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Inside This IssueInside This Issue

June 2008

www.crn.co.za

A look at t he glit ch int he dist r ibut ion mat rixp8>>



Is mobile Internet taking off in SA or is Telkom still holding the country back from deploying the latest

wireless technologies and infrastructure that will revolutionise what industry pundits have dubbed the

“mobile Internet” era?

As the world’s telecommunications groups, including Vodafone, Verizon Wireless, AT&T and China Mobile,

ready themselves to deploy 4G wireless broadband services over the next four to five years, consumers in SA

are concerned that Telkom’s continued monopoly and dominance is holding the country to ransom as wire-

less broadband services and access are still way beyond the reach of the average household.

While cellular service providers, such as MTN, Vodacom and Cell C, have made inroads and continue to do

so with their own offerings of broadband wireless services and access, it is Telkom that holds the key tounlocking the mobile Internet market in SA.

For starters, if mobile broadband services were to be made available at relatively affordable prices, the PC

population, particularly the mobile PC and handheld IT devices market, would boom. This is not the case in

SA as the costs of fixed DSL and ADSL services are still high and beyond the reach of many households that

would like to have Internet connectivity.

In fact, SA and certainly many other countries on the African continent have the opportunity to leapfrog

to the new wireless technologies that provide the springboard for the mobile Internet era. Technologies that

are leading the race in 4G wireless broadband services include WiMax, the 4G standard backed by Intel,

Motorola, Samsung, Long Term Evolution (LTE) and Third Generation Partnership Project (3GPP).

SA needs to invest in wireless infrastructure for it to be on par with other developed countries that have not

only deployed the latest wireless technologies but even offer consumers WiFi-enabled hotspots in public places.

With the potential that digital entertainment and mobility hold in SA, unlocking fixed broadband services and access would not only allow for

steady PC population growth, but also open up the Internet market.

WiMax seems to be leading the race, with real products coming onto the market. So what does this mean for businesses, mobile professionals

and consumers? As telecommunications carriers discovered when they began to deploy 3G networks, most users didn’t care about the underlying

technology. Instead, most were interested in and wanted to know about what applications and services the technology enables?

Is this going to be the case with 4G? Although it is still early days, no one is really sure what killer applications will be enabled on 4G networks

that are going to be commercially deployed in SA.

According to a recent report on mobile Internet reported in the Financial Times, there appears to be general consensus that business users will

continue to demand ever-faster mobile broadband access.

This clearly indicates that there is willingness on the part of most South African businesses to embrace and deploy mobile broadband

technologies if they can be packaged and priced affordably.

Among the main reasons why it makes sense for businesses and mobile executives to deploy mobile enterprise applications is the spinoffs

from increased employee productivity and availability as a result of being able to access information anytime and anywhere, and from any

Internet-enabled handheld device.

I would like to hear from you about how the mobile Internet is creating business opportunities for your solution provider business. I can be

reached at [email protected]

Enjoy the read.

PUBLISHER’S: NOTE

Is mobi le Internet tak ing

of f in SA?

Manda Banda – publisher



CRN Contacts:

Publisher:

Manda Banda

[email protected]

Online editor:

Kaunda Chama

[email protected]

Journalist:

Port ia Shaba

[email protected]

Intern:

Dominic Khuzwayo

[email protected]

Brand executive:

Hellen Murahwa

[email protected]

Sub-editor:

Jenny Bastomsky

[email protected]

Designer:

Spencer van Graan

[email protected]

Database and subscriptions:

Daisy Mulenga

[email protected]

copyright notice

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material in thisp ublication is reserved by the proprietors,

except where expressly stated. The publisher, however,

will consider reasonable requests for the use of material

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Private Bag X12, Rivonia, 2128Tel: (011) 234 7008Fax: (011) 234 7025Registered with the Audit

Bureau of Circulation

News & Analysis

4 – What’ s New s

4 – Com ing s & Goin gs

6 – Dmoves

8 – Cover Story: The glitch in the SA distribution matrix. By Kaunda Chama

12 – Cisco p lans to capit alise on the mobile market. By Dudu Shaba

16 – HP extends identity manager product range. By Dudu Shaba

18 – Lexm ark launches new Channel Value Programme. By Dudu Shaba

19 – Demand Generator: Itec monitors FNB’s printing solutions.

By Dominic Khuzwayo

20 – HiFive: Novell introduces Open Workgroup Suite. By Dominic Khuzwayo

22 – Mw eb Business launches software as a service for

SMEs. By Kaunda Chama

24 – Intel vendor sees light on the “dark continent”.

By Kaunda Chama

36 – The ri se and fall o f Chann elWare: MB Technologies

redeploys subsidiary after slow growth. By Kaunda Chama

Features

26 – Handhelds: The speed of collecting data and bringing it to a

central point is the key advantage of handheld computers, which has

become a critical distinguishing factor in the competitive enterprise

environment. By Dudu Shaba

29 – Desktop PCs: The South African desktop market can expect to see

modest growth in 2008, as notebook sales continue to eat into the tradition-

al desktop market. By Dudu Shaba

33 – IBM SA has unveiled t he new Afr ica Innovation

Centre in SA an initiative that will contribute towards IT skills

development in SA and the rest of the sub-Saharan Africa region.

By Dudu Shaba

Products & Technology

38 – Produ ct Review s. By Kaunda Chama

Parting shots

40 – Snap Sho t : Sasha Davidson,Axis Communications

40 – Dilbert.

Contents

09

12

Scans in this publication have been reproducedon the EPSON PERFECTiON 2450 photo

19

27

2 • CRN SOUTHERN AFRICA • JUNE 2008

39



WHAT’S NEWS

&G

OINGS

Coet zee t o head up Afr icaMcAfee Inc has appointed Trevor Coetzee

channel manager for Africa. Coetzee joins

McAfee from the network security channel,

where he has spent six years in a number of

commercial roles. “Trevor has worked with

some of the major security vendors and dis-

tributors in the South African and African mar-

kets and has gained extensive experience in business develop-

ment and the activation of security strategies at end-user

level,” says Chris van Niekerk, regional director, McAfee SA.

Telem ast ers appoint s new dir ect orTele-management and business communication strategies

company, TeleMasters, has appointed Jaco Voight indepen-

dent non-executive director. Voight, founder of PerfectWorx

Consulting, holds a Bachelor of Social Science degree from

the University of the Orange Free State. “He has exactly the

sort of skills and industry experience that will help TeleMasters

to further its positive growth trajectory and presence in the

market,” says Mario Pretorius, TeleMasters CEO. “This is the

sort of skills mix that will add real value to TeleMasters,”

concludes Pretorius.

Acer releases SMB video projectorsAcer SA has announced that it is bringing a new professional range

of projectors to market to give SoHo and small-to-medium-sized

businesses access to its DLP technology. Bongani Gumbo, product

manager for LCDs and projectors, Acer SA says the range includes

three new projectors, the Acer P5260i, P7270i and P7280. “All three

projectors feature Acer’s empowering technology, making them

easy and convenient to use. Each model also offers support for a

range of digital content sources, making them versatile enough to

cater for a host of office applications from presentations to high-

definit ion video,” he says.

HP introduces extreme online storageHP has announced a highly scalable storage system designed to sim-

plify the management of multiple petabytes of data. Yesh

Surjoodeen, business development manager, StorageWorks Divisionsays new business services offered by Web 2.0 and digital media

firms generate massive amounts of file-based data that needs to be

stored, managed and retrieved instantly. He says that large enterpris-

es in sectors such as oil and gas, security and surveillance, and

genetic research have similar demands. Surjoodeen says the HP

StorageWorks 9100 Extreme Data Storage System (ExDS9100)

addresses these requirements by offering vast storage capacity and

simplified, integrated management.

D-LINK expands gr een Et hern etD-Link has announced the expansion of its industry-first Green

Ethernet technology series. The company has added eco-friendly

features to its Gigabit Web Smart series of multi-port network

switches to decrease energy costs by reducing power consumption.

According to Tobie van Schalkwyk, D-Link SA, country manager, D-

Link Green Ethernet technology integrates innovative power-saving

features that automatically detect links and adjusts power accord-

ingly. Van Schalkwyk says the switches feature a fanless design

(DGS-1216T and DGS-1224T) that provides a quieter environment

and less heat dissipation.

Lexmark launches pr of ession al inkj etLexmark SA has launched its professional series inkjet that comes

with a five-year guarantee. Paul Rooke, Lexmark executive VP and

president consumer printer division says the launch of the new

series is in response to the needs of SOHO) users and small and

medium businesses. The professional series will be the first inkjet all-

in-one line to include a five-year guarantee and high-yield car-

tridges. “ Our new professional series delivers productivity tools such

as wireless, integrated two-sided printing and higher capacity paper

handling,” adds Rooke.

