The 2003 Annual Report Card Awards Presentation

Robert Faletra: President, CMP Media Technology Solutions Group

Good evening everyone and welcome to the presentation of the 2003 VARBusiness Annual Report Card awards.

Tonight we honor these companies that have achieved a truly remarkable business goal: a number one rating in partner satisfaction, as judged by their very own Solution Providers.

It is Solution Providers who are turning business vision into business reality through the application of technology.

Each year, we ask Solution Providers to tell us which vendor organizations they value most as partners.

This is a paticulary opertune time to be rated Number 1.

The reason is we are confident as we move into the 4th quarter, and into 2004, that we are at the beginning of a technology spending recovery.

CMP Channel Research has been showing optimism among solution providers and end-users, particularly in the midmarket and enterprise space.

Recently, Goldman Sachs issued a report that they expect capital spending to increase 5% in 2004, the first gain since 2000.

It's our opinion that solution innovation not just technology that will lead our economy to prosperous times.

The Annual Report Card is just one example of the in-depth research and special reports VARBusiness provides the industry every year and it is an important part of our mission: to bring strategic insight and technology direction to solution providers.

This has been a banner year for VARBusiness, we were named one of the top ten magazines of the year and also named to the B2B media power 50 as one of the most powerful business to business media brands.

The Annual Report Card is one of the most comprehensive, research-based study of Solution Provider satisfaction.

So I'd like to take a moment to congratulate all of the vendor organizations that were part of this years Annual Report Card.

Just being involved in the competition means you recognize solution providers influence and leverage in delivering business technology solutions.

But more than anything else, it means you're committed to providing the highest level of service to your customers.

By any standard of success, being a part of the Annual Report Card is a truly significant business achievement.

Congratulations to you all.

As you can imagine the VARBusiness team as well as the Editorial Director and Publisher have been working extremely hard crunching numbers and finalizing the ARC research.

Recently they were reviewing the ARC results and were talking about how tough it must be for the vendors to be scrutinized by some of the toughest judges in the industry, you the solution providers.

While pondering that thought, they decided to put themselves in a similar situation.

I think they found out that getting some direct and honest feedback was invaluable.

It helped them improve their relationship and gave them insight into what its like to perform to the highest standards.

Please take a look.

Robert DeMarzo: Vice President and Editorial Director, VARBusiness

Good evening everyone.

I'm Bob DeMarzo.

Welcome to the 18th presentation of the VARBusiness Annual Report Card Awards.

Mike Uliss: Publisher, VARBusiness

Good evening everyone, I'm Michael Uliss and I am thrilled to be here tonight. I want to apologize for putting you all through such pain.

I promise to keep my singing to a minimum.

Robert DeMarzo:

As you just saw, we learned through that grueling process that it was better to partner than go it alone.

Clearly we didn't make the grade but according to the ARC results, all of the companies here tonight did.

Mike Uliss:

That's right Bob.

It was great making light of the American Idol phenomenon, but if you watched the show, when it comes to the final 10 contestants - they truly are the best of the best.

Just like when you get to the finals of the ARC, the nominees are the best of the best.

But in every competition the select few eventually rise to the top.

Tonight we'll reveal those select few and crown them VARBusiness Idols.

As you saw in the video Bob tried to fake his way through the competition but he didn't get very far. And neither will vendors that try and fake partner loyalty or channel commitment.

In the ARC, there's no faking it.

Only the companies who have demonstrated persistent dedication to partnering shine through.

Robert DeMarzo:

That's right Mike, the bottom line is when vendors and solution providers work together they create a business relationship that benefits both parties.

Although we made light of our on screen partnership, partnering is serious business for everyone in this room.

I think it was pretty clear that Simon had some strong opinions about my look -just like the way solution providers have some strong opinions about vendors.

Robert DeMarzo:

Before we begin, a couple of points of order: For each category, we will announce the Subcategory Winners first, and then we will name the Overall Winner for that category.

Mike Uliss:

Those receiving awards should proceed to the center of the stage as soon as you hear your companys name announced.

Mike Uliss:

But before we give out the first award, I want to introduce you to a new facet of this years event a new custom designed ARC award.

