June 2008

www.crn.co.za

Inside This Issue

HP NAP creates secure
infrastructure p16>>
IBM SA launches innovation A look at the glitch in
centre p33>>
The rise and fall of
the distribution matrix
ChannelWare p36>> p8>>
 PUBLISHER’S: NOTE

Is mobile Internet taking

off in SA?
I
s mobile Internet taking off in SA or is Telkom still holding the country back from deploying the latest
wireless technologies and infrastructure that will revolutionise what industry pundits have dubbed the
“mobile Internet” era?
As the world’s telecommunications groups, including Vodafone, Verizon Wireless, AT&T and China Mobile,
ready themselves to deploy 4G wireless broadband services over the next four to five years, consumers in SA
are concerned that Telkom’s continued monopoly and dominance is holding the country to ransom as wire-
less broadband services and access are still way beyond the reach of the average household.
While cellular service providers, such as MTN, Vodacom and Cell C, have made inroads and continue to do
so with their own offerings of broadband wireless services and access, it is Telkom that holds the key to
unlocking the mobile Internet market in SA.
For starters, if mobile broadband services were to be made available at relatively affordable prices, the PC
population, particularly the mobile PC and handheld IT devices market, would boom. This is not the case in
SA as the costs of fixed DSL and ADSL services are still high and beyond the reach of many households that
would like to have Internet connectivity.
In fact, SA and certainly many other countries on the African continent have the opportunity to leapfrog
to the new wireless technologies that provide the springboard for the mobile Internet era. Technologies that
are leading the race in 4G wireless broadband services include WiMax, the 4G standard backed by Intel,
Motorola, Samsung, Long Term Evolution (LTE) and Third Generation Partnership Project (3GPP).
SA needs to invest in wireless infrastructure for it to be on par with other developed countries that have not
only deployed the latest wireless technologies but even offer consumers WiFi-enabled hotspots in public places.
With the potential that digital entertainment and mobility hold in SA, unlocking fixed broadband services and access would not only allow for
steady PC population growth, but also open up the Internet market.
WiMax seems to be leading the race, with real products coming onto the market. So what does this mean for businesses, mobile professionals
and consumers? As telecommunications carriers discovered when they began to deploy 3G networks, most users didn’t care about the underlying
technology. Instead, most were interested in and wanted to know about what applications and services the technology enables?
Is this going to be the case with 4G? Although it is still early days, no one is really sure what killer applications will be enabled on 4G networks
that are going to be commercially deployed in SA.
According to a recent report on mobile Internet reported in the Financial Times, there appears to be general consensus that business users will
continue to demand ever-faster mobile broadband access.
This clearly indicates that there is willingness on the part of most South African businesses to embrace and deploy mobile broadband
technologies if they can be packaged and priced affordably.
Among the main reasons why it makes sense for businesses and mobile executives to deploy mobile enterprise applications is the spinoffs
from increased employee productivity and availability as a result of being able to access information anytime and anywhere, and from any
Internet-enabled handheld device.
I would like to hear from you about how the mobile Internet is creating business opportunities for your solution provider business. I can be
reached at mandab@systems.co.za
Enjoy the read.

Manda Banda – publisher

 Contents
News & Analysis

4 – What’s News

4 – Comings & Goings

6 – Dmoves

8 – Cover Story: The glitch in the SA distribution matrix. By Kaunda Chama

09
12 – Cisco plans to capitalise on the mobile market. By Dudu Shaba
CRN Contacts:
16 – HP extends identity manager product range. By Dudu Shaba
Publisher:
Manda Banda
18 – Lexmark launches new Channel Value Programme. By Dudu Shaba
mandab@systems.co.za

19 – Demand Generator: Itec monitors FNB’s printing solutions.

Online editor:
By Dominic Khuzwayo
Kaunda Chama
kaundac@systems.co.za 20 – HiFive: Novell introduces Open Workgroup Suite. By Dominic Khuzwayo
12
Journalist: 22 – Mweb Business launches software as a service for
Portia Shaba SMEs. By Kaunda Chama
portias@systems.co.za
24 – Intel vendor sees light on the “dark continent”.
By Kaunda Chama
Intern:
Dominic Khuzwayo
36 – The rise and fall of ChannelWare: MB Technologies
dominick@systems.co.za
redeploys subsidiary after slow growth. By Kaunda Chama

Brand executive: Features

Hellen Murahwa 19
hellenm@systems.co.za 26 – Handhelds: The speed of collecting data and bringing it to a
central point is the key advantage of handheld computers, which has
Sub-editor: become a critical distinguishing factor in the competitive enterprise
Jenny Bastomsky environment. By Dudu Shaba
jennybee@telkomsa.net.co.za
29 – Desktop PCs: The South African desktop market can expect to see
Designer: modest growth in 2008, as notebook sales continue to eat into the tradition-
al desktop market. By Dudu Shaba
Spencer van Graan
spencerg@systems.co.za
33 – IBM SA has unveiled the new Africa Innovation
Centre in SA an initiative that will contribute towards IT skills
27
Database and subscriptions:
development in SA and the rest of the sub-Saharan Africa region.
Daisy Mulenga
By Dudu Shaba
daisym@systems.co.za

Products & Technology

copyright notice
CRN Southern Africa is published monthly by
Systems Publishers (Pty) Ltd. The copyright of all
material in this publication is reserved by the proprietors,
38 – Product Reviews. By Kaunda Chama
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.
39
CRN Southern Africa is a licensee of CMP Media LLC.
40 – SnapShot: Sasha Davidson,
Private Bag X12, Rivonia, 2128
Tel: (011) 234 7008 Axis Communications Scans in this publication have been reproduced
Fax: (011) 234 7025
Registered with the Audit 40 – Dilbert. on the EPSON PERFECTiON 2450 photo
Bureau of Circulation

2 • CRN SOUTHERN AFRICA • JUNE 2008

WHAT’S NEWS
Acer releases SMB video projectors
Acer SA has announced that it is bringing a new professional range
of projectors to market to give SoHo and small-to-medium-sized
businesses access to its DLP technology. Bongani Gumbo, product
manager for LCDs and projectors, Acer SA says the range includes
three new projectors, the Acer P5260i, P7270i and P7280. “All three
projectors feature Acer’s empowering technology, making them
easy and convenient to use. Each model also offers support for a
range of digital content sources, making them versatile enough to
cater for a host of office applications from presentations to high-
definition video,” he says.
HP introduces extreme online storage
HP has announced a highly scalable storage system designed to sim-
plify the management of multiple petabytes of data. Yesh
Surjoodeen, business development manager, StorageWorks Division
says new business services offered by Web 2.0 and digital media
firms generate massive amounts of file-based data that needs to be
stored, managed and retrieved instantly. He says that large enterpris-
es in sectors such as oil and gas, security and surveillance, and
genetic research have similar demands. Surjoodeen says the HP
StorageWorks 9100 Extreme Data Storage System (ExDS9100)
addresses these requirements by offering vast storage capacity and
simplified, integrated management.
D-LINK expands green Ethernet
D-Link has announced the expansion of its industry-first Green
Ethernet technology series. The company has added eco-friendly
features to its Gigabit Web Smart series of multi-port network
switches to decrease energy costs by reducing power consumption.
According to Tobie van Schalkwyk, D-Link SA, country manager, D-
Link Green Ethernet technology integrates innovative power-saving
features that automatically detect links and adjusts power accord-
ingly. Van Schalkwyk says the switches feature a fanless design
(DGS-1216T and DGS-1224T) that provides a quieter environment
and less heat dissipation.
Lexmark launches professional inkjet
Lexmark SA has launched its professional series inkjet that comes
with a five-year guarantee. Paul Rooke, Lexmark executive VP and
president consumer printer division says the launch of the new
series is in response to the needs of SOHO) users and small and
medium businesses. The professional series will be the first inkjet all-
in-one line to include a five-year guarantee and high-yield car-
tridges. “Our new professional series delivers productivity tools such
as wireless, integrated two-sided printing and higher capacity paper
handling,” adds Rooke.
Axis, Bosch, Sony join force
Axis, Bosch and Sony announced a joint force in the creation of an
open forum aimed at developing a standard for the interface of net-
work video products. “We are pleased to announce this cooperation
4 • CRN SOUTHERN AFRICA • JUNE 2008
&
COMINGS
Coetzee to head up Africa
McAfee Inc has appointed Trevor Coetzee
channel manager for Africa. Coetzee joins
McAfee from the network security channel,
where he has spent six years in a number of
commercial roles. “Trevor has worked with
some of the major security vendors and dis-
Trevor Coetzee tributors in the South African and African mar-
kets and has gained extensive experience in business develop- G
ment and the activation of security strategies at end-user
level,” says Chris van Niekerk, regional director, McAfee SA. O
Telemasters appoints new director
Tele-management and business communication strategies
I
company, TeleMasters, has appointed Jaco Voight indepen-
dent non-executive director. Voight, founder of PerfectWorx N
Consulting, holds a Bachelor of Social Science degree from
the University of the Orange Free State. “He has exactly the
sort of skills and industry experience that will help TeleMasters
G
to further its positive growth trajectory and presence in the
market,” says Mario Pretorius, TeleMasters CEO. “This is the S
sort of skills mix that will add real value to TeleMasters,”
concludes Pretorius.
between our companies,” says Ray Mauritsson, president of Axis
Communications. The aim is to facilitate the integration of various
brands of network video equipment and to help manufacturers; soft-
ware developers and independent software vendors ensure product
interoperability. “An open standard will make it even easier for integra-
tors and end-users to benefit from the many possibilities offered by IP-
based video surveillance technology,” concludes Mauritsson.
CA, announces recovery software
The CA division at Workgroup has announced the availability of the
latest release of CA Recovery Management. It is a solution designed to
enable companies to simplify management, tighten security and
recover of critical business information speedily. John Thompson, CA
product manager at Workgroup says CA Recovery Management
includes new releases of CA ARCserve Backup, CA XOsoft High
Availability and CA XOsoft Replication. “Our customers require
recovery management solutions that solve their most pressing
problems and are easy to deploy, use and maintain. CA has, with
this release, enabled Workgroup to address these needs head on,”
adds Thompson.
WHAT’S NEWS
Progress boosts SOA management
Progress Software has announced the availability of Sonic ESB 7.6. Rick
Parry, MD Progress Software SA says this release offers greater produc-
tivity for developers and for managing a service-oriented architecture
(SOA) infrastructure across heterogeneous environments. He explains
that Sonic ESB offers enterprises a powerful alternative to centralised
and monolithic middleware stacks by providing them with the ability
to integrate new and existing business services across their organisa-
tional boundaries as well as connect to remote sites with low latency,
high reliability and continuous availability.
ATIO aims at workforce optimisation
ATIO, a specialised ICT service provider, has bolstered its resources,
skills and product offering in a bid to aggressively target the workforce
optimisation market sector. Scott Forrester, ATIO’s business unit execu-
tive says workforce optimisation has the pontential to deliver increased
customer and call centre agent satisfaction as well as higher revenues
and reduced costs. “ATIO has identified a market demand for work-
force optimisation solutions rather than fundamental product shift-
ing,” adds Forrester. According to him, workforce optimisation will
improve performance and quality metrics which lead to cost savings.
Avaya scores for mobile
Avaya, a global player in communication systems, applications and ser-
vices has released Modular Messaging 4.0, which comes with Avaya
one-X speech interface. This provides users with hands-free access to
calling and conferencing capabilities, voice, email and fax messaging
from any telephone. “Our goal is to ensure cost-effective solutions
where companies and employees benefit from improved collaboration,
responsiveness and simplified access to the wide range of communica-
tions media used today,” says Mary Dunlop, VP unified communica-
tion product management at Avaya.
Novell, Microsoft hold hands
Novell has announced its partnership with Microsoft, which will see
the two companies developing advanced Linux management solu-
tions. This joint effort is aimed at maximising the value of customers’
IT infrastructure investments. “Customers are looking for solutions that
enable them to manage heterogeneous IT environments, and
Microsoft is pleased to extend its System Centre suite to offer manage-
ment of Linux distributions like SUSE Linux Enterprise,” says Brad
Anderson, general manager of the management and services division
at Microsoft.
EMC unveils new products
EMC, has unveiled two of its new documentum products. These prod-
ucts are designed to bring the power of eXtensible Markup Language
(XML) technology to a broader range of enterprise information. Rita
Knox, research vice president at Gartner says: “XML technologies and
solutions are quickly becoming the answer for companies hoping to
unlock the intelligence captured in all forms of information by
6 • CRN SOUTHERN AFRICA • JUNE 2008
identifying their meaning and relationships. Far too often, companies
cannot exploit their content, and are unable to break down the silos
between unstructured and structured information.”
Nokia Siemens Networks launches
partner programme
Nokia Siemens Networks has announced a broad channel partner
programme. The programme is part of its ongoing drive to extend its
reach to new customers and markets as well as its effectiveness in
bringing real solutions to them by 2015. “Today, the ability to develop
market segment-specific solutions that truly respond to customers’
business challenges depends heavily on collaboration with partners
who are experts in these segments,” says, Peter Kühne, Head of
indirect channel, Nokia Siemens Networks. “This is why we have
decided to set up a network of partners to complement our direct
sales force,” adds Kühne.
Acer unleashes new desktops
Acer SA has announced the availability of two new models in the
Acer Aspire range of desktops. The entry-level Aspire M1640 is an
affordable PC for home users who need a reliable desktop that offers
good multimedia performance. The Aspire M5640 is designed as a
high-performance entertainment PC for the digital home. The M5640
features an Intel Core 2 Quad processor as well as an integrated Nvidia
GeForce 7100 graphics card and nForce 630i chipset for superior
multimedia display quality.
ITEC expands abroad
ITEC Distribution has announced it will be opening an office in the UK.
The English operation will be headquartered in London and will be set
up by Jacques Duyver, ITEC Group’s CEO. “Expanding the local
business to the UK forms a key part of our global growth strategy,”
says Duyver. Philip Perkins, ITEC Group COO and Bruce Arnold, the
Group’s CFO will support Duyver in establishing the UK operations.
“We have also started building a South Africa-based call centre that
will serve as a help-desk for the group’s local and international
support requirements. Additional employment and training
opportunities will be created and we aim to retain much needed core
skills in SA,” adds Duyver.
3Com supports partners for growth
3Com recently launched a Partner Resource Centre (PRC). Tracy Lawler,
3Com SA distribution and channel manager says this is a powerful
tool that provides channel partners with visibility into their 3Com
business and allows more efficient management for businesses. Using
the PRC, Lawler says, partners can register opportunities, select
qualified leads from the 3Com lead pool, track revenues and view
earnings rebates, certifications and training. “More importantly,
partners can specialise in vertical markets like VoIP, enterprise LAN,
security, wireless, and the recently added small medium business
(SMB) sector at bronze, silver, gold and elite levels,” says Lawler.

