Ingram Micro Bobs For Apple With VTN

At the most recent VTN event in Las Vegas, however, the world's largest distributor rolled out a popular niche computer maker with a historically small market share but with a hot brand, nonetheless. The vendor? None other than Apple.

Ingram Micro executives teamed up with Apple officials, including John Brandon, vice president of the Americas and Asia-Pacific at Apple, to promote the computer maker to VTN solution providers. "These are great days for Apple, maybe some of the greatest days in the company's history," Brandon told VTN members during the general session. "Contrary to popular belief, it's more than just the iPod."

Brandon touted the forthcoming version of OS X and Apple's xServer server line, as well as Apple's storage products. "Ingram Micro has been a very valued and important partner," he said. "We joined VTN a few years ago, and I can't tell you how happy I am with it."

In addition, Ingram Micro brought in approximately 80 "Apple Specialists," or dedicated Apple solution providers, to the event on an all-expenses paid trip in an effort to recruit them into the VTN organization. While Apple has been involved with VTN for years, the sometimes-channel-distant computer maker has certainly never had a stronger presence at the distributor's VTN event, which offered several Apple-specific sessions. Brandon and Ingram Micro officials said VTN has shown good growth for Apple sales and added new members, but wouldn't elaborate with exact numbers. In fact, Apple declined to be interviewed by VARBusiness at the event.

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Nevertheless, Ingram Micro officials were upbeat about the Apple partnership. "We have a great relationship with Apple," said Kevin Murai, president of Ingram Micro. "We've got the biggest Apple mindshare and market share [in distribution]."

Reviews were mixed on Apple's presence, however, and Apple Specialists were somewhat lukewarm about the distributor's VTN proposition. Brandon joined Ingram Micro officials in a "Mac Track" luncheon for Apple Specialists to promote VTN. He was forced to keep his comments brief because of a tight travel schedule, but told the roomful of Apple resellers that, "We thank you for your business," to which one audience member quickly snapped, "What business?"

The message to Apple resellers was a little downbeat as well. In his brief comments, Brandon addressed the issue of the shortage of G5 machines because of a delay in shipments. "When are we going to get more G5s? Guys, I just don't know," Brandon told the audience. "I wish I had an answer for you." Ingram Micro executives aren't concerned with such issues; in fact, they say that such product shortages could ultimately be beneficial by making the distributor a stronger alternative source for Apple products.

Despite some wrinkles, a number of Apple Specialists were impressed with VTN's value proposition and were interested in joining the group. Similarly, a small number of VTN members showed interest in working with Apple.

One Apple Specialist, Webistix of Holbrook, N.Y., signed up as a VTN member on the spot. "It was a no-brainer for us," says David Salav, president of Webistix. "We sell a lot of Apple products, and to be part of a national network of solution providers is extremely valuable to us."

While Apple's brand far outweighs its small computer market share, Ingram Micro officials have high hopes that Apple's products will become an increasingly prevalent part of a total, heterogeneous solution. Indeed, VARBusiness got an inside look at Ingram Micro's distribution warehouse in Mira Loma, Calif., and a number of Apple products lined the shelves.

"Apple has shown the ability to reinvent itself," said Brian Wiser, vice president of marketing at Ingram Micro, "so there's really no limit to what we can do with them."

In addition to Apple, Ingram Micro announced it is in the process of finalizing new agreements with Xerox and Sony. Under the agreements, the Ingram Micro Service Network, a group of more than 500 solution providers within Ingram Micro focused on warranty and maintenance services, will be authorized to service Xerox printers and Sony Vaio computers. The Sony deal will be a smaller pilot program, according to the distributor. Also, Murai told the audience at the event that Ingram Micro will combine the U.S. and Canadian VTN groups into one North American VTN organization.

Banking On Apple's Growth
Apple has seen a steady increase in its revenue in the past year. While much of it has been fueled by iPod sales, the computer maker is hoping new products like the G5 iMac will continue the trend. Here's a look at the past four quarters: