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Why Price Is Not Enough When I was a little girl, I remember sitting in the frontpew atchurch, squirming uncomfortably as the minister, who alas, happened to be my father, recounted the personal details of my young life to the congregation in the interest of a segue to his point.

In light of that painful memory, I can sympathize with my spouse, as I'm about to publicly recount how he didn't get the best price on his most recent technology purchase. Indeed, his goal was to buy a laser printer for his company, and he set out to look at many brands and models to try to find the right printer for his business needs — and, of course, to get a good deal!

However, he was very impressed with one reseller who spent considerable time with him, and addressed his questions and concerns about printers in a knowledgeable and helpfulmanner. So much so,thateven though another store was selling the exact printerat a cheaper price, my husband decided to pay the extra money in the interest of the exceptional service rendered.

Service is a big part of the quality of any product or business. Behavior such as my spouse's ties into the equation: Value = Quality — Price, pr o posed by futurist Richard Worzel, author of "The Next 20 Years Of Your Life." He was guest speaker at a recent StorageTek road tour. (The tour featuredthe Canadian-made Rex automated daily back-up solution, aimed particularly at small businesses and mobile workers, starting at $25 per month.) As more companies are realizing the role of product quality in value, Worzel said, quality becomes mainly irrelevant — once you' ve got it.

I ndeed, he q uoted author T o m Connellan: "Your competition is anyone who raisesthe expectations of your customer. Your customers compare your transactions with transactions with Disney, FedEx and L.L. Bean, not just the company across the street that happens to be in the same industry." Then, Arie de Geus, a futurist with Royal Dutch Shell: "Learning faster than your competitors is the only sustainable competitive advantage in an environment of rapid change and innovation."

This month, our Letters section (page 8), features a letter from a Canadian reseller irked at being forced to compete directly with some of his distributors, on 6

government bids. Because that reseller wasn't prepared to go completely public with his complaint, we agreed to publish the letter without naming him. However, channel conflict is one of those issues that just isn't going away. Some industry watchers think the level of conflict is actually worsening, due to the advent of Internet sales, which makes the "direct" option even more appealing for some manufacturers and distributors.

Just as you appreciate customer loyalty, and hopefully reward it, it's up to you to express loyalty to those among your suppliers that obviously have your interests in mind, as well as their own. If you' re feeling marked competition from your very suppliers, there is a real problem with somebody's business model. The upside to a competitive market means you can express your appreciahon or your dislike of your partners' approach to business with your feet and your pocketbook.

Having said that, however; it's possible to get overly hung up on price. If price is the only true differentiating factor in your business — worry.

This issue, we' re running a special feature on d i s tribution. Please see: "Distribution: A precarious proposition?" (page 34) for a d i scussion on how Canadian distributors are trying to both specialize and diversify their offerings in the never-ending battle for market-share, revenues and profits.

Technology-wise, low-cost ink-jets are hitting the market with fabulous capabilities when it comes to both black-andwhite and color printing. See Lab Test (page 40) for our top picks among the sub$500 ink-jet printers. Also, check out the special report on Networking by Associate EditorJeffEvans for an overview of the market and opportunities, particularly in the light of today's Internet reality. (Please see:"Connect The Dots," page 22.)

And for an analysis of the tough desktop publishing business, don't miss "Who Will SaveDesktop Publishing?" (page 50) by contributor Geof Wheelwright.

Enjoy the issue.

What do you think of our coverage, and which technology or market issues concern y o u? Drop m e a l i n e a t gracec@netcom.ca. I',W Grace Casselman Editor

CA N ADIAN COMPUTER WHOLESALER May 1998 ht t p/twwwccwmag.corn

as Ciin Publisher,.': J. David Ritiur, ~i ".

Associate Puhlisbetd'' Judy Prangc Han Smgh Khalsa Eddut Grace Cssscttnau c ue@a~ a ) Assoeiote gdlgsi Jelf Evans (jefWtcpon.corn) f>4 w

LobTest Scan Csmtthcis ~"(sean carruthers u " Stcpcn,corn) '~

ctjilothutiogwtltge Graeme Bennett '= Douglas Gray Alan Thwaits David Tanaka Paul Weinberg Alan Zisman Production Staff Sherly Ho Karin Harhvig Jane Kolar Regional Sales INaoager Jamie Leighton (jamieOtcp.ca) Account INouogers Frank Houston (frankOtcpon.corn) Account Managers Weng Ng (wengOtcpon.corn) Controller Linda Lovegiovc Accounting Farida Aini Circulation Scott Rice Kim Jewis

®

Canadian Computer N%olesater is published 12 times a year by Canada Computer Ptsyer Inc.

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Free subsniiuiun to qualified individuals, Sue per year for uouqualified uutuuubeu'. contents ut Cuuudiuecomputer wholesaler subject tu uuaftisht.

Material ane ueNemsins designed by canadipu er ' wRolesaleriu:,Sdspublication may not be form ' without pemuuauL All rights reserved. The api ' <ed in

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articles are not necessarily those of the publisilt, printed iu Canada postage paid iu Vuucouver B.C.

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M OST M E E T I N G S T HEIR

ARE SAVED BY SOM EBODY PULLING SOM ETHING FROM BAC K PO C K ET. L I K E A C O LO U R P R ESENTATION.

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L ETT E R S Professional business ethics and integrity For some time now I have observed what I would consider "unfair business practice" and lack of ethics from some distributors.

Like most resellers and VARs, some of our business focus is on government tenders.

Occasionally we turn towards [certain distributors) to provide us with a quote on those tenders. I was quite surprised to see them bid directly on those same offers. I have to ask, "What are the chances for any of us to ever successfully win a tender that has been bid on by a distributor?

Is this a common practice?

What's astonishing is the fact that even the Industry Canada Competition Bureau does not see this situation as being abnormal. A worker at the Competition Bureau did recognize that a distributor would have an unfair advantage over a VAR/reseller, but there are no laws preventing such actions unless there is proof of collusion.

Am I the only one that thinks that this is unfair business practice?

How many more of us feel victimized by this situation?

Canadian reseller (Name withheld from publication on request.)

Support the underdogs!

I like things about both browsers, however the right clickable "Send Page" in Netscape has Internet Explorer 4.0 beat by a long shot.

I send information to my clients whose e-mail addresses I have in my database. They appreciate the articles I send them that they may otherwise have missed.

Monopolies are not good! Even though I am a registered Microsoft reseller, I would have to pay Microsoft in order to help a client with error messages in the Win 95 operating system! On the other hand, as a registered Coral reseller of WordPerfect suites, I have free access to help!

W e need more underdogs and fewer "dogs!"

Support alternative software!

Charles Pedley, consultant

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Lookingfor a product, service or partner? Write to CCW Bulletin Board, at ccwN tcp.ca, or fax: (403) 262-7892.

Letters To The Editor We welcome your letters on industry issuesand concerns,asw ellasyourcomments on our magazine.

We reserve the right to edit your contributions for length and clarity.

Please write to The Editor, via e-mail at ccw@tcp.ca, or fax: (604) 608-2686.

Comput e/works!,Welland,Ont. cpedley©iaw corn u

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LX6 • CPU SOFT MENU~- Jumperless Technology • Supports 66, 75* and 83*MHz CPU external clock speeds • Supports Pentium~ II 233 - 333 MHz processor cartridge • Intel 440LX chipset supports Ultra DMA/33 IDE protocol, ACPI and AGP 66MHz/133MHz (Sideband) 3.3V device • Four 168-pin DIMM sockets for 3.3V unbuffered DRAM modules support SDRAM, EDO DRAM • Supports up to 512MB MAX. (8, 16, 32, 64, 128MB EDO or SDRAM) and ECC function • ATX Form factor, Four PCI slots, Three ISA slots and one AGP slot

AH6 • CPU SOFT MENU - Jumperless Technology •Supports 66, 75* and 83*MHz CPU external clock speeds • Supports Pentium~ II 233 - 300 MHz processor cartridge • Intel 440LX chipset supports Ultra DMA/33 IDE protocol, ACPI, and AGP 66MHz/133MHz (Sideband) 3.3V device • Three 168-pin DIMM sockets for 3.3V unbuffered DRAM modules support SDRAM, EDO DRAM • Supports up to 384MB MAX. (8, 16, 32, 64, 128MB EDO or SDRAM) and ECC function • ATX form factor, One AGP slot, Three PCI slots and Two ISA slots