SAS signs Quantec
SAS Institute SA, has signed Quantec Research, a consulting firm
specialising in financial and socio-economic database development
as one of its resellers. “Quantec has strong software development,
database, data warehouse and quantitative analytical skills,” says
Nathalie Ing, partner manager, SAS SA. “This, when combined with
an impressive client list and fantastic supplier relationships makes
them an ideal SAS reseller,” she says. “With SAS as a partner we
can offer the ultimate array of software solutions and applications
for the turnkey market,” says Claude van der Merwe, MD, Quantec.
Duxbury adds ProCurve to DuxBux
Duxbury Networking has added the HP ProCurve Networking range
of products to its “DuxBux” partner programme. Graham Duxbury,
CEO, Duxbury Networking, says the inclusion of HP ProCurve along-
side Netgear in the company’s partner programme places added
emphasis on dealer support and underlines the investments that are
central to the company’s successful ‘value-added’ philosophy. “It is
our intention to support and reward partners’ efforts by adding
substantial value to the HP ProCurve Networking and Netgear prod-
ucts they sell through Duxbury Networking,” he adds.
Core dumps TomTom
Core Peripherals SA has terminated its contract with TomTom, the
Dutch personal navigation company. “Since the inception of the
relationship at the end of 2006 TomTom has continuously failed to
honour its contractual obligations,” says RJ van Spaandonk, Core
Group’s director in charge of navigation business. He explains that
Core Group is disappointed that the relationship was not successful
since it still believes that TomTom offers the world’s best personal
navigation products and services. According to Van Spaandonk, the
company had no choice but to terminate the relationship due to
TomTom’s inability to supply a competitive product range and sup-
port it with appropriate marketing activities in southern Africa.
Ingram Micro to move Asus kit
Ingram Micro has been appointed distributor of Asus components
throughout SA and the sub-Saharan region. Tyrone Gruner, Asus
product manager, Ingram Micro SA says, “We can now supply all
ANALYSIS: DISTRIBUTION MOVES
SOLUTION PROVIDERS
the components needed for manufacture to our resellers. This has
made Ingram Micro a true one-stop shop for computer
components.” Even though Ingram Micro South Africa has access
to the full range of Asus products, Gruner points out that it has a
very specific go-to market strategy.
Lexmark appoints Smart Box Support
Services
Lexmark International has appointed Smart Box Support Services to
manage its after-sales support. Branislav Zivkovic, MD, Lexmark SA,
says Smart Box Support Services was awarded a long-term partner-
ship contract after being invited to quote for the business with the
objective of standardising Lexmark South Africa’s service delivery
standards to its global model. “We required a partner who shares
our passion for excellent and consistent service delivery. We con-
gratulate Smart Box Support Services, and look forward to building
a successful partnership with them,” he adds.
Obsidian Partners with EnterpriseDB
Obsidian, a South African open source company, has partnered
with EnterpriseDB, one of the world’s leading providers of enter-
prise-class products and services. The partnership will allow
Obsidian to offer professional services and training related to
EnterpriseDB’s Postgres Plus and Postgres Plus Advanced Server
products. Muggie van Staden, MD, Obsidian says: “Obsidian is
proud to be offering implementation and training services as an
official partner of EnterpriseDB in SA.”
ATIO acquires Symetrix
ATIO, a specialised ICT services provider, has acquired Microsoft gold
partner Symetrix. Symetrix will be renamed ATIO IT-Services division
and operate autonomously with its own sales and management
teams. The deal sees all Symetrix staff moving to ATIO’s offices in
Johannesburg and Cape Town over the next few months. Chris Van
der Sande, CEO, ATIO says, the deal helps achieve the mandate to
grow ATIO into a position where the company has several diversi-
fied business units, each offering their own, distinct niche services.
“We are excited about the opportunity this transaction gives us to
create a sustainable earnings stream and the ability to sell our
services across clients,” concludes Van der Sande.
CRN SOUTHERN AFRICA • JUNE 2008 • 7
COVER STORY: DISTRIBUTION
SOLUTION PROVIDERS
There is glitch in the
distribution matrix
The state of the sector could be a cause for concern.
BY KAUNDA CHAMA
T he current state of the distribution space in
SA seems to be quite a cause for concern
for a number of players in the sector as cer-
tain elements in the entire ICT sector could
be hindering its development and growth.
“I must agree that as a broad based distributor, Rectron loses
skills to the large system integrators because the IT space as a
whole is facing a major skills shortage issue and the remuneration
structure has been skewed for a while.” – Mark Lu, Rectron
Generally speaking, there is some unfair
competition between the distributor-level
companies and the large system integrators.
Essentially, the structure and models on
which the local channel is based is a good
and very effective one, and many would
agree that the issue is more about how the
channel can be made to run more effective-
ly rather than changing it.
The channel clearly has a discrepancy
because the top system integrators such as
BCX, Dimension Data, Gijima AST and
Datacetrix continue to thrive and grow, but
there are no small or, better yet, medium-
sized system integrators growing and the
channel needs to be aware of this.
The channel, and distribution space in
particular, is slowly becoming a training
ground that is losing skilled personnel at a
worrying pace.
The skills are being gobbled up by the
big system integrators and smaller system
Mark Lu, Rectron integrators, and distributors are left
8 • CRN SOUTHERN AFRICA • JUNE 2008
wanting. This has created a need for the
distributor community to create a bank of
skills, and stop the practice of poaching
and recycling skills among themselves.
Rectron CEO Mark Lu comments that the
creation of a skills bank in the distribution
space is a novel one, but with the current
economic climate in the country, it will
remain a novel idea for a while still.
“I must agree that as a broad-based dis-
tributor, Rectron loses skills to the large sys-
tem integrators because the IT space as a
whole is facing a major skills shortage and
the remuneration structure has been
skewed for a while,” he comments.
Although Rectron plays in a different
space to the likes of Westcon, a company
that has been hit hard by skills poaching by
the large system integrators, Lu says he can
relate to the company’s issues because the
situation affects the channel as a whole.
He says job hopping in the distribution
space has slowed down considerably in
recent years as companies have backed out
of the salary or price war that gripped the
sector in the early to mid 2000s.
In addition, South African distributors
need to embrace a culture of co-operating
 COVER STORY: DISTRIBUTION
SOLUTION PROVIDERS

on certain deals where they feel they do not

have adequate skills to handle the entire
project. Although this seems like a long
shot it has proven successful in the US both
in the distributor and reseller space.
Meanwhile, Jacques Malherbe, Westcon
SA’s CEO, says that he is quite worried
about the state the distribution business in
general will be in within the next 18
months because of the slowdown in busi-
ness and the current state of the market.
“Distribution is a scale and scope game
and a company needs to have volume
through the products and solutions it
offers, I feel that for a distribution company
to survive it has to diversify its offerings. You
can’t survive as a niche distributor,” he says.
He strongly believes the companies that
will survive will be the broad liners because
they have lowered their risk through having
a broad product portfolio.
“Everyone in SA has come to a point
where they feel the boom is over; the dis-
tributors with a wide range of products will
continue bringing in reasonable income,
but the niche players will need to go deeper
and create other revenue streams through
support, services and consulting because a
plain niche distribution model is no longer
Jacques Malherbe, Westcon
sustainable,” explains Malherbe.
On the technology side, he comments
that the advent of convergence and unified “Everyone in South Africa has come to a point where they are
communications has brought complexity
feeling the fact that the boom is over; the distributors with a wide
back into technology installations and
made it harder for companies to carry out range of products will continue to bring in some reasonable
quick installations. income, but the niche players will need to go deeper and create
“The commoditisation of technology is
other revenue streams through support, services and consulting
well and good and happening at SME level,
but the same can’t be said for the higher because plain niche distribution model is no longer sustainable.” –
level,” he comments. Jacques Malherbe, Westcon
He questions the motives behind some
“so-called” value-added distributors saying
they simply use resellers to secure contracts
and then move in and do all the work. “To
really add value as a distributor, they need distributors will own the local space.
to understand that resellers need money Another big issue that local distributors
(credit), training, joint marketing, bundling do not agree with is the tender process,
and segment specialisation so that they can especially when it comes to large accounts
cater for specific verticals. Once they cater where the customer asks for system integrators
to these needs, they can consider them- to be either a gold, platinum or diamond
selves value-added distributors,” he says. partner of a vendor such as Microsoft, Cisco
Lu strongly agrees with this and says or IBM.
that broad-based and real value-added Both Lu and Malherbe say that the

