Alternative Vendors: Server Hardware

Better product performance was selected as the top reason why VARs consider alternative server vendors, followed by better price performance and better support. But many solution providers feel differences between the vendors--and their products--is not as great as in other categories. It's more about the relationships with the vendors and what customers want, they said.

"We sell [multiple vendors' servers] because there is no one server that fits all," said John DeRocker, senior vice president of sales and marketing at Nexus Information Systems, a Plymouth, Minn.-based solution provider. "We have some customers that are IBM/Lenovo, some that are Dell, some that are Hewlett-Packard. We do it based on customer-driven demand. I have no problems carrying all those guys because servers are so generic."

In the Alternatives Study, 11 percent of solution providers said they were afraid of repercussions from vendors for adding another company to their product portfolio. In particular, they feared not meeting sales goals that could determine their margins or support from the vendors. Fear of losing dealer status from their primary vendor was also highly cited.

From his experience selling multiple vendors, DeRocker said those fears are unfounded. HP is Nexus' primary server vendor, but the solution provider has never faced any repercussions from HP--or IBM or Dell--for selling competitive products.

"They'll ask the question, but I don't get pressure. They know better," DeRocker said. "I could go introduce IBM into an HP account and HP wouldn't bat an eye. I do $20 million [a year] in HP. Is a $50,000 project going to make them worry? I have no fear of any of those vendors. They don't help me drive demand," DeRocker said.

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