ITSA • Supports 50, 55, 60, 66, 75*, 83*, 100*MHz CPU external clock speeds • Supports Pentium~ processors and Pentiume processors with MMX technology, AMD- K5 /K6 / K6-3D, Cyrix 6x86~/6x86L~ /6x86MX , IDT WinChip C6 processors • ALi Aladdin 5 chipset supports Ultra DMA/33 IDE protocol, ACPI and AGP 66/133 MHz (Sideband) 3.3V devices • Two 168-pin DIMM sockets for 3.3V unbuffered DRAM modules support SDRAM, EDO DRAM up to 256MB • ATX form factor, Three PCI slots, Two ISA slots and One AGP slot • PC97 Compliant

AXS • CPU SOFT MENU - Jumperless Technology • Supports 50, 55, 60, 66, 75*, 83*MHz CPU external clock speeds • Supports Pentium processors and Pentium~ processors with MMX™ technology, AMD-K5™ /K6~, Cyrix 6x86~/6x86L~ /6x86MX , IDT WinChip C6 processors • Intel 430 TX chipset supports Ultra DMA/33 IDE protocol, ACPI and Windows 95 soft off • Three 168-pin DIMM sockets for 3.3V unbuffered DRAM modules support SDRAM, EDO DRAM, and Four 72-pin SIMM sockets support EDO 8 FP modules, up to 256MB • ATX form factor, Four ISA slots, four PCI slots

TXS • CPU SOFT MENU~- Jumperless Technology • CPU Monitoring Management (EISCA) •Supports 55, 60, 66, 75*,83*MHz CPU external clock speeds • Supports Pentium~ processors and Pentium® processors with MMX technology, AMD-K5~ /K6~, Cyrix 6x86~/6x86L~ /6x86MX , IDT WinChip C6 processors • Intel 430 TX chipset supports Ultra DMA/33 IDE protocol, ACPI • Two 168-pin DIMM sockets for 3.3V unbuffered DRAM modules support SDRAM, EDO DRAM, and Four 72-pin SIMM sockets support EDO 8 FP modules, up to 256MB • Baby AT form factor, Three ISA slots, Four PCI slots

PXS • CPU SOFT MENU~- Jumperless Technology •Supports 50,55,60, 66, 75*,83*MHz CPU external clock speeds • Supports Pentium processors and Pentium~ processors with MMX' technology, AMD-K5™ /K6~, Cynx 6x86™/6x86L~ /6x86MX' , IDT WinChip C6 processors • Intel 430 TX chipset supports Ultra DMA/33 IDE protocol, ACPI • Two 168-pin DIMM sockets for 3.3V unbuffered DRAM modules support SDRAM, EDO DRAM, and Four 72-pin SIMM sockets support EDO 8 FP modules, up to 256MB • Baby AT form factor, Four ISA slots, Four PCI slots

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I'ee)smel~y BX6 • CPU SOFT MENU™ II — Jumperless Technology • Supports Pentium® II 350 — 400 MHz processor cartridge

(Based on 100MHz clock), Pentium® II 233 - 333 MHz processor cartddge (Based on 66MHz clock),

• Intel 440BX chipset,supports Ultra DMA/33 IDE protocol,AGP 66MHz/ 133MHz (Sideband) 3.3V device

• Four 168-pin DIMM sockets support SDRAM module • Supports up to 512MB MAX. (8, 16, 32, 64, 128MB SDRAM) and ECC function

• ATX Form factor, One AGP slot, Four PCI slots and Three ISA slots

T HE NEW

SOFT M E N U ™ II:

It is t i m e t o u p g r a d e a g a i n a n d t h i s m o t h e r b o a r d i s t h e p e r f e c t b asis f o r y o u r w h o l e s y s t e m . T h e A B IT B X 6 c o m e s w it h In t e l ' s n ew h i g h - e n d c h i p s e t a n n o u n c e d o n A p r il 1 6 t o s u p p o r t t h e n e w Pen t i u m ® II 350 M H z an d 40 0 M H z C P U 's. Better yet, this motherboard is backwards compatible to support all Pentium® II CPU's currently on the market .

T hat means that you can use your current Pentium® II CPU w ith the BX6 a n d get a performance boost from all the lastest features of Intel's 440BX c h ipset .

Furthermore, you can benefit from A B IT's new S oft M e nu™ II w h ich allows for the frist time ever, voltage adjustment for Pentium® II CPU's, plus faster boot t imes compared to the original Soft M e n u™, and on-board hardw a r e temperature monitoring.

'Bus speeds of 75,83,112,and 133 MHx CPU bus speeds are supported but not guaranteed due to the CPU and chipset specs.

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I NDU S T RY F L A S H

Tech Data buys Computer 2000 for more European coverage

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Windows 98 goes public on June 2$, says Microsoft Microsoft Corp. says it will make the next generation of its desktop operating system, Windows 98, available to the public on June 25.

More than 150,000 consumers worldwide have been participating in the Consumer Beta Preview Program for the operating system.

Microsoft says the new product opens applicafi ons 36 per cent quicker on average, and says graphics and shutting down the PC are up to five times quicker than with Windows 95.

M oreover, Microsoft claims the operating system useshard drive space more efficientlyand on average, users should expect to have 28 percentmore free disk space.

The upgrade version for users of Windows 95 or Windows 3.1 is $149.

Expanding its European presence, distributor Tech Data Corp. has purchased a majority interest in Computer 2000, which has more than 40 distribution subsidiaries in 30 countries Steven Raymund, Tech Data's chairman and CEO said this was a big step in Tech Data's European expansion plan. "We' ve committed to participating in the European market," he said While the purchase won't have a direct impact on Tech Data Canada Inc. or Canadian resellers, Raymund said larger Canadian resellers selling into Europe may be attracted by a working with a distributor that can provide support "on both sides of the market-place Tech Data Corp. is doubling its revenues with this acquisifion. The two companies expect to achieve revenues of US$15 billion in this calendar year. Raymond said the merged company should be able to achieve economies of scale, with more purchasing power, and more money to invest in the internal information technology infrastructure.

Nlotorola MVME147 SBC

celebrates one decade!

The Motorola Computer Group has announced the 10th anniversary of the MVME147 single board computer (SBC), necessary for such applications as internetworking equipment, diagnostic instrumentation, process control and material handling equipment.

The MVME147 and the Delta Series VME systems have been used for Unix and real-time VME computers.

Motorola says significant enhancements have beenmade to the manufacturing process-

es for the MVME147 over the last decade such as the migration from a through-hole assembly with many discrete devices to a surface-mount design with ASICs consolidating much of the onboard logic

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Unit 8-3571 Viking Way, Richmond, BC Canada, V6V 1W1 Telg (604) 273-4668 Fax: (604) 273-7989 1-800 665 1858 DatumX sre trademarks or registered trademarks of Ko bensonGroup fnc. All other brand or products namesare trademarks or regisitered trademarks of their respective owners

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I NDU S T R Y F L A S H

Compaq Canada reports revenue and unit growth Compaq Canada Inc. says its QI unit sales Corpo r ately,Boylesaidthecompanyhas are up 64per cent over last year, and rev- been working to operate more efficiently,and enues have increased 32 per cent. "Compaq to provide faster turnaround on orders for the Canada had a sensational quarter on all c h annel. In r egards to merging Digital fronts. We' re feeling pretty bullish," said E q uipment Corp. with Compaq Computer John Boyle, director of marketing.

Corp., pending regulatory approvals, the The Canadian subsidiary earned $1.64 i ntegration will be done in the next six billion in 1997. Twenty per cent of units m o nths, with most of it happening within the shipped in the first quarter of this year were n ext three or four months, said Boyle. "We consumer-oriented products, which is a n wi l l m ove very rapidly to completely inteincrease, said Boyle. grate the two organizations."

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NEC Versa survives bomb squad explosion!

Never mindchecking one's notebook. How about blowing it up? The Computer Systems Division of Packard Bell NEC Inc. (PB NEC) announced that one of its Versa notebook computers has survived detonation by a bomb squad, and continues to function, despite damage to its screen and external case.

