nod.
By Manda Banda

When Anton Herbst, MD at local consum- understanding exactly what its resellers’
ables distributor, Advanced Channel businesses are all about.
Technologies (A.C.T) talks about his Secondly, Herbst has played a pivotal
passion for the local IT industry, his role in helping A.C.T to target and
job in the consumables market serve the SME market better. To this
space and his love for the local effect, the company has had to
solution provider channel, his understand the business dynamics
enthusiasm is all-consuming – and challenges faced by resellers
you see it in his eyes and hear it who target this market. “We have
in his voice. had to relook at investing more in
Yet, Herbst believes that if stock, credit, account management
there is one lesson that the and value adding to be relevant to
business world teaches one the our reseller base,” he says.
hard way, it is not to get too “It is a team effort,” he says. “I am
comfortable on the high tides of the delighted that my efforts have been
business cycle. recognised in this manner but credit
For a man with over 20 years’ must also go to the entire team I work with
experience in the IT Industry, Herbst has at A.C.T.”
been taught a lesson in humility more than Having witnessed the Siltek group go under in
once during his illustrious career. “Once you believe 2001, Herbst says you cannot always assume how your
you are riding the crest of the wave, you should always be on business partners perceive your business operation as that could
the lookout for the inevitable crash, because more often than not it is be detrimental. It is against this that Herbst has been urging his team
just around the corner,” he says. at A.C.T not to take reseller partners for granted but rather to
understand and know their businesses. “Last year, we embarked
on a programme to segment and establish what it is our reseller
partners do,” he says.
Herbst points out that this initiative has led to the next phase of the
“Once you believe you are riding the crest of plan in terms of understanding and delivering what partners serving
the SME market need. “This phase will see us layering resellers
the wave, you should always be on the look- deeper into channel segments such as group software specialists,
system integrators and specialist printing solutions resellers,” he says.
out for the inevitable crash, because more Along with serving the SME sector efficiently, Herbst says the
company has also stabilised its other eight branches, excluding the
often than not it is just around the corner.” – head office in Johannesburg, in terms of stock, pre- and post-sales
support, footprint, etc. A.C.T now has branches in Cape Town,
Anton Herbst, A.C.T Durban, Port Elizabeth, Klerksdorp, East London, Nelspruit,
Bloemfontein and Polokwane.
Herbst says as the traditional printer market has converged with the
office supplies sector(copier and fax), it is vital for resellers that would
It is precisely these lessons in humility that have helped Herbst to like to play in this space to take cognisance of the fact that they have
become a leader. Therefore, it comes as no surprise that solution to sell solutions and not product specifications, features and paper
providers have recognised Herbst’s unrelenting efforts in assisting feeds. He believes this belongs in the past. “We are not seeing a lot
them to grow their businesses. of printing solution resellers,” he says. “I am led to believe there are
Whiles this year’s win in the Channel Executives Awards is the about 10 resellers countrywide that can sell printing solutions.”
third consecutive one for Herbst; it is a befitting award as the Looking ahead, Herbst says A.C.T will continue assisting its resellers
channel believes he is one of the most outstanding and influential and urging them to become printing solution specialists targeting
executives. A combination of factors has contributed to Herbst specific niche markets with a strong value proposition. “If resellers that
receiving this top accolade. play in this space rely on offering the lowest price, they will be
For starters, he has been instrumental is segmenting A.C.T’s swallowed as printer and copier convergence will force product
channel base both from a vertical market perspective and movers out
out of
of business
businessininfavour
favourofofsolution
solutionspecialists,”
specialists,”heheconcludes.
concludes.


26 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Change pays off


Benefits of improved partner focus.

By Manda Banda

Craig Brunsden, chief market- and be more competitive are high


ing officer at Axiz attributes his on our agenda,” he explains.
nomination to the list of this He says his nomination comes
year’s top channel executives to at a time when the company has a
the fact that his business has seen decentralised and consultative man-
tremendous internal changes over agement structure and he is fortunate
the past 12 months with the imple- to represent a great team. “It’s been
mentation of a new ERP system and its the team’s efforts under pressure and its
management team has also spent a lot commitment to constantly improve and
of time looking at the business critically perform that has stood out for me over the
from end to end. past year.”
“As a result, we’ve looked at the business through “Like in any other industry, consolidation is some-
the eyes of our customers more than ever. We’ve spent time times necessary at all levels. The role of distributors has changed
restructuring teams and making changes to internal processes to over time and it’s becoming increasingly difficult for them to meet all
improve the experience when dealing with us. It’s been very challenging the objectives of the major global brands as well as the needs of a
but rewarding, and is still very much ongoing,” he says. diverse range of customers and be efficient (and profitable) in a
He comments that the credit crunch and possible market fiercely contested market. Consolidation either directly or through
slowdown are a concern and Axiz is feeling pressure from all sides. partnerships makes sense to ensure the distribution channel as a
whole remains strong,” he continues.
Looking ahead, he says resellers can expect Axiz to improve con-
sistency in the experience of doing business with it. “We’ve made big
strides in the past six months and have a plan for the future that is
“As an industry, we need long-term solutions already showing results, which has changed the way we measure
and manage our business.”
to the skills and environmental challenges Brunsden has been in the IT industry for13 years. “A mate of mine
working at Axiz convinced me it was better than a walkabout trip
that face us to be sustainable into the next overseas. I still haven’t been on that trip.” Before joining Axiz he
worked for Nedbank and tried his hand at running a small freight
decades.” – Craig Brunsden, Axiz forwarding business.
He says what fascinates him about the local IT industry is the
pace, which is exciting, yet has a weird sense of consistency about it.
The more things change, the more they remain the same.
When he is not assisting resellers to close deal, he spends time
with his family and friends, running, mountain biking, cycling and
playing golf.
“We’ve really focused on making changes to our business that “The most pressing channel issues are different depending on
make it easier to deal with us at the most basic levels. If we can where you are in it and what the time scale is. As a whole, I’d say
reduce the time resellers have to invest in completing transactions the channel’s long-term sustainability is due to finite resources. This is
quickly and accurately, we can spend more time on converting oppor- not just financial capital but human and natural capital resources as
tunities to results which will benefit everybody in our ecosystem. Credit well. As an industry, we need long-term solutions to the skills and
is not the only challenge we face, and issues like post-sales support, environmental challenges that face us to be sustainable into the next
pre-sales expertise and tools for helping our customers win business decades,” he concludes. 

28 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Nxumalo wins with partners


Aligning strategies bears fruit.

By Kaunda Chama

Reggie Nxumalo, OEM director, He says that he has also seen


is the man in charge of taking his some reorganisation in the software
business unit to market through part- solution provider space, which will
ners at Microsoft says that the past 12 have a positive effect on the market.
months have been about working with Regarding the consolidation in this space,
partners while at the same time aligning he comments: “From the outside it seems it’s a
strategies with them. simple case of big player takes little player, but it is
more dynamic than that. A lot of the smaller system
builders are shrinking due to global pressure and a lot of these guys
have either to be bought by the bigger players or reinvent themselves
in order to survive.”
When he is not playing his part in the world He says that even if one looks at IDC data, it is difficult for local
system builders to compete in this market because the end-user is still
of technology, he fancies himself as an above demanding global brands both on the software and hardware side.
“Looking ahead, resellers can look forward to thought leadership
average golf player and as if that is not and innovation as Microsoft continually reinvents its business
models in line with market trends and technology advancements,”
enough exercise, he is planning to take part Nxumalo says.
His entry into the ICT space was somewhat interesting, much like
in the Triathlon next year and has started most of his peers. He started in the SMCG business with Coca-Cola
and later joined Cell C on its launch as the national sales manager.
road running and swimming preparations. He joined HP in 2001 and recently moved to Microsoft in his
current position.
“What excited me about the ICT sector so much is that it has
woven itself into every aspect of out society and I do not see it
He says that most of his efforts have been around creating slowing down any time soon,” Nxumalo comments.
demand for the many products that the world’s largest software ven- When he is not playing his part in the world of technology, he
dor has been bringing to market. fancies himself as an above average golf player and as if that is not
“Our partners’ response has been very positive to our strategies enough exercise, he is planning to take part in the Triathlon next year
and product releases because they are always looking to us to rein- and has started road running and swimming preparations.
vent and innovate with software solutions. Just look at what we are According to him, one of the most pressing challenges in
doing in the virtualisation space,” comments Nxumalo. the channel as well as the ICT sector as a whole is the rate of
He adds that the past year has seen him spending a lot of time change from a technology introduction perspective as well as the
with Microsoft solution provider partners, working very closely with solution provider’s ability to anticipate that change and stay ahead
them as away of fully understanding their needs. of the game. 

30 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Partner intimacy
By Manda Banda

Rectron’s Zandre Rudolph is among this year’s top lean and mean operation.” Looking ahead, Rectron will contin-
channel executives and says this is as a result of gain- ue to support the reseller channel. It has just replaced HP with
ing partner confidence by working closer with them Epson and Samsung, and has a couple of other new prod-
than before. ucts in the pipeline. “So what can resellers expect from
“The main focus has really been on working more Rectron… we will ensure that they have access to the best
closely with our customers, and supporting and assist- quality products and service around, so that they can grow
ing them in their business environments to make sure their businesses.”
we can grow and close sales. We have launched a couple Rudolph’s career in IT started at Rectron. He has been with the
of new products in the past couple of months, so we have been real- company almost nine years. Coming from a sales background, he
ly working closely with customers to introduce these products to their wanted to get involved in IT. “At that stage everyone was talking
customers. Product, position, price and promotions have been dri- about the IT industry and it was the field to be in. He had an inter-
ving our activities with our partners over the past couple of months,” view and got the job. “I started in sales as a junior account manag-
he explains. er and I guess I can say I have never looked back. I have grown with
On the subject of the credit crunch and the possible slowdown in Rectron throughout the years, and the IT industry and Rectron are still
IT spending, he comments that Rectron has seen a couple of chal- my passions,” he explains.
lenging months, and some extraordinarily good ones. When he is not working with his channel partners, Rudolph spends
Regarding his nomination, he says that one of the main reasons is his spare time at home with his family. “My wife and I were blessed
that he has been working closely with the company’s internal sales with a baby boy in December. So it has been an adjustment. But all
team and its customers to help them grow their businesses together is good. He is indeed the apple of my eye.”
with Rectron. According to Rudolph, the most pressing channel business issue in SA
On the topic of consolidation, he says the industry will definitely is the current market situation. “To be honest, we have been through
see something happen. “In these crazy times it’s about how you worse times. This is something we will have to deal with and manage. It
spend your money, use your resources and manage your business doesn’t help to be negative. Think about it, a couple of years ago we
processes. Rectron has made a lot of changes to ensure that it runs a were in a worse situation with the rand,” he concludes. 

