White-Box VARs: Microsoft Ruling Won't Impact Business

"Microsoft will have more power over the channel," said Sam Tsai, president of Elite Computer Systems, a white-box systems builder and motherboard vendor in Fremont, Calif. "That's nothing new, and it's not good. Microsoft will dominate the channel. PCs are now so inexpensive, the only expensive part comes from Microsoft."

But Andy Kretzer, director of sales and marketing at white-box builder Bold Data Technology, Fremont, Calif., said: "Microsoft does not drive corporate spending. The court cases have not been anything that has affected our day-to-day job in the past one and a half years."

Added Sean McClelland, CEO of 1hotwebserver.com, a white-box solution provider in Tarzana, Calif.: "At first I wanted them to go down, but now I wish they would get it over with. Microsoft will do whatever they want whenever they want. The one thing Microsoft has going for them is they do it right." McClelland said. "Technology would not be where it is today without Microsoft."

Other white-box VARs also said Microsoft's business practices help their business.

"Actually for companies like ours, we like the fact that Microsoft bundles everything together," said JoAnn Evans, vice president of Net/Works, a Minneapolis-based solution provider and systems builder. "It makes it easier for our technicians and customers to use. We don't have to go out and purchase the additional products such as Internet Explorer, Media Player and Windows messenger."

But she added: "I don't agree with the way Microsoft cuts out the competition, but they do make a well-integrated product. Microsoft could lower prices that would be sweet. C'mon--all that money in the bank, the consumers need the break right now."