According to NEC, an employee at the Rochester, N.Y., Army National Guard armory spottedan unmarked, heavily taped package in the parking lot. As a precaution, police called in the bomb squad to investigate the box. An examination by a remote-controlled robot revealed that the box contained wires and cables, so the bomb squad decided to detonate the package after clearing the area. The small blasttore the box apart and revealed a Versa notebook computer and some peripherals, which hadbeen reported stolen from Joseph Songin earlier. The speakers, CD-ROM drive and batterypack were damaged, as were the top panel and screen of the notebook, which took the brunt of the blast.

Despite this damage, the Versa, which was

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primarily used for map plotting, flight planning and conducting meteorological research, continued to function, without any data loss, damage to the processor, hard drive or memory slots, said NEC. NEC said following the blast, the owner hooked upthe damaged machine to a VGA monitor, and sent an e-mail to the PB NEC customer service department. "You make one rugged machine," wrote Songin, facilities manager at the Army National Guard. "I hooked up a VGA monitor to the undamaged monitor port and flipped the power switch. I expected it to start smoking and had a fire extinguisher ready, but instead the password screen appeared."

Gordon Neff, national product manager, strategic accounts for Packard Bell NEC Canada, said: 'This incident demonstrates the level of quality in our products; however, we don't recommend that customers try this at home."

At press time, the theft of the machine was still under investigation. L<W J

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CANARIE hands out technology industry awards (NB) — Five Canadians were honored at the 1998 National IWAY Awards, given out in Toronto recently by Canadian Network for the Advancement of Research, Industry and Education (CANARIE) Inc. and the Canadian Advanced Technology Association (CATA) and sponsored by the Royal Bank of Canada.

This year's winners were: Jean-Francois Meunier, president of CIFRA Medical Inc. in Sainte-Foy, Que., for new-technology development; Doug Hull, director general of Industry Canada's Information Highway

gl i Domtar tells suppliers to beat millennium bug or else

Applications Branch, for application of technology, Dr. Paul Patterson, senior chairholder in management technology change at University College of Cape Breton in Sydney, N.S.,forcommunity service;Randy Marsden, president and chief executive of Madenta Communications Inc. in Edmonton, for adaptive technologies; and Lionel Hurtubise, chairman of Ericsson Communications Inc. in Mount-Royal, Que., for public leadership.

Skills shortage makes Year 2000 scarier!

(NB) — Canadian pulp and paper giant Domtar Ltd. has sent a strongly worded ultimatum to hundreds of its suppliers advising them to guarantee their computers are rid of the so-called "millennium bug," or face the loss of Domtar business.

The ultimatum calls for guarantees from each supplier that not only will their computers be able to provide products and services "without interruption or delay" before, during and after"calendar year 2000," but that their suppliers in turn can make such assurances.

(NB) — Even those organizations that woke up to the year 2000 n'" problem in time may face a big obstacle in trying to correct it: people. There simply are not enough people in Canada with the necessary skills, and there is little time to train more.

How big is the problem? "In a word," says Vince Forrestall, president of Deevan Technology Management in Toronto, "all big letters, BIG." Forrestall's firm places information technology professionals and provides IT asset management services. He said that the issue for many organizations will not be how much money they are willing to spend to fix their year 2000 problems, but whether they can get the necessary expertise at any price.

Joe Boivin, executive director of the Global Millennium Foundation in Ottawa, said many large organizations have yet to wake up to the year 2000 problem. As they do, the demand for the skills needed to fix it will only grow. Already the cost of year 2000 expertise is going up rapidly, said Forrestall. "They' re going to be paying 50 per cent more this year than they would have paid last year."

Microsoft Canada will reward software retailers

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Microsoft Canada is seeking • knowledgeable staff, nominations of software retailers • hours of operation, for the Microsoft Canada Galileo • customer service, Award. According to Microsoft, • product selection, the award's designed to recognize • store ambiance, and, leadership in the art and science • overall shopping experience. of software retailing.

Awards will be presented in Under the nomination pro- t h reecategories: large chain, small cess, customers are asked to rate chain and single store. Nomretailers on a scale of one to five i n ation forms are available at: in the following categories: httpt//www.microsoft.corn/canada/ • professional staff, myvote.

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The new HP Brio Reseller Support Services program is designed to support resellers as "virtual" IT managers for companies without IT staffs, says HP. The program includes: a free pcAnywhere Remote Support Tool to let resellers troubleshoot and resolve hardware and software problems anywhere through a modem or LAN; new reseller support services, including training programs, access to technical information and a dedicated telephone support number for resellers to get up-to-date product information; and an expanded line of aggressively priced HP Value Packs and accessories including network cards, memory and ~ multimedia components.«~~

CA N ADIAN COMPUTER WHOLESALER May 1998 i rrpc//wwwccwmag.corn

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O N T H E I N D U S T RY

a in a wire, o iie mar et

by David Tanaka

noted. He said even optimistic forecasters have been increasing their projections upward by 44 per cent every six months.

As a b u siness-to-business process, e-commerce is nearly there. International Data Corp. estimates that by 2002, the value of Internet-based purchases will be more than US$434 billion, of which nearly US$340 billion will be business-to-business purchases.

In th e c o nsumer market, several "inhibitors" still exist. These include the perceived lack of security, quality of telecom service issues, and the so-called "last mile bandwidth to the home."

The Internet will have a greater impact than the telephone,and electronic commerce is redefining the supply chain — entwining customer with supplier as never before. That's the considered opinion of both Terry Retter, director of strategic technology services for Price Waterhouse's Global Technology Centre in Menlo Park, Calif., and Michael Calyniuk, lead partner for the firm's technology industry practice in Vancouver, who recently presented a "Technology Forecast: 1998" report.

Retter said interest in Internet commerce is high. There's been spectacular growth, as sales are doubling every four months, he

The Last Mile?

The last mile issue is being explored on a num-

ber of fronts, including fibre optics to the home, ADSL and its variations, cable modems, traditional satellite technologies like DirecPC and newer satellite-based communication systems like Iridium or Teledesic's "Internet in the sky."

Solving the last mile issue is the key to creating the critical mass necessary for consumer e-commerce to be viable. Retter said 25 per cent of the population on-line represents the critical mass, and in the U.S., that point may be reachedthisyear.Canada should have about20 per cent on-line by the end of this year, although Japan won't reach that level until 1999, and some parts of Europe, not until beyond 2000. However, it's just a matter of time, and as companies gear up to do business on the Internet, the organizational focus must

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Web Commodification Internet commerce will see the commodification of transaction-based exchanges, so the viability of e-commerce-based companies will rely on value-added services, not on the transaction itself.

This reality is already having an impact on the way some companies conduct their business. With competition from other sellers, and the huge amounts of information readily available to consumers about flights and prices, airline ticket agents, for example, don' t make much money selling a ticket. They therefore must rely on providing services that consumers are willing to pay for.

But even without the i nfluence of e-commerce, the commodification of PC products is a well-known phenomenon, and is one of the current big contributors to the distribution channel's twists and turns of uncertainty.

A few months ago, I had lunch with Robert Grossman, vice-president and general manager of Toshiba of Canada ISG. He said we are quickly approaching a time when customers will no longer be willing to pay dealer

markups on hardware, because hardware has become a commodity item, readily available from a number of sources.The customer knows what the value of the goods are on the open market.

ON T HE I NDUSTRY

companies like Bay Networks (with its NetGear line) are marketing the hardware as consumer commodities.

In terms of the user base for PCs, Retter noted that segmentation is the main feature defining tomorrow's PC market. He

Weighing Value Customers are questioning the value in the so-called value-add. Grossman said customers will demand a detailing of valueadded services, and will want the option to pick andchoose only the ones thatare oftrue value to them.

Other evidence of c ommodification comes from E v ans Research Corp.'s "Purchasing Patterns in Small and Medium Businesses in Canada" study, released earlier this year. The report notes that only 16 per cent of the companies indicated third parties play a role in the actual procurement of products, like monitors and printers.

However, third parties were considered more important when purchasing more complex technologies like networking, systems integration and Internet-related products. In other words, there may be some remaining PC products that still qualify as "high-margin" sales, although even with networking,

I

• I I said the idea of a "good enough" PC will be as viable as the idea of the latest and greatest P C. • I "Some will need all the power they can get," s ai d R e tter, I "some will need only NC [or] Web TV." R esolving t h e value equation in this new market may require sorting out the choices for the consumers, who are being assailedby an ever-broadening array of PC appliances. ICCW , •

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mitation has been said to be the sincerest form of flattery. But, when someone's copying your product, damaging your reputation, nd trying to gain some of your hard-won market-share, imitation goes by another name: counterfeiting.