2008 CHANNEL EXECUTIVE

Trusted and tested leadership


By Dudu Shaba

Graham Duxbury, CEO, Duxbury Networking, has “For example, we know that dealers are being asked to
been nominated by solution providers in the channel optimise existing corporate networks and other infrastructures.
as one of the top 20 Channel Executives for 2008. In these instances the technical ability to integrate diverse
Duxbury attributes this nomination to the support of his product sets and implement software solutions that extend the
team at Duxbury Networking. life of legacy systems are vitally important,” he explains.
“The excellent relationships we have fostered with our channel Duxbury says the company has seen a steady increase in the
partners are due to the application of a tried-and-tested business demand for technical training from its reseller partners.
formula that we first modelled 24 years ago. At its core are “Our challenge is not only to take training to the reseller base, but
requirements for excellence in support, technical backup and to broaden the skills of those who are already trained and, in the
partnering with world-class vendors,” he says. process, take technical training to a higher level,” he remarks.
According to Duxbury, the company has a number of important “One of our key messages to our channel partners is to continue
plans for 2008. “We intend expanding our stock holding to meet the working with Duxbury Networking and leverage the technical skills
requirements of our growing core of resellers, so new warehouse and support infrastructures that we bring to market. We say ‘let us
facilities are on the cards,” he says. work with you to secure major deals and support larger customers.
Duxbury goes on to say that the company has learnt that a We’ll all benefit in the long run’,” he comments.
distribution business can no longer be viable if it relies on a sales Duxbury says the company’s strategy for the coming years is to
force that is solely product sales orientated. continue building on its strong foundation, the cornerstone which
He adds that a challenge, which the company has successfully was laid 24 years ago.
met, has been to build a team capable of addressing areas that “This means that Duxbury Networking will continue to offer best-of-
generate profitable revenues, such as consulting, integration, breed networking products at the right price, in the right place with an
installation and support services. all-embracing partnership approach to business,” he concludes. 

32 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Relationships, relationships, relationships


By Manda Banda

Softline Pastel’s Rudi Pheiffer is one of the finalists in loyalty points structure in its channel programme which is now
this year’s Channel Executive awards as rated by aimed at benefiting everyone, especially the smaller players.
solution providers in the local channel. “We also have an exciting new release due later this year
In response to this he says: “As always, Softline which will provide excellent sales opportunities to the
Pastel’s focus has been on empowering its channel channel and significant enhancements for customers. The
to go beyond accounting. Specifically, in the past channel can also look forward to other exciting new products in
12 months we have concentrated on getting the channel the online arena.”
excited about BI, CRM and customer service, and have seen a Pheiffer has been involved with Pastel for the greater part of
growing interest in these solutions. 10 years. “I started out as an article clerk using Pastel. My passion
Regarding his nomination, he comments that it’s all about soon shifted from numbers to people and I became a Pastel channel
relationships and delivering on your promises. “I believe in win-win partner myself. Given my passion for IT, working for Pastel was a
scenarios and honest, two-way communication. It also helps that the natural progression as it allowed me to combine all my interests
channel partners are a terrific bunch of people. At Pastel, we listen and passions.”
carefully to our channel. We understand the role all 3 500 of our “While the tighter economy in 2008 will affect everyone, we are
partners play in our continued growth.” finding that channel partners in the outlying regions face quite
He says that the company has seen and will continue to see different challenges to those operating in the metropolitan areas. The
consolidation in the IT market. For example, while Pastel is South outlying channel partners generally encounter more price-conscious
African-born and is SA’s leader in accounting, payroll and business customers. Their challenge is to convince their customers to go
software for the SME market, it is also used by 180 000 businesses beyond accounting and consider solutions that provide a big picture
worldwide and is sold in over 52 countries through a network of overview of the business and enable better strategic decision-making.
more than 3 500 channel partners. Market structures are fluid and The channel partners in the metropolitan areas, on the other hand,
the world is definitely becoming a smaller place. face greater competition and therefore have to do a lot more to
Looking ahead, he says that the company has just updated its differentiate themselves,” he concludes. 

2008 CHANNEL EXECUTIVE

Top honours for Voster


By Kaunda Chama

Omi Accounts’ Gauteng sales manager, Malan good solution to offer them, most of your work is done.”
Voster, has made it onto the list of the top channel He says if dealers like a product, they will like the person
executives in this year’s CRN survey. who supplies it to them even more.
He says the past 12 months have seen him focus- On the topic of the consolidation taking place in the ICT
ing on brand awareness. “My top priority was creating space, he says that it makes sense in that when the global
and maintaining brand awareness while at the same time economy gets a little tighter, smaller companies find it hard to
building good relationships between Omni Accounts and its stay afloat and most of the time wind up being swallowed by the
partners,” he says. bigger guys.
He comments the credit crunch has not really affected the compa- Looking ahead, Voster says Omni Accounts will concentrate on
ny’s channel partners because of the scalability of its product. maintaining its growth path. “We enjoyed very good growth last year
“Because of our product’s scalability, our dealers don’t have to and we aim to continue that trend while focusing on improving prod-
spend as much money initially, so they don’t wind up in a situation uct quality and expanding our sales team,” he says.
where they have a lot of capital tied up in stock,” he says. This Voster has been with Omni Accounts for three-and-a-half years,
means that the company’s top dealers can enjoy better margins. before that he was an entrepreneur. What excites him about the
He adds that the nature of Omni Accounts’ solution has received industry is that it is very vibrant and he enjoys being part of a sales
very positive responses from existing and potential partners. and marketing team on an exciting product.
“Everywhere we go we get very positive responses,” Voster comments. When not part of an exciting sales and marketing team, Voster
When asked what he attributes to his partners’ confidence in him enjoys getting away and doing a little traveling, he is also a lover of
and his nomination to the list of top channel executives, Voster says: nature and likes being in the great outdoors.
“I think this is a result of the relationship s I have built up with our He says one of the pressing issues is provision of utilities, stating
dealers, and the nature and quality of our product. I strongly believe that the current load shedding will definitely have adverse effects on
that if you maintain healthy relationships with partners and have a business in general and not just on the ICT sector. 

CRN SOUTHERN AFRICA • APRIL 2008 • 33


2008 CHANNEL EXECUTIVE

Lee in the lead


By Kaunda Chama

Novell’s Matthew Lee is on this year’s list of top channel “This is when they need the backing of a bigger entity and in
executives. He says the nomination is as a result of most cases it means being bought by a bigger distributor,” he
his taking time to understand the company’s part- comments.
ners and giving them what they needs as opposed Lee says that Novell partners can look forward to dealing
to just pushing product through them. with a vendor that will be in bed with them engage with them
“At times this has called on me to help partners to at all levels. “We will make sure that we are always here for
understand other technologies and not just ours, and this our partners because we believe that this is the true meaning of
makes a difference in the way they perceive you,” he notes. a business partnership,” Lee says.
He adds that end-users and partners have learned from the past The company recently implemented a lead-generation tool for its
when they were sold technologies that they only used 30 per cent of customers, which it predicts will go a long way in improving partners’
and are now more demanding. revenues on Novell business.
Besides handling both value and volume partners since Lee has been in the ICT industry for 15 years. Interestingly, he
November, Lee has also been placing a lot of emphasis on driving started as plumber about 17 years ago and, after a stint in the air
skills development for partners. force, he worked for a networking distributor called Delta 9.
“Many people wonder what the secret is to maintaining healthy After this, he worked at Pinnacle Networking. He later joined
relationships with partners. I keep a good level of simplicity and Comztek after which worked for Tarsus and then joined Novell last year.
make sure that there is utmost ease of doing business with the com- When not dealing in ICT solutions, he is very much a family man
pany. We all have jobs to do and ethics to adhere to so, at the end who enjoys the outdoors and scuba diving, a sport he recommends
of the day, we just need to take the confusion out of doing business,” to all who are not afraid of deep water.
explains Lee. Regarding pressing issues facing the channel, Lee says that skills
When asked about the consolidation taking place in the industry, availability and shortage take the top spot. “The problem in the
he says that it is about economies of scale and often smaller distribu- industry is that there is not as much skills creation as there is skills
tors find themselves in a situation where they do not have the capacity recycling and this is resulting in a lack of solution skills in the sector,”
to meet the business demands that come with growth. he concludes. 

2008 CHANNEL EXECUTIVE

Vorster makes the list again


By Kaunda Chama

Graham Vorster, Chief Technology Officer and announcement of a significant data centre offering.
Vendor Director at networking distributor Westcon He says the company has, over the past 12 months, received
SA, is once again one of the top channel executives. an overwhelming response to all of its initiatives, which is
He attributes the confidence shown in him by his proved by the large growth it has shown in reseller count
company’s channel partners to the fact that the com- this year.
pany has been focusing on various key initiatives, Regarding his nomination, Vorster says the hard work of all
which include adding further value to all its resellers the sales, product and marketing guys at Westcon SA, combined
through its distribution programmes such as OneVoice, OneDefense with its closer relationships with its resellers were major contributors.
and ConvergencePoint. On the topic of consolidation in the IT industry he comments: “We
Others include developing an overarching programme for all of its believe that to truly add value to the reseller community you need to
commercial resellers to bring high growth technology opportunities to have the right scope and scale. I think we are seeing various eco-
them; building out on its data centre solutions, with significant nomic forces bringing the limitations of boutique distribution to the
announcements in the short term; extending financial solutions to the fore, which will ultimately lead to the major vendors consolidating
channel via Westcon Finance; extending cost-effective training to the their routes to market.”
channel via the Westcon Academy; focusing resources on SP offer- Vorster is an 18-year veteran of the IT industry, 13 of those in the
ings; verticalising its high-touch sales force to grow opportunities for distribution world, and five in the reseller community. “I joined the
its resellers, that is government, retail and manufacturing; and a sig- industry with Arthur and Jenny Brooke at Triadic, when he was just
nificant investment in an ERP system. starting his networking outsource business from his house,” he says.
“We have placed significant focus on extending our solution offer- Regarding the most pressing channel business issue in SA at the
ing in the commercial market, where we are still seeing significant moment, he says it is the skills shortage, not only technical but also
growth opportunities for the 2T channel. Among these commercial for identifying the advantages which an early mover can have. “Our
efforts, which are aimed at the mid and SME markets, are: various channel has many look alike resellers with very similar GTM models.
security programmes, two major voice programmes and the We need innovators in this space.” 

