Garcia Is Out As Microsoft Channel Chief

Microsoft

A replacement has not yet been named for the native of Madrid, who is stepping aside after five months as general manager of partner sales and marketing.

Garcia's departure comes with some solution providers questioning recent Microsoft initiatives.

"All we want is an even playing field," said David Burnside, president of A-TRAC, a Waltham, Mass.-based solution provider. "It's real simple: They can't play favorites. They are too big. They need to be even-handed."

Burnside recently sent an e-mail to Microsoft executives protesting Microsoft promotional mailings that pitch steep discounts on Windows XP and Office XP to SMB customers that buy from direct marketers CDW Computer Centers and PC Connection.

"Microsoft is the only vendor that I have a problem with," said John Samborski, CEO of Ace Computers, a white-box solution provider in Arlington Heights, Ill. "They give sweetheart deals to Dell and other direct manufacturers. We estimate that Dell pays 40 percent less than what [independent systems builders pay. How about treating us the same way they treat Dell, or at least close."

As an example of the uneven playing field, Samborski, a Microsoft Gold Partner, said he is forced to pay $135 for Microsoft XP Professional if he buys directly from the manufacturer, while Ingram Micro sells it for about $100 as part of its systems integration program. "But it's not necessarily the OS that hurts us the most. I can overcome a $30 or $40 difference with my own efficiencies," Samborski said. "It's the application software that really kills us."

Samborski said he pays about $165 for Microsoft Office 2000 Small Business Edition, but estimates top-tier manufacturers such as Dell pay about $100. "Gateway will add that to a system for about $129, so you know they're not paying $165," he said. "Dell is very predatory with that product, and it hurts us."

Garcia took the top channel job last November after a reorganization that included the departure of her predecessor, Ian Rogoff.

Rogoff, meanwhile, stepped aside after conflict arose between Microsoft Consulting Services and channel partners.

Grady Crunk, executive vice president of Central Data, a Titusville, Fla., solution provider, questioned how committed Microsoft is to working with solution providers. "The channel chief job at Microsoft at this point in time seems to me more of a short-term than long-term job," he said. "Their program constantly changes. Their margins are constantly depleted. We sell Microsoft for the sake of selling it, not because we count on it. Microsoft is in a position where we are kind of at their mercy."

Todd Barrett, networking sales manager for CPU Sales and Service, a Waltham, Mass., solution provider, said it is critical that the new channel chief at Microsoft move quickly to alleviate uncertainty with the Microsoft channel program in the wake of Garcia's departure.

"It is important for the new channel chief to make a statement on the status of channel programs so plans don't get stalled," he said. "The tough thing about Microsoft is they are the only game in town."