This is the situation faced by ASUSTek Computer Inc., the manufacturer of Asus boards, and Supercom Canada, sole distributor for Asus motherboards in Canada. ASUSTek (which has corporate offices in San Jose, Calif., Dusseldorf, Germany, and Taipei, Taiwan) and distributor Supercom in Toronto, have alerted resellers to the recent appearanceof counterfeitAsus motherboards.

The boards in question are unauthorized copies of the ASUS TX97-E line Pentium board. "Sometimes we think it's great when someone counterfeits our product," said William Yang, regional manager for Asus Canada in a recent telephone interview. "After all, it must mean that we' re doing a good job, and counterfeiting computer products isn't all that common. The bad news, though, is that the qualityof the counterfeitboards is very poor.The appearance and packaging of the counterfeits looks very similar to genuine Asus boards, but the quality of manufacturing is very coarse, the DMI doesn't work, performance is poor, and the counterfeits have a very high failure rate.

That means that everyone gets hurt by the counterfeits — the company, the reseller, and the end-user who's bought the counterfeit unit."

According to Yang, the counterfeit boards have been showing up in China, where Asus has a large portion of the market share for some time, but have only recently started turning up in North America. "In China," he said, "because we' ve got such a lot of market share, we' ve been used to seeing 10,000 to 20,000 counterfeit TX97-E boards per month. That's about a one-to-one ratio to our legitimate models. It' s hard to tell how many are actually leaving China, but beginning in November of 1997, they' ve started turning up in the Toronto market, in Vancouver, and in the U.S." "Asus sells a premium name, known for its high quality," says Paul Chiu, senior product manager for Supercom Canada. "People are being offered TX97-E boards at $40 or $50 less than the normal dealer price; it's sometimes hard to resist. The counterfeit boards are being sold at a price that's lower than a Tier 4 clone board — even the grey market can't do better than that!"

20

Grey market products — those that come into the country outside the normal distribution channels — at least have the virtue of being the real thing, and therefore living up to the manufacturer's standards, The counterfeit boards, however,are of inferior quality and performance. And that'sa concern for resellers. "We' ve been promoting Asus motherboards for quite some time," says Herman Yee, president of Ottawa-based Northern Micro, a systems integrator who's been looking out for the counterfeit boards."Asus boards are a quality product,so m any of ourcustomers, which include the federal government and a number of large corporations, standardize on Asus. Counterfeit boards would degrade our reputation, and be harmful to us and to our customers."

The counterfeit Asus boards are different from real company product in a number of hard-to-spot details, which aren't likely to be noticed by an unsuspecting reseller, much less by an end-user.

The differences — such as missing trademark notices, serial numbersand product numbers, as w ellas poorly reproduced manuals, are listed (with example photographs) at the Asus Web site at http:ltwww.asus.corn. twlCompanylright.htm.

Asus has struck at the source of the problem by taking legal action against known hardware counterfeiters in China. "We' ve sued someone we' ve been able to identify as producing counterfeit boards," says William Yang. "That suit is now in progress, and lets the counterfeiters know that we' re serious about following this up.

"Closer to home, we' re trying to educate both the reseller channel and the end-user about the problem — that's why all the information about the differences between the counterfeit and the real motherboards are available on our public Web site."

Resellers can stay safe by buying TX97-E boards only from Supercom, Asus' authorized Canadian distributor.

But as with most things in life, this is a case of "buyer beware."

As Supercom's Chiu says: "If the price seems too good to be truerun, don't walk, away from the product." Eccl Alan Thwaits is a Toronto-based journalist who specializes in high technology.

He can be reached atnomad@praxcomm.corn.

C A NADIAN COMPUTER WHOLESALER May 1998 ht t p/twww.ccwmag.corn

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N ETW O R K I N G ad hoc manner, adding individual computers However, the "hyper text" IA-64 project, HP hasfound a way to moveits RISCprocessor technology into as needed, or allowing departments to estab- in the H TM L a c ronym the mainstream. lish their own small LANs. Often, it was hard refers to the ability to link HP canbeexpected tovigorously push IA-64 based servers and workstations running both a new 64-bit version of NT andUNIX, starting in 1999. to measure the productivity of a network different computer f i l es g 3Com —httpt/www3cam. corn solution against its total cost, and when this together, even if they are Since acquiring U.S. Robotics, 3Com has established itself as the network was actually tried, the results were often located on different computhardware maker that covers the market from "soup to nuts." 3Com has a full frightening: networked PCs turned out to be ers, in different countries. line of network interface cards, hubs, routars, modems, PC card modemsend horrendously expensive.

For instance, using HTML, a combo network interface card/modems. It also finds itself in possession of the hottest selling palm computer, the PalmPilot safes.

Now customersare increasingly aware computer document dealing 3Com products are the core of many system integrators' networking soluof the need to see networking as an integrat- with Christopher Columbus tions, and the company is looking for more business partners to exploit its ed part ofan enterprise's business plan.To be can have an electronic butexpanding opportunities. 3Com has instituted a special small business successful, resellers need to be able to present ton built into it which will reseller program, and on April 6, unveiled a free Networking Benefits Calculator, available on 3Com's Networking Basics and Benefits CD-ROM, a business case for a network solution that let the i nterested reader which allows a reseller or user to make a quick, realistic analysis an the offersthe highestperformance and productiv- jump to related documents return an investment of installing a small busmess network. ity for the lowest TCO. on Spanish history, mapSCO —httpttwww.sea corn making, or the spice trade The Santa Clara Operation is the market leader in Unix networking solutions The Universal Standard running on Intel servers, leveraging the superior security and reliability of — even if those other docuUnix with the familiar Intel-based computing architecture. SCO is also gearing That Just Happened: ments are on another hard up for the IA 64 networking world due to start in 1999,and intends to fight vigHTML And The d rive, o r CD- R OM orously for a piece of that new pie.

World Wide Web library, or another Apple —httpt/www apple.corn Another main reason for In its early days as computing's house af ideas, Apple was a leader in making computer connetworking pervasive and cheap with its built-in AppleTalk technology. But the high cost and comnected anywhere Apple's position in the networking market has suffered due ta the company's plexity of networked to the Internet. confused management and lacklustre research and development over the computing was the The developers of past five or six years.

Apple has no industrial strength server OS to match NT or Unix. Its handproprietary nature HTML envisioned a litheld Newton MesssgePad was a failure, and although a good deal of yyeb eral "World Wide Web" of the various netcontent is authored on Apple Mac computers, with a three per cent global work solutions on of server c o mputers market share for the Mac platform, it is rapidly losing any claim to being a the market. All of major choice for new computer buyers. linked via telecom lines the major mainand satellites; millions Cisco —http.//www.cisco.corn Fast EtherLink32-bit PCCard frame and worksta of e n d-users c o uld Cisco is one of the standard brand names in hardware and software for internetworking solutions. It claims to be the clear leader in certain categories of tion computer makers, such as IBM, Digital, locate and view information Internet products. Forexample, Gisco sells morethan 60per cent of backbone Hewlett-Packard, Tandem, Sun and Silicon on any connected computer routers used in networks worldwide.

Graphics, developed their own proprietary anywhere in t h e w o rld, Hummingbird —httpt ieew hummingbird.corn Hummingbird specializes in management of mixed PCclient and Unix server hardwareplatforms and operating systems, using a Web search engine systemsfor enterprise computing solutions. It currently has more than 62 per imposing high interoperability costs on end- database, a Web browser centofthe globalmarketfor PC-Unix integration. users. Even the Unix operating system, which and the HTML language.

Netcom, Stentor andPSIHet — httpt/wwwnetcom.ca, was supposed to be an "open system" able to The developers of HTML httpt/www stentor ca, httpt/wwwpsinat. corn run the same software on multiple platforms, These three Internet Service Provider iISP) giants, all with particularly strong Canadian presence, have moved up failed to retain true compatibility, fracturing from providing individual Internet connectivity to offering into a host of incompatible "flavors" of Unix. business Internet and networking services.

