Corel Expands Distribution Deal With Synnex

Corel said Tuesday that it has expanded its distribution pact with distributor Synnex Information Technologies to include the United States.

The deal comes with Corel WordPerfect Office 11 available Wednesday for ordering from distributors including Synnex. Corel WordPerfect Office 11 marks the most significant office suite product launch for Ottawa-based Corel in the past several years.

The WordPerfect Office 11 push comes with a number of solution providers complaining about the pricing disparity that Dell Computer enjoys on Microsoft's Office suite and the Windows operating system.

Synnex has had a relationship with Corel to distribute its software products, including WordPerfect Office 11, in Canada for the past four years. Under the expanded pact, Synnex U.S. is now distributing the full line of Corel software.

Among companies that distribute Corel software are Ingram Micro, Tech Data, D&H Distributing, Douglas Stewart and Merisel.

They key to beating Microsoft Office in the market is significantly higher margins backed by strong marketing, said Larry Souza, president of Maximum Micro, a South Yarmouth, Mass., white-box builder. Maximum Micro is currently bundling Microsoft Small Business Edition with the majority of systems it sells. Strong interoperability with the Microsoft Office suite is also critical, Souza said.

Steve Houck, executive vice president of partner relations at Corel, said the Synnex deal is aimed at driving "incremental new revenue."

"This deal gives us broader distribution into the small, medium business space," said Houck. "Synnex has good licensing programs, good online technology and they have really done a good job of addressing small, medium businesses."

Houck said solution providers are "hungry for non-Microsoft channel software at prices they can make some margin on." He pointed out that Corel's WordPerfect Office 11 upgrade is $149, down from $299. Furthermore, he said the WordPerfect Office 11 education SKU is priced at $99 compared with the $149 offering from Microsoft.

The new WordPerfect Office 11 product has improved compatibility with Microsoft Office, said Houck. The suite also comes with a wireless component that allows solution providers to set up businesses to update spreadsheets via cell phones and SMS text messaging, said Houck. Partners also can set up businesses to book meetings with Microsoft Exchange using SMS text messaging, he said.

Corel is also poised to make available from distributors in early May Corel Painter 8, the company's sketching and painting tool.