Axis, Bosch, Sony join force

Axis, Bosch and Sony announced a joint force in the creation of anopen forum aimed at developing a standard for the interface of net-

work video products. “We are pleased to announce this cooperation

between our companies,” says Ray Mauritsson, president of Axis

Communications. The aim is to facilitate the integration of various

brands of network video equipment and to help manufacturers; soft-

ware developers and independent software vendors ensure product

interoperability. “An open standard will make it even easier for integra-

tors and end-users to benefit from the many possibilities offered by IP-

based video surveillance technology,” concludes Mauritsson.

CA, anno unces recovery sof t w areThe CA division at Workgroup has announced the availability of the

latest release of CA Recovery Management. It is a solution designed to

enable companies to simplify management, tighten security and

recover of critical business information speedily. John Thompson, CA

product manager at Workgroup says CA Recovery Management

includes new releases of CA ARCserve Backup, CA XOsoft High

Availability and CA XOsoft Replication. “Our customers require

recovery management solutions that solve their most pressing

problems and are easy to deploy, use and maintain. CA has, withthis release, enabled Workgroup to address these needs head on,”

adds Thompson.


Trevor Coetzee

COMINGS



SAS signs Quantec

SAS Institute SA, has signed Quantec Research, a consulting firm

specialising in financial and socio-economic database development

as one of its resellers. “Quantec has strong software development,

database, data warehouse and quantitative analytical skills,” says

Nathalie Ing, partner manager, SAS SA. “ This, when combined withan impressive client list and fantastic supplier relationships makes

them an ideal SAS reseller,” she says. “ With SAS as a partner we

can offer the ultimate array of software solutions and applications

for the turnkey market,” says Claude van der Merwe, MD, Quantec.

Duxbury adds ProCurve to DuxBux

Duxbury Networking has added the HP ProCurve Networking range

of products to its “DuxBux” partner programme. Graham Duxbury,

CEO, Duxbury Networking, says the inclusion of HP ProCurve along-

side Netgear in the company’s partner programme places added

emphasis on dealer support and underlines the investments that are

central to t he company’s successful ‘value-added’ philosophy. “ It is

our intention to support and reward partners’ efforts by adding

substantial value to the HP ProCurve Networking and Netgear prod-

ucts they sell through Duxbury Networking,” he adds.

Core dumps TomTom

Core Peripherals SA has terminated its contract with TomTom, the

Dutch personal navigation company. “Since the inception of the

relationship at the end of 2006 TomTom has continuously failed to

honour its contractual obligations,” says RJ van Spaandonk, Core

Group’s director in charge of navigation business. He explains that

Core Group is disappointed that the relationship was not successful

since it still believes that TomTom offers the world’s best personal

navigation products and services. According to Van Spaandonk, the

company had no choice but to terminate the relationship due to

TomTom’s inability to supply a competitive product range and sup-

port it with appropriate marketing activities in southern Africa.

Ingram Micro to m ove Asus k it

Ingram Micro has been appointed distributor of Asus componentsthroughout SA and the sub-Saharan region. Tyrone Gruner, Asus

product manager, Ingram Micro SA says, “We can now supply all

the components needed for manufacture to our resellers. This has

made Ingram Micro a true one-stop shop for computer

components.” Even though Ingram Micro South Africa has access

to the full range of Asus products, Gruner points out that it has a

very specific go-to market strategy.

Lexmark appoints Smart Box SupportServices

Lexmark International has appointed Smart Box Support Services to

manage its after-sales support. Branislav Zivkovic, MD, Lexmark SA,

says Smart Box Support Services was awarded a long-term partner-

ship contract after being invited to quote for the business with the

objective of standardising Lexmark South Africa’s service delivery

standards to its global model. “We required a partner who shares

our passion for excellent and consistent service delivery. We con-

gratulate Smart Box Support Services, and look forward to building

a successful partnership with them,” he adds.

Obsidian Partners with EnterpriseDB

Obsidian, a South African open source company, has partnered

with EnterpriseDB, one of the world’s leading providers of enter-

prise-class products and services. The partnership will allow

Obsidian to offer professional services and training related to

EnterpriseDB’s Postgres Plus and Postgres Plus Advanced Server

products. Muggie van Staden, MD, Obsidian says: “ Obsidian is

proud to be offering implementation and training services as an

official partner of EnterpriseDB in SA.”

ATIO acquir es Symetr ix

ATIO, a specialised ICT services provider, has acquired Microsoft gold

partner Symetrix. Symetrix will be renamed ATIO IT-Services division

and operate autonomously with its own sales and management

teams. The deal sees all Symetrix staff moving to ATIO’s offices in

Johannesburg and Cape Town over the next few months. Chris Van

der Sande, CEO, ATIO says, the deal helps achieve the mandate to

grow ATIO into a position where the company has several diversi-

fied business units, each offering their own, distinct niche services.

“We are excited about the opportunity this transaction gives us tocreate a sustainable earnings stream and the ability to sell our

services across clients,” concludes Van der Sande.

ANALYSIS: DISTRIBUTION MOVES

SOLUTION PROVIDERS

CRN SOUTHERN AFRICA • JUNE 2008 • 7



he current state of the distribution space in

SA seems to be quite a cause for concern

for a number of players in the sector as cer-

tain elements in the entire ICT sector could

be hindering its development and growth.

Generally speaking, there is some unfair

competition between the distributor-level

companies and the large system integrators.

Essentially, the structure and models on

which the local channel is based is a good

and very effective one, and many would

agree that the issue is more about how the

channel can be made to run more effective-

ly rather than changing it.

The channel clearly has a discrepancy

because the top system integrators such as

BCX, Dimension Data, Gijima AST and

Datacetrix continue to thrive and grow, but

there are no small or, better yet, medium-

sized system integrators growing and the

channel needs to be aware of this.

The channel, and distribution space in

particular, is slowly becoming a training

ground that is losing skilled personnel at a

worrying pace.

The skills are being gobbled up by the

big system integrators and smaller systemintegrators, and distributors are left

wanting. This has created a need for the

distributor community to create a bank of

skills, and stop the practice of poaching

and recycling skills among themselves.

Rectron CEO Mark Lu comments that the

creation of a skills bank in the distribution

space is a novel one, but with the current

economic climate in the country, it will

remain a novel idea for a while still.

“ I must agree that as a broad-based dis-

tributor, Rectron loses skills to the large sys-

tem integrators because the IT space as a

whole is facing a major skills shortage and

the remuneration structure has been

skewed for a while,” he comments.

Although Rectron plays in a different

space to the likes of Westcon, a company

that has been hit hard by skills poaching by

the large system integrators, Lu says he can

relate to the company’s issues because the

situation affects the channel as a whole.

He says job hopping in the distribution

space has slowed down considerably in

recent years as companies have backed out

of the salary or price war that gripped the

sector in the early to mid 2000s.

In addition, South African distributorsneed to embrace a culture of co-operating


COVER STORY: DISTRIBUTION

SOLUTION PROVIDERS

B Y K AUNDA C HAMA

T

“ I must agree that as a broad based distributor, Rectron loses

skills to the large system integrators because the IT space as a

whole is facing a major skills short age issue and the remuneration

structure has been skewed for a while.” – Mark Lu, Rectron

The state of the sector could be a cause for concern.

There isglitch in thedistribution matrix

Mark Lu, Rectron




SOLUTION PROVIDERS


on certain deals where they feel they do not

have adequate skills to handle the entire

project. Although this seems like a long

shot it has proven successful in the US both

in the distributor and reseller space.

Meanwhile, Jacques Malherbe, Westcon

SA’s CEO, says that he is quite worried

about the state the distribution business in

general will be in within the next 18

months because of the slowdown in busi-

ness and the current state of the market.

“Distribut ion is a scale and scope game

and a company needs to have volume

through the products and solutions it

offers, I feel that for a distribut ion companyto survive it has to diversify its offerings. You

can’t survive as a niche distributor,” he says.

He strongly believes the companies that

will survive will be the broad liners because

they have lowered their risk through having

a broad product portfolio.

“Everyone in SA has come to a point

where they feel the boom is over; the dis-

tributors with a wide range of products will

continue bringing in reasonable income,

but the niche players will need to go deeper

and create other revenue streams through

support, services and consulting because a

plain niche distribution model is no longer

sustainable,” explains Malherbe.

On the technology side, he comments

that the advent of convergence and unified

communications has brought complexity

back into technology installations and

made it harder for companies to carry out

quick installations.

“The commoditisation of technology is

well and good and happening at SME level,

but the same can’t be said for the higher

level,” he comments.

He questions the motives behind some

“so-called” value-added distributors saying

they simply use resellers to secure contracts

and then move in and do all the work. “ To

really add value as a distributor, they need

to understand that resellers need money

(credit), t raining, joint marketing, bundling

and segment specialisation so that they can

cater for specific verticals. Once they cater

to these needs, they can consider them-

selves value-added distributors,” he says.

