eChannel 19 August 2001

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By  Mark Sutton Published  August 19, 2001

Editorial Leader|~||~||~|Dear colleague,

So farewell then to Gateway. The PC vendor has announced that it is to withdraw from all markets apart from North America, citing economic pressure (at least, I am assuming that Gateway are leaving the Middle East-as usual the official announcements make no mention of the region, but the lack of availability of Gateway representatives in the region would suggest they are packing up shop).

It is a shame to see them go, as the company’s products were generally recognised as being quite good quality and value. Some have suggested that the company tried to undercut the competition with unsustainable pricing, but Gateway has always rated highly on customer service, and its retail operations in Europe were very good.

Perhaps more worryingly is the effect that the decision could have on an IT-based economy. Ireland has long been held up as an example of how investment in technology can be used to revitalise a country. State and private investment in the 1970s and again in the 1990s paid off, creating thousands of jobs, and providing a population that had often looked to other countries for employment opportunities, with a chance to develop high tech businesses at home.

Along with Dell, Gateway had been one of Ireland's largest employers and its Dublin plant, opened amid much fanfare in 1993, and was the site for a 1998 meeting between US President Bill Clinton and Irish Prime Minister Bertie Ahern.

Now the plant looks likely to close, with the loss of some 850 jobs. Dell, Baltimore Technology and Intel have all made cutbacks in Ireland recently-almost 4,000 high-tech jobs have been lost in Ireland this year. With so many countries in the Middle East pinning their hopes on a high tech economy, perhaps Ireland presents a timely warning.

||**||News|~||~||~|IBM to discontinue use of AMD processors

IBM has decided to stop using AMD's chips in PCs sold in North America. The company will use AMD chips in computers sold in Asia, but an IBM spokesman confirmed recently that the company has dropped AMD’s Athlon and Duron chips from its desktop line-up for the US and Canada.

IBM has also curtailed marketing AMD-based computers in Europe, according to a spokesman. No word has been given on the Middle East as yet, but it seems likely that the Gulf region will follow suit. The decision to drop AMD came as part of an effort to streamline its consumer PC product line.

“The AMD processors are not currently offered in the United States,” said IBM spokesman Bob Page. “That choice ended in May 2001 when we simplified the product line to make it easier to understand.”

Intel is currently embroiled in a price war with AMD, resultant mainly from the respective releases of the AMD Athlon and the Intel Pentium 4. Intel is expected to release a 2GHz Pentium 4 and further price cuts later in the year, an example of the type of strategy which has prevented AMD from landing a deal to get its chips into the PCs of the top five PC manufacturers.

Gateway prepares to dump its international operations

The rumours that have plagued Gateway’s worldwide operations— namely, that the PC maker's foreign markets have been performing woefully— seem to have some basis, with recent confirmation that the company will next week make a decision on whether or not to pull the plug on its international operations.

The company has recently chosen a new strategy focused on selling PCs, software, accessories and training to small businesses, but there have been doubts as to whether this move would work outside of the US.

“Gateway will decide on what action, if any, is necessary [by September 10th],” said spokesman Mike Buchanan. “It may take a little longer…hopefully it will take less. If the company decides that the overseas markets can’t achieve the goal of being profitable, it might mean significant restructuring or even withdrawal from that particular market.”

International sales accounted for just 12 per cent of the company’s $1.5billion global sales revenue during the second quarter. The foreign markets at risk include the Middle East, along with Asia, Europe, Africa and Latin America.

Cisco grabs market share in high-end routing market

Cisco has managed to put some distance between itself and fierce rival in the Internet routing market, Juniper Networks.

Research by Dell’Oro Group appears to validate earlier comments made by Cisco’s CEO & president, John Chambers, that the vendor had managed to gain between 3-to-5% market share on Juniper in the second quarter.

According Dell’Oro Group, Cisco holds 60.3% of the high-end routing market, up slightly from 59% in the first quarter. Juniper’s market share dropped from 38% to 34.7% over the same period.