CRN SOUTHERN AFRICA • JUNE 2008 • 9

COVER STORY: DISTRIBUTION
SOLUTION PROVIDERS
tendering process is flawed in that it does
not create a fair playing field because the
bigger system integrators have an unfair
advantage. They say that it is easier for the
bigger guys to invest in the training and
development that make them gold, plat-
inum and diamond partners, whereas the
At the end of the day, South Africa is becoming a freer market by
the day and competition is getting stiffer as margins get smaller
and the only way a distributor, system integrator or reseller will get
and stay ahead is to be more competitive with products and
services it takes to market.
smaller companies might have the skills
needed to meet the requirement of a ten-
der but are unable to bid because they are
not gold, platinum or diamond certified.
“At the same time, SA is very brand con-
scious and by default large enterprises and
sometimes government will opt to go with
the likes of BCX and Dimension Data. As
long as the country continues with this
trend the smaller less known guys will be
sidelined,” explains Lu.
He adds that this is the main reason
a lot of industries in the country are
monopolised by either one major player
or a small group of well-known and
recognised players.
Grant Bodley, senior GM in the
outsourcing division at Dimension Data
says that realistically speaking the entire
ICT sector is under pressure when it
comes to skills availability, development
and retention.
Recent research shows that locally there
could be a shortage of as many as 38 000
skilled ICT personnel.
“Although a good number of skilled
people do move from the distributor
space to the large system integrators, as
the big guys, we are doing a lot to develop
skills through initiatives like on-the-job
skills development and learnerships,”
explains Bodley.
Bodley, who looks after the outsourcing
business at Dimension Data, adds that even
the bigger players, such as his company, are
feeling the pressure of the skills shortage
because even his company’s competitors
Grant Bodley, Dimension Data are willing to offer skilled people “top
10 • CRN SOUTHERN AFRICA • JUNE 2008
dollar” to have them join them or to retain
those they already have.
“The truth is that we do have a slight
advantage by having more buying power
than the smaller guys, but with the state of
the economy, we are only paying market-
related salaries. I also believe that another
major reason people move from the smaller
guys and join a company like ours is purely
for career development,” he explains.
Regarding the issue of the country not
having small and medium-sized system
integrators with the potential to grow and
become part of the bigger guys, Bodley
comments that the reason for this could be
that most of the companies that play in this
space prefer to remain niche and hence do
not leave themselves with much room for
growth because they narrow their business
to certain areas of specialisation.
“Sometimes, even companies like ours
partner with medium-sized companies on
business that requires some specialisation
that we need from them and even on
accounts that demand that we have BEE
partnerships,” he says.
Regarding the certification issue, Bodley
says that even companies the size of his
started off at a point and as the business
grew, they had the capacity to reach where
they are today and the smaller guys will get
there with a lot of work and dedication.
“We have invested a lot of money and
time into getting certified by the big ven-
dors because getting here requires a lot of
training and development and the neces-
sary training costs a lot of money,” he says.
Meanwhile, Malherbe says that in an
economy such as ours, which has a mix of
first and emerging world economies work-
ing at the same time, distributors have a
great opportunity to perform well and help
their reseller partners do the same.
SA is becoming a freer market and com-
petition is getting stiffer as margins get
smaller. The only way a distributor, system
integrator or reseller will get and stay
ahead is to be more competitive with the
products and services it takes to market.
At the same time, it is clear that there
are issues, such as certification, that need
to be relooked at if competition between
the big and the small guys is to be truly
encouraged.
ANALYSIS: CISCO
SOLUTION PROVIDERS

Cisco plans to capitalise

on mobile market
Enabling users to personalise their experiences.

BY DUDU SHABA

C isco is on a mission to foster, drive and

capitalise on the mobile market. The
company has announced that it plans to
advance the mobile experience for people
whether they’re at the office, at home or
on the go.
Rick Esker, Cisco
Rick Esker, director, Mobility Alliances
Group, Strategic Alliances, Cisco, says
mobility is a growing market and many
innovative technologies are being
developed by companies such as Nokia,
RIM and Apple that are well-positioned in
the space. Whether they are touch devices
or applications, Esker says these mobile
technology companies have one thing in
common – the network. In order for people
to enjoy innovative new devices, cool new
software or greater productivity. Cisco is in
a unique position to define and evolve
the mobile marketplace.
“Cisco is one of the only companies
to have the breadth of expertise across
all market segments, including SMB,
consumer, service provider, enterprise
and commercial.
“Cisco is redefining the very notion of
mobility. It understands that it is not
about devices, technologies and services.
It is about people being able to move
freely throughout the world while
maintaining continuous connectivity to
content and people.
“Mobility is really about always being
connected wherever you are and being able
to participate in the mobile experience,”
he says.
He goes on to say that Cisco’s vision of
mobility is one where users can personalise
their experiences by being able to access
content on any screen and any device of
their choice.
“Social networking and streaming video
go hand in hand when it comes to
personalising a user’s experience. Enabling
users to exploit video as a means of
communication and entertainment >p14

12 • CRN SOUTHERN AFRICA • JUNE 2008

ANALYSIS: CISCO
SOLUTION PROVIDERS
>>p12 has prompted service providers to
become experience providers, further
enabling the connected life. They are
enhancing both the experience and reach of
the consumer by offering streaming digital
video over many different screens,” he says.
“In order for people to enjoy innovative new devices,
cool new software or greater productivity, they need to be
connected. Cisco is in a unique position to define and
evolve the mobile marketplace.” – Rick Esker, Cisco
“When Cisco looks across global markets, it
sees some interesting trends. As one of the
African continent’s advanced economies,
mobile adoption is similar to what is seen
in Western European economies. However,
there are other trends in Africa that may
accelerate mobile services in SA. These are
often related to payment and banking
technologies. Also, as Cisco often sees in
markets without extensive wired infrastruc-
“Cisco will carefully and continuously evaluate its market
performance to ensure it meets the objectives of its shareholders,
employees, partners and customers,” – Rick Esker, Cisco
tures, some areas in SA are leapfrogging
technology,” he adds.
Esker says that this plan is specifically
targeted at emerging markets.
“The emergence of new applications,
such as voice-over-WiFi and location-based
services, will continue to drive more
pervasive deployments as will the sharp rise
in Wi-Fi-enabled devices,” he remarks.
To make sure that Cisco performs better
in emerging markets, Esker says it will use a
range of marketing tools, including partner
demonstrations and proof of concepts,
white papers and extensive outreach to
industry influencers.
He adds that Cisco has a partner system
that includes HP, IBM, Nokia and Oracle,
14 • CRN SOUTHERN AFRICA • JUNE 2008
and technology partners like AeroScout,
Agito Networks and Airetrak, as well as
industry-specific application partners like
IntelliDOT, Johnson Controls and Philips
Healthcare and OATSystems.
“The Cisco Motion Vision enables our
partners to enter new value-adding markets
by unifying business applications with
wireless networks and devices, while at the
same time achieving efficiencies through
the use of open APIs and standard IP
architectures,” he says.
He explains that Cisco’s partners develop
their own business models and are responsible
for their competitive advantages in the
markets in which they operate.
“Cisco offers technologies and services
that capture market inflection points in
rapidly growing markets enabling partners
to build their businesses as they see fit,”
he says.
Cisco believes that an IP-based network
serves as the most cost-effective,
service-rich platform for mobile services
and applications for both business and
personal needs.
“While the access medium can change
depending on user location, an IP-based
network serves as the converged platform to
connect different work and personal spaces.
In addition, in the spirit of open standards,
Cisco is embracing an open network
platform which allows a wide range of ISVs
to develop integrated applications. “The
intelligent work services in the network,
such as QoS, policy and security, transparently
enable a seamless mobile collaboration
experience for individuals and business
professionals between wired and wireless
worlds,” he says.
“Cisco will carefully and continuously
evaluate its market performance to ensure
it meets the objectives of its shareholders,
employees, partners and customers,”
concludes Esker.
ANALYSIS: HP PROCURVE
SOLUTION PROVIDERS
HP NAP
Vendor extends identity manager product range.
BY DUDU SHABA
H P ProCurve has extended its Identity Driven
Manager product which allows granular
definition of network policy to work with
the recently launched Network Access
Protection (NAP) functionality.
Nick Hancock, technical consultant,
ProCurve Networking Business, says that
NAP comes standard with Windows Server
2008 Enterprise Edition providing health
checking of clients as they attach to the
network and Microsoft focusing on the
client and Server OS components with HP
ProCurve, providing network policy
definition and enforcement.
Hancock says that network access
“HP’s channel partners will have an opportunity to address a new
audience and opportunities within their current client base who
might not have considered access control before.” – Nick
Hancock, ProCurve Networking Business.
control (NAC) is a term used to describe the
process of enforcing who is allowed onto
the network. He says that this was formalised
by the Trusted Network Consortium (TNC)
into a standard but is still used interchange-
ably by vendors to mean anything from
simple access authentication right through
to full health checking of the client.
“NAP is a Microsoft term that describes
the process of enforcement and health
checking of network policy on a client from
the network. NAC and NAP are technolo-
gies that challenge the user for credentials
as they attach to the network and then
applies policy,” he says.
Hancock adds the drivers for ProCurve
integrating identity driven
management/NAC into the Microsoft NAP
solution was to give customers access to a
16 • CRN SOUTHERN AFRICA • JUNE 2008
creates a secure infrastructure
more integrated client O/S solution.
“The critical mass of software vendors
working within the TNC/NAP solution arena
means that it is quickly gaining acceptance
as the most rapidly maturing solution with
the greatest industry support, lower risk
and provision of choice,” he explains.
He goes on to explain that there are
multiple components for responding to
Network Access Control:
 For Microsoft NAP at least one
Windows Server 2008 Enterprise with
Network Policy Server service running
 Client device running Windows XP
Service Pack 3 or Vista
 Intelligent Edge Switches or wireless
platform capable of supporting rich
802.1x features such as those from
HP ProCurve
 Identity-driven management software from
HP ProCurve sitting on ProCurve Manager
Plus to provide granular user policies.
 ProCurve’s Identity-Driven Manager
(IDM) product is a network access policy
server which dynamically adapts
network ports and the device(s) that
connect to it to the needs of the user.
“This is a clear way of defining user
rights, resources on the network, assigning
them in a common way, wired or wireless,
and checking whether those devices are
appropriate to come onto the network.
Essentially, ensuring the integrity of the
network environment in a simple way,”
Hancock explains. He adds that HP’s
channel partners will have an opportunity
to address a new audience and
opportunities within their current client
base who might not have considered
access control before.
“As NAP capabilities are built into MS
2008 they can simply switch it on and
quickly tailor the admission policy to their
customer’s business needs. In addition, this
an opportunity to further extend the offering
made to those customers who are running
ProCurve’s Identity-Driven Manager or
Mgt? suite of products,” he comments.
Hancock says that this integration will
be incorporated into the main training
courses offered around security within HP
ProCurve as well as implementation guides
and documentation.
Additionally, he says that HP has been
running seminars and webinars to educate
the channel on the vision and the detail.
“One of the other benefits of being a
ProCurve skilled partner is that we provide
seminar kits to assist in showing the value
to the customer in a hands-on way, these
packs are regularly updated in order
to incorporate our solution offerings,”
he comments.
“There is a lot of opportunity. Many
customers face huge challenges in controlling
unauthorised, infected or unprotected
devices, and this is recognised on all levels.
This represents a good opportunity to work
closely with a customer to develop a longer
term relationship while mapping business
policy to network security policy,” he says.
Hancock says the TNC/NAP framework
will be the industry’s fastest to develop and
will undoubtedly bring a range of new
features to the overall proposition.
“This allows new testing methods to be
developed for different client devices. Over
40 leading companies are actively working
with the standard opening up lots of new
technology opportunities,” he concludes.
DEMAND GENERATOR: ITEC WEST
SOLUTION
Itec monitors
Enhancing office automation.
BY DOMINIC KHUZWAYO
I
tec, one of the fastest growing office
automation, production printing and
telecommunications providers in southern
Africa, has secured a R15 million partner-
ship deal with First National Bank, a division
of FirstRand Bank Limited.
This comes after FNB signed a three-year
contract with Itec West for printing
solutions, projected to save the financial
institution between 15 and 20 per cent per
annum. Recently, Itec made headlines when
it announced its mission to conquer markets
abroad by opening a new office in the UK.
Coming back to the R15 million deal,
FNB has leased 137 multifunctional devices
from Itec West, replacing 656 desktop
printers that were being used by FNB
Shared Services’ 3 700 employees. These
Rodney Taylor, Itec West
18 • CRN SOUTHERN AFRICA • JUNE 2008
PROVIDERS
FNB’s printing solutions
employees are situated in seven buildings
around Johannesburg and five buildings
across the rest of the country.
Prior to contracting with Itec West, the
business unit had contracts in place with a
range of printer, photocopier and fax suppliers,
as well as a number of independent desktop
machines representing a variety of brands.
“This was complex and expensive to
maintain, operate and support,” says
“Based on the findings, we compiled a proposal that outlined the
structure of an enhanced office automation environment for FNB Shared
Services.” – Rodney Taylor, Itec West.
Neels Boshoff, chief financial officer, FNB
Shared Services.
“We wanted to find one supplier who
would be able to provide us with a top
brand at a competitive price. At the same
time, Itec West took the initiative, carried
out a print audit and presented us with a
solid business case for the overhaul of our
entire office automation system. Not only
have we saved a substantial amount of
money, but we have also streamlined our
processes as a result,” explains Boshoff.
Itec West’s print audit consisted of a full
assessment of FNB Shared Services’ existing
printing solutions as well as a full review
that took into account monthly printing
volumes per division and department,
determined the need for colour and
monochrome printing, and documented
the printing requirements of individual
employees. The report highlighted total
cost of ownership, running costs and
where money was being lost.
“We found, for example, that many
high-level multifunctional devices were
being used only to make photocopies,”
says Rodney Taylor, managing director of
Itec West.
“Based on our findings, we compiled a
proposal that outlined the structure of an
enhanced office automation environment,”
adds Taylor.
FNB benchmarked the proposal against
both existing and other suppliers, and
awarded the contract to Itec West.
“The savings have been significant, but the
business case was an equally important
consideration. We have onsite support,
realtime monitoring of all machines so that
technicians are alerted to problems before
users are even aware of them, backup
devices at all sites as well as an agreed turn-
around time for fault resolution,” adds Boshoff.
According to Taylor, Itec West provided
FNB Shared Services with a standardised
solution, so that only a single brand of toner
and spare parts need to be kept onsite
“Our entire operation is dependent on
being able to deliver paper documents to
customers within a specified timeframe, we
simply cannot afford downtime. This not
only cuts down on costs but makes the
entire printing solution more manageable
and easy to run,” explains Taylor.Boshoff?
Phase two of the rollout saw FNB Shared
Services rationalising its office automation
equipment in its contact centre. It sent out
a request for proposals inviting other
suppliers to submit a proposal for the supply
and management of multifunctional devices.
Phase three of the rollout will incorpo-
rate additional FNB business units over the
next 12 months.
Do you have demand generator stories
to share with us? Please e-mail Dominic
Khuzwayo at dominick@systems.co.za