34 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Undying commitment
By Dudu Shaba

Stefan Diedericks, senior channel manager, Oracle SA, increased adoption of the product set across the Middle East and
has been nominated by solution providers in the Africa region,” he says.
channel as on of the best executives in the channel. Through partnering excellence, Diedericks says that
Diedericks comments that a nomination of this Oracle is turning its approach into a programme that nur-
kind from the industry at large is always a humbling tures, enables and engages new and existing partners.
experience, yet simultaneously energises him in real- “The objective is to build up their skills and competencies to
ising that personal levels of passion, engagement and help them grow their revenues and extend Oracle’s sales cover-
delivery to the channel is valued and recognised. age, the 19 500 strong global Oracle Partner Network.
“ I believe that a tri-partite commitment is necessary at all times to Furthermore the Alliance and Channel Organization manages the
ensure successful channel-based delivery to the end customers, this overall business relationship with Oracle’s partners to ensure they are
involves extensive engagement between the vendor, the partner and aligned with our products and strategies to help partners maximise
the channel manager to ensure committed delivery around a com- their revenue and profit opportunities through partnering with us,”
mon objective and value set. Once these have been defined and he says.
agreed, it is crucial to execute at speed to ensure go to markets suc- Diedericks says that the partner commitment to customer choice,
ceed, that profitability is ensured for all parties involved and that cus- industry specialisations and applications has seen Oracle growing
tomer service of the highest levels is delivered,” he says. and this is attributable to channel partners’ commitment to product
Diedericks says that Oracle in Europe, the Middle East and Africa acquiescence, skills development and aggressive marketing.
has a series of drivers for the business and to the Alliance and Currently, Diedericks says the company is focused on increasing
Channel organisation. the level of partner participation and presence in its marketing and
“This translates into 360-degree partner views and alignment, business development activities.
executive partner engagement models, excellence in training adop- “Our goal is to work with ISVs to win more strategic deals with
tion and exceeded targets in terms of revenue and growth. In the customers, create more repeatable offerings with system integrators
coming year, we will be focusing heavily on partner enablement and and continuously improve our resellers’ skills to ensure they can
growth in terms of sales and I mplementation services, and the compete and win,” he concludes. 

2008 CHANNEL EXECUTIVE

Building trust with partners


By Dudu Shaba

Patricia Martins, channel manager, Sun Microsystems, into the market is our priority,” she remarks.
has been nominated by solution providers in the She goes on to say that Sun Microsystems is in the process
channel as one of 2008’s admired channel of changing market perceptions that it only plays in the high-
executives. end server market.
She says this is due to her drive towards excel- “We want to continue to grow our SPARC business, we are
lence with the vision of long-term sustainable partner- also prominent players in storage, software and systems such as
ships. “Passion is a key ingredient for success,” she says. X64,” she says.
In the year since joining Sun Microsystems, Martins says that the
company has been building trust with partners with a culture that is
based on transparency and predictability. “One needs to really understand the partner’s
“One needs to really understand the partner’s business objectives
in order to get mind share and for them to further invest in the business objectives in order to get mind share to
respective technologies,” she says.
Martins says the company’s ongoing challenge is to assist partners further invest in the respective technologies.” –
to increase profit.
“The market is competitive and we see IT becoming more com- Patricia Martins, Sun Microsystems.
moditised. Customers are spending more wisely and looking to drive
down their costs,” she comments.
Martins says that the company’s plans are to increase profitability Martins is encouraging Sun Microsystems’ partners to continue
for partners and to strengthen its current alliances. with their innovation and also to adapt to the ever-changing dynam-
“We aim to grow our market share in SA, East and Central Africa ics in the marketplace. “Flexibility and agility give partners a competi-
and drive major growth in West Africa. Implementing a strong chan- tive advantage. Look to sell complementary solutions coupled with
nel to drive our volume products such as X64 and modular storage services to increase value and thus revenues,” she concludes. 

CRN SOUTHERN AFRICA • APRIL 2008 • 35


2008 CHANNEL EXECUTIVE

Berimbau one of the top


A.C.T’s Herbst gets channel nod.

By Kaunda Chama

Sally Berimbau, Novell She explains that on the back


Product Manager at distribu- of all these initiatives, she has
tion house Workgroup says there received an overwhelmingly positive
is much to be gained both person- response from solution provider part-
ally and in business from creating solid ners. This has been so good that she has
relationships with partners. managed to keep the Novell Distributor of the
Year accolade for the past two years.
On the subject of consolidation in the local and global
channel, Berimbau comments that the smaller players in the space
have been battling to stay afloat and most of them needed to be
“I do, however, believe that the right mix of bought and made part of bigger distributors as a way of helping
their businesses grow.
product and business model will help a lot of From a Workgroup point of view, Berimbau says that the company
has a very good reputation in the market and a business model that
distributors and solution providers to stay in is effective, adding that its business has been so good that it has
managed to maintain positive growth year on year since it became a
business through these tough times,” she single entity.
Looking ahead, she admits that Workgroup needs to focus on and
concludes.” – Sally Berimbau, Workgroup do some hard work in the system resource management (SRM) space
as a way of growing its revenues.
Of her own career, Berimbau says that she has always been effec-
tive in sales and started off selling vacuum cleaners for Electrolux in
She says that the main reason she was nominated one of the top the ‘90s. In 2000 she sent her CV to Workgroup and the rest, as
channel executives in this year’s CRN research is because of her and they say, is history.
the company’s focus on delivering good service, having a competi- Workgroup remains one of the successful players in the channel
tive edge as well as maintaining good relationships with Workgroup’s space locally and the Novell brand also remains top of mind for dis-
solution providers. tributors, solution providers and end-users.
She says, she has noticed that the product base has changed quite Even with this in mind, Berimbau believes that the new credit act is
a lot because the company’s partners have been focusing on hetero- causing quite a problem for credit lines not only in the channel but in
geneous products for their solutions, adding that the good thing is business in general, adding that it is causing a knock-on effect that is
that most of them are available through the distributor. affecting market stability.
“The past 12 months have also seen us placing a lot of focus on “I do, however, believe that the right mix of product and business
training and other types of business development initiatives,” model will help a lot of distributors and solution providers to stay in
says Berimbau. business through these tough times,” she concludes. 

36 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Perry emerges victorious


Highly committed to giving excellent service.

issues concerning services but it managed to overcome them.


“We have had some challenges in the services area but these
“It’s a combination of superb products, have been aggressively addressed, with the help of our partners’
feedback and a dedicated services/support team, we are rapidly
excellent people, great partners and market improving the situation. Continuous feedback on progress is given
to our channel partners. As with any challenge half the battle is won
acceptance of the entire package offered by when you take cognisance of the issues at hand and have a con-
crete plan. Most importantly, it is key to monitor and ensure that
HP.” – Mark Perry, HP. nothing detracts from the ultimate goal of satisfying the customer,”
he says.
The lessons learned here are that all our staff members have to
knuckle down and take ownership of a problem, even when their job
description does not match those actions,” he says.
By Dudu Shaba
Perry comments that the pressing issues in the channel are always
Mark Perry, country manager, Solutions Partner Organization, HP has margin related.
been nominated one of the best channel executives for 2008 by “It has been continually preached that a company cannot survive
solution providers in the channel. He attributes this to HP’s power on hardware margins alone - the survivors have embraced the
and its preferred partner brand. Preferred Partner Programme and wrapped other value-added ser-
“One cannot take all the credit alone, it is a combination of vices and offerings around the infrastructure,” he says.
superb products, excellent people, great partners and market accep- Perry encourages channel partners is to stick with HP.
tance of the entire package offered by HP,” he says. “We are evolving rapidly and your company can only benefit from
According to him, HP’s plans for this year are to modify its being a loyal preferred partner.
Preferred Partner Programme, to introduce some great new products This year, our plans are quite simply to increase our dominance in
and continue to focus on skills and enterprise development in SA. the worldwide market by empowering our partners and customers by
Perry says the company was faced with the challenge of resolving offering world-class business solutions,” concludes Perry. 

38 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Brandkamp takes it for Comztek


Cementing relationships
By Kaunda Chama

Uwe Brandkamp, Comztek’s Networks telesales which has increased our call-han-
Business Unit director has been dling capacity and improved our customer
nominated one of the top channel service by a significant magnitude in the
executives in CRN’s Channel past year. I think we can still improve
Executive survey. further and this will continue to
Commenting on his nomination, remain a focus for us,” he explains.
he says: “My focus has been Brandkamp further says the
specifically on cementing reason the channel is seeing a lot
relationships with our customers of acquisitions is that vendor and
in the South African and African market growth demands on the
markets. Additionally, we have industry as well as the increased
been on a drive to expand our financial resources required to
business in the mid-market and sustain this are factors contributing
SME channel. to current market conditions.
I have also added to our very Regarding the recognition he
competent team of channel received, he comments that the compa-
managers, and have added some ny’s loyal customers that enjoy good levels
products to round off our network prod- of service and value have a lot to do with it.
ucts portfolio. We have continued to add to “I hope that they will continue to let us know
our very successful services offering.” where we can improve or fix our services. My com-
On the channel credit crunch, he comments that it’s mitment is to continue to deal with such issues efficiently and
still about adding tangible business value to end customers and openly,” he adds.
gaining trust by providing a dependable service to customers. On the issue of consolidation in the IT industry, particularly given
the rate at which solution providers are liquidated and the credit risk
distributors are subjected to, Brandkamp says: “The changes in our
market are not a bad thing and will hopefully take it to the next level.
Also, we have not had major changes since Siltek – maybe things
have bottled up a bit.”
“My focus has been specifically on cementing Looking ahead, he says the company’s focus areas will be the
mid-market and SMEs (and all the bells and whistles to go with it) as
relationships with our customers in the well as Africa.
Regarding his tenure in the IT space, he says: “I started in this
South African and African markets.” – Uwe industry in the early ‘80s and if my parents had their way I would
have been a chemist or a doctor. Technology outside of the
Brandkamp, Comztek mainframe was just rearing its head and I always admired what my
father was doing as an electronic engineer. So when the opportunity
presented itself to join NCR in those days I jumped at it. In the
mid-eighties I got involved in a fledgling venture around PCs and
networks – and this venture, through mergers and acquisitions,
“Opportunities to partner in providing innovative solutions exist in landed me at Comztek in 1999.” He says that if he had his way, he
our market – collaboration and planning together with our customers would have been a pro soccer player, but he really started consider-
has proved very successful in the past. As far as credit is concerned, ing IT as a career in his matric year.
we have perhaps been a little more helpful than the rest of the distri- When asked about the pressing isues in the SA channel today,
bution market and although our customers often shy away from hav- Brandkamp says that other than the clichéd issues such as credit,
ing payment term discussions with their customers we have been very skills, margins and the exchange rate, the channel should look at the
successful in deals where financial discussions were introduced early positives in the market.
in the sales cycle,” says Brandkamp. “I still believe we have some of the best opportunities for growth
In the past 12 months Comztek has focused on building its call right here in SA and neighbouring markets, entrepreneurship, new
centre capability and has tripled the number of resources. developments, creativity and bringing new solutions to market. So a
“We have a team of good people working in our call centres and positive outlook would go a long way,” he concludes. 