Lu strongly agrees with this and saysthat broad-based and real value-added

distributors will own the local space.

Another big issue that local distributors

do not agree with is the tender process,

especially when it comes to large accounts

where the customer asks for system integrators

to be either a gold, platinum or diamond

partner of a vendor such as Microsoft, Cisco

or IBM.Both Lu and Malherbe say that the

“ Everyone in South Afr ica has come to a point where they are

feeling the fact that the boom is over; the distributors with a wide

range of products will continue to bring in some reasonable

income, but the niche players will need to go deeper and create

other revenue streams through support, services and consult ing

because plain niche distribution model is no longer sustainable.” –

Jacques M alherb e, West con

Jacques Malherbe, Westcon



tendering process is flawed in that it does

not create a fair playing field because the

bigger system integrators have an unfair

advantage. They say that it is easier for the

bigger guys to invest in the training and

development that make them gold, plat-

inum and diamond partners, whereas the

smaller companies might have the skills

needed to meet the requirement of a ten-

der but are unable to bid because they are

not gold, platinum or diamond certified.

“At the same time, SA is very brand con-

scious and by default large enterprises and

sometimes government will opt to go with

the likes of BCX and Dimension Data. As

long as the country continues with this

trend the smaller less known guys will be

sidelined,” explains Lu.

He adds that this is the main reason

a lot of industries in the country are

monopolised by either one major player

or a small group of well-known and

recognised players.

Grant Bodley, senior GM in the

outsourcing division at Dimension Data

says that realistically speaking the entire

ICT sector is under pressure when it

comes to skills availability, development

and retention.

Recent research shows that locally there

could be a shortage of as many as 38 000

skilled ICT personnel.

“Although a good number of skilled

people do move from the distributor

space to the large system integrators, as

the big guys, we are doing a lot to develop

skills through initiatives like on-the-job

skills development and learnerships,”

explains Bodley.

Bodley, who looks after the outsourcing

business at Dimension Data, adds that even

the bigger players, such as his company, are

feeling the pressure of the skills shortage

because even his company’s competitorsare willing to of fer skilled people “top

dollar” to have them join them or to retain

those they already have.

“The truth is that we do have a slight

advantage by having more buying power

than the smaller guys, but with the state of

the economy, we are only paying market-

related salaries. I also believe that another

major reason people move from the smaller

guys and join a company like ours is purely

for career development,” he explains.

Regarding the issue of the country not

having small and medium-sized system

integrators with the potential to grow and

become part of the bigger guys, Bodley

comments that the reason for this could be

that most of the companies that play in thisspace prefer to remain niche and hence do

not leave themselves with much room for

growth because they narrow their business

to certain areas of specialisation.

“Sometimes, even companies like ours

partner with medium-sized companies on

business that requires some specialisation

that we need from them and even on

accounts that demand that we have BEE

partnerships,” he says.

Regarding the certification issue, Bodley

says that even companies the size of his

started off at a point and as the business

grew, they had the capacity to reach where

they are today and the smaller guys will get

there with a lot of work and dedication.

“We have invested a lot of money and

time into getting certif ied by the big ven-

dors because getting here requires a lot of

training and development and the neces-

sary training costs a lot of money,” he says.

Meanwhile, Malherbe says that in an

economy such as ours, which has a mix of

first and emerging world economies work-

ing at the same time, distributors have a

great opportunity to perform well and help

their reseller partners do the same.

SA is becoming a freer market and com-

petition is getting stiffer as margins get

smaller. The only way a distributor, system

integrator or reseller will get and stay

ahead is to be more competitive with the

products and services it takes to market.

At the same time, it is clear that there

are issues, such as certification, that need

to be relooked at if competition between

the big and the small guys is to be trulyencouraged.



SOLUTION PROVIDERS

At the end of the day, South Africa is becoming a freer market by

the day and competition is getting stiffer as margins get smaller

and the only way a distributor, system integrator or reseller will get

and stay ahead is to be more competitive with products and

services it takes to market.

Grant Bodley, Dimension Data



isco is on a mission to foster, drive and

capitalise on the mobile market. Thecompany has announced that it plans to

advance the mobile experience for people

whether they’re at the office, at home or

on the go.

Rick Esker, director, Mobility Alliances

Group, Strategic Alliances, Cisco, saysmobility is a growing market and many

innovative technologies are being

developed by companies such as Nokia,

RIM and Apple that are well-positioned in

the space. Whether they are touch devices

or applications, Esker says these mobile

technology companies have one thing in

common – the network. In order for people

to enjoy innovative new devices, cool new

software or greater productivity. Cisco is in

a unique position to define and evolve

the mobile marketplace.

“Cisco is one of the only companies

to have the breadth of expertise across

all market segments, including SMB,

consumer, service provider, enterprise

and commercial.

“Cisco is redefining the very notion of

mobility. It understands that it is not

about devices, technologies and services.

It is about people being able to move

freely throughout the world while

maintaining continuous connectivity to

content and people.

“Mobilit y is really about always being

connected wherever you are and being able

to participate in the mobile experience,”

he says.

He goes on to say that Cisco’s vision of

mobility is one where users can personalise

their experiences by being able to access

content on any screen and any device of

their choice.

“Social networking and streaming video

go hand in hand when it comes to

personalising a user’s experience. Enabling

users to exploit video as a means ofcommunication and entertainment


ANALYSIS: CISCO

SOLUTION PROVIDERS

B Y D UDU S HABA

C

Enabling users to personalise their experiences.

Cisco plans to capitaliseon mobile market

Rick Esker, Cisco >p14



has prompted service providers to

become experience providers, further

enabling the connected life. They are

enhancing both the experience and reach of

the consumer by offering streaming digital

video over many different screens,” he says.

“When Cisco looks across global markets, it

sees some interesting trends. As one of the

African continent’s advanced economies,

mobile adoption is similar to what is seen

in Western European economies. However,

there are other trends in Africa that may

accelerate mobile services in SA. These are

often related to payment and banking

technologies. Also, as Cisco often sees in

markets without extensive wired infrastruc-

tures, some areas in SA are leapfrogging

technology,” he adds.

Esker says that this plan is specifically

targeted at emerging markets.

“The emergence of new applications,

such as voice-over-WiFi and location-based

services, will continue to drive more

pervasive deployments as will the sharp rise

in Wi-Fi-enabled devices,” he remarks.

To make sure that Cisco performs better

in emerging markets, Esker says it will use a

range of marketing tools, including partner

demonstrations and proof of concepts,

white papers and extensive outreach to

industry influencers.

He adds that Cisco has a partner systemthat includes HP, IBM, Nokia and Oracle,

and technology partners like AeroScout,

Agito Networks and Airetrak, as well as

industry-specific application partners like

IntelliDOT, Johnson Controls and Philips

Healthcare and OATSystems.

“The Cisco Mot ion Vision enables our

partners to enter new value-adding markets

by unifying business applications with

wireless networks and devices, while at the

same time achieving efficiencies through

the use of open APIs and standard IP

architectures,” he says.

He explains that Cisco’s partners develop

their own business models and are responsible

for their competitive advantages in the

markets in which they operate.

“Cisco offers technologies and servicesthat capture market inflection points in

rapidly growing markets enabling partners

to build their businesses as they see fit,”

he says.

Cisco believes that an IP-based network

serves as the most cost-effective,

service-rich platform for mobile services

and applications for both business and

personal needs.

“While the access medium can change

depending on user location, an IP-based

network serves as the converged platform to

connect different work and personal spaces.

In addition, in the spirit of open standards,

Cisco is embracing an open network

platform which allows a wide range of ISVs

to develop integrated applications. “The

intelligent work services in the network,

such as QoS, policy and security, transparently

enable a seamless mobile collaboration

experience for individuals and business

professionals between wired and wireless

worlds,” he says.

“Cisco will carefully and continuously

evaluate its market performance to ensure

it meets the objectives of its shareholders,

employees, partners and customers,”concludes Esker.


ANALYSIS: CISCO

SOLUTION PROVIDERS

“ Cisco wi ll carefully and cont inuously evaluate its market

performance to ensure it meets the object ives of i ts shareholders,

employees, partners and customers,” – Rick Esker, Cisco

“ In order for people to enjoy innovative new devices,

cool new softw are or greater productivity, they need to be

connected. Cisco is in a unique position to define and

evolve the mobile marketplace.” – Rick Esker, Cisco

>>p12



P ProCurve has extended its Identity Driven

Manager product which allows granular

definition of network policy to work with

the recently launched Network Access

Protection (NAP) functionality.

Nick Hancock, technical consultant,

ProCurve Networking Business, says that

NAP comes standard with Windows Server2008 Enterprise Edition providing health

checking of clients as they attach to the

network and Microsoft focusing on the

client and Server OS components with HP

ProCurve, providing network policy

definition and enforcement.

