Branding Matters In PCs

A combination of leading-edge technology, an emphasis on partner communication and strong channel programs enabled Lenovo to dominate the 2005 VARBusiness Annual Report Card (ARC) Advanced Desktops & Workstations category.

In last year's ARC, Hewlett-Packard and IBM both claimed the top spot in this category. While HP may have suffered some damage due to internal reorganizations and a much-publicized CEO change from Carly Fiorina to Mark Hurd, Lenovo's acquisition of IBM's desktop and mobile lines went smoothly.

"We had a very formal process to get out to all the customers and to assure them there was going to be no impact," says Mark Enzweiler, Lenovo's vice president of worldwide channel strategy and sales. "Customer satisfaction really speaks volumes, and we take a special pride in that. The business partners have always been there for us."

Lenovo, Dell and HP continued to emphasize technological advances when they became three of the first vendors to incorporate Intel's Pentium D 840 dual-core processor in their products. In its first product rollout since acquiring IBM's PC division, Lenovo unveiled the ThinkCentre M52 and ThinkCentre A52 desktop PCs. Solution providers give a thumbs-up to Lenovo's adoption of technologies and high-end management tools.

"IBM [Lenovo] is unique in quality," says Nancy Lamberson, account executive at New England Systems in Naugatuck, Conn. "For people really looking to manage their assets and distribute software, they want to use IBM tools."

For its part, HP took the wraps off the xw4300 workstation and HP Compaq dc7600 business desktop PC with dual-core Intel processors. The xw4300 was designed for engineering and graphics-intensive applications.

Meanwhile, Dell, which played strongly in Product Innovation, began offering the XPS 600, a high-end desktop that features new Nvidia technology and Intel's dual-core processors. The company's use of dual x16 PCIe graphics with Nvidia scalable link interface X16 technology is designed to increase video bandwidth by up to 100 percent, said John Medica, senior vice president of Dell product group, at the time of the product launch.

While Gateway did not fare as well in Product Innovation, the company views its overall third place in its ARC debut as the start of a strong, ongoing relationship with solution providers, says Tiffani Bova, Gateway's senior director of indirect channel sales and programs. In March, when the company acquired eMachines, which sold exclusively through the retail channel, it also gained a new president and CEO, Wayne Inouye, who is largely credited with introducing a channel strategy that's helping to turn around the PC-maker. With Inouye at the helm, Gateway has invested money and time, internally and externally, to educate employees, prospective partners and clients about its new solution-provider initiative.

Gateway reports a steady increase in its partner base, due partly to its rollout of a streamlined, uncomplicated program that emphasizes different vendors' best-of-breed elements, Bova says. In particular, Gateway focuses on rules of engagement and deal registration to reduce or eliminate channel conflict.

While hardware margins are slim, Gateway doesn't undercut its channel by giving better discounts to customers, says Fred Strauss, president of MultiSystems Integrators, a transportation-industry VAR in Apalachin, N.Y. "[Clients] buy from me at the Gateway list price," he says.

Besides protecting its channel's margins, Gateway offers partners a range of co-op and marketing funds, says Amy Rutt, president of Fairfax, Va.-based solution provider, Ciracom. "They've succeeded in turning around a ship that was facing some difficulties," she says. "I'm excited to show Gateway what a partner can do."