Lexmark launches new
channel Value Programme
Incentivising channel partners.
BY DUDU SHABA
P
rinting solutions provider, Lexmark, has
launched its new Channel Value Programme
across SA and Europe. According to
Lawrence van Namen, sales director Channel
and Supplies, Lexmark International SA, the
progression-based programme repays
channel resellers and promotes best printing
practice through a dynamic mix of sales
support, rewards and special incentives.
Van Namen says the Channel Value
Programme is tailored to help individual
channel partners to drive sales and bring
added value through service offerings and
knowledge transfer as well as to offer their
customers smarter ways to boost productivity
and reduce costs.
“The Lexmark Channel Value Programme
is a pan-European programme with the aim
of rewarding our loyal channel partners for
their support as well as to offer them tools
to make their selling process easier and to
differentiate their offering in the market-
place,” he says.
“Our main objective is to assist our
channel partners in offering their customers
more than just a device. We want to help
them to add value by using Lexmark’s ‘Print
Less, Save More’ approach. By showing
their customers ways to print less, more
economically and to be more productive
our partners are assured of continuous
business. We also focus on profitability for
both Lexmark and the reseller,” he adds.
Any reseller can join the programme,
depending on their hardware sales perfor-
mance and will fall into one of three tiers.
“For the entry-level tier, resellers need to
register and join to be part of the pro-
gramme, at the second tier there are more
benefits and minimum quarterly revenue
they need to maintain to remain in the tier.
At the top tier there are even more benefits
and minimum yearly revenue they need to
maintain,” he says.
ANALYSIS: LEXMARK
SOLUTION PROVIDERS
According to him, the partner
programme recognises hardware sales
and rewards partners in various ways,
depending on their tier.
“Rewards range from discounts, exclusive
promotions, to points that can be
redeemed for goods, and at the highest
level – bonus plans,” he explains.
He says that the first incentive they have
is to increase their sales so they can move to
a higher tier, thus getting more benefits.
“At each tier the incentives and rewards
differ and range from a kick-start promotion
for first-time buyers to exclusive promotions
and give aways, points and bonus plans.
The more they sell, the bigger their bene-
fits,” he says.
Van Namen adds that the Channel Value
Programme continuously provides training
to its channel partners. Lawrence van Namen, Lexmark, SA
“We take an informal approach and,
depending on the reseller’s needs, we will arguments for Lexmark’s solutions. The
train on specific products, our solutions or extranet can be accessed at
provide basic technical training. We’ve even www.reseller.lexmark.co.za,” he says.
gone as far as training our reseller sales He goes on to say that there is also an
people on how to sell Lexmark products. We online technical support section within the
have a standing open invitation to all resellers extranet where the reseller can do basic
to use our showrooms in Durban, trouble shooting.
Johannesburg and Cape Town at any stage “Lexmark’s technical support hotline is
they need, either to book training for them- also available to resellers who need
selves or to bring prospective customers to assistance, and to make it easier, we’ve split
see the products in action. With regard to our support lines into two, one dedicated
the Channel Value Programme at the highest to home users and the other to business
tier certain partners have to go through very users. This way we ensure our customers
extensive technical and after-sales support and resellers get dedicated and effective
training to maintain their tier,” he explains. support from us,” he explains.
Registered partners can access various With this partner programme, Van
sales and marketing tools through a Namen believes that partners will be able to
dedicated extranet. secure their margins and business growth.
“Depending on their tier, they will also be “With it being a brand-new programme,
able to personalise Lexmark brochures with we hope that the future holds growth in
their company logo and generate quotes member registrations as well as their sales.
online with their pricing. They will have The future will see more benefits and
easy any time access to key selling support tools added,” he concludes.
CRN SOUTHERN AFRICA • JUNE 2008 • 19
HIGH FIVE: NOVELL
SOLUTION PROVIDERS
Novell introduces Open Workgroup Suite
Increasing team workspace capabilities.
BY DOMINIC KHUZWAYO
Novell has recently announced the
worldwide availability of Novell Open
Workgroup Suite with Novell Teaming
included. According to Matthew Lee
Novell SA country manager, the release
of Novel Open Workgroup Suite was in
response to industry needs for cost-
effective, next-generation collabora-
tion tools. In this month High Five, Lee
tell us more about the Novell Open
Workgroup Suite.
CRN: What is Novell Open Workgroup
Suite?
ML: Novell Open Workgroup Suite is a flexible buying programme
that accommodates platform and collaboration tool preferences.
Novell Open Workgroup Suite enables organisations to increase
employee productivity by adding collaboration tools to their existing
IT infrastructure, without the higher costs or vendor lock-in typically
associated with proprietary-only software bundles. With Linux,
NetWare and Windows server deployment options, the fullest
version of Novell Open Workgroup Suite delivers:
 Novell Open Enterprise Server – a powerful, flexible platform to
host collaboration data and applications
 Novell ZENworks Suite – a cross platform systems-management
tool to manage servers, desktops and applications
 Novell GroupWise – a personal-productivity dashboard that
provides secure and reliable e-mail and calendaring
 Novell Teaming – a personal and team productivity tool that
includes virtual workspaces and enterprise social software
 OpenOffice.org Novell Edition – a full featured open source office
productivity suite that runs on Linux or Windows
 SUSE Linux Enterprise Desktop – a business-ready Linux desktop to
support office applications
CRN: How does it work?
ML: The Novell Open Workgroup Suite is available in five
conveniently packaged versions:
1. Novell Open Workgroup Suite cross platform with Teaming
2. Novell Open Workgroup Suite Linux with Teaming
3. Novell Open Workgroup Suite cross platform
with Teaming for alternate messaging platforms
4. Novell Open Workgroup Suite cross platform
5. Novell Open Workgroup Suite Linux
Versions 1, 3 and 4 allow for server-side deploy-
ments on all supported operating systems.
Versions 2 and 5 allow for Linux deployments
only. Version 3 is for alternate messaging plat-
forms and enables organisations using Microsoft
Exchange, Lotus Notes or other messaging plat-
forms to enjoy the business benefits of the suite.
Versions 4 and 5 do not include Novell Teaming.
In addition to being available as a license pur-
chase with maintenance, the Linux versions are
also available on a subscription basis. The subscription options
include maintenance and require you to renew your subscription
every year as long as you are using any component of the suite.
CRN: What benefits is it offering?
ML: Novell Open Workgroup Suite enables organisations to reduce
software acquisition costs by as much as 70 percent over competing
solutions such as the Microsoft Professional Desktop Platform,
anchored by Windows and Office SharePoint servers, while still
improving workforce productivity and maintaining needed levels of
service and support. The suite works with currently deployed plat-
forms and applications, making it easy to use existing skills and IT
investments and takes a phased approach to solution deployment.
CRN: What sort of training do you have for customers?
ML: Novell SA has various training outlets that can assist with train-
ing around the country. The partners promoting the product can
also deliver training to the customer.
CRN: What is the future of Novel Open Workgroup Suite?
ML: Very bright indeed. The opportunities these developments pre-
sent are breathtaking. Imagine being completely liberated from the
constraints of time, space and those black holes caused by the lack
of knowledge. This is the freedom that businesses must give their
staff in order to unlock their potential. And as we all know, freedom
is defined by the absence of limits.
ANALYSIS: MWEB BUSINESS
SOLUTION PROVIDERS

MWEB Business launches

Hosted Exchange
Software as a service for SMEs.