Hancock says that network access

control (NAC) is a term used to describe the

process of enforcing who is allowed onto

the network. He says that this was formalised

by the Trusted Network Consort ium (TNC)

into a standard but is still used interchange-

ably by vendors to mean anything from

simple access authentication right through

to full health checking of the client.

“NAP is a Microsoft term that describes

the process of enforcement and health

checking of network policy on a client from

the network. NAC and NAP are technolo-

gies that challenge the user for credentials

as they attach to the network and then

applies policy,” he says.

Hancock adds the drivers for ProCurve

integrating identity driven

management/NAC into the Microsoft NAPsolution was to give customers access to a

more integrated client O/S solution.

“The critical mass of software vendors

working within the TNC/NAP solution arena

means that it is quickly gaining acceptance

as the most rapidly maturing solution with

the greatest industry support, lower risk

and provision of choice,” he explains.

He goes on to explain that there aremultiple components for responding to

Network Access Control:

G For Microsoft NAP at least one

Windows Server 2008 Enterprise with

Network Policy Server service running

G Client device running Windows XP

Service Pack 3 or Vista

G Intelligent Edge Swit ches or w ireless

platform capable of supporting rich

802.1x features such as those from

HP ProCurve

G Identity-driven management software from

HPProCurve sitting on ProCurve Manager

Plus to provide granular user policies.

G ProCurve’s Identity-Driven Manager

(IDM) product is a network access policy

server which dynamically adapts

network ports and the device(s) that

connect to it to the needs of the user.

“This is a clear way of defining user

rights, resources on the network, assigning

them in a common way, wired or wireless,

and checking whether those devices are

appropriate to come onto the network.

Essentially, ensuring the integrity of thenetwork environment in a simple way,”

Hancock explains. He adds that HP’s

channel partners will have an opportunity

to address a new audience and

opportunit ies within their current client

base who might not have considered

access control before.

“As NAP capabilities are built into MS

2008 they can simply switch it on andquickly tailor the admission policy to their

customer’s business needs. In addition, this

an opportunity to further extend the offering

made to those customers who are running

ProCurve’s Identity-Driven Manager or

Mgt? suite of products,” he comments.

Hancock says that this integration will

be incorporated into the main training

courses offered around security within HP

ProCurve as well as implementation guides

and documentation.

Additionally, he says that HP has been

running seminars and webinars to educate

the channel on the vision and the detail.

“One of t he other benefits of being a

ProCurve skilled partner is that we provide

seminar kits to assist in showing the value

to the customer in a hands-on way, these

packs are regularly updated in order

to incorporate our solution offerings,”

he comments.

“There is a lot of opportunity. Many

customers face huge challenges in controlling

unauthorised, infected or unprotected

devices, and this is recognised on all levels.

This represents a good opportunity to work

closely with a customer to develop a longer

term relationship while mapping business

policy to network security policy,” he says.

Hancock says the TNC/NAP framework

will be the industry’s fastest to develop and

will undoubtedly bring a range of new

features to the overall proposition.

“This allows new testing methods to be

developed for different client devices. Over

40 leading companies are actively working

with the standard opening up lots of newtechnology opportunit ies,” he concludes.


ANALYSIS: HP PROCURVE

SOLUTION PROVIDERS

“ HP’s channel partners will have an opportunity to address a new

audience and opportunities within their current client base who

might not have considered access cont rol before.” – Nick

Hancock, Pro Cur ve Net w or kin g Business.

HP NAP creates a secure infrastructure

B Y D UDU S HABA

Vendor extends identity manager product range.

H



tec, one of the fastest growing office

automation, production printing and

telecommunications providers in southern

Africa, has secured a R15 million partner-

ship deal with First National Bank, a division

of FirstRand Bank Limited.

This comes after FNB signed a three-year

contract with Itec West for printing

solutions, projected to save the f inancialinstitution between 15 and 20 per cent per

annum. Recently, Itec made headlines when

it announced its mission to conquer markets

abroad by opening a new office in the UK.

Coming back to the R15 million deal,

FNB has leased 137 multifunctional devices

from Itec West, replacing 656 desktop

printers that were being used by FNB

Shared Services’ 3 700 employees. These

employees are situated in seven buildings

around Johannesburg and five buildings

across the rest of the country.

Prior to contracting with Itec West, the

business unit had contracts in place with a

range of printer, photocopier and fax suppliers,

as well as a number of independent desktop

machines representing a variety of brands.

“This was complex and expensive tomaintain, operate and support,” says

Neels Boshoff, chief financial officer, FNB

Shared Services.

“We wanted to f ind one supplier who

would be able to provide us with a top

brand at a competitive price. At the same

time, Itec West took the initiative, carried

out a print audit and presented us with a

solid business case for the overhaul of our

entire office automation system. Not only

have we saved a substantial amount of

money, but we have also streamlined our

processes as a result ,” explains Boshoff.

Itec West’s print audit consisted of a full

assessment of FNB Shared Services’ existing

printing solutions as well as a full review

that took into account monthly printing

volumes per division and department,

determined the need for colour and

monochrome printing, and documented

the print ing requirements of individual

employees. The report highlighted total

cost of ownership, running costs and

where money was being lost.

“We found, for example, that many

high-level multifunctional devices were

being used only to make photocopies,”

says Rodney Taylor, managing director ofItec West.

“Based on our findings, we compiled a

proposal that outlined the structure of an

enhanced office automation environment,”

adds Taylor.

FNB benchmarked the proposal against

both existing and other suppliers, and

awarded the contract to Itec West.

“The savings have been significant, but the

business case was an equally importantconsideration. We have onsite support,

realtime monitoring of all machines so that

technicians are alerted to problems before

users are even aware of them, backup

devices at all sites as well as an agreed turn-

around time for fault resolution,” adds Boshoff.

According to Taylor, Itec West provided

FNB Shared Services with a standardised

solution, so that only a single brand of toner

and spare parts need to be kept onsite

“Our entire operation is dependent on

being able to deliver paper documents to

customers within a specified timeframe, we

simply cannot afford downtime. This not

only cuts down on costs but makes the

entire printing solution more manageable

and easy to run,” explains Taylor.Boshoff?

Phase two of the rollout saw FNB Shared

Services rationalising its office automation

equipment in its contact centre. It sent out

a request for proposals inviting other

suppliers to submit a proposal for the supply

and management of multifunctional devices.

Phase three of the rollout will incorpo-

rate additional FNB business units over the

next 12 months.

Do you have demand generator stories

to share with us? Please e-mail Dominic Khuzwayo at [email protected]


DEMAND GENERATOR: ITEC WEST

SOLUTION PROVIDERS

B Y D OMINIC K HUZWAYO

I

“Based on the findings, we compiled a proposal that outlined the

structure of an enhanced office automation environment for FNB Shared

Services.” – Rod ney Taylor, It ec West.

Enhancing office automation.

Itec moni tors FNB’s printing solutions

Rodney Taylor, Itec West



ANALYSIS: LEXMARK

SOLUTION PROVIDERS

rinting solutions provider, Lexmark, has

launched its new Channel Value Programme

across SA and Europe. According to

Lawrence van Namen, sales director Channel

and Supplies, Lexmark International SA, the

progression-based programme repayschannel resellers and promotes best printing

practice through a dynamic mix of sales

support, rewards and special incentives.

Van Namen says the Channel Value

Programme is tailored to help individual

channel partners to drive sales and bring

added value through service offerings and

knowledge transfer as well as to offer their

customers smarter ways to boost productivity

and reduce costs.

“The Lexmark Channel Value Programme

is a pan-European programme with the aim

of rewarding our loyal channel partners for

their support as well as to offer them tools

to make their selling process easier and to

differentiate their offering in the market-

place,” he says.

“Our main objective is to assist our

channel partners in offering their customers

more than just a device. We want to help

them to add value by using Lexmark’s ‘Print

Less, Save More’ approach. By showing

their customers ways to print less, more

economically and to be more productive

our partners are assured of continuous

business. We also focus on profitability for

both Lexmark and the reseller,” he adds.

Any reseller can join the programme,

depending on their hardware sales perfor-

mance and will fall into one of three tiers.

“For the entry-level tier, resellers need to

register and join to be part of the pro-

gramme, at the second tier there are more

benefits and minimum quarterly revenue

they need to maintain to remain in the tier.

At the top tier there are even more benefits

and minimum yearly revenue they need tomaintain,” he says.

According to him, the partner

programme recognises hardware sales

and rewards partners in various ways,

depending on their tier.

“Rewards range from discounts, exclusive

promotions, to points that can beredeemed for goods, and at the highest

level – bonus plans,” he explains.

He says that the first incentive they have

is to increase their sales so they can move to

a higher tier, thus getting more benefits.

