For System Builders, Having A Choice Of OS May No Longer Be Unthinkable

Before you blurt out "No," I think you have to consider that system buildersor white-box manufacturers, as they are commonly calledhave often voiced frustration with Microsoft's pricing policy toward them.

ROBERT FALETRA

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Can be reached at (781) 839-1202 or via e-mail at [email protected].

This group has always felt that the delta between the OEM pricing it receives vs. the consideration given to the big branded manufacturers is too wide to allow them to compete.

Despite that differential, system builders continue to thrive. They do so because of the many other ways in which they add value. Imagine if that competitive disadvantage went away.

While Microsoft certainly doesn't ignore this audience and in fact does invest in it in ways other than better pricing, system builders feel much better about the other part of the long-standing duopoly, namely Intel, than they do about Microsoft. Intel has spent a great deal of time wooing system builders worldwide and seems genuinely interested in seeing a strong system builder channel. It may be because Intel views these players as strategic to its future, while Microsoft looks at them more simplistically. One never really knows.

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Recently, Novell has begun to show signs it will target system builders as a strategic portion of the market, and its timing just may be right.

If you haven't seen a demonstration yet of Novell's soon-to-ship updated Linux desktop, I think you'll be impressed and envision some business opportunity in it when you do.

Novell gave attendees at the CMP Channel Group's XChange Tech Connect show last week a chance to look at the new product. I recently saw a demo of it, and while I haven't had an opportunity to load it onto a system and use it extensively myself, it looks to be more than adequate for the majority of users while lacking some features that power users may want.

More important, however, the product is expected to come along with a price tag in the $50 range and that just may be attractive enough to turn some heads.

It's especially attractive for system builders that are selling products into solution sales where the solution provider has enormous influence over what is in the package.

Is there a chance this could displace Microsoft? No way. But there is definitely room for Novell's product to offer a better margin for the system builder channel in some applications.

'There is room in the system builder market for more options than just Windows. And let's remember that white boxes still make up a large number of the PC systems sold through the channel each year.'

But Novell has its work cut out for it if it is to make any progress here. I bounced the Novell option off two solution providers and both came back with essentially the same issues.

First off, both pointed out that they have had some bad experiences with Novell that need mending. But assuming that can be accomplishedand we all know time, consistency and quality programs, and a strong pro-channel message can fix thatthere are some other basic things that have to happen.

Novell also must build solid support for the product as well as offer training, and it must be committed to turning around many of the channel players that once supported it but have since gone on to build other relationships. Before they buy in, those partners will need to see a consistent, channel-friendly message backed by programs that generate profit.

But there is room in the system builder market for more options than just Windows. And let's remember that white boxes still make up a large number of the PC systems sold through the channel each year. The only real question is how badly does Novell want share, and is it willing to duke it out long enough to make some headway.

Make something happen. I can be reached at (781) 839-1202 or via e-mail at [email protected].