40 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Kleynhans has the power


By George Maseko

When the APC-MGE deal was finalised last year, it The company also boasts quite an impressive line up of
came with all the industry jitters of a merger, but the partners, including the likes of Tarsus, Dimension Data,
company has managed to become an entity to be Square One and Drive Control.
reckoned with and the business venture could have Regarding the consolidation that is taking place in the
not come at a better time. channel, Kleynhans feels that it is part of the industry’s natural
At the centre of this UPS vendor’s channel success is progression and it would happen even without the credit crunch.
Carl Kleynhans who, after the deal, stopped handling the South APC MGE’s strategy involves a big focus on maximising the syner-
African business, but soon after took control of it and has been run- gies between both brands as well as value-added services and
ning the Africa channel business for APC MGE. revamping all of the company’s channel programmes.
Interestingly, while the rest of the ICT space has been feeling the Kleynhans started his career in the freight industry in the 1990s
full force of the credit crunch, Kleynhans feels that the situation on and in 1998, saw the potential in the ICT space and after a very
the continent (with the issues of load shedding) has protected APC effective referral made a conscious decision to join APC and has
MGE because it is in the business of selling backup power solutions. been there ever since.
“Strictly speaking, the power crisis has played in our favour. Even According to him, some of the pressing issues in the channel
the new credit act has not affected us much,” he comments. include the fact that that there is not enough being done in terms of
He adds that one of the strengths for the company over the past people development and retention. He feels there is too much skills
12 months has been its dedication to doing all of its business recycling and not enough new skills being created.
through channel partners who have also benefited from its “Payback” He even suggests creating and implementing strategies around
channel programme. “With the help of these partners we have man- bringing back a lot of the skills that have been lost through
aged to make a big impact in the corporate space, and now with the people emigrating.
power outages, we are seeing a lot of interest being generated from Finally, he says that the country’s and continent’s utilities need an
the domestic market as well,” notes Kleynhans. urgent upgrade to keep up with the rate of growth. 

2008 CHANNEL EXECUTIVE

Kramer among the top


By George Maseko

When asked what he sees as the reason for receiving ners to the extent where it even seems Tricon is an extension or
a vote of confidence from Tricon’s channel partners, part of that business.
Steven Kramer business development manager, Looking ahead, and now that the Pinnacle-Tricon deal has
commented that understanding their requirements been finalised the business has officially moved over, Kramer
and catalysing their growth were major factors. says: “From our perspective, it is vital that nothing changes in
He comments that a lot of resellers do not fully terms of the way we engage our channel partners unless it is a
understand what is available to them from a services and positive business change that is mutually beneficial. We are not
support point of view; and his job has been one of enlightening them allowing the fact that Pinnacle Micro purchased our business to
on all of this. In addition, Kramer also tasked himself with fully change our business relationships.”
explaining the advantages of IBM’s global finance to the company’s He adds that Tricon prides itself on is its level of skills in the IBM
channel partners. and Lenovo space.
He adds that the response to this has been tremendous with many On a personal level, he is somewhat of a “veteran” in the ICT
partners considering IBM Global Finance as an option. space, he studied for a BSC in computer science, served a stint in
Asked his opinion about the number of acquisitions taking place the army, after which he worked at NCR in 1987 on the technical
in the channel, Kramer says some companies don’t have the finan- side. After leaving the country for 10 months, he came back and
cial backbone to finance their own growth and need the muscle of worked for Epsidon, which later became First Distribution, ran the
the “big guys”, who are mostly listed entities, to provide the neces- IBM division as SDD, moved over to MTN for eight months and took
sary financial backing. charge of the HP division at Axiz before joining Tricon.
Especially in this time when local and global markets are feeling He admits that he wanted to be a vet, but his BSC in computer
the effects of the credit crunch,” he explains. science paved his path into the ICT space.
He comments that the another reason why he was received com- When Kramer is not talking bits and bytes, he is quite a keen
mendation from the company’s channel partners is that the culture golfer and makes time to go to the driving range every Wednesday
within Tricon is that of having a close working relationship with part- and Saturday. 

42 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

Back to win
By George Maseko
When Gary de Menezes took a three-year sabbatical He adds that one of the major reasons that got him nominat-
from the world of IT, he surely did not expect to come ed is the taking of Lenovo kit to market with competitive pric-
back and be a star performer in such a short time. ing, making sure that it is the right product and is available at
Barley seven months after returning to the IT sec- all times.
tor and joining PC vendor Lenovo to head its chan- De Menezes does not see consolidation in the hardware
nel business, he has already been recognised by the space becoming a big issue because despite the few changes
company’s channel partners as a top performer. that have taken place, he is still seeing a lot of resellers coming
As channel manager, De Menezes says that one of his into the space.
key strengths is that he takes time to build trust with Lenovo’s channel “One of Lenovo’s strengths is its product quality, but this is also the
partners and works hard to maintain it. company’s best kept secret. However, the company’s engagement
De Menezes recently spearheaded the launch of Lenovo’s new through the channel has been remarkable with a good channel strat-
rewards programme dubbed Club Lenovo, which rewards partici- egy and increased product awareness,” he explains.
pants - both the owners of reseller businesses and their sales forces - He says that looking at the next 12 months, the channel can
for selling Lenovo TopSeller products: PCs, monitors, peripherals and expect to see Lenovo going to market as an aggressive company
services specifically configured and priced for the needs of SMEs. with innovative and new products in all its disciplines.
“The programme has received great responses from the market. It De Menezes is a 20-year veteran of the IT sector, having started
only got really active at the beginning of this year and we already his career at Telkom, he then worked in the IT division of Nedcor
have about 500 registrations. before moving to the then Ariel technologies (now T-Systems), then
He comments that Lenovo and its partners have not really been moving to HP’s software division, then Compaq and was commercial
affected by the credit crunch that is currently upsetting the IT space, director at Acer before taking a three-year break.
stating that business is still growing between 50 and 70 per cent year “I like the IT space because of its vibe, there is never a dull
on year. moment; there is always something happening whether it is good or
“The notebook space is still vibrant and the introduction of bad. On top of that, the people in the industry are great and very
Pinnacle Micro as our second distributor will give our products better professional so you make many friends and acquaintances in this
exposure and market coverage,” he says. business,” he concludes. 

2008 CHANNEL EXECUTIVE

Understanding customer strengths, challenges


By Stanley Chishala

Lisa Kelynack has already earned her heroine creden- the IT industry continue to be pain points in the local channel,
tials for pioneering Citrix’s channel training efforts says Kelynack.
and taking them to resellers so they can skill up. She explains that it is for this reason Citrix SA has been
Now, this Citrix Systems partner account manager, focusing on two key areas with regard to the channel in the
who started her career in the recruitment industry past 12 months. Kelynack says the two areas are educating
where she specifically recruited for IT clients, appears the channel, and getting solution providers to specialise and
to be warming up to Citrix’s solution provider partners as focus on specific verticals. “We are now offering reduced cost and
she charts a new course for the integration middleware vendor’s free training to our channel to assist it in obtaining certification for
renewed channel growth. our solution offerings,” she says. “Our new incentive programme
“I’ve been in the IT industry for close to 15 years. I started off in IT also helps partners to focus on selling the Citrix Platinum range to
recruitment, where I stayed for about 10 years and then moved to their customers.”
Citrix, where I’ve been for the past four-and-a-half years,” she says. Kelynack says there are huge incentives for up-selling Citrix solu-
With a strong IT recruitment background, Kelynack found it easy to tions to their customers. In some instances, they can earn bonuses of
settle into her role at Citrix. But was IT her calling as a kid? up to 50 per cent on all Advisor Rewards-approved claims that are
Kelynack says, on the contrary, computers and IT weren’t really a validated by Citrix.
big thing when she was growing up. “We still played outside and Kelynack says one of the reasons that may have contributed to her
rode our bikes in the street,” she recalls. “I didn’t really have one being recognised in the 2008 Channel Executive Awards has to do
specific passion. One week I wanted to be an air hostess, the next I with understanding the strengths and challenges of partners’ busi-
wanted to be a veterinary surgeon.” nesses, which has enabled Citrix to tailor its initiatives to assist them
Having carved a niche for herself in the IT industry, Kelynack says in growing their businesses.
she never regrets settling in this industry. However, she is astounded “Our main focuses for this year are around educating the channel
by the fact that there are few resellers that value educating their staff. and giving back to it through rewards programmes for selling our
This, along with the lack of skills and the continuing brain drain in solutions into their customer bases,” she concludes. 

CRN SOUTHERN AFRICA • APRIL 2008 • 43


2008 CHANNEL EXECUTIVE

Erasing reseller cash flow worries


By Stanley Chishala

It’s been a great year for Channel Capital, MB ideas. “It was pretty clear to me that our customers needed a
Technologies’ newest subsidiary, but you won’t hear lot more than just box moving from us,” he recalls. “My first
excessive bragging from the company’s MD, Ron task soon after joining Tarsus was to create PartneRewards,
Keschner, who was instrumental in setting up this the channel’s longest running loyalty programme,” he says.
financial business for local resellers. This was followed by another Keschner brainchild – Channel
It is no wonder Keschner has made it onto the 2008 Business College, a business skills channel training programme
Channel Executive Awards list. Keschner believes Channel which has proven successful and will be exported into the rest of
Capital has hit a nerve with reseller partners, as clearly a lot of them Africa later this year.
are smarter businessmen. Prior to getting involved and establishing himself in the IT industry,
It is this involvement in setting up Channel Capital and the overall Keschner spent 14 years in the financial press field, looking after
approach the entire MB Technologies group has taken in helping Business Day and Financial Mail. “When industry doyenne Leo Baxter
resellers to ease their financial worries that have won him admiration asked me to come across to assist the MB Technologies group with
from the channel. its JSE listing in 1998, I jumped at the opportunity to get into what
Keschner adds the move to launch Channel Capital and the was then the ‘sexiest’ industry on earth,” he says. So after 10 years in
approach the company has taken is paying off. He adds that his the fast-paced, ever-changing IT industry, Keschner believes he made
focus has been a simple one – to ease the cash flow concerns of the best move ever and the channel is firmly in his blood. “I really
reseller partners in the channel and to add new income streams to can’t imagine being anywhere else and, if the channel will permit, I’d
their businesses. like nothing more than to see out the rest of my career right here,”
He points out that for too long, resellers have been playing he says.
second fiddle to many of the other service suppliers to South African For someone who wanted to be a rock star when he was growing
businesses. up, Keschner enjoys riding motorbikes, watching his eight-year-old
Having ventured into the IT channel as an “outsider” gave daughter ride her horse and catching as much sport as he possibly
Keschner a clear perspective of the industry without any preconceived can in the limited leisure time that he has available. 

