Juniper, HP Channels, Acer and Sam Palmisano

partner event in Honolulu also had a good chuckle over their mai tais. Maybe people are clamoring for a rival to really stick it to Cisco. That or they are foolhardy enough to believe that Juniper's acquisition of a firewall maker will provide it with a beachhead to challenge Cisco. It's like saying had Sugar Ray Leonard gained 100 pounds, he would have beaten Mike Tyson in a title match.

Why was I so tickled? Observation No. 1: Last year, Juniper generated $701.4 million in revenue. That would be a rounding error for Cisco. In the first half of Cisco's fiscal year, its sales were $10.5 billion, and its profit for the period was some four times larger than Juniper's annual sales. Observation No. 2: Cisco has John Chambers, who is among the most partner- and channel-savvy CEOs around. And in his possession is one of the more powerful channel executives--Paul Mountford. Meanwhile, Juniper is led by that font of partner perspective Scott Kriens and, truth be told, no one is really sure just who runs channels. Care to hear Kriens' first big channel move? He wants to tap into NetScreen's 400 U.S. security-oriented partners to sell Juniper gear. I sure hope the merger is better thought-out than the partner strategy.

Let's get serious for a moment. Maybe Juniper will turn out to be a more formidable rival to Cisco than what Enterasys or 3Com were. If you talk to the technical folks who understand the subtleties of the high-end router space, they will tell you Juniper's gear is not only the best, but the company understands that segment far better than Cisco does. My comeback? The best products don't always win. The best strategy does. If Juniper's buyout of $245 million NetScreen does signal its intent to diversify beyond its telecom roots and expand its portfolio, it will have to ramp up its partner network--and fast.

Changes Afoot At HP?
If Juniper wants to gain a better understanding of channels today, it should take a look at Hewlett-Packard. HP is scrutinizing its channel-management structure, which could result in the appointment of a single high-level channel executive with broad powers across the company. As you know, HP splits channel responsibilities between Kevin Gilroy, who oversees PC and printer products, and Dan Vertrees, who oversees server-based offerings. Both are both very partner-centric in their thinking. But now HP is indicating it may make some changes. Executive vice president Duane Zitzner, who heads the company's $21 billion Personal Systems Group, recently assumed wider product responsibilities for software and services and has asked Jim McDonnell, his longtime marketing executive, to study some alternative arrangements. One of those options could find McDonnell playing a strategic channel role much in the same way Mountford does at Cisco or Michael Borman does at IBM. Both of those execs work closely with their respective CEOs.

Is Acer Serious?
I like companies with big aspirations, so here is one to keep an eye on: Acer. After a dramatic fall from grace in the channel, the company is attempting to build its brand and has a quest to become the No. 3 player in the notebook space within two years; it currently ranks No. 8. I recently spent some time with its channel team, including former Toshiba veteran Jeffrey Friederichs and J. Mark Hill. Both laid out a convincing plan that relies on a robust partner network. Acer's newest offering, a Ferrari Red notebook, may not break unit-shipment records, but it is eye-catching.

When Sam Palmisano Speaks...
Speaking of someone with great aspirations on a grand scale, in the next issue of VARBusiness and on the eve of IBM's huge PartnerWorld conference, expect an exclusive interview with IBM chairman and CEO Sam Palmisano. Robert Faletra, who heads up the Channel Group at CMP Media (which publishes this magazine), and I interviewed Palmisano at his Armonk, N.Y., office, where he discussed his vision for on-demand computing and his thoughts on IBM's opportunity in the partner space. In addition to the QandA, we take a hard look at the challenges surrounding IBM's channel. Let me know what you think at [email protected].