Avnet's IBM Unit Banks On iSeries, xSeries Synergy

That's the word from Fred Cuen, APS' IBM Division president. Cuen told solution providers attending the distributor's Ignition '04 conference in San Antonio last week that North American sales totaled $1.5 billion during its fiscal year ended June 30, with business increasing 15 percent in the U.S., 19 percent in Canada and 57 percent in Mexico.

APS' IBM Division is growing at five times the overall market growth rate in xSeries and two times the market in pSeries, Cuen said. "ISeries is flat, but the pipeline has improved dramatically."

Cuen said xSeries revenue topped $100 million at Tempe, Ariz.-based APS last year. This came despite the fact that some APS partners attending the conference said they buy xSeries from Tech Data and Ingram Micro because of price and convenience. William McIntosh, president of McIntosh Software Services, an IBM iSeries Business Partner in Aurora, Colo., said he buys so few xSeries systems that it's easier and quicker to get them from Tech Data.

Likewise, Robert Kennedy, president of CPS Technology Solutions, an iSeries Business Partner in Brooklyn Park, Minn., said xSeries prices tend to be cheaper at Ingram Micro than at APS.

"We are asking our partners what are we not doing, what solution set are we not providing, what can we do to create demand for that product?" said Rick Hamada, president of Avnet Technology Solutions. He said APS excels at building customized xSeries solutions for its partners, rather than selling off-the-shelf systems. "If I take on Tech Data on their terms, I lose," he said.

Hamada noted there is a growing synergy between iSeries and xSeries solutions that should accelerate growth in both platforms. "ISeries partners have to branch out a bit; they have to become specialists on xSeries and blades as well," he said. "How can you start a conversation about consolidating onto iSeries if you never get to talk about the other environments?"