One brilliant idea made the whole rickNetcom has an impressive technical infrastructure, ety structure of proprietary, incompatible netstandardized from coast-to-coast on high quality, reliable working obsolete. A few very bright, noncommercial minds saw an opportunity to Today, as a result of Web technology, all make the Internet the basis for a truly open networkproduct manufacturers are racing to information network for all of humanity. The make the World Wide Web, Web servers, and key element in changing the world of netHTML compatible browsers the basis of their network offerings. Increasingly, networking was the creation of HTML, the work solutions feature controlled, sealed-off Hyper Text Markup Language. Created by Tim Berners-Lee and others, this was a textmini-Internets, called intranets, for internal based page description language, which use by enterprises. For communicating with clients and suppliers outside an enterprise's could create electronic documents comprised offered their idea to the world as a free gift, of text, pictures, sound, movies, or many short-circuiting the otherwise inevitable ten- network, similarly secure and controlled extranetsare offered. other kinds of data. HTML documents could dency to develop incompatible, proprietary be viewed on any computer that had a brows- versions of HTML. Microsoft intends to make the Web er program that could interpret HTML comThe result of this breakthrough was to browser interface the basis of its new versions of Windows and Windows NT, if the mands and display an HTML document on a do an end-runaround proprietary computer computer screen. HTML's basic format was operating systems and incompatible hardware U.S. Justice Department will allow it. largely swiped from a specialized electronic and software and seemingly overnight, to preWeb browsers and HTML are the universal front-end for network computing. At d ocument language called SG M L sent the world with a completely new model the back-end are a host of different server (Standardized General Markup Language). of computing.

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hardware, operating systems and applications programs. But because of HTML and the Web, IBM and everyone else in the big iron business can now talk the same language to anyone, anywhere.

Can You Run A Network Without A MIS Department ?

In order for a market to grow rapidly, costs must decline. Much of the TCO for networking customers relates to the difficulty of maintaining a network without a large and costly in-house information services management structure. Much of the networking researchand development eff orts of companies such as IBM, Compaq, Microsoft and Sun have been directed at making network connectivity as automatic, cheap and reliable as possible.

IBM has pioneered the concept of "Wake on LAN," where a new PC or other network device can be plugged in to a network and powered up, and the device and the network server will automatically detect each other, "shake hands," and be able to start working together.

Compaq's business PCs are made network-ready out of the box, eliminating much of the need for custom configuration, and allowing a network administrator to easily install and maintain software from a remote location. Microsoft, Intel and other major vendors are collaborating in the Network PC standard, in an attempt to make the use of Windows PCs on a network much simpler. All of these initiatives are intended to lower TCO, and incidentally, make customer service much easierfor resellers.

er, and can be embedded in a Web page, allowing HTML documents to become carriers of Java programs. This allows Web pages to become highly interactive, leading to great opportunities for electronic commerce and other applications.

Java's idea of a universal application language anda network-cennic model of servers delivering applications to end-users as needed, all point the way to a much lower TCO than the complex PC client/server model. IBM, in particular, has its eye on a global base of 30 million or so old-fashioned computer termivv OV

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Sun Microsystems, Cisco and other name-brand technology. PSINet absorbed one of Canada's largest ISPsiStar, and is aggressively working to expand its business networking services in Canada and internationally. agcar~u~c" Stentor, an alliance of Canadian telcos, is offering a mixof both consumer internet access and Web site hosting (Sympatico), and higher-end business networking services, including electronic commerce capabiTity.

Bey Networks — htrpttwwwbaynarworks.corn nals that need replacement Bay Networks has established new divisions for small- and medium-sized

by Web-compatible devices. business networking sales, and is offeding low-coat, well-engineered solu-

The company is betting on a substantial market for Java a pplications running o n "Network Computers" low-cost devices without internal disk drives, that download software as needed from aserver via a highspeed network.

Although Java has stimulated a huge amount of software development efforts, Thanks For The Good Ideas, the results in terms of high Java Boy: Now Get Lost quality, high powered softFaced with heavy competition from the ware appli cations have so far Windows/Intel PC, Su n M i c rosystems been skimpy. Corel's attempt developed and promoted its own "universal" to develop a Java business software application programming lansoftware suite has collapsed, guage, called Java. Unlike HTML, which is and Lotus's E-Suite, though a document description language, Java is more usable, has found only intended to be a f u ll-featured software a limited market. development platform. The idea is that its applications CoreBuilder5000hub can run on any computing d evice, through a J a v a Virtual Machine. Java applications can be supplied over a network from any server to any end-user device that is capable of running a Java program. Java applets (little software applications) can also run within a Web brows26

Java applets may find a large market in the consumer electronics field, where, stored on chips embedded in TVs, phones, and other gadgets, it may spawn a new age of smart connected appliances. What is undeniable, though, is that the challenge presented

by Java has spurred Microsoft and Intel to w ork hard on i mproving the TCO o f Windows/Intel networks. Microsoft is in advanced development of Hydra - a Windows Terminal server product that will a llow low-cost dumb terminals to r u n Windows applications off of a high-powered server. If Hydra is a workable product, it could incorporate most of the advantages of Java for lower TCO, while allowing endusers to continue using the industry standard Microsoft office software.

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tions for this new market Intel —hirpttwww intel.corn Intel is best-known for its Pentium family of processors, bui the company is also heavily involved in developing high-speed networking technology and industry standards.

Sue Microeyaiems —hirpttwww sun.corn Sun Microayatema, along with Digital Equipment Corp., was key in bringing networked computing toa new level of low price/high performance between 1885

and 'l885, alongtheway coining the phrase"The network is the computer."

Son's versfbh of theUnixoperating systemattracted a host of high-end software developers, andsat a standard for high availability and bulletproof reliability. Sun's reputation for reliability and power made it the solution of choice for much of the banking, financial, engineering and academic communities. Sun founder and CED Scott McNealy also developed a reputation for strong language in describing his competitors, particularly Microsoft. McMealy funded the development of Java at least partly out of personal animosity towards Microsoft, and he hae helped to build a strong coalition behind Java. While the eventual success of Java may not be assured, it has certainly got Bill Gates' attention.

Oracle— hif pttorasearch.oracle.corn Building on its genesis as a provider of sophisticated database solutions for certain agencies of the U.S. government, Oracle Corp. has become the leader in high-performance databases for business, and a cornerstone of the development of electronic commerce.

Although a strong supporter of Java, and, in the person of Oracle CED tarry Ellison — a strong critic of Microsoft, Dracle ia at the sametime oneof the leading developers of Windows NTdatabase and networking software.

Neiecepe —htrpttwww.natscapa.corn The company that commercialized the Web browser, and helped spark the mass acceptance of the World Wide Web, Netacape challenged Microsoft with declarations thai the browser would make the Windows operating system obsolete and push Microsoft out of its dominant position in computing.

This boast, along with the similar claims of the Java alliance, certainly attracted Bill Bates' close attention.

Microsoft —hrrpj/www.microsoft corn Microsoft's long-lived slogans, "Where doyou want io go today7" and "Information at Your Fingertips" reflect Bill Gates' vision for a universal information network available to everyone on earth. Microsoft'e critics don't necessarily rrrepute the validity of such a vision, rather they are nervous about Bill Gates personally owning the new wired world order.

Gates has gone from saying "The Internet is a joke" to orienting his entire

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by Intel, it can be expected company and its products to dominate, it The next versions of NTand Windows 99 will iprobablyj feature e bronnm~ Imer interface, andWindows NTServer that NT will, in practice, be now accounts for the majority of new server software licences being sold. The available solely on the Intel Microsoft Back Office line of products is constantly expanding the range ofenterplatform. prise networking and database tasks that can ba doneentirely within Windows.

Aided by Digital EquipAlthough muchimprovementof Windows NTremains to be done, its rate oftechnical improvement as well as sales growth is truly remarkable. ment's adoption of NT as an enterprise networking solulgovell —htrpJ/wwwnovell.earn Fast ElherLink10.100Bass-T An early leader in offering a networking.OS gietsupparted client/server comtion, Microsoft has gained puting, Novell helped tamethe PCsea viable'platform far network computing.

The Re-Emergence the lion's share of new busiHowever,some shaky management decisions (such ss the purchase of ness in the networking marOf Unix: lA-64, NT, WardParfectj and an apparent blindness to ths threat from Microsoft's ket in recent years, especialWindows NT hasledtandecfi nainNovell' s.market-share.