BY KAUNDA CHAMA

M WEB Business, the country’s largest ISP, last

“We are seeing more and more South African businesses seeking
affordable technology solutions that will add value to their
operations and increase their profits.” – Herman Jansen
van Rensburg, MWEB Business
Herman Jansen van Rensburg,
MWEB Business
month announced the addition of
Microsoft Hosted Exchange to its range of
Internet-based solutions.
According to the company. this is the first
product to be launched in its suite of hosted
messaging and collaboration tools.
MWEB Business is offering a standard
2GB mailbox with this offering.
Hosted Exchange delivers all the inherent
features and benefits of Microsoft Exchange
2007, without the initial capital outlay.
The company believes that by launching
Microsoft Exchange in a hosted format, it
opens doors for companies that previously,
due to cost considerations, did not have
access to the Microsoft Exchange platform
and brings relief to those who are using an
older version of Exchange but were putting
off upgrading to the 2007 version because
of the associated costs.
By migrating to Hosted Exchange, these
companies can benefit from cost savings by
not having to upgrade, the company says.
By eliminating a large upfront customer
investment, the company says that it is able
to provide an offering that caters to this
segment. The service is completely
scaleable, allowing customers to scale up or
down on their service requirements according
to the needs of their business.
The service is hosted in MWEB Business’
data centre environment, which is equipped
with a fully redundant power supply and
cooling systems.
Furthermore, the company has extensive
service hosting experience and claims that
it hosts the biggest e-Commerce platform
in the country. Customers also have access
to MWEB Business’ 24-hour technical
support team.
Herman Jansen van Rensburg, Head of
Product Management and Development at
MWEB Business says: “We are excited to
offer this technology solution to the market,
we have been working extensively with
Microsoft over the past few years to
develop it and we are confident that it will
meet the needs of the market.
“We are seeing more and more South
African businesses seeking affordable
technology solutions that will add value to
their operations and increase their profits.”
Sean Oglesby, Hosting Lead at Microsoft
South Africa added the company is excited
about its relationship with MWEB Business.
“We will be working closely with MWEB
Business in the future to develop more solutions
tailored for the needs of the business market.
This product is one of the first we will be
offering through MWEB. This partnership
enables MWEB Business to always provide
the latest Microsoft features and functionalities
as soon they become available.”
Van Rensburg says that the service, which
has been launched on the Microsoft
Exchange 2007 model, is targeted at
small-and-medium-sized businesses and he
is confident that the pricing around it will

22 • CRN SOUTHERN AFRICA • JUNE 2008


be affordable and competitive.
“We will be offering a 2GB mailbox for
R75 per month, which we think is very
competitive,” he comments.
Van Rensburg adds that as more companies
start moving towards hosted services, a lot
of them are also shifting from POP solutions
and going the hosted exchange route.
“We are offering the exchange solution
to smaller companies that have the need for
it but might not necessarily be able to
afford it. We are confident that it will be a
success because software as a service is
becoming the norm and companies of all
sizes are beginning to understand the
benefits of hosted solutions,” he explains.
He notes that Microsoft CRM and
Sharepoint solutions are in the pipeline,
adding that MWEB Business has
noticed a considerable increase in both
systems’ popularity.
Van Rensburg says another advantage to
the company’s customers is that it is offering
flexible contracts that can be adjusted
according to end-user needs and budgets.
“The advantage is that customers pay per
month and they only pay for what they
use,” he notes.
“When we look at the local market,
companies that have between 15 and 75
employees are considered to be small-to-
medium entities and with this service,
from a pure IT budget point of view,
they will realise some good cost savings,”
he explains.
Meanwhile, MWEB Business is also
staking its claim on the assumption that
hosted services will continue to become
more viable now that broadband is
becoming more available and affordable.
The company also believes that the load
shedding that affected the country recently
will drive the adoption of hosted services
because companies will still have access to
ANALYSIS: MWEB BUSINESS
SOLUTION PROVIDERS
critical services even when electricity in their
areas is temporarily switched off.
The company is taking this solution to
market through the direct and indirect
models and boasts about 400 business
partners in the South African market alone.
The company’s partners that resell MWEB
connectivity will also sell the company’s
hosted services.
MWEB Business is also staking its claim on the assumption that
hosted services will continue to become more viable now that
broadband is becoming more available and affordable.
Meanwhile, they will also enjoy a rebate-
based commission structure through which
they can earn additional revenue .
Microsoft Hosted Exchange by MWEB
Business fact sheet
 Low, monthly per user rate, starting at
R75 per user per month, including a
2GB mailbox
 Business-grade product enables employees
of a company to share company infor-
mation seamlessly wherever they happen
to be
 Important data stored on each local PC
and on hosted exchange servers, with
back-ups to reduce the risk of data loss
 Comprehensive multi-layered protection
against viruses and spam from MWEB
Business’ state-of-the-art server
 E-mail, contacts, calendar, public folders,
shared folders, meeting planners, task
lists and more
 Flexible access to data anywhere,
anytime
 No on-site maintenance required
 All future software updates will be free
of charge
 Hosted exchange is completely scaleable.
ANALYSIS: INTEL
SOLUTION PROVIDERS
Intel stays bullish
about Africa
Technology vendor sees light on the “dark continent.”
BY KAUNDA CHAMA
R ecent statistics show that foreign debt in
the southern African region is currently at
the lowest it’s been in the past 30 years and
this is beginning to create many lucrative
opportunities for technology vendors.
“At the end of the day, for Africa to become a major player in the
global economy, we need to create a knowledge economy and have
an informed society which is on par with the rest of the world.” –
Devon Naidoo, Intel
One such vendor is Intel, whose southern
African regional manager Devon Naidoo
says the company is on a mission to be the
most influential technology company on
the continent.
He explains that many countries on the
continent have had their debt reduced or
written-off recently and have been given a
more optimistic outlook on the future.
Naidoo points out that at least 11
countries in the region are involved in
either oil or gas or both, adding that
agriculture initiatives in many African countries
are also developing at a very good rate.
“At the end of the day, for Africa to
become a major player in the global
economy, we need to create a knowledge
economy and have an informed society
which is on par with the rest of the world,”
he comments.
He says the vendor, with the help of its
channel partners, is on a mission to
promote IT enablement and be part of the
African solution. “We want to educate
Devon Naidoo, Intel governments, channel partners and
24 • CRN SOUTHERN AFRICA • JUNE 2008
consumers,” he comments. Intel is making a
concerted effort to increase its presence on
the continent and wants to be one of the
companies behind increasing the use of
technology on the continent in an environ-
mentally friendly way.
The company is partnering with its
channel as well as other business partners
to reduce the impact of technology devel-
opment on the environment. To this effect,
it is involved in the development of “green”
products that enable users to be more
eco-friendly.
One of the ways it is doing this is by
reducing the size of its chips and transistors,
and putting an end to the use of lead in its
chips. This reduction is also resulting in
computers that give better performance but
at the same time consume less energy.
Currently working with its 45nm chipsets,
Intel expects to bring its 32nm chips to
market next year.
Naidoo told Intel channel partners at a
recent briefing in Johannesburg that as
more people get connected to the Internet,
online marketing is becoming more of a
reality. “These days, a computer with no
content or connectivity is just a hunk of
metal and plastic,” he comments.
Naidoo says that by 2012, online adver-
tising could be worth close to $20 billion.
He comments that the local trend is for
consumers to purchase notebooks as
opposed to desktops as mobility becomes
the order of the day.
“Looking ahead, I can tell you that you
should expect a huge increase in unit sales,
but this increase will also be accompanied
by lower margins,” Naidoo says.

He is calling on the company’s channel
partners to lead the way in helping con-
sumers to transition with the advancement
in Intel’s technology by encouraging tech-
nology adoption on the continent.
With the 40 countries in the sub-Saharan
African region now no longer spending the
majority of their budgets on servicing their
foreign debt, Naidoo comments that the
governments of these states now have
funds they can use to promote ICT projects.
“There is a lot of investment coming into
sub-Saharan Africa from the Far East
because India, the Philippines and China are
no longer as cheap as they used to be.
Africa has cheaper labour and more natural
resources,” he explains.
He comments that the fact that the
majority of the population in this region is
young might seem a problem in the inter-
im, but it bodes well for the future.
“The region needs to take advantage of
this through ICT because it is seen as the
foremost enabler of knowledge
economies,” says Naidoo.
He adds that Intel is confident that its
Atom processor, which is based on 32nm
technology, will do very well on the conti-
nent because it is designed for mobile
Internet devices. “We are confident that the
Atom will do very well on the continent just
look at the way the cellphone industry is
performing in Africa. Its growth has been
proportionately faster that anywhere in the
world,” he says.
Another reason Naidoo believes the com-
pany’s channel partners will do well on the
continent is because many governments on
the continent have been under a lot of
pressure from their citizens to deliver better
quality social amenities.
He says that to add to this the perception
of ICT is changing because it is now being
seen as a supplementary element in the
provision of these services rather than com-
plicating processes.
Intel is confident that between now and
2010, it will, through its partners, cater to
the next two million computer users.
As green computing becomes a hot topic
with every technology vendor striving to
become as energy efficient as possible, Intel
is equally keeping up with the pace and
ANALYSIS: INTEL
SOLUTION PROVIDERS
ensuring that its future technologies have as
little impact as possible on the environment.
On the green computing side, Naidoo
claims that Intel is the biggest user of
renewable energy in the United States and
has it as part of its policy to continually
reduce the amount of carbon dioxide emis-
sions in its production processes.
The technology vendor says that it
expects that in the next two years it would
have reduced the amount of carbon dioxide
emissions that will be equivalent to that
produced by eleven million cars .
Meanwhile, the technology the company
is scheduled to release in Q3 and Q4 of this
year will be Lead free.
“Fixed lines are no longer a viable option for the African
continent that is why we believe WiMax is currently the easiest
and most cost-effective way to take connectivity to
rural areas.” – Devon Naidoo, Intel
Naidoo also comments that IT companies
have to work together to stop dumping
outdated computers in Africa. The practice
has been going on for many years where
companies dump old computers on the
continent under the guise that they are
making donations while others simply buy
areas for use as dumping sites and con-
tribute to pollution in those areas.
He says that even greenfields companies
that adopt new technologies like Vpro will
achieve cost savings and these technologies,
because of their nature, reduce the compa-
ny’s energy requirements.
Naidoo explains that getting green com-
puting right will involve a lot of education
across all sectors of the IT industry, but he has
seen a great deal of enthusiasm from vendors
right through to end users when it comes to
environmentally friendly computing.
Looking ahead, he says channel partners
should recognise that wireless broadband is
the way to go when the next generation of
Internet users gets connected. “Fixed lines
are no longer a viable option for the African
continent that is why we believe WiMax is
currently the easiest and most cost-effective
way to take connectivity to rural areas,”
Naidoo concludes.
CRN SOUTHERN AFRICA • JUNE 2008 • 25
HANDHELD FEATURE
SOLUTION PROVIDERS

Handheld devices
make inroads
Provides leadership in mobilizing business professionals.