Before the latest quarterly results, hard-charging Juniper had steadily eroded Cisco's dominance in high-end routers market.

High-end routers are devices that telecommunications carriers and service providers use in their networks to direct Internet traffic from one area to another at high speeds.

However, a close look at the figures, will show that Cisco didn’t do it all by itself. With Juniper’s slight slip, a third player, Avici Systems doubled its market share from 2.1% to 4%.

Tam Dell’Oro, analyst with the Dell’Oro Group suggested that Cisco's slightly improved performance was down to the introduction of a high-speed router that matched Juniper’s product.

“Last year Juniper didn’t have any competition in the highest-end router market. This year they do,” said Dell’Oro.

For the second straight quarter, the total size of the high-end router market plunged. Second-quarter sales reached $535.4 million, a 29% drop from first-quarter sales of $753 million.

Tam Dell’Oro said she expected the market to rebound once the economy recovers, and service providers start spending again. The market will be driven upwards, as service providers boost bandwidth to support new services.

“This would be one of the first markets to rebound,” she said. “Service providers we’ve interviewed reiterate their intention to launch new services and say they require more bandwidth in their networks,” Dell’Oro added.

Intel expected to cut prices

As Intel shares fell 4.4% last Monday, Wall Street was predicting that the world's largest chip maker would soon embark on another round of deep price cuts to stimulate demand for its high-end Pentium 4 (P4) chips.

Although some Wall Street analysts are saying that Intel's impending price cuts are a response to increased competition from AMD, Meta Group believes that the action is more a response to the generally weak demand for PCs in both the consumer and business markets.

"Intel is its own biggest competitor," says META Group analyst Dale Kutnick. "People are happy with what they have, and Intel has to find a way to convince them to buy new stuff."

However, the analyst house questions whether a steep cut in P4 chip prices will be enough to stimulate PC sales and it suggests that, in the short run, it is likely to have the opposite effect - depressing sales of the Pentium III (P3) machines that now predominate in the market as consumers wait for the lower-priced P4s.

"The clear message is to hold off on PC purchases until the less expensive P4-based machines have a chance to get onto store shelves," says META Group analyst William Zachmann. "In two to three months, you might be able to buy a PC with a 1.4GHz P4 processor for $800."

In fact, Meta predicts that demand will only when a number of factors come into play. The first is multimedia, as Meta suggests that the growing popularity of digital music and pictures, availability of inexpensive software to edit these multimedia elements, and use of high-bandwidth connections to support e-mailing digital media to family and friends is the next major consumer demand driver.

It also points to the release of Windows XP, which, it says, has improved support for multimedia and this, combined with the less expensive P4, will feed demand. Other factors to consider include the increasing availability of high-speed Internet connections to support the download of large multimedia files, falling prices for CD burners that enable users to make recordings of MP3 and other multimedia files from the Web, and general availability of DVD players create fertile ground for new consumer spending on systems.

With all this in mind, Meta suggests that consumers should hold off on PC purchases for the next two months and wait for the arrival of new, inexpensive P4 multimedia systems. For corporate buyers, the analysts recommend that purchases should be delayed, where possible, until early 2002, when, it says, prices often drop again in the wake of the holiday buying season and as PC manufacturers refocus on stimulating the business market.

||**||Dealer Incentives|~||~||~|The BIG BUY and WIN with Mindware
Buy OEM Windows'98, Windows 2000 Professional and/or WinMEin the month of August and reward yourself with FREE quality gifts!

Buy 21 to 51 Units (Get - Siemens C-28 Mobile Phone)
Buy 52 to 75 Units (Get - Sony 6 Head VCR)
Buy 76 to 120 Units (Get - Sony VCD Hi-Fi System)
Buy 121 to 252+ Units (Get - JBL Home Theater System with DVD Player)

Offer valid for orders received between the 1st August and 31st August 2001 only and does not apply for any deals that require special pricing from Microsoft/Mindware. Gifts to be claimed from Mindware Dubai. Shipping cost if any, to be borne by the reseller as per actual. Offer is accumulative. Gifts can be claimed after 15th September 2001.