And The Two-Way Tango The biggest success story in the networking ly in the small- to mediumAcaton — hfrpl/www pecten.cam/aeqfaii/cantacsr canada,hrmli/I Acrton is e major international developer end manufacturer of networking market in the last three years has been the sized networking field. The hardware and.software par@ pope'nts At, the iscent,Cqbit computer show in rapid growth of Microsoft's Windows NT pro- other major network operatHanover, Aceton.l'nfradu'bed e.ra'niece'f sisevPat.Ethernet hubs, including gram. Although identical in user interface to ing system vendors, such as eight-port fast Ethernet hubs', eight- ail'd Igipait Dual-Spied hubs, snd 'l2»and 24-port M odularSNMP hubsforths businesscomputingmarket.Accton has the familiar Windows operating system, NT is IBM and Sun, have watched also introduced a low-cast SohaBesic.series of products for the small busia completely rewritten 32-bit operating sys- their market shares decline ness network, including duel-speed:.hldrs, eight- and 'ls-port hubs, and a new tem, with much greater security, reliability (though wit h t h e r a p id four-port SohoBasi c PCIEthernethubcard.Acctonalsomakesawide range expansion of the networking and ability to manage network computing of switches,hubs, adapters, reuters,ma nagement software, Network Computers, print servers and networking software kits. market, they are still seeing than Windows 95.

Microsoft has also developed a range of some absolute growth).

KingstonTechnology Co.— /rfrp/twwut fr/ngston.cam The most intriguing Foundedin 1987,KingstonTechnology Company quickly became one ofthe Back Office applications, which gives NT the best recognized makers of memory module chips, but since 1993, has also development in high-powpower and flexibility to be a viable business networking platform. Versions of Windows ered business computing NT are available for Intel, DEC Alpha, over the next few years is 1ikely to be the IA-64, a much more powerful family of siliintroduction of Intel's ne w 64-bit IA-64 con chips, is based on a strategic technology PowerPC and MIPS platforms. With the recent purchase of DEC's Alpha technology processor technology, beginning in 1999. alliance between Intel and Hewlett-Packard.

The new chips will be able to run o lder 32-bit W i n dows a n d Windows NT programs at reasonable speed, but they are really designed to run a new, 64-bit version of Windows NT and 64IBM 8281NwaysATM LAN Bridge bit applications programs. They are also designed to run Unix. IA-64 will put Unix andNT head-to-head on the same computing platform, a platform with enough power to be used for all but the most demanding of enterprise computing tasks.

Sun, IBM, HP and Silicon Graphics have all announced support for IA-64, so all the flavors of Unix will have to unite on the same playing field with M i crosoft.

This could mean a showdown between Windows and Unix for the back-endof networked computing.

NT is still notoriously weak in terms of its security and reliaIBM 8271NwaysEthernet LANSwitcher bility features compared to Unix (a fact that Unix vendor SCO has exploited in becoming the leader in Unix server solutions on Intel-based computers). By late 1999, a battle royal will be shaping up, as NT and Unix wage what may be the last battle in the operatingsystem wars.

For the time being, companies such as Compaq and IBM, which have both NT and Wgh 3 Euracom model safes to choose gomand hundmds of I M p A Q Unix server offerings, claim it's not a matter possible aellgurs5ons, Impaq olfnm something for evwy need and budnet.uNCOm-winnerofm any accolades Indudlng a of NT or Unix — but NT and Unix, according PC Porta&ca "Best Buy" and Computer Paper'e "Editor'e Choice' to customers' individual needs. '/I 'l l / I

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A Little Knowledge Is A Dangerous Thing The Java story is a cautionary tale for both product manufacturers and resellers. It was obvious that the TCO of th e average networked Windows computer was too high, so an alternative model (Network Computer, running Javaappletsfrom a centrally managed server) made a certain amount of sense. However, one has to conclude that the senior management of Sun and Oracle never really understood why people bother with PCs in the first place. Those reasons are flexibility, local control, and a huge choice of good software.

It makes as much sense, at least in the short term, to add better connectivity and management to the PC to lower its cost of operation, rather than to throw the whole thing out and start over again with an all-Java solution.

In particular, the lack of superb, compelling Java business software is a major impediment to the believability of the Java business model.

IBM may be able to find some gold in Java territory, but it can afford to offer Java/NC solutions as part of its wide spectrum of networking options. If Java doesn't become the next big thing, Big Blue will get over it.

How To Get Good At Selling To The Networking Market Study new customers' needs. In particular, this means getting to know the small to medium business networking market. The phrase "The network is the computer" really does apply to a business network: if any part of the solution fails, the entire company is in trouble. This means that the model for reseller success is different than in the price-sensitive consumer PC market.

The most reliable, manageable solution is much preferable to the cheapest. Resellers should avoid selling networking components they' re not familiar with into computer installations. Brand names should take priority over bargains, and part of the cost of selling will be in training and keeping technically competent staff.

Follow The Money In particular, qualify the potential networking solution customer to determine how experienced and realistic they are. There is a certain minimum cost of establishing and maintaining a networked PC system. If the customer is resistant to a realistic quotation, it might be better to let that business opportunity go, and find another customer.

The Future In 10 years, while some aspects of networked computing will still be recognizably similar 30

to what they are today, many others will be very different. There will still be a need for servers:devices that combine mass data storage with the physical equipment for managing access to data over telecom networks. Network bandwidth will be enormous, with the possibility of much increased

m icrophone, speakers and printers).

For resellers, the more complex and costly networking solutions become, the more technically challenging they will be for resellers to handle; but there will also be more opportunity for maintaining decent margins for consulting, system integration, training and support. The cheaper and more automated networking becomes, the larger the potential market, with fewer demands on the reseller for high technical skills, and lower profit margins all around. CCW I JeffEvans is associate editor of Canadian Computer Wholesaler.

He is based in Toronto and canbe reached atjeff@ tcpon.ca.

gained e reputation as a designer and manufacturer of high quality networking, processor and storage products.

The company offers a well-regarded line of EtherRx networking adapters, connectivity and portable products.

Kingston makes fast Ethernet adapter cards, as well as Token Ring network adapter cards.

satellite and wireless networks supplementing fibreoptic lines.

The average home should have at least an option for several megabits per second in download speed. Businesses will have the option of local network speeds in the many gigabit per second range. The biggest changes are likely to come in terms of enduser devices. The personal computer may not exist as we' ve come to understand it over the last 20 years. At the very least, a large number of personal info appliances will be reduced to highly portable f ormats (pocket or credit-card-sized PCs with telephone and TV functions), or embedded in TV sets, phones, cars and other machinery, toys or furniture.

Even where something resembling a desktop workstation remains, most of its bulk is likely to consist of a viewscreen, sound system, and input and output devices (such as videophone,

CA N A DIAN COMPUTER WHOLESALER May 1998 ht t p//wwwccwmag.corn

Newbridge —htfpt/wwwnewbridge.corn Newbridge makes switched routing solutions that are rated best in world, as well as ATM IAsynchronous Transfer Mode, high-speed fibre optic network) switches.

Newbridge has recently announced major new contracts to build networking infrastructure in China, which despite Asia's current economic trouble, is one of the most voracious markets for networking technology.

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PowerCom — hitpt/www powercom,corn or http//ww powercom.comtsoluiions;=--;.

A wide area networks system integrator, PowerComemploys a variety of hardware and software suppliers such as Cisco and 3Com, to create networking solutions. PowerCom offers consulting, designing, and implementation services for corporate clients who include major telcos. The companyhas a particular expertise in the implementation of PBX, voicemail and, call centre systems, all of which require sophisticated integration of voice and data over a network.

The company also offers commercial Internet access, security/encryption, backbone, and voice over frame relay solutions.

Xircom —httpt/wwwxircom.corn Xircom is a leader in connectivity hardware, including some of the earliest combination modem/network interface PCCards. Current products include the RealPort Ethernet 10/100+ Modem 56card — a 16-bit integrated PCCard with built-in connector system.

0-Link —hitpt/wwwd/ink.ca "Link for Less!" is the cheery rallying cry of this company, which has been an innovator in both technology and marketing in the network hardware market.

D-Link is currently running its "006" agent reseller program, allowing endusers to purchase D-Link products from qualified resegars, while making no payments for six months.

D-Link's product line includes hubs, switches, and transceivers. 0-Link is making a special effort in the small business networking market.