Just like the Grammy and the Oscar in entertainment or the Lombardi Trophy and the Stanley Cup in sports, we wanted to create an image that would be enduring and powerful.

Robert DeMarzo:

OK, lets get started handing out some of these spectacular awards.

Our first category of the evening is Advanced Desktops & Workstations.

And here are the nominees.

For many, the power of the computer must rest at their fingertips.

The two companies that bring this power to the user are two of the long time heavy weights in this category and are not only taking home the subcategories but have tied for the crown.

Please help me congratulate: Hewlett-Packard & Sun Microsystems.

Accepting for HP is Kevin Gilroy, VP & GM HP Americas Commercial Channels, and accepting for Sun is Gary Grimes, VP Partner Management and Sales Operations.

Mike Uliss:

Here are the nominees for our next category: Mobile Computing.

Mobility has moved from being a luxury to becoming a necessity.

Within the Mobile Computing category, the rate of market demand has outpaced itself year after year.

Functionality is being packed into smaller, more capable, and more reliable devices.

The subcategory winners for Mobile Computing are: IBM, Toshiba, and HP.

Robert DeMarzo:

The company within the Mobile Computing category that did the best job of filling these multiple demands is our overall winner: IBM.

Accepting for IBM is Frank Vitagliano, Vice President, Distribution Channels Management.

Robert DeMarzo:

Desktop and Server Processors is our next category.

This catagory pits the two main vendors suppliying today's custom system builders.

In the eyes of their solutions providers this was a very close race.

These vendors are charged with developing processors that exceed current speeds and meet the increasing pace of their clients businesses.

Tonights subcategory winners that most effectively meet solution providers needs in the processor space are:

Intel and AMD.

Mike Uliss:

And the overall winner in the Processor category is: Intel.

Accepting for Intel is Thomas Lacey, President Intel Americas

Robert DeMarzo:

The heart and soul of many small business today is powered by our next product category, Entry-level Servers.

Entry-level servers are becoming more and more important as companies continually assess their IT spending and their necessity for more computing power.

Entry-level servers need to be low-cost, widely scalable, and extremely reliable.

The company that did the best job of meeting these tough criteria and who also swept the entire entry-level servers category is:

Hewlett-Packard.

Accepting for HP is Dan Vertress.

Mike Uliss:

Our next category is: Midrange Servers.

Here are the nominees.

Midrange Servers have always been at the center of the enterprise market.

They continue to be the backbone of most mission critical applications.

These systems need to be exceptionally reliable, scaleable, and secure.

Tonights winner swept this category with a number one ranking in all criteria measured.

Please help me congratulate: IBM iSeries.

Accepting for IBM iSeries is Cecelia Marrese, VP Marketing, eServer iSeries

Robert DeMarzo:

Our next category is Communications Networking Solutions.

This category is one of this years most exciting as the power of convergence begins to come into focus through the merger of data and voice technologies.

This technological merger is starting to have a profound effect on how small and large business do business. And guess what? - theres still lots of margin here, isn't that a switch.

The sub category winners: Cisco, Alcatel and HP.

Mike Uliss:

Tonights winner is making its first appearance ever in the ARC.

This company did the best job of providing VARs with the tools they need to integrate voice & data/products and services.

Please help me congratulate: Alcatel.

Accepting for Alcatel is Tom Eggemeier, VP NA Channel Sales.

Mike Uliss:

Here are the nominees for Wireless LANs.

Wireless LANs are becoming as ubiquitous as Starbucks.

As the standards in this category are more accepted, we are seeing the "early majority" move into the market rapidly.

In short order, we will be able to connect quickly and conveniently from virtually anywhere.

The companies within the Wireless LAN category that are helping to move these concepts into reality are subcategory winners: Cisco and D-Link

Robert DeMarzo:

This year's overall winner is the pioneer of modern networking and continues to be a leader in providing some of the most innovative network solutions.

Congratulations go to: Cisco.

Accepting for Cisco is Edison Peres, VP Advanced Technology.

Robert DeMarzo:

Our next category is IP & Data Services.

While the benefits of real-time, data transaction are obvious, the ability to deliver reliable connectivity in a world gone mad with hostile threats has never been more challenging.

Tonights award winners have demonstrated resilience in a segment of the market where everyone is scrambling to find not only a reliable but a trustworthy vendor partner.