CALL MINDWARE SALES DESK NOW !! ON +971-4-391 3333

Validity - End of the Month
Contact Mindware Sales Desk on (971-4) 391 3333
Or Fax us at (971-4) 3913334
Or e-mail us at sales@mindware.co.ae

Special Discounts on Symantec products from Aptec

Special promotions throughout Q2 2001 could earn you $$$ thousands.

Buy any Symantec Licenses from Aptec in Q2 2001 worth $4000, and get an AED 1000 voucher from Plug Ins at the Dubai City Centre

OR

Get an AED 1000 voucher from Aptec Mobiles

OR

Buy any Symantec Licenses from Aptec in Q2 2001 worth $10000, and get an Aptec 1001 Golden Partner Certificate which will entitle you to the AED 1000 voucher from Plug Ins at the Dubai City Centre

PLUS

A 2% rebate on Symantec Licenses Purchases at the end of Q2.

To qualify, please register with Aptec by fax at: +971 4 335 5941 or register online at: href="http://www.apteconline.com">http://www.apteconline.com

Cisco Rewards now on for big prizes

Cisco Systems will reward qualifying resellers with new Audi TTs, Breitling watches, stays at the Burj Al Arab, and other spectacular prizes, for their exceptional sales of Cisco equipment.

To qualify for prizes, resellers must register with Cisco by hitting the link below, and then accumulate points towards these stunning prizes.

A full breakdown of points and values, and all you need to start collecting is on the Web site once you hit the link below.

To enrol in Cisco Rewards, you will require a Cisco Connection Online (CCO) User ID and Password. To obtain this, you need first to be registered as a Cisco reseller.

For further details, click on this link: http://www.cisco.com/rewards/emea/how.html

Join Saudi Business Machines for huge savings with IBM
SBM are offering a massive 50% discount on IBM RS/6000 servers: Top-rated Web server, High Density Packaging of Internet and Internet Applications, 64-bit performance and availability to handle your most demanding e-business, ERP, business intelligence and database applications.

For further information, email: Majeds@sa.ibm.com or Tel: (KSA) 966 2 660 007

Mindware and Intel Express Router Promotion
Join Mindware and Intel for excellent pricing on Express 8000 & 9500 routers.

Intel Express 8000 series routers:
Part numbers:
ER8100ST: 1 x 10/100 LAN, 1 x ISDN BRI
ER8100FR: 1 x 10/100 LAN, 1 x WAN serial port
ER8210EU: 1 x 10/100 LAN, 1 x WAN serial port, 1x console port

Intel Express 9500 series routers:
Part numbers:
ER9510ST: 1 x 10/100 LAN, 1 x ISDN BRI, 1 x Serial WAN, 1 x
console/Async
ER9515ST: 1 x 10/100 LAN, 1 x 10 Mbps LAN, 1 x ISDN BRI, 1 x
serial WAN, 1 x console/Async
ER9530EU: 1 x 10/100 LAN, 2 x Serial WAN , 1 x console port/Async
ER9535EU: 1 x 10/100 LAN, 1 x 10 Mbps LAN, 2 x serial WAN, 1 x
console/Async

For more information, email: ayten_polad@mindware.co.ae.