Digital Renaissance —http//www d/gita/-ren.corn This fast-growing Canadian network technology leader, widely hyped as one of Canada's coolest high-tech places to work, has developed TAG ia software toolkit technology) to enable high speed, interactive streaming audio and video to be created and delivered via the Internet. The TAG software is intended to allow the creation of rich content that can be delivered even over relatively slow network connections. Microsoft has invested in Digital Renaissance as part of its effort to encourage the development of Internet technology that allows multimedia even over slow plain old telephone service

IPOTS) lines.

g

@ Symanteo —hitp//wwwsymsntec.corn The pioneering DOS utility software maker has adapted to the realities of Windows 95/NT and the internet with its latest version of the PCAnywhere remote communications package. An upgraded version of Norton Anti-Virus, it specifically aims at new virus threats from the Web, as well as supposedly secure local networks and intranets.

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for morethan 70 per cent of the rev- Compaq [directly]. enues derived from the distribution of Meanwhile 'for Mary' computerproducts.Ingram Micro Inc, Whittle, vice-president of (Canada), with its billion dollars in marketing for W estonm revenue, is the largest player, followed Ont.-based Ingram Micro by other broad-line disCanada Inc., reduced martributors such as<. gins have been ma fact -'-'M Merisel Canada, ',= . 1:g of life" for the past h Inc., Globelle . $~$',,@ Q ~,10 years. "It is a ,@~ t,;,'>1 I muc h more com-,, and Tech Data I ~'.'f".tf'<+ ++'~ ~ ~ ~ : - - ,

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Qjm,Shy Inc. and Supercom.

Whittle also said increased PC sales always outweigh the rev renue According to the IDC report, dis- lost in lower prices. Sbeusays that PCs are now in' 44 per cent of s m ss tribution derived.27 per cent of revCanadian households and that businesses are still buying systems to enues, from peripherals and compo- meet their requirements. nents (such as mass storage, monitors, Susan O'Dell, president of Mississauga, motherboards; sound cards and memory Dnt.-hasad Service Dimensions, suggests products), c6mpared to 24 per centfor PCs (desktops, notebooks and servers),23percentfor software,14 per cent for data communications products, eight per cent for printers, three per'cent for systems and workstations arid one per cent for services. I The IDC survey indicates a small shift away from PC sales for distributors that could be more pronounced in the late '90s as all the s major PC vendors (IBM, Compaq,9ell and Hewlett-Packard) contin1'1 '., ll," ! ue to cut prices for their machines. 'The $1,000 PC is defiattention of end-,users, a that started nitely here," says Albert Daoust, director of special with software, suggests Daoust. He reports that the projects at the Etobicoke,.'Ont;based Evans top threemanufacturers— IBM, Compaq and HP — increasedtheir .,-. ivr r Research Corp., which is currently undertaking a'.=:.-., share of the PC market.'from 31 per cent in 1996 to 44 per cent in the ,~ , jj study of Canadian PC distributors. last quarter of 1997.'The ramifieations go beyond lost sales, howDaoust says in addiiion to losing ever. "As the number of brands consolidate, the distributors have t money on PCs, distributorsarealso facing lower less negotiating power with vendors," he says. margins or markups o/n products determined .

The IDC smvey also demonstrated a trend towards through market pressures, "On some major brands ~ ygreaterrevenues fordistributors on the sale of third-party comiitWi~:;l '; over five years it has' gone down from 12 per cent '~ ponent and peripherals to resellers. orough to two or three per cent."

But Daoust says he's noticed fewer of these items going th Breuer at IBM Canada counters that the distribution channel. Instead, the vendors are adding them to their tfghtti''l% y '...;;,."'j,,.'"k,,'~< ,4 ."")j~'I.";t"t„ ' "lower inventory costs achieve'd from the adop."':t" machines in their facterleii outside Canada« hesays / 0-: tion of a build-to-order/channel assembly Cater figures this "year-by-year decrease in componen't flo< ma program with its distributor and reseller be reversed with the involvement of the major distributors in configuration services and vendor btuld-to-order/charnel assembly programspartners should alleviate the impact of ' ! f 1ower margins. One strategy being adopt- the latter is still getting offthe ground . '

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But Len Cater, vice-president of operations for the Mississauga, 1'tJf,,";<,. Ont.-based national reseller chain, GE C apital Technology Management Services (Canada), says that the current price war among vendors has led to a flood of PCs streaming into the market and thus undermining the goal of limiting inventory in the channels.

He also wonders how distributors are able to make. any moiiey in the.<r(I current situation. 'They are doing well on the top line, but not on the bottom line. I can buy a Compaq machine from a distributor at a point-anda-half margin..., which is not much more than what I would have to pay

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ooSmaller regional VARs will be the major usersof distributors'configuration services, according to Cater, while the large national reseller operations like his own GE Capital (which have their own facilities) will be more likely to takeadvantage of them atpeak buying periods. He adds that distributors are the best-equipped to deal with the potential of increasedchoice for end-users in terms of configuration options from vendors under build-to-order.

Dis~butors are increasingly selling formerly high-end products, such as data communications products and midMerisel'sproducfwarehouse. range systems. The tatter suit require considerable financial and technical assistance from the vendor because of their inherent complexity compared to PC systems, says Mitchell Martin, vice-president of the Torontobased Merisel Canada Inc. His organization has a division dedicated to the Sun Microsystems' workstation product line, which includes technical support, marketing and training facilities for reseller staff, But Tony Olvet, IDC Canada's manager for Canadian channel research, doubts that the high volume, broad-line distributors like Merisel have the resources, expertise or business model to take on many such advanced systems. He notes, for instance, that when IBM decided to have its AS/400 machine sold through the channels, it did

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not approach any of the previously mentioned seven leading distributors in Canada. Instead, a more specialized group with an expertise in AS/400s and a stronger presence in the U.S. market, have been picked by the vendor to handle the company's product here.

The Canadian distribution channel has witnessed considerable consolidation of the main players and the disappearance of smaller companies. This middle layer in the PC indusuy has been forced to be as efficient as possible. Hence, the adoption of on-line ordering and electronic catalogues, for instance, which saves time on the telephone for their sales reps. Nevertheless, Canada

ume, broad-line distributors, according to Cater. The more specialized, vertically oriented distributors will likely survive because they serve an important niche market, but he is more pessimistic about their large competitors. IsM1 Paul W einberg i s a Toronto-based journalist who specializes in hightechnology reporting. He can be reached at pweinbg @interlog. corn

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hrzprrvrrwwccwmag.corn May 1998 CANADIAN COMPUTER WHOLESALER 37

INDUSTRY P E RSPECTIVE -

DIstrIbutIon

The c

by Mary Whittle The distribution service industry has reached a stage of maturity. „t,/ Maturity comes with all the expected challenges and opportunities. For resellers, the sheer size of the distribution channel in Canada ensures a broad, easily accessible assortment of technology products.For manufacturers, channels abound through which to sell their products. For the distributors themselves, this creates a highly competitive market-place that demands efficiency and low-cost operations. Therein lie the challenges.

Throughout the channel, profitability among the players has weakened. But this weakness translates to big business for the partners who can provide the highest level of service for the most competitive price.

Resellers search for efficiency gains and increasingly rely on distribution to be their inventory managers on a "just-in-time" basis.

Since distributors' operations are now so efficient, same-day turnaround for these orders is typical.

Manufacturers constantly strive to take costs out of their business, so they pass those costs associated with "getting the products to market" to their distribution partners. For those vendors, it is typically cheaper to let distributors handle the costs of account management, reseller communication and credit extension. This has translated into more business for distributors from non-traditional technology sectors.

The high-end mini-computer companies, many based in the Unix operating system environment, are increasingly sold through the twotier distribution channel rather than from the manufacturer directly to the reseller or end-user.

And 1997 witnessed the entrance of the telecommunications industry into what had traditionally been known as the computer reseller channel. The convergence of data and voice transmission is causing computer resellers to enter the telecommunications area and telecom resellers to enhance their business in the computer networking environment.

Simplification of processes and systems is a critical success requirement in the channel. It is important for the channel to recognize its value and to streamline product acquisition for the end-user. The advent of channel assembly demonstrates this perfectly. Manufacturers understand their strengths — they' re good at designing computer systems and sourcing the components. But is there any value in pre-assembling the box? How do they know that customers will want that exact configuration? Does it make more sense for assembly to be closer to the ultimate customers who can then order a custom-designed system?

Reselleis understand that they are the agents to help the ultimate customer comprehend the benefits of the technology installation, recommend, source and train the end-user on the systems' capabilities. But is there any real value in "screw driver" changes to the pre-assembled systems? Might there be cost savings by placing responsibility for just-in-time delivery of custom configuration into the hands of the distributors?