2008 CHANNEL EXECUTIVE

Communication is king
Enhancing Epson’s visibility.
By Stanley Chishala

When Hans Dummer was a kid, all he wanted to be Dummer says as Epson’s product range is quite diverse it is
when he grew up was an electrical engineer. clear that in certain areas of its range the markets are very
Dummer did not pursue his childhood ambition of buoyant and this is where the company has been focused.
working in the demanding electrical engineering field In addition, he believes in simple, basic principles that
instead he decided to branch into the fast-paced IT industry. include regular communication to the channel. “Communication is
As country GM at printing and imaging solutions vendor Epson king and it is becoming clearer that training and communication are
SA, Dummer has been instrumental in turning Epson into a printer key to our building a healthy channel,” he says.
heavyweight in the local channel where a lot of printing solutions are Remarking on his nomination and making the top 21 Channel
usually synonymous with one brand – HP. Executives list for 2008, Dummer believes his policy of being trans-
In his more than 10 years at the helm of Epson SA, Dummer has parent with Epson’s partner community (distributors and resellers) is
played a key role in establishing its traditional, retailer and photo- paying dividends. He says this contributed immensely to his getting
graphic channels. the channel’s nod in this year’s awards.
Of note have been his relentless efforts in building the Epson Commenting on consolidation in the local IT industry, Dummer
brand to rival competitor brands in the local channel. says it is an ongoing process that will never stop. He explains
With over 20 years’ IT experience, Dummer is well aware of how that it is part of maximising one’s value add and offering better
hard it is to build a channel that is loyal to a brand and the solutions solutions at lower costs to the channel. Looking ahead, Dummer
surrounding that brand. says the challenge for Epson will be identifying and growing its
He says over the past 12 months or so, the company has been loyal resellers.
preoccupied with the expansion of its sales force to enhance its He says in terms of overall channel initiatives, Epson’s channel
channel visibility. “I believe in the ‘out of sight, out of mind’ ecosystem can expect more effective communication and better
principle,” he says. product knowledge coupled with greater Epson exposure. 

44 • CRN SOUTHERN AFRICA • APRIL 2008


2008 CHANNEL EXECUTIVE

It’s all good


By Stanley Chishala

It’s been a banner year for Advanced Micro Devices but spans across all the Living Standard Measurement (LSM)
(AMD), but you won’t any crowing from the chip groups. Retailers are selling a Vista-based multimedia PC with
maker’s regional manager, sales and marketing AMD and ATI solutions for well under R2 000,” he says.
country manager, Imi Mosaheb. Mosaheb says the opening of AMD’s office in SA has
To crown AMD’s banner year, the local solution delivered a sense of reassurance of the company’s long-term
provider community has recognised Mosaheb’s commitment to this marketplace. “The growth in the local staff
efforts as the company readies itself to tackle its fiercest complement has further demonstrated our commitment to local
rival Intel. resellers together with the marketing, sales and service needs for
Unlike the previous AMD representatives in SA, Mosaheb, who is processors, motherboards and graphics products from AMD and
the first to set-up a fully-fledged AMD office in SA, tends to avoid ATI,” he says.
boasting to and antagonising competitors. Mosaheb has played a Mosaheb, who has been in the IT industry for 15 years, kick-start-
pivotal role in restructuring and streamlining the vendor’s distribution ed his career in distribution and the channel in North America. “IT
partners from seven in the past to appointing two master distributors always fascinated me as it is never static. I find technology very cool
– Asbis Africa and Ingram Micro. and useful in helping me to live a more productive life,” he says.
He says a direct result of this focus is the appointment of the two Aside from Mosaheb’s fascination with IT, he says the need for the
master distributors Asbis Africa and Pinnacle Micro, as opposed to local channel to re-engineer itself to provide solutions and not just
the seven that AMD had a year ago. components is far greater now than in the past.
Mosaheb says AMD has seen an opportunity to deliver greater “Buyers are looking for energy-efficient desktops, visually rewarding
value to its customer base, despite not only the channel credit PC systems for gaming, small business Exchange servers, etc,” he
crunch, but also the energy crisis. says. “Resellers need to provide an out-of-the-box solution versus
He explains that the price-performance benefits from AMD and customers selecting components and dealing with the complexity of
ATI is unmatched, allowing the company to deliver solutions to buy- putting together the software stack to suit their needs.”
ers that are cost-effective without sacrificing performance and pro- An avid soccer fan, Mosaheb loves watching football and spending
ductivity. “We are seeing that this affordability reach is not restrictive, time with his family when he has some free time. 

2008 CHANNEL EXECUTIVE

Nxumalo wins with partners


By Kaunda Chama

Reggie Nxumalo, OEM director, is the man in charge of order to survive.”


taking his business unit to market through partners at He says that even if one looks at IDC data, it is difficult for
Microsoft says that the past 12 months have been local system builders to compete in this market because the
about working with partners while at the same time end-user is still demanding global brands both on the soft-
aligning strategies with them. ware and hardware side.
He says that most of his efforts have been around “Looking ahead, resellers can look forward to thought lead-
creating demand for the many products that the ership and innovation as Microsoft continually reinvents its busi-
world’s largest software vendor has been bringing to mar- ness
ket. models in line with market trends and technology advancements,”
“Our partners’ response has been very positive to our strategies Nxumalo says.
and product releases because they are always looking to us to rein- His entry into the ICT space was somewhat interesting, much like
vent and innovate with software solutions. Just look at what we are most of his peers. He started in the SMCG business with Coca-Cola
doing in the virtualisation space,” comments Nxumalo. and later joined Cell C on its launch as the national sales manager.
He adds that the past year has seen him spending a lot of time He joined HP in 2001 and recently moved to Microsoft in his
with Microsoft solution provider partners, working very closely with current position.
them as away of fully understanding their needs. “What excited me about the ICT sector so much is that it has
He says that he has also seen some reorganisation in the software woven itself into every aspect of out society and I do not see it
solution provider space, which will have a positive effect on the mar- slowing down any time soon,” Nxumalo comments.
ket. When he is not playing his part in the world of technology, he
Regarding the consolidation in this space, he comments: “From fancies himself as an above average golf player and as if that is not
the outside it seems it’s a simple case of big player takes little player, enough exercise, he is planning to take part in the Triathlon next year
but it is more dynamic than that. A lot of the smaller system builders and has started road running and swimming preparations.
are shrinking due to global pressure and a lot of these guys have According to him, one of the most pressing challenges in
either to be bought by the bigger players or reinvent themselves in the channel as well as the ICT sector as a whole is the rate of

CRN SOUTHERN AFRICA • APRIL 2008 • 39


MONITORS FEATURE
SOLUTION PROVIDERS

LCD monitors
outpace CRT
displays

A move that signifies the ever-changing monitor market.

BY DUDU SHABA

E arly indications in 2008 are that sales of


wide-screen LCD display panels would start
outpacing square and CRT displays in PC
bundles. With display research and develop-
“Users take high technical specifications,
sharp images and rich colours for granted,
and are now looking for LCD screens that
will look good in their homes or add to the
monitors are more popular and which may
be phased out.
“The answers they are looking for can be
found in a mix of factors, namely the advance-
ment focusing on lower power consump- professional atmosphere in their offices,” ment of technology and manufacturing
tion, improved picture resolution, increased says Gumbo. processes, changing business environments
colour depth, smaller size screens and flexi- and new lifestyle demands,” he comments.
bility as well as lowering cost, resellers stand The route “People are moving to smaller form
to make good margins if they position An improved viewing experience, sleek design factors, namely from CRT monitors, which
themselves correctly to their customers. and drop in price have increased LCDs’ take up a lot of desktop space and use
Professional and home computer users appeal. Users are also being given ever more more power to LCDs that take up less desk
are increasingly swayed by factors such as choices as larger formats, including 19-, 22- space,” says Craig Butterworth, sales
aesthetics and connectivity options when and even 28-inch monitors are emerging. manager, NEC Display Solutions SA.
they’re shopping for LCD displays, thanks to This is according to Bruce Byrne, visual Brendon Land, country manager,
maturing technology. communications specialist, Drive Control ViewSonic SA also notes that CRT monitors
That’s according to Bongani Gumbo, Corporation. are being phased out and replaced by LCD
product manager for LCD displays at Acer To protect their investments and make solutions for a very simple reason, which is
SA. He says that large-screen monitors with more informed choices, he says that users that they are no longer profitable to make.
fast response times, bright screens and high want to know why these new formats are He says that the uptake of LCDs has
contrast ratios have become affordable, becoming available, which are more increased due to their obvious advantages
mainstream products. suitable for which applications, which and as the demand has > p48
MONITORS FEATURE
SOLUTION PROVIDERS

>> p46 increased, they have become making purchasing decisions,” he adds. emblazoned with LG’s slim logo. A press of
cheaper to produce. this button launches a special menu with
“We are seeing that LCD is going wide What’s new in display panels features that will appeal to serious gamers,
screen and DVI is the standard on most The LCD monitor space is evolving rapidly fans of online video and also caters for the
LCDs. There is also Premium Panel with significant developments in the market. visually impaired. Main functions include
Technology, with enhanced aesthetics and Shane Kennedy, national sales manager, IT 4:3 normal aspect ratio setting while using
companies can incorporate elements of division, LG, says that one of LG’s current the monitor in wide format allowing the
their corporate design into monitors. developments and introductions to the mar- picture not to be distorted using e-zooming
On the consumer products lines, there ket include the LG Flatiron W52, W42, series and photo effect.
are more connectivity ports, for example, with its “Fun” key that enables one-touch “It is widescreens, improved colour
RCA, USB, DVI with HDCP support, HDMI
with HDCP support,” says Andrew
“LCD monitors’ advantages include aesthetics, office space
Tsobanoglou, portfolio manager, profes-
sional products, Fujistu Siemens Computers. savings, ergonomics, and health benefits with less eye strain for
Gumbo points out that when users end-users.” – Bongani Gumbo, Acer.
choose LCDs, they look for screens that will
look good in their homes or add to the
professional atmosphere in their offices. access to many of its special functions. gamut and uniformity, different resolutions
“They’re also increasingly looking for “This user-friendly design is aimed at per screen size unfortunately often down to
monitors that feature connectivity options general application usage by both business lower resolution,” says Tyrone Young, sales
such as HDMI (used for high-definition con- and private consumers and is available in and marketing manger, Philips. I stand to
tent sources like gaming consoles and sizes ranging from 19-inch units all the way be corrected, but this doesn’t makes sense.
BluRay players) and DVI. Warranty support is up to 24 inches. “19W will replace the 4:3 monitors as
another factor that weighs in heavily when The series has a fun key front and centre, the staple product. Same goes for 22”W
which enables users to view two A4 pages
simultaneously, especially useful for banking
and finance,” Lee-Anne Hutchins, Prestigo?
portfolio manager, ASBIS comments.
Bongani Gumbo, Acer.