BY DUDU SHABA

T he speed of collecting data and bringing it

to a central point is the key advantage of
handheld computers, which has become
a critical distinguishing factor in the
according to Andrew Fosbrook, Group
Managing Director of ProScan. He says that
this is driven by the customer’s need to get
information immediately.
competitive enterprise environment. This is “The time lag of what’s happening in the
field to input into the backend system has
reduced dramatically, so transfer is literally
in realtime. Examples are applications in
“Being able to combine functionality such as mobile voice and
courier companies for track ‘n trace, elec-
data, image capture, bar code reading capabilities and global tronic Proof of Delivery (POD), where feed-
positioning into one device, helps reduce the equipment complexity back can be given to customers immediate-
ly when the goods are delivered,” he says.
required to deliver the real benefits of mobile worker” – Sheldon
“Enterprises are today extending their
Vermaak, Pinnacle Micro. back office systems by utilising handhelds
at the point of activity, enabling them to
offer their customers increased levels of
customer service and satisfaction, not to
mention employee efficiency and productivity,
says Sheldon Vermaak, Motorola enterprise
mobility business product manager at ICT
distributor, Pinnacle Micro.
Cathleen Lester, Product Manager: HP
Retail, Axiz, says that the demands created
by the frantic lifestyles led by most
students, business executives and home
executives alike, are addressed with easy-
to-use digital hand organizers.
“User satisfaction rates high as these
ingenious devices enable us to stay
connected, equipped and productive,
anywhere and at any time” she says.
She believes that handhelds combines
the convenience of a cellphone’s mobility
with a PDA’s organizational capabilities
and, in some cases, the extra feature of
GPS navigation, to provide a product
offering that not only mobilizes business
and personal management files but also
maximizes results.
Sheldon Vermaak, Pinnacle Micro “It is an all–in–one device that simplifies

26 • CRN SOUTHERN AFRICA • JUNE 2008


your life, offering first-in-class connectivity
as well as customized accessories to expand
your PDA capability and user satisfaction.
Whether you are a student urgently
needing important files, a doctor scanning
literature to confirm a diagnosis, a business
entrepreneur connecting your notebook to
the internet for valuable competitive
information or a home executive confirming
the lift club schedule, with a handheld
computer in the palm of your hand you can
be connected, equipped and productive
wherever you are,” she comments.
Trends in this space
Lester says that the market in the space is
demanding an all-in-one device where not
only must the PDA be a cellphone and
handheld organiser, but it must also operate
as a Personal Navigation Device (PND).
“Ultimately, what consumers want is ease
of use, functionality, satisfactory after-sales
service and convenience, for example,
mapping software pre-loaded on the
device. Customers demand a superior,
out-of-the box experience with all they need
already loaded and installed on the device,
ready for use,” she says.
Lester goes on to say that there is a definite
move towards converged devices, those
that offer the out-of-the-box experience.
“Market leaders are pursuing aggressive
marketing around this. It has been
confirmed that mobile professionals are
consistently choosing a converged device
for its simplicity and the convenience of
having the function of a cellphone, a PDA
and GPS all in one,” she says.
Convergence
Vermaak believes that being able to
effectively run ERP or CRM-type systems on
handhelds has made the selection of an
optimum device that meets the durability,
capability and stability criteria quite
challenging.
“PDAs do not necessarily contain all of
the criteria required for true enterprise
mobility. This is why we are seeing the
convergence of the smart phone, PDA,
digital camera, and GPS devices which has
lead to the advent of the EDAs (Enterprise
Digital Assistant) and ruggedized mobile
HANDHELD FEATURE
SOLUTION PROVIDERS
computers,” he says. “These EDAs and
mobile computers now become business
tools, effectively an extension of the enter-
prise’s core operational systems.
Being able to combine functionality such
as mobile voice and data, image capture,
bar code reading capabilities and global
positioning into one device helps reduce the
“The demands created by the frantic lifestyles led by most stu-
dents, business executives and home executives alike, are addressed
with easy-to-use digital hand organizers” – Cathleen Lester, Axiz.
equipment complexity required to deliver
the real benefits of mobile workers staying
connected to co-workers, customers and
back office systems,” he adds.
Security
As mobile devices are becoming more
pervasive, security has become a concern
for enterprises.
According to Fosbroook, it is important
to have security built in to applications and
device management.
“There are good tools available to ensure
high security levels, as well as the remote
ability to remove all data should the
device be stolen,” he says.
“Our mobile device management
partner, HP, provides data and
connectivity security, as well as a
remote lockdown option should
valuable information on a
missing device need protection.
This global carrier support
centre also allows for
remote diagnostics and
over-the-air provisioning
and software updates,”
Lester comments.
fastest adopters
Looking as to which vertical
markets are the fastest
adopters of handheld and
portable devices solutions. Cathleen Lester, Axiz
Fosbrook believes that there are
CRN SOUTHERN AFRICA • JUNE 2008 • 27
HANDHELD FEATURE
SOLUTION PROVIDERS
big opportunities in transport and logistics,
FMCG supply chain and retail markets.
“Handhelds are used in these vertical target
markets in-premise in warehouses and dis-
tribution centres, and
in field at the customer’s contact points,”
he comments.
“With specific reference to EDA and
ruggedized handhelds, the organisations
“The future of handhelds lies in convergence, as well as more
powerful capabilities in communications and imaging, more
rugged design, and reduced costs as more applications come
become available” – Andrew Fosbrook, ProScan
involved in field force operations have
proven to be the earliest adopters of mobile
deployments,” says Vermaak.
Vermaak adds that the employees of
these organisations use this one tool
as a critical component of their day-to-
day responsibilities, which may include
field service, mobile sales, route accounting
or logistics.
Opportunities
According to Lester, the vertical markets
indicate great potential and adoption of this
new technology. She says that aggressive
marketing by various vendors has led to
increased confidence and understanding of
the benefits of handhelds in these sectors.
“Handheld devices promise growth in
corporate and government market
segments, as well as in the retail market,
where consumers are demanding a
converged device that addresses all their
personal and business lifestyle needs,”
she comments.
Lester says that the opportunity is
definitely available for vendors to launch
converged devices with all software
packages related to the functionality of the
device pre-loaded.
Fosbrook says that there is great
potential for software developers and value
added resellers to develop specialised
Andrew Fosbrook , ProScan applications, as well as customized
28 • CRN SOUTHERN AFRICA • JUNE 2008
applications running off handhelds.
“We’ve seen the birth of companies
specialising in this area as industry standard
tools become available from IBM, Sybase
and Microsoft,” he comments
Looking ahead
Fosbrook says that the future of handhelds
lies in convergence, as well as more
powerful capabilities in communications
and imaging, more rugged design, and
reduced costs as more applications come
become available.
Meanwhile, Vermaak predicts that the
mobile worker population worldwide will
increase by approximately 30% between
2004 and 2009, which will result in a
growth from 650 million mobile workers
worldwide to more than 850 million in
2009. He says that these type of devices
will be a necessity for some workers to
facilitate their daily activities.
“This is a huge opportunity. Solution
Providers can expect the market for mobile
enterprise applications to triple by
2010, providing yet another awesome
opportunity,” he says.
“As to what the future of handhelds
holds for us? Only time will tell as the rapid
development of miniaturised components
continues apace we will see the capabilities
and functionality of these devices grow
beyond our imaginings,” he continues.
Lester says that handhelds are the latest
techno-rich devices for those wanting ulti-
mate mobility while still being optimally
productive and connected.
“As notebook demand has escalated over
the past few years, and the trend to be
mobile continues to grow, handhelds may
very well become that one essential tool
nobody will be without!” she concludes.
 DESKTOP PCS FEATURE
SOLUTION PROVIDERS

Desktop PCs
still essential
Desktop PCs remain an appropriate choice for certain markets.

BY DUDU SHABA

T
he South African desktop market can expect “Desktop sales are twice as high as mobile offerings in SA and
to see modest growth in 2008, as notebook hold great appeal as the only platform that still supports
sales continue to eat into the traditional
desktop market.
Quad-Core CPUs.” – Kobus de Beer,Axiz
This is according to Michel Darebny,
product manager for desktops and servers
at Acer SA. He says that slight but sustain-
able growth can be expected in the desktop
market as corporates refresh their PC
infrastructures and high-end home users,
such as gaming enthusiasts, continue
investing in powerful desktop computers.
“The desktop market is in no danger of
extinction. In markets where performance
and functionality are more important than
mobility desktops are being created for
specific purposes such as the ultra-small
form factor,” says Darebny.
While it is no secret that personal
computing is rapidly going mobile, desktops
are holding their own in SA, with well over
one million still being sold annually. Kobus
de Beer, Components Lead, Axiz, attributes
much of this to the rapid emergence of
entry-level users preferring desktops because
of their cost-effectiveness and, more impor-
tantly, their customisation benefits.
De Beer agrees that industry leaders are
probably not far off when they predict
global notebook sales will have reached at
least 200 million by 2011.
“Mobility is, after all, what users are
demanding. Yet, at the moment, desktop
sales are twice as high as mobile offerings
in SA and hold great appeal as the only
platform that still supports Quad-Core
CPUs. We also have the benefit of a huge
first-time buyer market that prefers desk- Kobus de Beer,Axiz
tops to mobile because of cost,” he says.