“At each tier the incentives and rewards

differ and range from a kick-start promotion

for first-time buyers to exclusive promotions

and give aways, points and bonus plans.

The more they sell, the bigger their bene-

fits,” he says.

Van Namen adds that the Channel Value

Programme continuously provides training

to its channel partners.

“We take an informal approach and,

depending on the reseller’s needs, we will

train on specific products, our solutions or

provide basic technical training. We’ve even

gone as far as training our reseller sales

people on how to sell Lexmark products. We

have a standing open invitation to all resellers

to use our showrooms in Durban,

Johannesburg and Cape Town at any stage

they need, either to book training for them-

selves or to bring prospective customers to

see the products in action. With regard to

the Channel Value Programme at the highest

tier certain partners have to go through very

extensive technical and after-sales support

training to maintain their t ier,” he explains.

Registered partners can access various

sales and marketing tools through a

dedicated extranet.

“Depending on their tier, they will also be

able to personalise Lexmark brochures with

their company logo and generate quotes

online with their pricing. They will haveeasy any time access to key selling

arguments for Lexmark’s solutions. The

extranet can be accessed at

www.reseller.lexmark.co.za,” he says.

He goes on to say that there is also an

online technical support section within the

extranet where the reseller can do basic

trouble shooting.

“Lexmark’s technical support hotline is

also available to resellers who need

assistance, and to make it easier, we’ve split

our support lines into two, one dedicated

to home users and the other to business

users. This way we ensure our customers

and resellers get dedicated and effective

support from us,” he explains.

With this partner programme, Van

Namen believes that partners will be able to

secure their margins and business growth.

“With it being a brand-new programme,

we hope that the future holds growth in

member registrations as well as their sales.

The future will see more benefits andsupport tools added,” he concludes.

Lexmark launches newchannel Value ProgrammeB Y D UDU S HABA

Incent ivising channel partners.

P


Lawrence van Namen, Lexmark, SA




ANALYSIS: MWEB BUSINESS

SOLUTION PROVIDERS

WEB Business, the country’s largest ISP, lastmonth announced the addition of

Microsoft Hosted Exchange to its range of

Internet-based solutions.

According to the company. this is the first

product to be launched in its suite of hosted

messaging and collaboration tools.

MWEB Business is offering a standard

2GB mailbox with this offering.

Hosted Exchange delivers all the inherent

features and benefits of Microsoft Exchange

2007, without the initial capital outlay.

The company believes that by launching

Microsoft Exchange in a hosted format, it

opens doors for companies that previously,

due to cost considerations, did not have

access to the Microsoft Exchange platform

and brings relief to those who are using an

older version of Exchange but were putting

off upgrading to the 2007 version because

of the associated costs.

By migrating to Hosted Exchange, these

companies can benefit from cost savings by

not having to upgrade, the company says.

By eliminating a large upfront customer

investment, the company says that it is able

to provide an offering that caters to t his

segment. The service is completely

scaleable, allow ing customers to scale up ordown on their service requirements according

to the needs of their business.The service is hosted in MWEB Business’

data centre environment, which is equipped

with a fully redundant power supply and

cooling systems.

Furthermore, the company has extensive

service hosting experience and claims that

it hosts the biggest e-Commerce platform

in the country. Customers also have access

to MWEB Business’ 24-hour technical

support team.

Herman Jansen van Rensburg, Head of

Product Management and Development at

MWEB Business says: “ We are excited to

offer this technology solution to the market,

we have been working extensively with

Microsoft over the past few years to

develop it and we are confident that it will

meet the needs of the market.

“We are seeing more and more South

African businesses seeking affordable

technology solutions that will add value to

their operations and increase their profits.”

Sean Oglesby, Hosting Lead at Microsoft

South Africa added the company is excited

about its relationship with MWEB Business.

“We will be working closely with MWEB

Business in the future to develop more solutions

tailored for the needs of the business market.

This product is one of the first we will be

offering through MWEB. This partnership

enables MWEB Business to always provide

the latest Microsoft features and functionalities

as soon they become available.”

Van Rensburg says that the service, which

has been launched on the Microsoft

Exchange 2007 model, is targeted at

small-and-medium-sized businesses and heis confident that the pricing around it will

Software as a service for SMEs.

MWEB Business launchesHosted Exchange

B Y K AUNDA C HAMA

M

“ We are seeing more and more Sout h African businesses seeking

affordable technology solutions that w ill add value to their

operations and increase their profits.” – Herm an Jansenvan Rensburg, MWEB Business

Herman Jansen van Rensburg,MWEB Business



ANALYSIS: MWEB BUSINESS

SOLUTION PROVIDERS

be affordable and competitive.

“We will be offering a 2GB mailbox for

R75 per month, which we think is very

competit ive,” he comments.

Van Rensburg adds that as more companies

start moving towards hosted services, a lot

of them are also shifting from POP solutions

and going the hosted exchange route.

“We are offering the exchange solution

to smaller companies that have the need for

it but might not necessarily be able to

afford it. We are confident that it will be a

success because software as a service is

becoming the norm and companies of all

sizes are beginning to understand thebenefits of hosted solutions,” he explains.

He notes that Microsoft CRM and

Sharepoint solutions are in the pipeline,

adding that MWEB Business has

noticed a considerable increase in both

systems’ popularity.

Van Rensburg says another advantage to

the company’s customers is that it is offering

flexible contracts that can be adjusted

according to end-user needs and budgets.

“The advantage is that customers pay per

month and they only pay for what they

use,” he notes.

“When we look at the local market,

companies that have between 15 and 75

employees are considered to be small-to-

medium entities and with this service,

from a pure IT budget point of view,

they will realise some good cost savings,”

he explains.

Meanwhile, MWEB Business is also

staking its claim on the assumption that

hosted services will continue to become

more viable now that broadband is

becoming more available and affordable.

The company also believes that the load

shedding that affected the country recently

will drive the adoption of hosted services

because companies will still have access to

critical services even when electricity in their

areas is temporarily switched off.

The company is taking this solution to

market through the direct and indirect

models and boasts about 400 business

partners in the South African market alone.

The company’s partners that resell MWEB

connectivity will also sell the company’s

hosted services.

Meanwhile, they will also enjoy a rebate-

based commission structure through which

they can earn additional revenue .

Microsoft Hosted Exchange by MWEB

Business fact sheet

G Low, monthly per user rate, starting at

R75 per user per month, including a

2GB mailbox

G Business-grade product enables employees

of a company to share company infor-

mation seamlessly wherever they happen

to be

G Important data stored on each local PC

and on hosted exchange servers, with

back-ups to reduce the risk of data loss

G Comprehensive mult i-layered protection

against viruses and spam from MWEB

Business’ state-of-the-art server

G E-mail, contacts, calendar, public folders,

shared folders, meeting planners, t ask

lists and more

G Flexible access to data anywhere,

anytime

G No on-site maintenance required

G All future software updates will be free

of charge

G Hosted exchange is completely scaleable.

MWEB Business is also staking its claim on the assumption that

hosted services will continue to become more viable now that

broadband is becoming more available and affordable.




ANALYSIS: INTEL

SOLUTION PROVIDERS

ecent statistics show that foreign debt inthe southern African region is currently at

the lowest it’s been in the past 30 years and

this is beginning to create many lucrative

opportunities for technology vendors.

One such vendor is Intel, whose southern

African regional manager Devon Naidoo

says the company is on a mission to be the

most influential technology company on

the continent.

He explains that many countries on the

continent have had their debt reduced or

written-off recently and have been given a

more optimistic outlook on the future.

Naidoo points out that at least 11

countries in the region are involved in

either oil or gas or both, adding that

agriculture initiatives in many African countries

are also developing at a very good rate.

“At the end of the day, for Africa to

become a major player in the global

economy, we need to create a knowledge

economy and have an informed society

which is on par with the rest of the world,”

he comments.

He says the vendor, with the help of its

channel partners, is on a mission to

promote IT enablement and be part of the

African solution. “ We want to educategovernments, channel partners and

consumers,” he comments. Intel is making aconcerted effort to increase its presence on

the continent and wants to be one of the

companies behind increasing the use of

technology on the continent in an environ-

mentally friendly way.

The company is partnering with its

channel as well as other business partners

to reduce the impact of technology devel-

opment on the environment. To this effect,

it is involved in the development of “ green”

products that enable users to be more

eco-friendly.

One of the ways it is doing this is by

reducing the size of its chips and transistors,

and putting an end to the use of lead in its

chips. This reduction is also resulting in

computers that give better performance but

at the same time consume less energy.

Currently working with its 45nm chipsets,

Intel expects to bring its 32nm chips to

market next year.

Naidoo told Intel channel partners at a

recent briefing in Johannesburg that as

more people get connected to the Internet,

online marketing is becoming more of a

reality. “ These days, a computer with no

content or connectivity is just a hunk of

metal and plastic,” he comments.

Naidoo says that by 2012, online adver-

tising could be worth close to $20 billion.

He comments that the local trend is for

consumers to purchase notebooks as

opposed to desktops as mobility becomes

the order of the day.

“Looking ahead, I can tell you that you

should expect a huge increase in unit sales,

but this increase will also be accompaniedby lower margins,” Naidoo says.

Technology vendor sees light on t he “dark continent.”

Intel stays bullishabout Africa

B Y K AUNDA C HAMA

R

“At the end of the day, for Africa to become a major player in the

global economy, we need to create a knowledge economy and have

an informed society which is on par with the rest of the world.” –

Devon Naido o, Intel

Devon Naidoo, Intel



ANALYSIS: INTEL

SOLUTION PROVIDERS


He is calling on the company’s channel

partners to lead the way in helping con-

sumers to transition with the advancement

in Intel’s technology by encouraging tech-

nology adoption on the continent.

With the 40 countries in the sub-Saharan

African region now no longer spending the

majority of their budgets on servicing their

foreign debt, Naidoo comments that the

governments of these states now have

funds they can use to promote ICT projects.

“There is a lot of investment coming into

sub-Saharan Africa from the Far East

because India, the Philippines and China are

no longer as cheap as they used to be.Africa has cheaper labour and more natural

resources,” he explains.

He comments that the fact that the

majority of the population in this region is

young might seem a problem in the inter-

im, but it bodes well for the future.

“The region needs to take advantage of

this through ICT because it is seen as the

foremost enabler of knowledge

economies,” says Naidoo.

He adds that Intel is confident that its

Atom processor, which is based on 32nm

technology, will do very well on the conti-

nent because it is designed for mobile

Internet devices. “We are confident that the

Atom will do very well on the continent just

look at the way the cellphone industry is

performing in Africa. Its growth has been

proportionately faster that anywhere in the

world,” he says.

Another reason Naidoo believes the com-

pany’s channel partners will do well on the

continent is because many governments on

the continent have been under a lot of

pressure from their citizens to deliver better

quality social amenities.

He says that to add to this the perception

of ICT is changing because it is now being

seen as a supplementary element in the

provision of these services rather than com-

plicating processes.

Intel is confident that between now and

2010, it will, through its partners, cater to

the next two million computer users.

As green computing becomes a hot topic

with every technology vendor striving to

become as energy efficient as possible, Intelis equally keeping up with the pace and

ensuring that its future technologies have as

little impact as possible on the environment.

On the green computing side, Naidoo

claims that Intel is the biggest user of

renewable energy in the United States and

has it as part of its policy to continually

reduce the amount of carbon dioxide emis-

sions in its production processes.

The technology vendor says that it

expects that in the next two years it would

have reduced the amount of carbon dioxide

emissions that will be equivalent to that

produced by eleven million cars .

Meanwhile, the technology the company

is scheduled to release in Q3 and Q4 of thisyear will be Lead free.

Naidoo also comments that IT companies

have to work together to stop dumping

outdated computers in Africa. The practice

has been going on for many years where

companies dump old computers on the

continent under the guise that they are

making donations while others simply buy

areas for use as dumping sites and con-

tribute to pollution in those areas.

He says that even greenfields companies

that adopt new technologies like Vpro will

achieve cost savings and these technologies,

because of their nature, reduce the compa-

ny’s energy requirements.

Naidoo explains that getting green com-

puting right will involve a lot of education

across all sectors of the IT industry, but he has

seen a great deal of enthusiasm from vendors

right through to end users when it comes to

environmentally friendly computing.

Looking ahead, he says channel partners

should recognise that wireless broadband is

the way to go when the next generation of

Internet users gets connected. “ Fixed lines

are no longer a viable option for the African

continent that is why we believe WiMax is

currently the easiest and most cost-effective

way to take connectivity to rural areas,”Naidoo concludes.

“ Fixed lines are no longer a viable option for t he African

continent that is why we believe WiMax is current ly the easiest

and most cost-effective way to take connectivity to

rural areas.” – Devon Naidoo, Intel



big opportunit ies in t ransport and logistics,

FMCG supply chain and retail markets.

“Handhelds are used in these vertical target

markets in-premise in warehouses and dis-

tribution centres, and

in field at the customer’s contact points,”

he comments.

“With specific reference to EDA and

ruggedized handhelds, the organisations

involved in field force operations have

proven to be the earliest adopters of mobile

deployments,” says Vermaak.

Vermaak adds that the employees of

these organisations use this one tool

as a critical component of their day-to-

day responsibilities, which may include

field service, mobile sales, route accounting

or logistics.

Opportuni t ies

According to Lester, the vertical markets

indicate great potential and adoption of this

new technology. She says that aggressive

marketing by various vendors has led to

increased confidence and understanding of

the benefits of handhelds in these sectors.

“Handheld devices promise growth in

corporate and government market

segments, as well as in the retail market,

where consumers are demanding a

converged device that addresses all their

personal and business lifestyle needs,”

she comments.

Lester says that the opportunity is

definitely available for vendors to launch

converged devices with all software

packages related to the functionality of the

device pre-loaded.

Fosbrook says that there is great

potential for software developers and value

added resellers to develop specialisedapplications, as well as customized

applications running off handhelds.

“We’ve seen the birth of companies

specialising in this area as industry standard

tools become available from IBM, Sybase

and Microsoft,” he comments

Looking ahead

Fosbrook says that the future of handhelds

lies in convergence, as well as more

powerful capabilities in communications

and imaging, more rugged design, and

reduced costs as more applications come

become available.

Meanwhile, Vermaak predicts that the

mobile worker population worldwide will

increase by approximately 30% between

2004 and 2009, which will result in a

growth from 650 million mobile workers

worldwide to more than 850 million in

2009. He says that these type of devices

will be a necessity for some workers to

facilitate their daily activities.

“This is a huge opportunity. Solution

Providers can expect the market for mobile

enterprise applications to triple by

2010, providing yet another awesome

opportunity,” he says.

“As to what the future of handhelds

holds for us? Only time will tell as the rapid

development of miniaturised components

continues apace we will see the capabilities

and functionality of these devices grow

beyond our imaginings,” he continues.

Lester says that handhelds are the latest

techno-rich devices for those wanting ulti-

mate mobility while still being optimally

productive and connected.

“As notebook demand has escalated over

the past few years, and the trend to be

mobile continues to grow, handhelds may

very well become that one essential toolnobody will be without! ” she concludes.


“ The future of handhelds lies in convergence, as well as more

powerful capabilities in communications and imaging, more

rugged design, and reduced costs as more applications come

become available” – And rew Fosbro ok , Pro Scan

HANDHELD FEATURE

SOLUTION PROVIDERS

Andrew Fosbrook , ProScan



he South African desktop market can expectto see modest growth in 2008, as notebook

sales continue to eat into the traditional

desktop market.

This is according to Michel Darebny,

product manager for desktops and servers

at Acer SA. He says that slight but sustain-

able growth can be expected in the desktop

market as corporates refresh their PC

infrastructures and high-end home users,

such as gaming enthusiasts, cont inue

investing in powerful desktop computers.

“The desktop market is in no danger of

extinction. In markets where performance

and functionality are more important than

mobility desktops are being created for

specific purposes such as the ultra-small

form factor,” says Darebny.

While it is no secret that personal

computing is rapidly going mobile, desktops

are holding their own in SA, with well over

one million still being sold annually. Kobus

de Beer, Components Lead, Axiz, attributes

much of this to the rapid emergence of

entry-level users preferring desktops because

of their cost-effectiveness and, more impor-

tantly, their customisation benefits.

De Beer agrees that industry leaders are

probably not far off when they predict

global notebook sales will have reached at

least 200 million by 2011.

“Mobilit y is, after all, what users are

demanding. Yet, at the moment, desktop

sales are twice as high as mobile offerings

in SA and hold great appeal as the only

platform that still supports Quad-Core

CPUs. We also have the benefit of a huge

first-time buyer market that prefers desk-tops to mobile because of cost,” he says.


DESKTOP PCS FEATURE

SOLUTION PROVIDERS

Desktop PCs remain an appropriate choice for certain markets.

B Y D UDU S HABA

T

Desktop PCsstill essential

“ Desktop sales are tw ice as high as mobile offerings in SA andhold great appeal as the only platform t hat still support s

Quad-Core CPUs.” – Kobus de Beer,Axiz

Kobus de Beer,Axiz



Although notebook sales have overtaken

PC sales, Mandy Porter, Dell Business Unit

Manager, Drive Control Corporation,

comments that there is still a place for PCs.

“This is reflected in a recent IDC report

where 20 per cent growth in PC sales in the

Central Europe Middle East and Africa

(CEMA) region is predicted.

There are three areas where PCs offer an

advantage, for applications that require raw

horse power, for gamers and users that are

cost conscious,” he says.

In addition to that, he says that certain

markets will always require PCs rather

than notebooks.

“For example, financial services, educationand government will always require desk-

tops as their employees are usually office

bound and a PC is the most appropriate

choice. This ensures there is still a market

for PCs,” he comments.

“Despite numerous predictions of it s

eminent fall, the desktop PC market is still

very strong, contributing up to 50 per cent

of all PC sales,” agrees Kobus Kitshoff,

Fujitsu Siemens Computers Channel

Manager at Comztek

Meanwhile, Gary Naidoo, deputy MD,

Sahara Computers, comments that the

desktop market continues to show steady

growth as the PC attachment to South

African households is still very low.

Trends

Tracking the route that desktop PCs aretaking, Kitshoff says that the introduction

of dual-core processors about two years

ago proved to be very popular in both the

desktop and notebook markets and this

soon became the standard in all new

desktops sold.

“Although relatively new, quad-core

technology has seen significant uptake in

the market. Like its predecessor, quad-core

processors are set to become an industry

standard in desktops but it will be a

while before they become mainstream,”

he comments.

Jason McMillan, GM, HP PSG, Tarsus

Technologies, says that few customers

understand how cost-effective dual- and

quad-core processors are.

“Many companies have steered clear of

these technologies perceiving them to be

more power hungry than single-core

processors. In reality, the exact opposite is

true, Intel and AMD have made their

processors extremely power conscious,”

he comments.

He goes on to say that today’s dual-and

quad-core processors are, in fact, more

power efficient than their single-core

predecessors.

“Astoundingly, if the power savings that

an organisation can realise by going dual or

quad core is factored out across a fleet of

25 000 units, the savings in electricity

would go a long way towards absorbing

the cost of the roll-out,” he says.

De Beer says that consumers are

demanding more powerful computing

applications and that they are increasinglyconcerned about energy efficiency. Intel, he

SOLUTION PROVIDERS

DESKTOP PCS FEATURE


“ Financial services, education and government will always require

desktops as their employees are usually office bound and a PC is the

most appropriate choice.” – Kobus Kitshoff, Comztek

Kobus Kitshoff, Comztek



says, is leading the field here, with its

current generation of desktops, notebooks

and mainstream server processors based on

Intel Core micro-architecture being the most

energy efficient it has ever produced.

“The need to use less energy is increasing

everyday. Intel is the driving force in new

designs to support this initiative, and we

eagerly await the introduction of the Atom

CPU, Intel’s smallest processor built with the

world’s smallest transistors.

“ It is based on an entirely new design,

built for low power and designed specifically

for a new wave of mobile Internet devices

and simple, low-cost PCs,” says De Beer.

“We see more speed, storage, lowerpower consumption, typical of

modern multimedia demands. The

Internet continues to drive technology,”

comments Naidoo.

Window s Vista

Despite the hype, De Beer does not predict

that the release of Windows Vista SP1 will

spur growth in desktop sales in the second

quarter of this year.

“This is just speculation and it comes

with the perception that Windows Vista will

become the operating system of choice,

especially in the SME and corporate markets

but only time will tell. In my opinion, SP1

will not directly increase the sales of desk-

tops but it will make users consider going

the Vista route. We are starting to see some

adoption from the consumer space but

corporate customers are choosing to stay

with Windows XP for as long as possible.

And some people never want to change, we

still get requests for Windows 98,” he says.

“We started to see improved growth in

the first half of the year and believe that we

will see significant growth in the second

half,” says Naidoo.

Security

As mobile devices are becoming more per-

vasive, security is another concern among

PC users. Kitshoff says that remote support

and additional hardware security are impor-

tant for protecting PCs from viruses and

other security threats.

“The cost implications of adopting new

security platforms does impact the purchas-ing decision and most ICT managers will

base their decision on overall pricing rather

than features,” he says.

Porter also raises her concern, she says

that security is a risk with desktops, note-

books, and servers, and adds that even

cellphones are vulnerable to viruses and

security threats.

“Dell has included a three-year licence for

Symantec’s Norton Anti-Virus software on

its notebooks and desktops to address the

concern,” she says.

“Vendor choices, together with

more sophisticated software, address this

very important business requirement,”

adds Naidoo.

Battle between OEMs and

mult inat ionals

Looking at the battle between OEM PC

brands and multinational brands in the local

market, Porter believes that competition ishealthy and there is always room for


“ The desktop market continues to show steady growth

as the PC attachment to South African households is

sti ll very low.” – Gary Naid oo , Sahara Com pu t ers

Gary Naidoo,Sahara Computers

DESKTOP PCS FEATURE

SOLUTION PROVIDERS



competitive products, including OEM brands.

However, Porter says that the first-tier

brands often offer value adds. “Dell’s three-

year next business day warranty and its

stringent factory testing make it extremely

competitive. This is beneficial to resellers as

it allows them to concentrate their energies

on business instead of having to resolve

maintenance and repair issues,” says Porter.

According to De Beer, the multinationals

continue to dominate the desktop market,

and he predicts that local manufacturers

will find it increasingly difficult to maintain

this momentum. He states that internation-

al vendors have adopted an increasingly

aggressive approach to the South Africanmarket, and emerging markets in general.

“The international vendors have

changed their marketing strategies and

have become aggressive in terms of pricing,

features, after-sales support and innovative

solutions. While I foresee the multinational

brands continuing to gain traction locally,

there is still a great deal of opportunity for

OEM brands and much room for value-

added services here,” he says.

Eff ects of mob i le comp ut ing

Does mobile computing have effects on the

traditional desktop PC platform? According

to Porter, mobility, 3G, wireless LANs and

Bluetooth are all driving sales of notebooks

and mobile computing. She believes that

this is what increases productivity as it

allows people to work anytime, anywhere.

However, there is still a requirement fordesktops as not every job or position

requires mobility.

“Think of office or administration staff

that does not need to be ‘mobile’.

Government and the education market

are other examples of where there is

still a requirement for PCs and this is

unlikely to change in the foreseeable

future,” Porter comments.

Future

MacMillan believes we will continue seeing

growth in the desktop market, although he

says that channel players will have to work

hard to capitalise on it.

“Furthermore, I believe that technology

will become even more commoditised over

the coming years, which is something that

will truly separate those who can add value

from those who can’t.

“Those who can add value will continue

to thrive and reap the rewards of their

efforts,” he concludes.

According to Kitshoff, the biggest change

in buying behaviour is with the consumer

market moving towards notebooks as they

become increasingly affordable. He says that

3G connectivity has also made notebooks

more attractive than desktops.

“Nonetheless, the corporate environment

still prefers desktops due to applications usage

and network connectivity,” he comments.

“Desktops will always have a place in the

market. Specialised applications and offices

will continue to use desktops. The desktop

market size will surely decrease in years to

come but it will still be a long while beforethis happens,” concludes Kitshoff.

SOLUTION PROVIDERS

SOFTWARE PIRACY FEATURE


“Astoundingly, if the power savings that an organisation can

realise by going dual or quad core is factored out across a fleet

of 25 000 units, the savings in electricity would go a long way

tow ards absorbing t he cost of the roll-out.” – Jason M cMil lan,

Tarsus Techno lo gi es

Jason McMillan,

Tarsus Technologies



BM channel partners will benefit from theIBM Africa Innovation Centre launched at

the IBM premises in Sandton this month.

The innovation centre, the first of its kind

on the continent is aimed at driving infor-

mation technology skills development and

addressing business challenges in the eco-

nomic growth of sub-Saharan Africa.

Steven Mills, Senior Vice President and

IBM Software Group, says that the innova-

tion centre is an enabling facility for crucial

ICT skills such as software development and

will transfer skills to channel partners.

“The innovation centre will also enable

resellers to differentiate themselves and

bring more value to their customers. The

centre is not only for members of the IBM

community, but for all partners as we aim

to build capacity in the channel,” he says.

The new centre is part of IBM’s $120 mil-

lion, two-year investment through to 2009

that includes new market expansion initia-

tives and houses Africa’s first cloud comput-

ing centre.

The centre will showcase business

approaches and open technologies such as

cloud computing, Web 2.0 technologies,

service-oriented architecture (SOA) and sys-

tems management. It will also demonstrate

next-generation banking systems offered at

the Banking Centre of Excellence as part of

the new innovation centre, and environ-

mentally friendly computing designs.

In cloud computing, dynamically shared

computing resources are virtualised and

accessed as a service, making it a particular-

ly attractive proposition for small-to-large-

sized companies in Africa.Speaking at the launch, Mrs Phumzile


A vehicle for business growth and skills development.

B Y D UDU S HABA

I

IBM Af r ikaInnovation Centre

“ We see this investment as game changing and creating

enormous opportunities for skills development, industry

promotion and economic growth.” – M ark Harri s, IBM Sub

Saharan Afr ica.

ANALYSIS: IBMSOLUTION PROVIDERS

Mark Harris, IBM



Mlambo-Ngcuka, the Deputy President of

the Republic of South Africa said that inno-

vation is a critical weapon for enabling

emerging markets to compete successfully

in the global market.

“However, innovation requires awakened

minds for it to manifest. And this is where

the symbiotic relationship between quality

education and relevant skills development

becomes a critical intervention.

”We face a big challenge in the world of

scarce skills and talent, and also in reinvent-

ing the way we can learn and educate in

line with t he global skills crisis,” she said.

The key elements at the Africa Innovation

Centre include:G Technical Exploration Centre (TEC) – pro-

vides an environment to test drive and

gain hands-on experience.

G IBM Innovation Centre for Business

Partners (IIC) – enables access to the lat-

est open standards-based and open

source technologies and innovation

through cross-boundary collaboration.

G Software solution Lab (SSL) - helps IBM

customers throughout Africa to under-

stand and implement the latest IBM

solutions to achieve their business goals.

G Kaleido – The IBM Innovation

Experience- enables the development of

lateral thinking skills, provides space for

creative thought to emerge and deep-

ens the quality of collaboration

G Systems and Technology Solutions Lab

(STSL) - executive briefings, skills transfer

and mentorship, and architectural

design sessions

G IBM Global Technology Services (GTS)

South Africa –fosters collaboration by

partnering with business partners and

ISVs in building innovative solutions

Joe Ruthven, SOA and Open Standards

sales representative, IBM, said that clients

will gain hands-on experience of IBM soft-

ware free of charge and be given advice on

solutions to address their business needs.

“ IBM representatives will guide through

demonstrations and answer questions and

give any information needed. People will

be provided with an easy and fast way of

getting close to technology and new

ideas,” he said.

In addition, Ruthven said that IBM will

advise businesses on the green issue.

“We will advise our clients on how to cut

costs and go green with energy-efficient

offerings, consolidation and virtualisation,”

he said.

The new IBM Africa Innovation Centre

will offer an array of resources not only for

IBM business partners, but also for IT pro-

fessionals and academia, enabling them to

develop skills and deliver solutions to global

markets using IBM’s open architecture.

Mlambo-Ngcuka, outlined that govern-ment’s need to show agility in policy mak-


“ The Africa Innovation Centre is a landmark investment

for IBM because it represents our commitment to being a

partner in the cont inent’s growth agenda.” – Steve Mills, IBM

Sof t w are Group .

Phumzile Mlambo-Ngcuka,

ANALYSIS: IBMSOLUTION PROVIDERS

Steve Mills, IBMSoftware Group



the company’s business model failed. He

says the biggest issue with the way the

company remained was the fact that it was

stripped of all it s biggest earners. “ I think

we were a little too optimistic at the time,”

he says.

With this situation at hand, 18 months

ago Herbst decided to investigate ways in

which he could use the ChannelWare

resources to target the SMB space. The

company then opted to open about

30 ChannelWare distribution centresnationwide.

“ChannelWare was only launched two

years ago and I think its performance has

been affected by the current economic cli-

mate. A lot more companies could be

affected in the sector if one looks at the

current rate of consolidation that is taking

place. I still feel that the distribution space is

rather overtraded,” he explains.

However, rather than close the entity, the

company has decided to keep the name

and redeploy its resources.

Herbst says: “ In the long run I foresee

better returns from the distribut ion centres

as opposed to the larger entity that was the

original ChannelWare.”

He is confident that the new business

model will bear better fruit because all the

products will be sourced from companies

within the MB Technologies group and will

be sold to small-and-medium-sized busi-

nesses on a cash-only basis.

McGregor also admits that although

ChannelWare was no longer sustainable

after the Ingram Micro deal, it has a track

record of having numerous distribution

agencies that will go a long way in ensuring

that the new model succeeds.

He adds that it has taken a while to get

the new system to a point where it can

become operational because the company

has faced some challenges such as getting

the systems up and running, and ensuring

optimum efficiencies.

“This time we are confident that the

business will do well because it will be cen-

tred on fast-moving goods that can bepicked up for cash. It will operate almost

like a retail cash-and-carry business,”

explains McGregor.

A lot of these outlets will be located in

relatively remote areas with the first ones

being opened in Nelspruit and Durban.

According to him, the changes that have

been brought about by the redeployment

of the ChannelWare business have and will

not result in any staff rationalisation

because the company and the sector as a

whole need skills.

“Our model of acquiring productsinternally will also help in gett ing products

to the channel much faster, but even with

this, it is still too early to say whether this

venture will be a major profit generator. We

have to consider that we are shifting the

business model from a credit to a cash one

and this comes with its own challenges,”

explains McGregor.

Herbst says that MB Technologies has

ambitious plans for the new venture. Over

the next three years it plans to roll out several

more channel distribution warehouses.

“Our aim is to ensure that we’re in every

SMB reseller’s backyard, and that we’re able

to give them both the product variety and

competit ive pricing they need to be success-

ful in their particular region.

“We believe that regional availability of

inventory, on a collection basis, is a signifi-

cant addition to our service to the channel

and we look forward to providing more

innovation in the channel environment by

focusing on what our customers need to do

business better,” he concludes.

With this change, one only hopes that

the market will react positively to a cash-

only business in these times when interest

rates are squeezing the life out of large,medium and small businesses.


“ This time we are confident that t he business will do w ell

because it will be centred on fast-moving goods that can

be picked up for cash. It will operate almost like a retail

cash-and-carry business.” – Bruce M cGreg or, MB Techno lo gi es

Bruce McGregor, MB Technologies

ANALYSIS: CHANNELWARE

SOLUTION PROVIDERS




Once again Microsoft has brought out a great piece of hardware, the LifeChat LX-

2000 Headphone, for use with voice over Internet Protocol.

This headset is perfect for users who spend a lot of

time chatting on services like Microsoft Live Chat or

Skype and is easy to carry around.

The LX-2000 is designed to fold up and fits comfort-

ably around a user’s head, and provides high-quality

acoustics with outstanding sound.

It is a great plug-and-play accessory that works flawlessly with

a desktop or notebook PC as it requires no set-up procedure.

For those that use their notebooks on the go, it is easy to carry

around as an accessory because it folds up and fits into its carrying

case which fits into a handbag or big pockets.

For even louder and clearer sound, the device features inline volume which

make for quick adjustments. It also has a flexible microphone.Its biggest advantages are that it is a plug-and-play device and is compatible with all the popular chat-

ting services like Windows Live, AOL Instant Messenger, Yahoo! Messenger Microsoft Office Communicator,

Skype and QQ.1.

In addition, it’s compatible with Windows Vista and previous version of Microsoft’s operating systems.

Most people would argue that headphones are headphones, but in this case I must give Microsoft credit for the sound quality as well as the

design because not only do these headphones provide good sound quality, but they are also comfortable.

With Microsoft and Logitech still battling for real estate on my office desk, as the two companies continue to outdo themselves all the time and the

one thing I can’t make my mind up about is a mouse.

My latest is Microsoft’s Wireless Laser Mouse 6000 and I must say it does not disappoint.

This optical mouse comes with most of the bells and whistles a user would want from a new-age mouse like

Microsoft’s tilting scroll wheel for horizontal as well as vertical scrolling.

The new Microsoft toy also features a high- definition laser with intelligent-tracking system; this

means it has a 1 000 dpi resolution, perfect for use in tight spaces (a capture rate of 6 000 frames

per second).

With the 6000 Microsoft has also added a magnifier tool that allows users to move a virtual

magnifying glass or zoom window over the screen.

On the looks side, a jet black and dark grey finish makes it look good alongside most domes-

tic and professional notebooks on the market today.

It comes with two AA alkaline batteries, which Microsoft claims can last for more than six

months if the device is used and stored properly.

Much like previous models, the 6000 uses a mouse-sized wireless USB receiver.

Like most of today’s wireless accessories, the mouse and receiver sync automatically the

receiver is plugged into a PC USB port with no need for frequency synchronizing; however, its

range performance was far from impressive.

Being that my desk is quite messy on the best of days, I found that the clutter on my desk

affected the mouse’s performance a little, depending on which side of the PC or notebook the

receiver was placed.

However, when placed in the right position the mouse performs well, even when used on pro-

grams where the accuracy of the mouse pointer is of utmost importance. Under such conditions the

6000 does not skip or skew.

Finally, the 6000 only has problems on very glossy paper or glass but other than that you can place it

on any other solid surface and it is good to go.

Reviews by: Kaunda Chama

Silky smooth laser mouse from Microsoft

Highly Recommended

Microsoft LifeChat LX 2000

computer reseller news sa june 2008

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