Al Senia: May 2008 Archives

 Computer manufacturer (and channel player) Dell is in hot water after a New York State judge ruled the company was deceptive in advertising its warranty and financing policies. Essentially, Dell stands convicted of running a classic bait-and-switch scheme in New York State.

Well, some bad news for you web readers: It appears you are becoming more ruthless. Selfish, too. You're not dawdling on the web anymore. You know what you want, and you want it now!

In yet another indication that channel businesses are in play, distributor Avnet has agreed to buy systems integrator Ontrack Solutions of Mumbai, India. With this deal Avnet is trying to expand its footprint into India's fast-growing IT market (where it already is active.)

Distribution is back to the forefront of chanel news. Tech Data has reported strong 1Q numbers. Avnet Technology Solutions, meanwhile, has promoted an idustry veteran to the helm of its U.S. operation.

Microsoft has announced a cash rebate plan that would award its search engine users who actually end up buying something. This could certainly cause Google to take notice.

The social networking phenomenon, which so far has been dominated by large, broad web sites such as Facebook and MySpace, appear to be in the process of re-invention. The channel may well benefit from this.

No doubt that Apple's new stores, including the one that just opened in Boston, are cool places to visit with the latest high-technology goods on display. And they'll no doubt be a hit with consumers.

Microsoft sponsored an invitation-only executive summit this week to talk about the future of technology with 115 Very Important CEOs at its corporate headquarters in Redmond. It even included some media stars, but don't expect to learn very much beyond the usual corporate hype.

IDC has just released a report that discovered there are a lot of hyped-up technology users out in the web world using multiple devices and multiple applications. This is great news for the channel, even if does not surprise any of us who have had their dinner, movie, airplane flight or sporting event interrupted by crazed Internet junkies.

The poster child for municipal Wi-Fi in the United States, Philadelphia, is getting its plug pulled by service provider EarthLink, a development which underscores the difficulties government-based Wi-Fi is having in the U.S. and the problems service providers have turning a profit.

Hewlett-Packard confirms that it is discussing a possible deal with giant systems integrator EDS. If it happens, it could position HP to compete much more effectively in the service realm against IBM and its Global Services unit. However, the news also underscores the growing amount of channel comsolidation that is now underway.

Leave it Los Angeles County government officials to enact another idiotic public law. Now peer-to-peer video and audio piracy has been declared on par with gambling, gang-banging and prostitution, and property where such activity occurs can be closed for as much as a year.

Sounds like Dell Computer is about to engage in a delicate balancing act with its new-found channel partners. The vendor is launching a managed services initiative to sell to customers directly. So will Dell destroy margins in managed services the way it did with PCs? 

The technology industry and channel partners are certainly much better off because of the Internet. The technology changes it has spawned have resonated through the channel for more than a decade. But are we totally missing the downside of that experience?

Personal computers have for the first time gone on sale in Cuba, but the U.S. reseller channel is going to suffer because of the antiquated, ineffective and ridicuous trade embargo that the Bush Administration stubbornly clings to for that island nation.