CRN SOUTHERN AFRICA • JUNE 2008 • 29

DESKTOP PCS FEATURE
SOLUTION PROVIDERS
Although notebook sales have overtaken
PC sales, Mandy Porter, Dell Business Unit
Manager, Drive Control Corporation,
comments that there is still a place for PCs.
“This is reflected in a recent IDC report
where 20 per cent growth in PC sales in the
Central Europe Middle East and Africa
(CEMA) region is predicted.
There are three areas where PCs offer an
advantage, for applications that require raw
horse power, for gamers and users that are
cost conscious,” he says.
In addition to that, he says that certain
markets will always require PCs rather
than notebooks.
“For example, financial services, education
and government will always require desk-
tops as their employees are usually office
bound and a PC is the most appropriate
“Financial services, education and government will always require
desktops as their employees are usually office bound and a PC is the
most appropriate choice.” – Kobus Kitshoff, Comztek
Kobus Kitshoff, Comztek
30 • CRN SOUTHERN AFRICA • JUNE 2008
choice. This ensures there is still a market
for PCs,” he comments.
“Despite numerous predictions of its
eminent fall, the desktop PC market is still
very strong, contributing up to 50 per cent
of all PC sales,” agrees Kobus Kitshoff,
Fujitsu Siemens Computers Channel
Manager at Comztek
Meanwhile, Gary Naidoo, deputy MD,
Sahara Computers, comments that the
desktop market continues to show steady
growth as the PC attachment to South
African households is still very low.
Trends
Tracking the route that desktop PCs are
taking, Kitshoff says that the introduction
of dual-core processors about two years
ago proved to be very popular in both the
desktop and notebook markets and this
soon became the standard in all new
desktops sold.
“Although relatively new, quad-core
technology has seen significant uptake in
the market. Like its predecessor, quad-core
processors are set to become an industry
standard in desktops but it will be a
while before they become mainstream,”
he comments.
Jason McMillan, GM, HP PSG, Tarsus
Technologies, says that few customers
understand how cost-effective dual- and
quad-core processors are.
“Many companies have steered clear of
these technologies perceiving them to be
more power hungry than single-core
processors. In reality, the exact opposite is
true, Intel and AMD have made their
processors extremely power conscious,”
he comments.
He goes on to say that today’s dual-and
quad-core processors are, in fact, more
power efficient than their single-core
predecessors.
“Astoundingly, if the power savings that
an organisation can realise by going dual or
quad core is factored out across a fleet of
25 000 units, the savings in electricity
would go a long way towards absorbing
the cost of the roll-out,” he says.
De Beer says that consumers are
demanding more powerful computing
applications and that they are increasingly
concerned about energy efficiency. Intel, he
 DESKTOP PCS FEATURE
SOLUTION PROVIDERS

says, is leading the field here, with its

current generation of desktops, notebooks
and mainstream server processors based on
Intel Core micro-architecture being the most
energy efficient it has ever produced.
“The need to use less energy is increasing
everyday. Intel is the driving force in new
designs to support this initiative, and we
eagerly await the introduction of the Atom
CPU, Intel’s smallest processor built with the
world’s smallest transistors.
“It is based on an entirely new design,
built for low power and designed specifically
for a new wave of mobile Internet devices
and simple, low-cost PCs,” says De Beer.
“We see more speed, storage, lower
power consumption, typical of
modern multimedia demands. The
Internet continues to drive technology,”
comments Naidoo.

Windows Vista
Despite the hype, De Beer does not predict
that the release of Windows Vista SP1 will
spur growth in desktop sales in the second
quarter of this year.
“This is just speculation and it comes
with the perception that Windows Vista will
become the operating system of choice,
especially in the SME and corporate markets
but only time will tell. In my opinion, SP1
will not directly increase the sales of desk-
tops but it will make users consider going
the Vista route. We are starting to see some
adoption from the consumer space but
corporate customers are choosing to stay
with Windows XP for as long as possible.
And some people never want to change, we
still get requests for Windows 98,” he says.
“We started to see improved growth in
the first half of the year and believe that we
will see significant growth in the second
half,” says Naidoo.
Security
As mobile devices are becoming more per-
vasive, security is another concern among
PC users. Kitshoff says that remote support
and additional hardware security are impor-
tant for protecting PCs from viruses and
other security threats.
“The cost implications of adopting new
security platforms does impact the purchas-
ing decision and most ICT managers will
Gary Naidoo,
Sahara Computers
“The desktop market continues to show steady growth
as the PC attachment to South African households is
still very low.” – Gary Naidoo, Sahara Computers
base their decision on overall pricing rather
than features,” he says.
Porter also raises her concern, she says
that security is a risk with desktops, note-
books, and servers, and adds that even
cellphones are vulnerable to viruses and
security threats.
“Dell has included a three-year licence for
Symantec’s Norton Anti-Virus software on
its notebooks and desktops to address the
concern,” she says.
“Vendor choices, together with
more sophisticated software, address this
very important business requirement,”
adds Naidoo.
Battle between OEMs and
multinationals
Looking at the battle between OEM PC
brands and multinational brands in the local
market, Porter believes that competition is
healthy and there is always room for

CRN SOUTHERN AFRICA • JUNE 2008 • 31

SOFTWARE PIRACY FEATURE
SOLUTION PROVIDERS
competitive products, including OEM brands.
However, Porter says that the first-tier
brands often offer value adds. “Dell’s three-
year next business day warranty and its
stringent factory testing make it extremely
competitive. This is beneficial to resellers as
it allows them to concentrate their energies
on business instead of having to resolve
maintenance and repair issues,” says Porter.
According to De Beer, the multinationals
continue to dominate the desktop market,
and he predicts that local manufacturers
will find it increasingly difficult to maintain
this momentum. He states that internation-
al vendors have adopted an increasingly
aggressive approach to the South African
market, and emerging markets in general.
“The international vendors have
changed their marketing strategies and
have become aggressive in terms of pricing,
“Astoundingly, if the power savings that an organisation can
realise by going dual or quad core is factored out across a fleet
of 25 000 units, the savings in electricity would go a long way
towards absorbing the cost of the roll-out.” – Jason McMillan,
Tarsus Technologies
Jason McMillan,
Tarsus Technologies
32 • CRN SOUTHERN AFRICA • JUNE 2008
features, after-sales support and innovative
solutions. While I foresee the multinational
brands continuing to gain traction locally,
there is still a great deal of opportunity for
OEM brands and much room for value-
added services here,” he says.
Effects of mobile computing
Does mobile computing have effects on the
traditional desktop PC platform? According
to Porter, mobility, 3G, wireless LANs and
Bluetooth are all driving sales of notebooks
and mobile computing. She believes that
this is what increases productivity as it
allows people to work anytime, anywhere.
However, there is still a requirement for
desktops as not every job or position
requires mobility.
“Think of office or administration staff
that does not need to be ‘mobile’.
Government and the education market
are other examples of where there is
still a requirement for PCs and this is
unlikely to change in the foreseeable
future,” Porter comments.
Future
MacMillan believes we will continue seeing
growth in the desktop market, although he
says that channel players will have to work
hard to capitalise on it.
“Furthermore, I believe that technology
will become even more commoditised over
the coming years, which is something that
will truly separate those who can add value
from those who can’t.
“Those who can add value will continue
to thrive and reap the rewards of their
efforts,” he concludes.
According to Kitshoff, the biggest change
in buying behaviour is with the consumer
market moving towards notebooks as they
become increasingly affordable. He says that
3G connectivity has also made notebooks
more attractive than desktops.
“Nonetheless, the corporate environment
still prefers desktops due to applications usage
and network connectivity,” he comments.
“Desktops will always have a place in the
market. Specialised applications and offices
will continue to use desktops. The desktop
market size will surely decrease in years to
come but it will still be a long while before
this happens,” concludes Kitshoff.
 ANALYSIS: IBM
SOLUTION PROVIDERS

IBM Afrika
Innovation Centre
A vehicle for business growth and skills development.

BY DUDU SHABA
“We see this investment as game changing and creating

I
BM channel partners will benefit from the
IBM Africa Innovation Centre launched at enormous opportunities for skills development, industry
the IBM premises in Sandton this month. promotion and economic growth.” – Mark Harris, IBM Sub
The innovation centre, the first of its kind
Saharan Africa.
on the continent is aimed at driving infor-
mation technology skills development and
addressing business challenges in the eco-
nomic growth of sub-Saharan Africa.
Steven Mills, Senior Vice President and
IBM Software Group, says that the innova-
tion centre is an enabling facility for crucial
ICT skills such as software development and
will transfer skills to channel partners.
“The innovation centre will also enable
resellers to differentiate themselves and
bring more value to their customers. The
centre is not only for members of the IBM
community, but for all partners as we aim
to build capacity in the channel,” he says.
The new centre is part of IBM’s $120 mil-
lion, two-year investment through to 2009
that includes new market expansion initia-
tives and houses Africa’s first cloud comput-
ing centre.
The centre will showcase business
approaches and open technologies such as
cloud computing, Web 2.0 technologies,
service-oriented architecture (SOA) and sys-
tems management. It will also demonstrate
next-generation banking systems offered at
the Banking Centre of Excellence as part of
the new innovation centre, and environ-
mentally friendly computing designs.
In cloud computing, dynamically shared
computing resources are virtualised and
accessed as a service, making it a particular-
ly attractive proposition for small-to-large-
Mark Harris, IBM
sized companies in Africa.
Speaking at the launch, Mrs Phumzile

CRN SOUTHERN AFRICA • JUNE 2008 • 33

ANALYSIS: IBM
SOLUTION PROVIDERS
Mlambo-Ngcuka, the Deputy President of
the Republic of South Africa said that inno-
vation is a critical weapon for enabling
emerging markets to compete successfully
in the global market.
“However, innovation requires awakened
minds for it to manifest. And this is where
the symbiotic relationship between quality
education and relevant skills development
becomes a critical intervention.
”We face a big challenge in the world of
scarce skills and talent, and also in reinvent-
ing the way we can learn and educate in
line with the global skills crisis,” she said.
The key elements at the Africa Innovation
Centre include:
 Technical Exploration Centre (TEC) – pro-
vides an environment to test drive and
gain hands-on experience.
 IBM Innovation Centre for Business
Partners (IIC) – enables access to the lat-
est open standards-based and open
source technologies and innovation
through cross-boundary collaboration.
 Software solution Lab (SSL) - helps IBM
customers throughout Africa to under-
stand and implement the latest IBM
solutions to achieve their business goals.
 Kaleido – The IBM Innovation
Experience- enables the development of
“The Africa Innovation Centre is a landmark investment
for IBM because it represents our commitment to being a
partner in the continent’s growth agenda.” – Steve Mills, IBM
Software Group.
Steve Mills, IBM
Software Group
34 • CRN SOUTHERN AFRICA • JUNE 2008
Phumzile Mlambo-Ngcuka,
lateral thinking skills, provides space for
creative thought to emerge and deep-
ens the quality of collaboration
 Systems and Technology Solutions Lab
(STSL) - executive briefings, skills transfer
and mentorship, and architectural
design sessions
 IBM Global Technology Services (GTS)
South Africa –fosters collaboration by
partnering with business partners and
ISVs in building innovative solutions
Joe Ruthven, SOA and Open Standards
sales representative, IBM, said that clients
will gain hands-on experience of IBM soft-
ware free of charge and be given advice on
solutions to address their business needs.
“IBM representatives will guide through
demonstrations and answer questions and
give any information needed. People will
be provided with an easy and fast way of
getting close to technology and new
ideas,” he said.
In addition, Ruthven said that IBM will
advise businesses on the green issue.
“We will advise our clients on how to cut
costs and go green with energy-efficient
offerings, consolidation and virtualisation,”
he said.
The new IBM Africa Innovation Centre
will offer an array of resources not only for
IBM business partners, but also for IT pro-
fessionals and academia, enabling them to
develop skills and deliver solutions to global
markets using IBM’s open architecture.
Mlambo-Ngcuka, outlined that govern-
ment’s need to show agility in policy mak-

ing to ensure industry growth is promoted.
“The Information Age demands new
thinking in government, the same way it
does in the business sector. We are faced
with the lingering question of to create an
economy that thrives domestically, keeps
pace with change, yet also competes on the
global stage? This is crucial for Africa to
trade as a major, equal partner with the rest
of the world.
”The other reality is the task for all of us is
to build an enduring economy that can
hold its own in the midst of the global eco-
nomic turmoil. Working together we must
empower poor Africans to take their fate
into their own hands,” she said.
“The Africa Innovation Centre puts SA on
the global radar of IBM’s business strategy
as we continue to be an active partner in
the continent’s economic transformation
into a major global player,” said Mark
Harris, MD and Country General Manager
of IBM Sub Saharan Africa.
The South African lab joins a global net-
ANALYSIS: IBM
SOLUTION PROVIDERS
work of seven specialised IBM facilities, includ-
ing China, India, Japan, UK, US and Brazil.
“My hope is that this will also encourage
other global and local organisations to fol-
low suit. Certainly, the vision I have of
Africa is one of a continent abuzz with
commerce within itself and flourishing in
trade with the rest of the world. I see a con-
tinent that is in full control of its resources,
both natural and intellectual.
“IBM’s investment directly responds to the government’s call for
increased private sector investment in sustainable initiatives that
advance priority technical skills.” – Phumzile Mlambo-Ngcuka,
Deputy President of the Republic of South Africa
I see the great continent, Africa, finally
taking centre stage for progressive reasons,
especially using ICT to change the future,”
Mlambo-Nguka concluded.
ANALYSIS: CHANNELWARE
SOLUTION PROVIDERS

