Compaq Partners Weigh In

Ron Kramer, vice president and COO of All Computer Solutions, Petaluma, Calif., said he gets annoyed when he hears other solution providers cry the blues about Compaq and its commitment to the channel.

"When other guys are whining and complaining, ask them what else they sell," he said. "When we got in this business, we decided to invest in marketing, tools and so on. . . . Relationships and loyalties go both ways. One reason we work well with Compaq is they know we are loyal."

Kramer, who sells about $2 million to $3 million worth of Compaq products to the SMB space, said it is the same situation whether one sells IT equipment or pens. "You make the relationship work," he said. "We have invested in the brand and the value of the Compaq name."

Compaq, Hewlett-Packard and IBM all sell great products, just like Ford and Chevy sell great cars, Kramer said. And he can still make money selling Compaq hardware. "I've had my issues with Compaq. We're not in bed with them. I'm more concerned with the credibility of the resellers. It's the same way when people complain about IBM or HP," he said.

Quality is the main reason Eryck Bredy, president of Bredy Network Management, a small Woburn, Mass.-based solution provider, continues to work with Compaq. Bredy said he can almost guarantee customers will not suffer RF interference, blue screens and such. He said the Compaq servers are built solid, even down to the metal of the case. "Dell [Computer's systems have a plasticky feeling," he said.

Bredy said the margins he gets on Compaq servers, about 5 percent to 7 percent,often is not worth the effort, but he sells them anyway to feed his service business. "Sometimes we look at the server as a loss leader," he said. "That's why I don't mind if [clients buy Dell or someone else."

Compaq changes its channel program every January, but John Mercier, director of enterprise storage solutions at Avnet Enterprise Solutions, Tempe, Ariz., said change is a constant. "I'm moving forward with Compaq like never before," Mercier said. "Yeah, they changed some rebate things and other things. But now I have to focus on driving my business, and Compaq is a big part of my business."