Vendors' Partners Test White-Box Waters

Sysix Technologies, Westmont, Ill., one of Hewlett-Packard's Platinum solution provider partners, recently launched a white-box subsidiary to build systems for SMB customers.

"[HP has said that the Hard Deck [channel rules of engagement stay in place for enterprise solutions," said John Sheaffer, president and CEO of Sysix. "For higher-end servers, which are the main part of my business, we have a clear delineation. But 30 percent of my customers buy nonbranded computers, and Dell [with its new white-box initiative has totally legitimized the industry."

Sysix's new subsidiary will build JANDX branded systems that it intends to market to SMB customers with 50 to 100 employees. The company, which is ramping up production at the new facility in Libertyville, Ill., plans to build Intel-based desktops, laptops, mini- and micro-towers, and servers.

"SMB customers have limited IT support in-house, and they look to the white-box guys to supply all of their support, including computers," he said. "It's a very high-touch model, and we see a good opportunity within certain customer profiles to sell them [white-box systems."

Likewise, Future Tech Enterprise, Holbrook, N.Y., an IBM Premier Elite partner, is ramping up a new mobile division to manufacture laptops for SMB and retail customers. "We are [building 50 units per month, and [I anticipate that we'll eventually do 150 units per month," said Future Tech CEO Robert Venero.

Venero said his company got into the systems building business after being approached by Intel. The systems carry the Future Tech brand, he said. "The reason we push our systems is that we don't solder the chips on the motherboard, so the processor is upgradable and therefore the laptops have a longer life cycle," Venero said.

But Future Tech won't sell the systems into large enterprise accounts in which it has partnered with IBM, he said, adding, "I don't want to step on my partner's toes."

Sheaffer, too, is pragmatic about the white-box market and plans to maintain an ongoing relationship with HP.

"In some ways, I'm going to be a great partner and supporter [of HP," he said. "And in some ways, I'm going to be an open competitor. They're going to do what they have to do, and I'm going to do what I have to do."