3Com Puts An End To Online Direct Sales

The networking hardware vendor made that change along with other restructuring efforts, including a plan to combine its Business Connectivity and Business Networks units as of July 1.

Under the new online purchasing system, customers who click on the "buy now" button on 3Com's Web site are directed to a page that lets them choose from among six partners. Once a customer picks a retailer, he or she will be redirected to that partner's page to complete the order, said Paul Cegielski, e-business manager at 3Com, based here.

3Com in late April tested a system from Channel Intelligence, a vendor that manages the connections between 3Com's site and those of its partners, Cegielski said. During the test, customers were given the choice to buy direct from 3Com or from a partner. 3Com's online direct business subsequently dropped by more than 50 percent, Cegielski said. Less than 1 percent of 3Com's sales are derived through its online store, according to a company spokesperson.

CDW Computer Centers, Insight, Dell Computer, Comark, Micro Warehouse and PC Connection are participating in the program.

Brian Hicks, vice president of sales operations at Insight, Tempe, Ariz., said he sees the program as a great way for his company to attract new customers, especially small businesses.

3Com's traditional solution provider partners are not included in the program, but some seem nonplussed.

Don Gulling, president of Verteks Consulting, Ocala, Fla., said he would rather see 3Com sell through CDW or Insight than sell direct. "Most of our profits come from service," he said. "It's really difficult to make any money off of Web sales, so I don't want that business. But I'm glad to see that 3Com isn't selling direct anymore."

Meanwhile, 3Com said it plans to combine Business Networks, its switching business, and Business Connectivity, its NIC and PC card business, as of July 1 to cut costs. 3Com created the two business units just last year.

The new entity, which will operate under the Business Networks name, will include the LAN infrastructure division, with enterprise switching, voice solutions, wireless, security and small-business systems; the connectivity unit, with NIC and PC card products; and the personal systems group, with technologies that link users to networks.