Tech Data & Novell: Small Business Suite 5 Offer

Tech Data and Novell are offering a special pricing on Small Business Suite 5. Small Business Suite 5 - unique market pricing is still available

Server + 5 user ONLY $372 (00662644339047)
Server + 10 user ONLY $533 (00662644339054)
Server + 25 user ONLY $904 (00662644339061)

For further details, visit: http://www.novellmoneymaker.com or Tel: 971 4 3346 952

Novell is also offering FREE Small Biz training. For further information, email: info_mideast@novell.com

Tech Data Cisco Summer Pricing
New promo pricing for Cisco 2900 Series 10/100 & Gigabit Switches

Product code $ List Price $ price
WS-C2912-XL-EN $1,495 $810
WS-C2924-XL-EN $1,995 $1125
WS-C2924C-XL-EN $2995 $1825
WS-C2950T-24 $2,395 $1450
WS-C2950C-24 $2,995 $1825
WS-C2950-24 $1,995 $1125
WS-C2950-12 $1,495 $810

Valid until 30th November 2001. All Prices are per unit and Ex Jebel Ali. This Promo cannot be used in conjunction with any CTMP`s. Remember where you heard it first!
Contact ; pradeepa@techdata.co.ae pradeepa@techdata.co.ae, dorianc@techdata.co.ae, vivekv@techdata.co.ae

Tech Data offers the Best Priced notebook in the Middle East

Tech Data steps forward to offer Middle East resellers the best priced notebook - Hewlett Packard Xe3 Omnibooks. The success came after the sales of these notebooks flying in KSA, Kuwait and other territories.This special offer from Tech Data is clearly our strategy to close bigger sales during the summer when people are on the move.

For more information on the special offers please log on to our website : http://www.techdata.co.ae (click on to resellers special offers or other exciting links/Exciting offer on HP Xe3 Omnibooks) or call our Sales desk at 971-4-3346952.

Intel P4 and Intel Camera/Toys Offer

Tech Data in conjunction with Intel bring you promotion on Intel Pentium 4 Processors and Intel Camera and Intel Toys.

With Any Pentium 4 Processor Get an additional 25% off on an Intel Pocket PC Camera
With Any Pentium 4 Processor Get an additional 25% off on an Intel Easy PC Camera
With Any Pentium 4 Processor Get an additional 25% off on an Intel QX3 Microscope

Promotion Valid Until 25th. August

Call your account managers at Tech Data today to place your orders while stocks last.

How Secure Is The Data Travelling On Your LAN?

Intel PRO/100 S Desktop Adapters With IPSec Encryption Prevent Malicious Attacks and Tampering
Key Features:
-IPSec hardware offload enhances IPSec performance
-10/100 autosensing and full duplex
-Intel Priority Packet improves bandwidth control
-Intel SingleDriver technology simplifies install & maintenance
-Intel Adaptive Technology – increases network response time
-NEW! Linux driver support
-Tivoli agent and Intel LANDesk Client Manager included

Summer Special Offer*

$33per NIC

For Peace of Mind Install Intel Pro/100S Adapters call Tech Data Now on 04 334 6952 For A Great Deal on Intel

Sign up to Intel’s Focus Integration Program for Volume discounts and More

Special offer price applicable until end Sept 2001 or while stocks last, Prices : Ex-JAFZ

Intel Network Interface Adapters pricing deal
Intel is offering IPIs a special pricing deal on Network Interface Adapters. This preferential pricing allows IPIs to buy a 20-pack at the same card unit cost as an 80-pack.

For more details, visit: http://program.intel.com/ipi/en/index.htm

Intel Server rebate offer
Increase your margins on Intel server products with extra rebates on the PRO/100+ Server adapter.

For more details, visit: http://program.intel.com/ipi/en/index.htm

Intel & Cisco Gigabit Promotion Bundle

PWLA8490T INTB PRO/1000 T Server Adapter (10/100/1000)
Normal Price $165.00, bundle Offer with Cisco Switch $75.00
Validity: 11/30/01
Contact: ashfaq@techdata.co.ae

Note: 1. The above promotion price on Intel Gigagit Adapter is only valid with Cisco 2900 Series 10/100 & Gigabit Switches.
2. Intel Gigabit Adapter Offer is valid while stocks last.

Are you offering any special promotions?
Do you have a special promotion that you want to inform the channel about?

We would be happy to include any incentive programmes or special promotions that you are running each week in eCRN.

For more information - please send full details to Dealer Incentives.

For more information on the Middle East IT Reseller Channel - visit Computer Reseller News Online TODAY.

||**||Training Diary|~||~||~|ARE YOU HOSTING A RESELLER EVENT?
Do you have any events for the industry that you would like to see listed here?

If so please send a message to Events Diary today and we will add the listing in a future edition of eCRN.

Dubai

August 12-16: Sun Microsystems System Administration I. For further information contact Sun Educational Services on +971 4 336 6333, email training@dubai.sun.com or see http://www.sun.com/middleeast/education

August 12-14: Sun Microsystems Veritas NetBackup. For further information contact Sun Educational Services on +971 4 336 6333, email training@dubai.sun.com or see http://www.sun.com/middleeast/education

August 19-23: Sun Microsystems System Administration II. For further information contact Sun Educational Services on +971 4 336 6333, email training@dubai.sun.com or see http://www.sun.com/middleeast/education

August 21-23: Sun Microsystems Veritas NetBackup. For further information contact Sun Educational Services on +971 4 336 6333, email training@dubai.sun.com or see http://www.sun.com/middleeast/education

August 26-29: Sun Microsystems Network Security using SunScreen EFS 3.0. For further information contact Sun Educational Services on +971 4 336 6333, email training@dubai.sun.com or see http://www.sun.com/middleeast/education

August 26-28: Sun Microsystems Veritas NetBackup. For further information contact Sun Educational Services on +971 4 336 6333, email training@dubai.sun.com or see http://www.sun.com/middleeast/education

Cairo

August 12-13: ISS Internet Scanner/Database Scanner Training, Cairo. For further information contact ISS on +202 760 70 11, or see http://www.iss.net

September 2-4: ISS Real Secure Training, Cairo. For further information contact ISS on +202 760 70 11, or see http://www.iss.net

September 5-6: ISS System Scanner Training, Cairo. For further information contact ISS on +202 760 70 11, or see http://www.iss.net

September 9-10: ISS Internet Scanner/Database Scanner Training, Cairo. For further information contact ISS on +202 760 70 11, or see http://www.iss.net

||**||Recruitment|~||~||~|Are you looking to hire experienced channel people to expand your business? Why not advertise your positions to over 3,000 registered members of the Middle East reseller channel for FREE every week in eCRN?

If so please send a message to Recruitment today and we will add your job listing to the next edition of eCRN. And please don't forget to notify us once the vacancy is filled.

EMPA Middle East FZCO: Regional distributor of Intel and Quantum

Wanted: Sales Engineers with channel experience & knowledge of the North Africa and/or Middle East region.

Must be able to travel frequently.

APPLY NOW: Please send an email attaching a CV to recruit@empa-me.com

Aptec Saudi Arabia

Wanted: Young, educated people willing to work in a fast moving company.

The following positions are open to appropriate candidates:

Retail Sales Specialist
A sound knowledge of the retail business would be appreciated.

The candidate should have very good communication skills and a good command of English.

His job is to create his own channel while passing up leads, giving time and support to his customers through daily visits or/and daily telephone contacts.

The position is based in Saudi Arabia.

The company will provide training on products.

Retail Business Developer
The position needs a previous experience in the retail market, ideally in IT, distribution or both.

The candidate should be holding a degree in Commerce or IT from a valuable university.

The candidate should have a very good command of English and should position himself as the Retail Office of the company.

Daily contacts with both customers and vendors, accuracy in reporting and development of marketing activities around his brands are required.

The Retail Business Developer will have to break into the market with major brands and to manage his Sales Specialist and his channel.

The position is based in Riyadh, Saudi Arabia with regular visits paid to customers/users Kingdom wide.

Networking Sales Specialist

A sound experience in selling networking products is needed here.

Understanding the end-user market is a must as it drives the sales to our second tier partners.

The candidate should have very good communication skills and a good command of English.

His job is to create his own channel while passing up leads, giving time and support to his customers through daily visits or/and daily telephone contacts.

