VARs Shocked By Synnex's Loss Of IBM System X Status

"To be honest, I'm not real happy. We made a conscious decision to do business with Synnex for a lot of reasons. They made it easy to buy and sell IBM and support us. They do configuration for us and do sanity checks on what we're doing," said Jeff Bohlig, COO of Compar, a Minnetonka, Minn.-based solution provider.

IBM and Synnex sent e-mails to solution providers Friday announcing that System x products would no longer be available through Synnex as of Jan. 16, 2009. Solution providers will have to choose from Arrow Electronics, Avnet, Ingram Micro or Tech Data for those products. Synnex will continue to sell other IBM products, according to both companies.

Compar said he'll continue to support his IBM customers but the solution provider may look to lead with another vendor on new projects, Bohlig said.

"When we do consultative selling and somebody asks and we pull a supplier out, I'm not going to recommend that [IBM] product," he said.

Bohlig said IBM had a strong presence at Synnex's recent National Conference in Charlotte, N.C., and said this announcement contradicts its message there.

"They kept saying, 'We need the channel. We want the channel.' That's not the message I'm getting. There's going to be a lot of reevaluating of the products that we market and sell," Bohlig said.

Added another solution provider who attended Synnex's Charlotte event, " I think its disrespectful and embarrassing for [Antoun] to stand up at the Synnex National Conference and evangelize IBM knowing he was going to de-authorize them three weeks later."

Other solution providers were perplexed at why IBM would deauthorize the company believed to be its No. 1 distributor of System x products.

"I've been in this industry over 30 years now. I'm not even sure 'shocked' really fits it. One and one just doesn't add up to two in this thing. It makes no sense. It's pretty wild," said Mike Brogan, president of Erb's Business Machines, Cedar Rapids, Iowa.

Brogan said IBM executives told him Friday the decision was made to streamline its supply chain and reduce costs. He said he also heard from Synnex, Ingram Micro and Tech Data, evidence that the recruiting for Synnex's System x resellers has already begun.

Brogan said he's not sure what he'll do yet, but he won't go as far as looking to lead with another vendor. "The reality is, we have relationships with customers that both IBM and ourselves have invested a lot of time in. There's no logic go and unhook this," he said.

But that doesn't mean he's not irked. "It's going to put a burden on the resellers. I have certifications and specializations with Synnex that I'm going to have to move. I have relationships with Ingram and Tech Data, so it's not like I have to burn a new trail, but it is going to disrupt our business," Brogan said.

Michael Symons, CEO of Sycomp, a Foster City, Calif.-based solution provider, said he heard the news from Synnex Friday morning, but has yet to receive any communication from IBM on how it will affect his company.

"I'm extremely surprised. Shocked is a better word. We have been a very good partner with Synnex and have done a lot of System x with them over the last couple of years," Symons said. "It's business, but I don't know enough until we understand the ramifications. Is it going to cost more money or limit our choices? I don't know what the fallout for this will be yet. Time will decide that," he said.

Symons has not thought about choosing another distributor yet, but said he plans to stick with IBM. "It is what it is. We just have to decide how we will move forward. We're disappointed but we have to live with the decisions they make. Hopefully there is competition between distributors and they can give us a Plan B that helps."