Benefits
LCD screens are becoming more estab-
lished, credible and trusted in the market.
Gumbo says that some of their benefits
include aesthetics, office space savings,
ergonomics, and health benefits with less
eye strain for end-users. Additionally, with
the rising electricity costs in SA, he believes
that companies are adopting LCD screens
because they consume less power than
their CRT counterparts.
“Not only do LCDs consume less power
than CRT screens, but they also run cooler,
which means that they put less strain on
power-guzzling air-conditioning systems,”
explains Gumbo.
Nevertheless, Gumbo explains > p50
MONITORS FEATURE
SOLUTION PROVIDERS

>> p48 that the growing popularity of


LCDs doesn’t mean that the CRT market is
dead. He says that many companies are still
opting for CRT screens because they have a
lower upfront purchase price.
Butterworth concurs with the statement,
he says that the uptake of LCDs has
improved, but due to the fact the CRTs were
the main monitor of choice for a long time
due to cost, they remain beneficial to a lot
of companies that are using them instead of
changing to the newer technology.
Werner Kuhn,
“The philosophy is more one of if it’s not Rectron
broken, don’t fix it,” he remarks.
Land says that another benefit is the
price where it plays a large role in emerging
markets where the current predominant
seller is CRT.
“While these markets will migrate to
LCDs, they will go with the cheapest solu-
tion, which is 15-inch. It will be based on
the swiftness of the CRT monitor being
made unavailable and a halt on production.
Once this happens there will be a drive to is used for. If a screen typically is purposely ics card,” LG who at LG? explains.
adopt 15- or 17-inch LCDs. Given the price designed as a monitor then it lacks some of According to him, studies have shown
erosion of technology and the pace at the TV specifications or features and vice that a second monitor greatly enhances
productivity and cuts down on printing.
“Usually adding a second monitor was
costly and a difficult procedure that
“CRT monitors are being phased out and replaced by LCD required installing a second graphics card in
solutions for a very simple reason, which is that they are no longer the computer.
The L206W can be connected using a
profitable to make.” – Brendon Land, ViewSonic SA.
simple USB cable and eliminates these
hassles, putting multiple monitors within
every computer user’s reach. If two screens
which this happens, sales of 17-inch LCD versa. What LG has done is added more of are not sufficient, users can connect up to
monitors as a CRT replacement is not unre- what you need on your desk. Instead of six monitors simultaneously. This multitalented
alistic,” he says. reaching down to reach an inconveniently monitor also includes DVI-D, and D-sub
situated USB port, the new USB L206WU connectivity options, making it compatible
Convergence LCD adds the ability to connect other USB with a wide range of computers and other
LG says that convergence still remains a devices to the monitor by putting a USB devices like DVD players and iPods. This
challenge or stumbling block for any manu- hub on you desk. connectivity makes it especially convenient
facturer of monitors and TVs. The addition of a second screen is also for use with laptop computers,” he explains.
“It’s a very fine line surrounded by a possible, in fact you can accommodate up Meanwhile, Butterworth believes
slippery slope that either lends the screen to six additional screens without having to that this is still an area that is not fully
towards one or the other as far as what it open up the computer for a second graph- understood by the channel, as > p52
MONITORS FEATURE
SOLUTION PROVIDERS

>> p50 sometimes the wrong solutions “Solution providers can compete effec- also, this is a great opportunity for them to
are sold into the wrong applications. tively by offering added value in terms of understand the needs of their customers so
“People are currently using LCD TVs systems integration and useful life support, that they are able to bundle in a way that will
instead of LCD monitors, plasmas where including upgrades,” says Hutchins enable them to make good profit.
LCDs should be used and vice versa,” Young believes that this still remains an “CRT is still available but with the lack of
he remarks. area of great frustration. support for CRT, the LCD market is seeing
“This is due to the amount of entry-level an increase,” she says.
Solution providers products being sold but for a small premi- Young points out that a method that will
In order for solution providers to compete um. There are fantastic value adds for buy- help resellers to make money for them-
in this space, Butterworth suggests that ing a step up model, this obviously improves selves effectively is through bundling.
they should focus more on the solution the margin opportunity even for resellers. “The only way to circumvent this is to
instead of the hardware that goes with the supply bundled PC offerings with a stand
solution. SoHo, SMEs and consumers alone brand monitor where there are
Werner Kuhn, peripheral business man- The SoHo, SME and consumer space has a options in the range, not just the standard
ager, Rectron, says that solution providers great influence in the buying patterns of offering that comes with the PC,” he says.
should also consider pricing factors. LCD monitors and display panels, according Gumbo agrees. “Resellers should look at
“Here we have to distinguish between to Young, there are big opportunities in bundling monitors with complementary
the different LCD panels that are available this space. products such as notebooks and desktops
on the market. First, we have the standard “The SoHO and home users don’t have to boost their profitability,” he comments.
PC monitor which is used on PCs and only the space for an old box monitor and these “Focus on solution sales instead of selling
has a VGA connector. Consumer display are typically the users who will upgrade the hardware,” Butterworth remarks.

Looking ahead
According to Kuhn, the future of monitors
“People are moving to smaller form factors, namely from CRT
especially looking forward to 2010 is the HDMI.
monitors, which take up a lot of desktop space and use more “The World Cup Soccer has opened a lot
power, to LCDs that take up less desk space.” – Craig of opportunities when it comes to the qual-
ity of the viewing. PDP’s which are HDMI
Butterworth, NEC.
ready or full HD are most asked for current-
ly, as well as the OLED, that has better pic-
ture quality and power saving,” she says.
panels are mostly used for entertainment their monitor on their own,” he says. “The future is one of new developments,
and are generally more expensive than an “I believe that all of them demand faster, and new technologies,” says Butterworth. He
equivalent size PC monitor. slimmer and nicely designed units,” says predicts that OLED is an up and coming tech-
The reason for this is that the consumer Hutchins. nology and that digital signage is starting to
panels generally have other multi-media con- Butterworth suggest that the only thing make its presence to be felt in the space.
nectors like RCA composite, S-VIDEO, HDMI, that solution providers can do is to follow the Byrne concludes. “It is inevitable that LCD
etc and there will be extra tax charged on market trends, the reason being that technol- screens will replace CRTs and businesses
these display panels since they have the abili- ogy changes timeously and they will be and consumers are well aware of this
ty to connect to a TV tuner. Due to this, forced to follow the market route when the trend. LCD technologies are sufficiently
solution providers will have a slight advan- older technology is no longer be available. advanced that users can make their
tage in terms of pricing,” says Kuhn. purchases with confidence.
“Fujitsu Siemens Computers’ business LCDs Reseller margins DCC has carefully selected its suppliers in
are manageable on corporate networks, for The demand for monitors is increasing, the the LCD monitor sector, notably ViewSonic,
example, you can remotely switch off the reason being that customers are beginning for the combination of quality, reliability
LCD, change resolutions, says Tsobanoglou. to realise what it can do for them. To resellers and cost efficiency their products deliver.”
LOCAL BRANDING FEATURE
SOLUTION PROVIDERS

Local Brands here to stay


Remaining a better choice in SA.

BY DUDU SHABA

A
few years ago, the question was whether
local brands would take off. Today, this is
no longer a subject for debate, chipmakers
AMD and Intel continue to support the
Multinationals putting on
pressure
Despite the ability to compete and the hard
work done by OEMs, Kobus de Beer,
local desktop PC, notebook and server mar- components platform lead, Axiz, says that
ket. With this, a new onslaught from local local brands have been forced to redefine
OEM assemblers such as Axiz, Pinnacle their value propositions as multinational
Micro, Mecer, Sahara Computers, Rectron, players continue to compete aggressively
Corex and Esquire, to mention a few, has for market share.
boosted the local brands market as most of
them have brought their own solutions to
market, accompanied by comprehensive
pre- and post-sales support. “Local brands remain competitive, particularly within the entry-
Francois Lottering, his titlePinnacle Micro, level notebook space, and there is more activity from a desktop
a manufacturer and distributor of Proline
point of view as well.” – Gary Naidoo, Sahara.
Computers, says that SA is an anomaly in
the world market when it comes to locally
branded systems.
He says that in this country t local brands
are able to compete with MNC brands.
“As a local OEM we accept the fact that
we have to work five times harder to sell
our products because of perceptions of
local brands, but when you look at the
numbers you will clearly see that Proline
Computers, is a genuine competitor to
MNC brands,” he remarks.
Gary Naidoo, deputy MD, Sahara agrees
that the local OEM assembler market is
under no more pressure than is usually
the case. “Local brands remain competitive,
particularly within the entry-level notebook
space, and there is also more activity from a
desktop point of view,” he says.
Looking at the current situation in SA,
Cheslynne Britz, GM, Rectron, believes that
local brands are definitely important.
“Not just from a competitive, but also
from an economical point of view. Local
brands mean that there is a lot of job cre-
ation and the option of different products is
also stimulating the local market. Local
assembly plants have all the expertise to
assemble, install and distribute the products
in SA. We are all proud of our country and
what we are able to do,” she says. Gary Naidoo, Sahara

CRN SOUTHERN AFRICA • APRIL 2008 • 53


LOCAL BRANDING FEATURE
SOLUTION PROVIDERS

“Despite this increased competition, local We create peace of mind for our cus-
brands have managed to retain ground by tomers by providing a solution that offers
providing value-added services, which our customers products with excellent after-
successfully differentiate them from multi- sales service, competitive pricing, which
nationals,” he says. gives them the opportunity to compete
against the multinational brands

“Local brands mean that there is a lot of job creation and the Advantages
Lottering states that Pinnacle has definite
option of different products is stimulating the local market. Local
competitive advantages that set it apart
assembly plants have all the expertise to assemble, install and from MNC brands. “We are able to react to
distribute the products in SA. We are all proud of our country and customer demands and market conditions
a lot faster than our MNC competitors.
what we are able to do.” – Cheslynne Britz, Rectron.
Because we are a local company we have
local decision making. Our customers are
aware of this and because we can offer
Neil Watson, MD, Digital Planet, a them speed and flexibility in their ICT infra-
reseller company in SA, says that it is find- structure, it allows them to be more flexible
ing that local brands are being put under as well,” he says.
pressure by international brands. Lottering states that another advantage
“The quality of the international brands is local knowledge. “It is hard for MNC
is making the local brands irrelevant as they manufacturers to understand local condi-
take market share due to their lower pricing tions. Because they are not living and
and marketing power,” he comments. working here it is difficult for them to
understand problems like infrastructure,
cultures and the diversity of our country.
As a local company we understand this,”
he says.
“We can offer customers value-added
benefits that not only save them time and
money, but help them to focus on what they
are supposed to do instead of getting
bogged down with things like software con-
figuration. Local assembly enables us to do
this for our customers on our line where the
machines are assembled,” he comments.
Lotterring goes on to say that service and
support is another factor.
“We have local knowledge and because
we do not outsource our service and sup-
port, we are always in direct control of our
customers and any problems they might
experience. We are able to react faster,
solve problems quicker and keep our cus-
tomers running for longer,” he says.
According to De Beer, one of the biggest
value adds from a local brand perspective is
the ability to be first to market with new
Intel technologies: “In our competitive land-
scape being first to market provides a
major competitive advantage for the chan-
nel and local brands are able to do this
quite successfully,” he says.
Cheslynne Britz, Rectron In addition, De Beer says that local