The position is based in Saudi Arabia.

The company will provide training on products.

Telesales (two to three positions available)

We would like to invite here all people interested in the IT business.

People with experience in sales, in IT, or juniors are welcome.

Candidates have to speak English.

Dedication to customers is the rule. Your daily contacts, permanent follow-up on quotations and 100% availability will make the difference, willingness and happiness will do the rest.

Positions based in Riyadh, Saudi Arabia.

Oracle Product Manager

The candidate must hold a degree in Commerce from a valuable University.

A sound understanding of the IT world, its moves its requirements and future trends would help the ideal candidate to step quickly in the driver seat.

Daily contacts with both customers and vendors, accuracy in reporting and development of marketing activities around his brands are required.

A good command of English is a must.

The position is based in Saudi Arabia (Riyadh) with regular visits paid to customers/users Kingdom wide.

Tech Data
Tech Data is a leading global provider of IT products, logistics management and other value-added services. A Fortune 100 Company, with over 8,000 employees in more than 30 subsidiaries across the world.

To support our continued growth and expansion in our Middle East operation we are looking for professional, self-confident and dynamic team players with excellent communications skills, for the following roles:

Sales Professionals-UAE
Ref: ISE/2
Working within our fast paced sales team your communication and telephone handling skills will be second to none. Proactive calling and receiving to profile potential and existing customers, solicit business in order to maximize sales to meet your individual and team targets. Tech Data will provide award winning customer support structures so that you can provide the best service to our resellers.

Business Development Managers - Bahrain/Kuwait/KSA
Ref: BDM/2
Based in country, we require exceptional candidates to further our growth in the above regions. Working closely with the Sales Teams, you will be responsible for developing and building on existing client relationships whilst pro-actively seeking new resellers for Tech Data. Ability to work independently is an essential requirement for this role.

Credit Controller-UAE
Ref: CC/1
You will hold an accounting qualification and have at least 2 years of experience in the credit functions of FMCG/distribution businesses. At Tech data you will be involved in complete credit cycle of our clients. Detailed and methodical, Arabic language is an advantage as is the ability to work under pressure.

Purchasing Controller
Ref: OPS/1
You will direct and control purchasing operations to achieve the company’s annual operating plan through the provision of products to Sales & Marketing teams at optimum prices. Stock management and inbound logistics form an essential part of the job. With relevant qualifications your strengths for this role will be in organisation, analytical and negotiation skills. Good working knowledge in logistics, freight rates and custom laws.

Cisco Field-based Sales Specialist-KSA
Ref: BDMC/1
You will have previous working experience with CISCO products as well as an appreciation of customer care and retention. Working closely with the Dubai based CISCO Team, you will be responsible for developing and building on existing client relationships, whilst pro-actively seeking new customers to purchase CISCO products and services.

To apply please contact Tech Data's Human Resource Manager on fax: 00 971 4 335 9524, or email: careers@techdata.co.ae, in writing to Tech Data FZ LLC, PO BOx 50718, Dubai, United Arab Emirates, or see http://www.techdata.co.ae/aboutus/currentjob.asp

||**||Next Month|~||~||~|In Next Month's Computer Reseller News Middle East

September 2001 FEATURES

Network Security
Does the channel face an uphill struggle in promoting security solutions?
Ask the experts
What can big name consultancy firms do for your business?
Country focus
An in depth analysis of up and coming opportunities outside of the Gulf.

Behind the Scenes: financial trends; who is winning and who is losing; company acquisitions, mergers, and sell-offs.

E-Business: technologies and trends in this emerging channel opportunity.

Logistics: logistics, shelf life, and product cycles and how they affect the channel.

Training: skills and learning

Infrastructure: the big-project VARs and what they are working on now.

Dealers Wanted: information on all the new vendors looking for resellers in the Middle East.

If you think you have anything to contribute to one of the above features - we would be very happy to hear from you. Contact CRN editorial at mark.sutton@itp.net
||**||

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