The sub category winners are: AT&T and Qwest.

Mike Uliss:

Rising from its second place spot in 2002, our overall winner ranked number one in both Product Innovation and Support.

Please give a big hand to: AT&T.

Accepting for AT&T is Keith Olsen, VP Indirect Sales Business Services.

Mike Uliss:

The next category is Data Management Software.

Data Management Software remains one of the most important and complex areas of information technology.

Capturing the right information at the right time becomes the lifeline for many organizations in this information driven economy.

The companies in the Data Management category that are meeting this high demand are: Microsoft and IBM.

Robert DeMarzo:

Tonights overall winner takes the title for the first time in four years and continues to show strength in this category.

Congratulations: Microsoft and its SQL Server product line.

Accepting for Microsoft is Allison Watson, VP WW Partner Sales & Marketing.

Robert DeMarzo:

Our next category is Storage Management Software and here are the nominees.

Providers of the software that enables storage systems to ensure top-notch back-up capabilities is a critical part of their infrastructure.

That is why storage management software is becoming more important and a more prominent component of a solution providers strategy.

The subcategory winners are: Tivoli, HP and Computer Associates.

Mike Uliss:

Winning the overall category title along with securing the lead in Product Innovation, Support, and Partnership makes this company a true champion.

Congratulations go to: Tivoli.

Accepting for Tivoli is Mike Twomey, VP Tivoli Channels, Alliances and Business Development.

Mike Uliss:

Ya know Bob, Honoring these executives and their channel programs is always a thrill.

These companies have really proven themselves and I am very proud to take part in tonights event.

Robert DeMarzo:

Me too Mike but I think its time to share the fun with some of our colleagues.

I would like to introduce two key people who ensure the day-to-day excellence of VARBusiness.

Please welcome Senior Executive Editor T.C. Doyle and Technology Editor David Strom.

T.C. Doyle:

Thanks everyone. It's an honor to be a presenter tonight. Over the years David and I have met with a lot of the executives at the companies represented here and we understand the significant challenges they face in todays technology industry.

David Strom:

Thats right T.C.; it takes an amazing commitment to execution just to be nominated for a category here tonight.

Well let's not keep them waiting any longer.

Our next category of the evening is Security Management Software.

Cyber Security is a major concern for every organization and the software chosen as part of a full security plan, is absolutely critical.

As hackers and cyber criminals do not stop thinking of new ways to steal information and take down entire systems, these companies must keep pace with the latest defenses against such intruders.

The sub category winners are: Symantec and Checkpoint.

T.C. Doyle:

Tonights overall winner wins the title for the second year in a row and continues to show its leadership in the security industry.

Congratulations to: Symantec.

Accepting for Symantec is Allyson Seelinger, VP NA Channels.

T.C. Doyle:

Our next category is Enterprise Operating Systems.

Enterprise Operating Systems are the brains behind todays web based computing environments and an integral part of any organization.

As more and more people use the network as the computer, more and more demands are placed upon the system.

The subcategory winners are: Novell and Microsoft.

David Strom:

And the overall winner in the Enterprise Operating Systems category is: Microsoft.

Accepting for Microsoft is Allison Watson, VP WW Partner Sales & Marketing.

David Strom:

The next category is Web Apps & Tools.

Web Apps and Tools provide developers with the ability to create just about any web service available.

With the myriad of standards and constantly changing environment, it is a very challenging market.

The subcategory winners are: Macromedia and Microsoft

T.C. Doyle:

Tonights overall winner wins the title for the first year as it continues its focus on web services.

Congratulations go to: Microsoft.

Allison Watson come on up.

T.C. Doyle:

Let's move on to another catagory.

These are the competitors in the Desktop Disk Drives category.

As the size of data files continues to grow thanks to audio video and other data formats the need for high-speed storage is steadily on the rise.

Repeating its 2002 overall category win, tonights winner is the ultimate titleholder in this space, sweeping the entire category please help me congratulate: Western Digital.

Accepting for Western Digital is Diana Rodgers, Director Channel Marketing.

David Strom:

Enterprise Disk Drives is our next category.

Vendors are continually challenged to provide products that increase the levels of enterprise storage performance and dependability while using less data center space.