54 • CRN SOUTHERN AFRICA • APRIL 2008


LOCAL BRANDING FEATURE
SOLUTION PROVIDERS

brands are able to be more flexible when it of local branded PCs and notebooks,”
comes to meeting a customer’s exact says Britz.
requirements.
He says that local brands provide a differ- Awareness
ent level of service to the channel. According to Britz, awareness and visibility
“Axiz prides itself on the quality of its need to be created on the brand name
products and the warranties it offers. This before anything else can succeed.
not only meets the needs of our channel, “Print media, online and retail advertising
but ensures that we are easy to do business to name a few. The main challenge is to
with and able to meet customers’ require-
ments speedily. It is here, when the cus-
tomer needs an immediate response, where “We can offer customers value-added benefits that not only save
local brands can shine,” he says. them time and money, but help them to focus on what they are
Naidoo also mentions that the advan-
supposed to do instead of getting bogged down with things like
tages of local over international solutions is
that they are built to order and are posi- software configuration. Local assembly enables us to do this for our
tioned to better meet local demands, espe- customers on our line where the machines are assembled.” –
cially in terms of timing, logistics and sup-
Francois Lottering, Pinnacle Micro.
port. There is also existing knowledge about
the local environment that may be absent in
international offerings.
get the name known as a quality brand.
De Beer’s Top Five Tips for After that, mostly any component will have
Local Brands a chance of survival.
 Be first to market “Gigabyte was not known in SA, but
 Get creative with your marketing with a lot of advertising and creating
 Build your brand at a consumer level massive brand awareness, it has become
 Offer a compelling warranty one of the best known computer manufac-
 Be flexible and able to customise turers in SA. People trust and believe in the
solutions brand, whether it’s PSUs, chassis, VGA
cards, motherboards, notebooks, cell-
Windows Vista phones, the list goes on,” says Britz.
When asked if Windows Vista, Office 2007
and Windows Server 2008 will spur the Future
growth of locally branded desktop PCs, Watson says that international brands
notebooks and servers in the local channel, offer the technology and price points
Naidoo says it is not clear if this will have which mean that the niche of local brands
an impact. will disappear.
“In terms of the release of programs such “In the future, we’ll see almost exclusive
as Windows Vista, Office 2007 and internationally branded machines in the
Windows Server 2008, it remains to be seen market,” he predicts. Is this correct?
what impact they are likely to have on the “Local brands are here to stay. We are
market in general and whether they will, in able to compete with MNC products on
fact, escalate growth of locally assembled day-to-day and mission critical products.
solutions,” he comments. We can deliver in shorter lead times and
“While there have been compatibility provide better service. Doesn’t this
issues with some program releases, these make local brands the better choice?”
are being addressed and concerned users asks Lottering.
should experience peace of mind in the not De Beer says that local brands need to
too distant future,” he adds. develop viable value propositions if they are
“I can’t see how it will have an effect on to compete with multinationals successfully.
local branding,” Watson comments. “There is clearly room for local brands that
“We don’t feel that the operating system offer compelling service and first-rate
will have much of an effect on the growth products,” concludes De Beer. Neil Watson, Digital Planet

CRN SOUTHERN AFRICA • APRIL 2008 • 55


SECURITY FEATURE
SOLUTION PROVIDERS

New day, new security needs


As the world turns, so do corporate security needs.

BY KAUNDA CHAMA

A lthough virtualisation is now officially


mainstream, industry pundits are cautioning
against a rush to virtualise without consid-
ering the security implications of doing so.
Traditional security architectures and prod-
ucts are inadequate for this new topology.
The new ICT environments come with
different challenges and, of course,
potential solutions to address best practices
and secure virtualised environments within
hosted or enterprise data centres.
Neal Botje, Comztek’s Symantec business
development manager comments that
people are very vigilant when it comes to
security in the real world. Houses and
businesses are protected from intruders by
electric fences, high walls and sophisticated
alarm systems. Often no expense is
spared. So why not place the same
emphasis on your company’s most valuable
asset – information.
“Unfortunately, valuable corporate
information is quite often not protected, Nick Keene, Citrix

yet the principles are the same. It is crucial


“Web-based attacks are being targeted at Web servers and
that it is protected and always available.
forms, business and financial applications, e-commerce applications Apart from the physical threats to devices,
and blogs. Network-level security can no longer detect, let such as fire, theft, natural disasters and
general failures, there are virtual threats
alone prevent the majority of these attacks.”
such as malicious code, Trojans, viruses and
– Nick Keene, Citrix worms, the list is endless. Information will
be lost if you don’t have the correct
SECURITY FEATURE
SOLUTION PROVIDERS

protective measures in place,” he says. the copying of pages from well-known “It is up to us, as vendors, to prove the
Botje says when hacking became sites or financial institutions where one benefits to our clients and simultaneously
prevalent it was initially pranksters and enters their information. These sites address possible risks. A good data centre
youngsters merely making their mark. appear to be the original sites but are a and virtualisation strategy must be able to
Unfortunately, the face of these attacks has front and the information one enters lands identify the aforementioned. Once it is
changed dramatically; they have now up in the hands of cyber criminals, who use identified it can be managed and when
become focused and are run in much the it to gain access to personal information managed you can provide a secure infra-
same way as business organisations and and even finances. structure and the required business ser-
are they are far more effective, organised Lewis Taljaard, business unit sales vices,” he explains.
and pose a far greater threat to companies specialist at Novell comments that on the The trend towards virtualised processes
than before. issue of information security in organisa- and storage will indeed increase the attack
“Nowadays, it’s all about the financial tions, banks have seen the benefits of surface within the data centre.
rewards, and with this industry becoming sharing some of their resources and Recognising this, Novell is working with
one of the world’s biggest illegal money processes such as cheque processing and the Distributed Management Task Force
spinners, the rewards are evident and
therefore threats are on the increase,”
he comments. “Basic prevention also protects against identity theft. Users should
take security measures to protect their computers against viruses,
Security in organisations
spyware and keyloggers by using updated security software.” –
According to Botje, the bottom line is that
organisations are responsible for their own Benjamin Verduijin, BullGuard
security. The Internet and cyberspace are
not policed, and we do not have the
resources locally to bring cyber criminals to clearing centres. Some telcos have shared (DMTF) on a standard virtual machine file
book. The only solution is for organisations infrastructures in the form of data lines format – called the Open Virtual Machine
to be more vigilant and proactive in and signal towers. South African mobile (OVF) file format. This carries both a
securing their information from criminals operators had to follow the Mobile declaration of service level requirements
by implementing the best technologies Number Portability (MNP) routing standards for the embedded virtual machine, and
available. to interconnect. certificates necessary to certify the
When it comes to cyber threats, there Businesses are well aware of shared validity of the virtual machine prior to
seems to be a move toward total security. services models, their benefits and the coordinated deployment.
This means not only antivirus is being associated risks. Shared services are made Because the Internet seems to be one of
deployed but advanced technologies easier when technology such as virtualisa- the primary sources of threats, Nigel
such as intrusion prevention, network tion is used correctly as an enabler. Hawthorn VP EMEA marketing at Blue
access control, anti-spam and advanced Mainframes were the pioneers of shared Coat Systems comments that the big issue
backup programmes. As IT becomes more services a few decades ago and during the is that years ago the Internet was “black
diverse and complex, cyber security needs past decade these shared services have been and white”: there was the good and bad
to evolve to stay ahead of current and introduced to distributed environments and the dos and don’ts, but that has
future security threats. through virtualisation. As with business changed creating a lot of grey areas.
Meanwhile, threats like ‘emulation’ are shared services, IT shared services introduce “Today, there are so many shades of grey
becoming prevalent. Emulation refers to their own benefits and associated risks. that the answer to what is good or bad for
SECURITY FEATURE
SOLUTION PROVIDERS

a corporate would mostly be ‘it depends’,” networks and they are equally unaware of American Express and other members
he comments. the threats, this is where a system integrator enforce the Payment Card Industry Data
This, Hawthorn says, creates an can go into a company and install a piece Security Standard (PCI-DSS). The PCI-DSS is
opportunity for resellers and system of security hardware for a week on a trial applicable to all companies accepting card
integrators to specialise and become basis and produce a report. This will go a transactions and they are categorised
consultants to end-user organisations. long way in enlightening companies about depending on the number of card transac-
These companies can as well as handle what they need to do,” he explains. tions over a 12-month period.
implementations of systems also play an He stresses that channel players should This shows us that businesses across the
advisory role when it comes to setting up be able to ask open questions as part of globe are now protecting themselves and
security policies and implementing them. being advisers in policy formulation. the private information they manage. Not
Many local organisations are still coming He also agrees that the nature of threats only internal identities and transactions
to terms with the dynamics that have been has evolved and that previously attacks need to be managed and audited, but
brought on by Web2.0 applications such as where all about infecting as many clients as corporates are also being held responsible
Facebook and YouTube and the security possible with a virus, but now the attacks for securing client and third-party identity
threats that come with allowing their are targeted and are more about financial and private information.
employee to use applications such as gain or stealing sensitive information. Many organisations in South Africa have
Instant Messenger and Skype or other With targeted threats being so prevalent embarked on identity management projects
peer-to-peer services. and dangerous, he comments that it is a and many more are planning to or are at
least investigating it. Along with various
other IT risk and operational issues,
organisations continuously need to moni-
“Unfortunately, valuable corporate information is quite often tor, collect, audit and report on security
information and events.
not protected, yet the principles are the same. It is crucial that it is
Taking on the above two projects in two
protected and always available.” – Neal Botje, Comztek different silos causes duplicated efforts and
puts undue pressure on IT staff.
Nick Keene, country manager of Citrix
Benjamin Verduijin technology consul- fact that the human being is still the Southern Africa comments that the finan-
tant at BullGuard advises people to limit the weakest link in the security chain and this is cial incentive for breaching security and
amount of personal information they make evident through the fact that social attacks stealing identities has motivated hackers
available online. For example, avoid putting are still very effective. and information criminals to create a new
full date of birth on these sites as well as threat environment.
the names of children or pets as these are Identity theft on the rise According to him these new, Web-based
often used as passwords. According to recent statistics, between attacks are being targeted at Web servers
Basic prevention also protects against 2005 and 2007 over 167.7 million records and forms, business and financial
identity theft. Users should take security containing sensitive personal information applications, e-commerce applications and
measures to protect their computers were exposed due to security breaches. blogs. Network-level security can no longer
against viruses, spyware and keyloggers by During the past two years we have seen detect, let alone prevent the majority of
using updated security software. some big corporates and institutions these attacks.
“There are a lot of senior managers that locking down on identity theft. For Keene explains that protection from a
do not know what is going on in their example; the likes of Visa, MasterCard, Web application attack requires a firewall
SECURITY FEATURE
SOLUTION PROVIDERS