The rise and fall of

ChannelWare
Distribution group redeploys after slow growth.

BY KAUNDA CHAMA

M B Technologies recently announced the

“In the long run I foresee better returns from the distribution
centres as opposed to the larger entity that was the original
ChannelWare.” – A.C.T. MD Anton Herbst
Anton Herbst, A.C.T.
redeployment of all ChannelWare’s
resources back into the group and at the
same time launched channel distribution
centres.
The move was the result of a decision
made by senior executives to embark on a
resource redeployment exercise, which saw
it restructuring most of The ChannelWare
distribution company.
As a result, some of ChannelWare’s
product lines were absorbed into other
group companies and the balance was
deployed into new business initiatives.
At the time of going to press, MB
Technologies was in the process of creating
a fleet of regionally focused, cash-on-deliv-
ery-based channel distribution warehouses,
designed expressly to serve the needs of the
SMB reseller channel.
Bruce McGregor, MB Technologies CEO
says: “ChannelWare, which is effectively the
old Storgate, had the core of its business
extracted to form the nucleus of our joint
venture with Ingram Micro. We were
optimistic to believe that what was left in
ChannelWare would be sustainable as a
stand-alone distribution business. We
will therefore be re-directing the
ChannelWare business to drive this
initiative, which we’ve had in the pipeline
for the past 18 months.”
The company reports that the move was
the brainchild of A.C.T. MD Anton Herbst,
who will take up the role of strategic direc-
tor of ChannelWare (while retaining his
A.C.T. position) and will be responsible for
the strategy of the company as it rolls out
over the coming months.
Herbst explains that after the changes
that came with the Ingram Micro venture,
expecting ChannelWare to survive was
quite a long shot because all of the
component business was removed from it,
leaving it with mostly storage and a little
networking business.
“When we did the Ingram deal, all the
Storgate component products were moved
to Ingram Micro and ChannelWare was
launched to keep the remaining product
ranges from the likes of 3Com, Fujitsu
Siemens, Lexmark, LG and Brokade,”
he says.
However, not too long after the deal,
some of the product sets like LG optical
were moved to the Ingram Micro business,
the Brokade business went to Tarsus while
the Fujitsu Siemens and Lexmark business
was terminated.
Essentially, ChannelWare was left as a
shell and Herbst is not shy to admit that

36 • CRN SOUTHERN AFRICA • JUNE 2008


the company’s business model failed. He
says the biggest issue with the way the
company remained was the fact that it was
stripped of all its biggest earners. “I think
we were a little too optimistic at the time,”
he says.
With this situation at hand, 18 months
ago Herbst decided to investigate ways in
which he could use the ChannelWare
resources to target the SMB space. The
company then opted to open about
30 ChannelWare distribution centres
nationwide.
“ChannelWare was only launched two
years ago and I think its performance has
been affected by the current economic cli-
mate. A lot more companies could be
affected in the sector if one looks at the
current rate of consolidation that is taking
place. I still feel that the distribution space is
rather overtraded,” he explains.
However, rather than close the entity, the
company has decided to keep the name
and redeploy its resources.
Herbst says: “In the long run I foresee
better returns from the distribution centres
as opposed to the larger entity that was the
original ChannelWare.”
He is confident that the new business
model will bear better fruit because all the
products will be sourced from companies
within the MB Technologies group and will
be sold to small-and-medium-sized busi-
nesses on a cash-only basis.
McGregor also admits that although
ChannelWare was no longer sustainable
after the Ingram Micro deal, it has a track
record of having numerous distribution
agencies that will go a long way in ensuring
that the new model succeeds.
He adds that it has taken a while to get
the new system to a point where it can
become operational because the company
has faced some challenges such as getting
the systems up and running, and ensuring
optimum efficiencies.
“This time we are confident that the
business will do well because it will be cen-
tred on fast-moving goods that can be
picked up for cash. It will operate almost
ANALYSIS: CHANNELWARE
SOLUTION PROVIDERS
like a retail cash-and-carry business,”
explains McGregor.
A lot of these outlets will be located in
relatively remote areas with the first ones
being opened in Nelspruit and Durban.
According to him, the changes that have
been brought about by the redeployment
of the ChannelWare business have and will
not result in any staff rationalisation
because the company and the sector as a
whole need skills.
“Our model of acquiring products
internally will also help in getting products
to the channel much faster, but even with
this, it is still too early to say whether this
venture will be a major profit generator. We
have to consider that we are shifting the
business model from a credit to a cash one
and this comes with its own challenges,”
explains McGregor.
Herbst says that MB Technologies has
ambitious plans for the new venture. Over Bruce McGregor, MB Technologies
the next three years it plans to roll out several
more channel distribution warehouses.
“Our aim is to ensure that we’re in every
SMB reseller’s backyard, and that we’re able
to give them both the product variety and
“This time we are confident that the business will do well
because it will be centred on fast-moving goods that can
be picked up for cash. It will operate almost like a retail
cash-and-carry business.” – Bruce McGregor, MB Technologies
competitive pricing they need to be success-
ful in their particular region.
“We believe that regional availability of
inventory, on a collection basis, is a signifi-
cant addition to our service to the channel
and we look forward to providing more
innovation in the channel environment by
focusing on what our customers need to do
business better,” he concludes.
With this change, one only hopes that
the market will react positively to a cash-
only business in these times when interest
rates are squeezing the life out of large,
medium and small businesses.
CRN SOUTHERN AFRICA • JUNE 2008 • 37
 Reviews by: Kaunda Chama
Highly Recommended

Microsoft LifeChat LX 2000

Once again Microsoft has brought out a great piece of hardware, the LifeChat LX-
2000 Headphone, for use with voice over Internet Protocol.
This headset is perfect for users who spend a lot of
time chatting on services like Microsoft Live Chat or
Skype and is easy to carry around.
The LX-2000 is designed to fold up and fits comfort-
ably around a user’s head, and provides high-quality
acoustics with outstanding sound.
It is a great plug-and-play accessory that works flawlessly with
a desktop or notebook PC as it requires no set-up procedure.
For those that use their notebooks on the go, it is easy to carry
around as an accessory because it folds up and fits into its carrying
case which fits into a handbag or big pockets.
For even louder and clearer sound, the device features inline volume which
make for quick adjustments. It also has a flexible microphone.
Its biggest advantages are that it is a plug-and-play device and is compatible with all the popular chat-
ting services like Windows Live, AOL Instant Messenger, Yahoo! Messenger Microsoft Office Communicator,
Skype and QQ.1.
In addition, it’s compatible with Windows Vista and previous version of Microsoft’s operating systems.
Most people would argue that headphones are headphones, but in this case I must give Microsoft credit for the sound quality as well as the
design because not only do these headphones provide good sound quality, but they are also comfortable.

Silky smooth laser mouse from Microsoft

With Microsoft and Logitech still battling for real estate on my office desk, as the two companies continue to outdo themselves all the time and the
one thing I can’t make my mind up about is a mouse.
My latest is Microsoft’s Wireless Laser Mouse 6000 and I must say it does not disappoint.
This optical mouse comes with most of the bells and whistles a user would want from a new-age mouse like
Microsoft’s tilting scroll wheel for horizontal as well as vertical scrolling.
The new Microsoft toy also features a high- definition laser with intelligent-tracking system; this
means it has a 1 000 dpi resolution, perfect for use in tight spaces (a capture rate of 6 000 frames
per second).
With the 6000 Microsoft has also added a magnifier tool that allows users to move a virtual
magnifying glass or zoom window over the screen.
On the looks side, a jet black and dark grey finish makes it look good alongside most domes-
tic and professional notebooks on the market today.
It comes with two AA alkaline batteries, which Microsoft claims can last for more than six
months if the device is used and stored properly.
Much like previous models, the 6000 uses a mouse-sized wireless USB receiver.
Like most of today’s wireless accessories, the mouse and receiver sync automatically the
receiver is plugged into a PC USB port with no need for frequency synchronizing; however, its
range performance was far from impressive.
Being that my desk is quite messy on the best of days, I found that the clutter on my desk
affected the mouse’s performance a little, depending on which side of the PC or notebook the
receiver was placed.
However, when placed in the right position the mouse performs well, even when used on pro-
grams where the accuracy of the mouse pointer is of utmost importance. Under such conditions the
6000 does not skip or skew.
Finally, the 6000 only has problems on very glossy paper or glass but other than that you can place it
on any other solid surface and it is good to go.

38 • CRN SOUTHERN AFRICA • JUNE 2008

PARTING: SHOTS

DILBERT www.dilbert.com by Scott Adams

S n a pshot
Company: Axis Communications
Position: Key account manager
Age: 25
Best personal achivement: Completing my degree Sasha
through correspondence at UNISA. Presenting at the annual Davidson
Top Property conference alongside Michelle McLean.
Management style: Lead by example
Most admired company: Blue Lable Investments
Most admired executives: Warren Buffet
Best IT product: Garmin Street Pilot, Apple Ipod, Google and of
course IP cameras
Most pressing local business issues: Power crisis
Key to success: To be highly ambitious, motivated, a positive
attitude and hard work.
Favourite car: Range Rover Sport, Ferrari F430 Spyder
Your car: Opel Tigra
Favourite author: Greg Behrendt
Where do you live: Craigavon, Fourways
Birthplace: Sandton, Johannesburg
Hobbies/sports: Bikram yoga and gym
Favourite periodicals: Cosmopolitan, Top Billing and Elle
Pet hates: Traffic, arrogance, bad attitudes and load shedding

40 • CRN SOUTHERN AFRICA • JUNE 2008