To excel in this category, product manufacturers must provide stellar products that do just that-

use less space to hold more information, more reliably.

Tonights sub-category winners offer the capacity and performance required to satisfy the multiple demands of this growing market and they have also tied for the overall win.

Ladies & Gentleman please help me congratulate: Seagate and Maxtor.

Accepting for Seagate is Henry Fabian, and for Maxtor, Erin Hartin.

T.C. Doyle:

Here are the nominees for Network Storage.

To support the critical foundation of a companys IT infrastructure, vendors must supply products that offer high-performance solutions that accommodate their clients NAS and SAN needs.

To succeed in this category, manufacturers must offer devices with reliable processing performance, multiple device connections, and exacting back-up capabilities.

The companies that most effectively met the challenges within this category are sub category winners: IBM, EMC, and Hitachi.

David Strom:

The overall winner is this category is: IBM. Accepting for IBM is Tom Simonson, VP WW Storage Sales.

David Strom:

Our next category Network Color Printers.

Network color printer customers know the impact of a crisp and bold presentation handout, and generally believe that their time is best spent developing the content of the document, not managing the printing.

With this in mind, the key features companies excelling in this category must include in their product design are ease-of-use, image quality, printing speed, and multiple function support.

Tonights subcategory winners are: Xerox and Minolta.

T.C. Doyle:

And the overall winner for Network Color Printers is: Xerox.

Accepting for Xerox is Gary Gillam, VP Channel Operations.

T.C. Doyle:

Our next category: Display Technology.

Vendors know that their customers require bright screens, flexible viewing angles, and cost effective solutions in order to be satisfied with their investments.

In the large screen display technology category including LCDs and CRTs monitors, tonights winner has met the challenge.

Rising from its fourth place 2002 showing to sweep the category in 2003, tonights overall winner earned top ranking in Product Innovation, Support, and Partnership, as well as securing the overall category win.

Please help me in congratulating: Samsung.

Accepting for Samsung is Rey Roque, VP Marketing.

Robert DeMarzo:

Thanks T.C. & David. For our last two honorary awards, I would like to ask Bob Faletra, President of CMPs TSG, to come back up.

Robert Faletra:

Thanks, it is great to be here for the last two awards of the evening, two very special ones for Channel Executive of the Year and Lifetime Achievement in the Channel.

First up is Channel Executive of the Year. Tonight we have a special guest to present this award, last year's Channel Executive of the Year, Allyson Seelinger of Symantec.

Robert DeMarzo:

The editors of VARBusiness magazine poured over dozens of entries this year from executives who lead their company's indirect sales efforts.

The candidates are an exceptional group having a profound impact on their company's strategic direction and have for better and worse tightened the relationship between their partner organization and CEOs such as Carly Fiorina, Sam Palmissano and John Chambers.

This has clearly been evolutionary not revolutionary and the channel executives behind this effort have had to demonstrate tremendous courage, patience and tenacity.

Mike Uliss:

Tonight's Channel Executive of the Year got his start in the IT industry in 1981 in the e n v i a b l e position of financial analyst.

He worked his way up the ranks and traded in his calculator for a sales bag working as a channel rep in Washington, D.C. His hard work paid off.

He was promoted to VP and General Manager of North American Channels with responsibility for all indirect sales.

A funny thing happened during his 22-year career with this leading manufacturer of computer products.

An unprecedented mega-merger with a leading maker of personal computers, which has had a profound impact on the IT marketplace and the entire solution provider supply chain.

It was during this process that this individuals mettle was put to the test.

Robert DeMarzo:

In the past year, this executive worked hard to preserve a channel voice in a company going through tumultuous change. And yes he had to be tough with his distribution and solution provider partners.

But along the way, his partners knew he was looking out for them.

He spearheaded the launch and development of PartnerOne simplifying HPs partner programs.

He also took bold steps to reduce gray marketing and maintain a fair playing field in the channel.

Robert Faletra:

This Executive's CEO sparked a great deal of controversy over the company's channel srtategy and over all direction.

Despite that controversy this company is still firmly grounded in the channel and its future is dependent on solution providers.

At the center of this controversy has been this years Channel Executive of the Year, who has instilled the value of channels in his own organization.