to understand application language as well needs careful consideration. According to Instead of being a concrete barrier to
as the basic constructs of hypertext markup him, data security has many facets: entry, firewalls are now seen as more of a
language (html), which is not offered by compliance regulations, data protection, wall of defence, but with openings for
many of the entry-level products available anti-virus controls, disaster recovery and access. He, however, warns that with new
on the market. business continuity. access comes new risks. The corporate net-
He says that despite their popularity, Web Executives know that it is technically fea- work is more vulnerable to attack through
applications are inherently insecure and sible to view sensitive data, wherever they open ports and the careless use of mobile
easily compromised. Statistically, the two are, even on a PDA. The fact that it can be devices by employees. The challenge
most common forms of Web application complicated to maintain data security in remains: how to enable access to sensitive
attacks are Structured Query Language these circumstances is not their problem. information from both inside and outside
(SQL) injection and Cross-site scripting They can rightly demand a solution. the firewall without sacrificing security.
“Now that almost everyone is becoming
a road warrior, fast growing threats to the
company’s sensitive information are also
Huge amounts of spam and malware can easily overwhelm the
growing and this is demanding better
networks of small and mid-size businesses and, in some cases, even security policies and solutions. The only
small countries. positive here is that security on mobile
devices seems to be better than that on
notebooks,” comments Hawthorn.
(XSS). SQL injections send commands to a Technology has to be a business enabler, Organisations that integrate their security
Web application that when passed to data- not something that prevents people from strategy with their access strategy are likely
bases, executes and allows the hacker to doing their jobs as effectively as possible. to achieve better security, improved usability,
gain access to sensitive information. Mayers believes that this has had a pro- easier administration and greater trans-
According to Keene, organisations wanti- found impact on the way organisations parency to satisfy auditing requirements.
ng to ensure the integrity of their Web view information security. Some schools of thought have preached
applications should observe the following The mainframe provided good security encryption as a solution to vulnerabilities of
key security requirements. but kept information behind company sensitive information, but Hawthorn says
Companies should protect both users walls. With the client-server model, firms that encryption is not essentially a total
and application infrastructure, guard gave more processing power to the end- solution because it can also be used by
against zero-day stacks or breaches that user, but then gave priority to keeping out malicious employees to get sensitive infor-
exploit vulnerabilities in custom application external threats and attacks. It is not surpris- mation past their network administrators.
code, prevent sensitive data from slipping ing that the traditional image of an impreg- Webroot, one of the leading providers of
through by inspecting outbound traffic nable castle where outsiders were not wel- security solutions for the consumer, enter-
and not blocking traffic that doesn’t come has persisted. prise and SME markets, recently released its
pose a threat. With the advent of Web services and latest research report, “State of Internet
These four key guidelines will assist XML, businesses have begun to realise the Security: Protecting Business Email”. The
organisations to better protect their Web benefits of delivering information to mobile report reveals the significant impact that
applications from attacks or misuse. employees, partners and customers. As rapidly growing email security threats, in
Chris Mayers, principal security architect information has become a market differen- size and volume, are having on businesses
at Citrix Southern Africa says wherever tiator and enabler, organisations have come worldwide and underscores the need for a
there is access to information, data security under greater pressure to share data. multi-layered approach to Internet security.
SECURITY FEATURE
SOLUTION PROVIDERS

“The battle against spam is an ongoing


struggle for many organisations with spam- Key findings at a glance
mers continuing to present a serious and
costly threat to most businesses. In 2008, Email is business critical
we estimate there will be over 42 000 According to IDC, over 6.62 trillion business emails will be exchanged in 2008.
spam emails for every single business email Three-fourths of Webroot survey respondents rely on email for communicating
account or about 116 per day. And, with customers and providing customer support.
because spammers are working at beating
conventional filters with images and Risks to and from email are prevalent
attachments, the size of spam has grown More than half of those surveyed experienced spyware and virus attacks via email
60 per cent since 2004,” says Mike Irwin, and over 40 per cent experienced a phishing attack.
COO, Webroot. “The size and volume of About one out of five organisations reported that sensitive online transactions
these spam attacks is largely due to the were threatened and confidential information was compromised as a result of
partial success of current filtering defences spam.
that now make spamming success a Over 60 per cent of respondents had at least one email outage in 2007.
numbers game. It’s clear why first-genera- One out of three survey respondents said that the hourly cost of an email outage
tion defences such as appliances and server- is over $1 000.
based software are struggling to keep up.”
Along with the rapid growth in spam, Employee behaviour increases email security risks
there is a similarly rapid growth in malware.  Individual email users open messages before realising they are spam, open mes-
Industry research shows that malware sages in junk folders and even make purchases from emails marked as spam.
jumped from about 50 000 variants in  The 2007 eCrime Watch report found that employees were second only to hack-
2004 to 5.5 million in 2007. Webroot ers as groups that pose the greatest cyber security threat to organisations.
research found that spam has become a  One out of three organisations reported employee misuse of email resources.
significant vector of attack for deploying  Few companies have protective policies in place
these new malware variants. But, while  Less than a third of organisations surveyed have key employee email security
companies are seeing increased malware policies in place.
threats to their email, they are still using it  Less than half of companies with more than 100 computers have policies in
to gather and exchange vital customer and place to restrict employees’ personal email use.
employee information such as credit card
numbers and other confidential financial
data. About one out of five businesses that than half of the respondents said that they scale to exceed the demand.”
responded to the survey experienced a suffered spyware and virus attacks via In the “State of Internet Security:
threat to sensitive or confidential online email,” added Irwin. “Because existing Protecting Business Email” report, Webroot
information last year underscoring the defences are being overrun, large numbers studied email-related threats and the latest
growing need for securing and storing of companies are increasingly losing methods to protect business email.
business email. important data. Spam is growing in Webroot surveyed approximately 1 500
“Huge amounts of spam and malware relation to the importance of email as a email security product decision-makers in
can easily overwhelm the networks of small business communications tool. As a result, companies across seven countries:
and mid-size businesses and, in some cases, companies and organisations need Australia, Canada, France Germany, Japan,
even small countries. In our survey, more defences that can quickly and easily the United Kingdom and the United States.
Reviews by: Kaunda Chama Highly Recommended

Vosonic multimedia viewer HP Photo Smart A441


Extremely handy A smart idea

What more does a person who likes large amounts of multimedia on the
move need than Vosonic’s Multimedia Viewer with 100GB HDD and
7-inch Digital Picture Frame with 128MB on-board memory?
This is, in effect, a high-capacity portable multimedia player that stores
videos, photos, music, ebooks and texts. It comes with a built-in internal
rechargeable battery
with four hours’ video or
seven hours’ music
playback and a protec- After having reviewed a higher-end HP Photo Smart printer (the
tive case. Photosmart A717), CRN found the Photo Smart A441 to be truly
It is perfect for storing entry level and pretty basic.
and viewing photos, Although you do not get lab-quality photos, the prints are com-
music, videos and texts paratively reasonable and the fact that the unit runs on batteries
directly from a digital makes it a good portable system.
camera, memory card or The camera takes 5 MP photos and is an easy point-and-shoot
a USB key via the OTG device, and once finished all you need to do is pop it into the dock
port to the internal 2.5” on top of the printer and press the print button.
hard disk. However, the printer is so basic that to view the photos you have
The extra clear, 3.5- to depend only on the camera’s 3.8cm display and, worse still, you
inch high-resolution can’t do any photo editing on the printer itself, you have to depend
colour display is perfect on the few functions available on the camera.
for viewing photos and videos, and supports all standard video formats in full Although printing 10 x 15 cm photos almost anywhere is a won-
DVD resolution. It also supports video and audio recording, and plays back in derful thing, especially if they are in full colour, the fact that the
DivX, Microsoft WMA, WMV and MP3 formats. prints are not the best you can get puts a damper on the total expe-
The device is also quite groundbreaking because it has the capability to rience.
record directly from TV in high-quality MPEG-4 format up to 640x480 at 30 Essentially, for an entry-level machine, it is quite a bargain because
frames per second. It also does basics like record voice like a Dictaphone. the almost lab-quality photos can be handled straight from the print-
This is a very impressive multimedia device and has a lot of impressive fea- er without smudging with HP Advanced Photo Paper.
tures for its size and is USB 2.0compatible to access files on a computer. Also, your photos will last without fading for “generations”.

Microsoft ergonomic keyboard, mouse


Pleasure with comfort
Yet again Microsoft scores top marks for its ergonomic designs with its Natural Ergonomic
Desktop 7000 both on design and functionality.
The design of the both the keyboard and mouse support a more natural hand placement,
which reduces impact on the wrist and makes forearm posture more natural.
Essentially, the product achieves the aim of all ergonomic devices, which is to make your
time on the computer more comfortable and productive.
It also uses 2.4 GHz wireless technology which connects to a desktop or notebook through a USB mini-transceiver and has a wireless range of up
to 30 feet.
The accompanying mouse works pretty much on the same principles and also has a great design, and is finished off with soft-touch materials. Its
ergonomic design allows it to fit into your hand like it is meant to be there.
On top of that, it also naturally uses Microsoft’s High Definition Laser technology making it more precise and responsive, and gives it much
smoother tracking.
It comes with five customisable buttons that can be programmed to perform some frequently used functions.
There are also quite a few improvements on the number pad from previous models in that commonly used symbols such as the equal sign, left
and right parentheses, and backspace are located just above the number pad.
In addition, there are a number of hot keys that allow you, with just a touch of a button, to access the Internet and read e-mail.
Lastly, the “My Favorites” hot key allows you to access the folders, files and Web pages you use most with just a single touch of the “My
Favorites” key.

CRN SOUTHERN AFRICA • APRIL 2008 • 63


PARTING: SHOTS

DILBERT www.dilbert.com by Scott Adams

S n a pshot
Company: Ingram Micro SA
Position: Microsoft Product Manager
Age: 35
Best personal achivement: Quitting smoking
Most admired company: Virgin
Most admired executives: Richard Branson Nicola
Best IT product: Google Homewood
Most pressing local business issues: Volatile
exchange rate and the ever-decreasing margins
in distribution.
Key to success: Ambition and perseverance.
Favourite car: Mini Cooper
Your car: VW Polo
Favourite author: Philipa Greggory
Where do you live: Morningside, Johannesburg
Birthplace: Cape Town
Hobbies/sports: Cooking, Reading and shopping
Favourite periodical: I’m embarrassed to say it but
Heat magazine!
Pet hates: Dishonesty, people who cannot admit
when they are wrong and people who tap their
feet in meetings.

64 • CRN SOUTHERN AFRICA • APRIL 2008

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