Please join me in congratulating The 2003 VARBusiness channel executive of the year...HP's Kevin Gilroy

Robert Faletra:

Our last category is the VARBusineess Lifetime Achievement Award.

For this award, we have an individual who has truly dedicated his professional life to the channel.

In fact, he is one of the few individuals who we can say he was there at the dawn of personal computer reselling.

In a minute you'll see that he looks also like he was there at the beginning

Mike Uliss:

This individual spent his career developing long lasting partnerships across the industry.

Along the way, he absorbed all he could from some of the best mentors in the industry.

While Channel Executive of the Year recognizes achievement over the past 12 months, Our Lifetime Award recognizes the culmination of 30 years worth of dedication to the IT industry.

Robert DeMarzo:

There is no doubt that todays large companies are a challenge to deal with given their complexity and the arduous task of finding someone who can make a decision.

This individual has built a career of putting his trademark smile and personality on the exterior or a large, faceless corporation.

His reputation in many cases precedes him and today he is sought out by other channel managers for advice. And perhaps that is when you know you have reached the pinnacle of your career--when others think enough of you to ask for advice, guidance and counsel.

Mike Uliss:

Well, tonights Lifetime Achievement honoree joined IBM in 1973 and spent the next 10 years in various sales and m a r k e t i n g+p o s i t i o n s+w h i l e many of us were still in high school or in some cases kindergarten.

In 1986, he joined the U.S. Channel Sales organization as a marketing manager with responsibility for all PC, Business Partners in the Southeast.

He took on the enviable position of Executive Assistant to the President of IBM Personal Computer Company in 1993.

Several years later he was handed worldwide go- to market strategy for the IBM PSG division.

Robert Faletra:

A critical element of his go-to-market strategy is built around IBMs Routes to Profitability study, which has helped IBM leverage and embrace indirect sales in ways it could never have imagined.

It also put to rest many of the lingering issues of whether the company should sell more PC products directly to customers at the expense of the channel.

It was truly a turning point for IBM.

If you see this individual later ask him about two things.

His first job at the Purple Onion where he mastered the fine art of pizza dough tossing and whether he is an Atlanta Braves or a Red Sox fan...Because the 2003 VARBusiness ARC Lifetime Achievement goes to none other than Frank Vitagliano, VP Distribution Channels Management of IBM.

Robert DeMarzo:

Mike where's the award

Mike Uliss:

I don't have the Award

Robert DeMarzo:

Can somebody check in the back? This is embarrasing.

Wait a minute, presenting the award tonight is his longtime friend and co-worker, a legend in the PC distribution channel himself, Mr. David Boucher

Robert DeMarzo::

Congratulations Frank, and thank you for all your dedication to the solutions business.

Ladies and Gentlemen, that concludes the presentation of the 2003 Annual Report Card. Let's have one more round of appreciation for all of tonights honorees.

Mike Uliss:

One housekeeping note before we continue at the conclusion of the event we would like to ask all of tonights winners to stay here in the room for a group photo.

Okay, we have one more treat for you tonight.

Tonights comedian has performed on The Tonight Show with Jay Leno, David Letterman, Conan OBrien, The Daily Show with Jon Stewart and Oprah.

He is the winner of two CableACE awards and has received six American Comedy Award nominations as Best Male Stand-Up.

Please join me in welcoming a very talented, very funny man, comedian Dom Irrera.

Mike Uliss:

Thanks, Dom. What a great finish to an unforgettable night.

And once again special thanks to the sponsors who made this night possible for all of us.

Please join me in a round of applause for: Microsoft, AT&T, HP, Lexmark, Oracle, Sun, Symantec and Veritas.

Robert DeMarzo:

In addition to our sponsors, I'd like to take a moment to recognize a number of individuals, organizations and departments.

Nancy Hammervick, and the entire Xchange team and Debbie Keating.

Mike Uliss:

And Gordon Plutsky and the entire marketing department, Dawn Walton our events expert, Scott Frankel and the entire Animatic organization, and Kathleen Harinski for keeping Bob DeMarzo on time and in line.

Robert DeMarzo:

Folks, thanks for joining us at the 2003 VARBusiness Annual Report Card.