The role of distributors is to have the products available when 38

needed, and be able to deliver in 24 hours.

Giving more of the responsibility for tactical-execution-type processes to the channel partners that have demonstrated such focus on efficient operations seems to be the natural course. Channel assembly is a very large opportunity for distribution.

The Internet may be one of the greatest opportunities in distributors' continuous pursuit for efficiency.Web-based service allows resellers to: search for products that will f ulfill their customers' requirements; check pricing, availability, even product specifications; and then place the order electronically. Once put in the system,resellers can check the stage of the order's progression through the 'Net as well. Not only does this allow the customer accessto thousands of products, these transactions can be taking place 24 hours a day, seven days per week.

Over the last 20 years, the growth of the indusny has been spectacular. Often manufacturers could not design and build I products fast enough to meet the demand.

That caused players throughout the indusI I try to operate in a reactive mode.

In the more mature industry, issues of • I "brand" supremacy are discussed among • I the manufacturers. D i stributors are increasingly being called upon to help establish brand identity for manufacturers and resellers alike.

Manufacturers and resellers need to make technology more consumer-friendly as computers and peripherals become mainstream commodities.

For distribution — the road ahead houses some potholes, like decreasing profitability and consolidation of suppliers. But it's full of new bends to adapt to, and endless opportunity. ccw Mary Whittle is the vice-president of marketing at Toronto-based Ingram MicroInc. (Canada).

C A NADIAN COMPUTER WHOLESALER May 1998 nn p ltwwwccwmag.corn

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Epson has announced or will announce no fewer than 13 new ink-jet printer models this year, covering the spectrum from entry-level bargain priced models to high-end graphic arts press proofer. HP, Lexmark and Canon are also racing to replace their former best-selling The Contenders models with much improved new ones. The quest for image quality, For this month's Lab Test, we asked the manufacturers to supply one print speed, and to a lesser extent, lower cost of supplies is driving a color ink-jet printer, with the focus being on the personal or home rapid turnover in the products available for sale. Be very wary about office user, and the cost roughly $500 or less. This is the "sweet spot" getting stuck with inventory of old printer models, as they may be hard of the consumer and small office ink-jet market, the range where most to move, at any price, in competition with the latest and greatest that of the business is to be done. High-end color printers, which have to the major manufacturers will have to offer. accommodate professional needs for PostScript compatibility, color As well, the major opportunity for profit, once the hardware sale correction and networkability, carry a much higher sticker price, and is made, will continue to be in supplies. Resellers should be more cau are of interest to a much smaller market. tious about carrying "off brand" ink cartridges than they are about refilled laser printer toner cartridges. Ink-jet ink formulation is a much The Tests trickier business than laser toner refilling. Check out any discount non To measure print quality, we printed a page of text onto normal bond name-brand ink-jet cartridge supplier very carefully before offering paper in highest quality mode using Microsoft Word, and a high-reso- their products. When in doubt, you might do well to stick to the name lution photograph onto glossy photo paper. For color accuracy, we brands printed and compared a pair of pictures on both regular bond paper and glossy paper. We also printed a set of test graphics, consisting of solid black sections, black gradients and color bars. All tests were done in the Windows 95 environment, using the drivers provided by the manufacturers. ugâ&#x20AC;&#x17E;usteR de r'ueitice $579 retail market for the foreseeable future. The ink-jet can also be the perfect addition to a small office that requires occasional near-photo-quality color output, without breaking the bank.

Speed: Reality Checks

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Manufacturers often use different criteria to determine their machine's maximum-rated draft speed. What this means is one manufacturer may be using a test sheet with a few lines of text on it, and another manufacturer's testsheetmay have a few more lines.To even up the odds, we took one average page from Microsoft Word (with text from top to bottom) and averaged the page per minute speed over three minutes.

Consequently, our results are slower than the manufacturers' draft ratings, but we feel that they more accurately represent the actual speed that will be achieved by the typical user under real-world conditions.

Cartridge Comparisons One of the problems with earlier color ink-jet printers was the cartridges: many machines allowed the user to load either the black cartridge or the color cartridge, but not both at the same time. In fact, some ink-jets circa 1992 to 1994 could only create "black" on a color page by overprinting all three primary colors to create a wet, blobby dark brown text. Thankfully, all of the models in this month's shootout accept black and color cartridges simultaneously.

This means fewer hassles for the user, with less cartridge switching between jobs. It also means more efficient color printing, as black text should come from the black cartridge instead of consuming substantially more color ink to achieve the same effect. And, of course, black is really black.

Another problem, which hasn't been entirely solved by any of the models in this month's test, is color dithering, (an approximation of a color, using available colors). Test bars on one of our test sheets featured a dark and solid centre, surrounded by a dithered, lighter outside.

Without exception, all of the printers represented the lighter color as darker because of the dithering, The good news is that this didn't seem to affect most of the things we printed, the bulk being mostly photography and text. Similarly, unless the printer is to be used as a serious tool for graphic arts and desktop publishing, this shouldn't pose a major problem to the end user.

One Final Note: Resellers should be aware that the ink-jet printer product category is undergoing an astonishing rate of new product introduction in 1998.

42

$489 Epson is keeping up its high standards with the Stylus Color 800 model. With 128 nozzles for black ink, and 64 nozzles for each of the three colors, the 800 is able to provide a top reso lution of 1,440 by 720 dpi. Text in both black and color is very crisp, and is virtually indistinguishable from laser on premium grade paper.

Color accuracy with the 800 was quite good, even on standard bond paper, although most colors printed a shade darker than the source graphics. Blacks were solid and black scaling was distinct. Using glossy photo-quality paper, the Epson shines, providing realistic photo-quality output with a minimum of blocky mosaic texture on solid colors Speed for high-quality output was average, at about two minutes per full sheet of text. The draft speed was reasonably good at five full pages per minute, but more impressive was the quality of draft output. Every 12 seconds or so, the 800 pumped out a sheet with good solid black text which would have been top-notch quality on earlier models At 18.7 by 24 by 12.4 inches, the 800 is one of the larg er printers, and is quite sturdy. Cartridge and paper loading are both straightforward. And for Macintosh users, this printer is the only one with the Mac Serial 8 interface As a bonus, the 800 ships with the Epson Productivity Kit, which comes with a bundle o f pr e m ium paper, Avery LabelPro 3 .0 Software f o r Win95/NT, A v ery f Smartfolio Project Carrier a n d th e Epson Ans w ers interactive CD R OM. The 800 i s covered by a healthy two-year warranty

CA N A DIAN COMPUTER WHOLESALER May 1998 ht r p/twwwccwmag.corn

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YES! Vou can place your OEM product orders with Merisel! e

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O ur recently created OEM group i s d edicated to b e coming a l e ader i n OEM product distribution. We want to be your o ne-stop shop for O EM components by offering you a choice of industry-leading products in each product category and meeting your price point and quality requirements.

How do weintend to doit? By focusing on a select group of industry-leading m anufacturers whose b rand n a m e components will be able to support all d OEM system integration customers.

We now have dedicated OEM sales representatives and product managers whose years of i n dustry experience a nd knowledge w i l l e n a ble u s t o -:.- , 4 m eet your needs and t hose of o u r manufacturer partners.With a focus on understanding your business and a k een interest in long-term and mutual g ~ ~ success, we will work hard to deliver c ompetitive p r i cing a n d d e v e l o p '.P programs and services to meet your expectations.

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Watch for your copy of our OEM catalogue in the March PromoPak edition!

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Although Canon has a n e w er a machine nearthe upper end of our specified price range, it wasn't scheduled for release before press date.

Instead we have the BJC-4300, which is aimed more at the consumer with a tighter budget. The unit has a top resolution of 720 by 360 dpi for both black and color printing.

Like all the other units, the BJC-4300 supports both black and color cartridges at the same time. One slight concern with this unit is the quality of black monochrome print while using the combination black/color cartridge. Printing a combination of black and color text provides slightly better black quality.

A straight black cartridge is available for the 4300, which would provide better black text in monochrome mode.

With black cartridges running at $52.50, and the complete color/black set running at $84.25, it can become a bit expensive.

It's also a bit of a hassle if the user has to continually switch off cartridges to obtain optimum print quality. Luckily, the combina-.. tion color/black cartridge is essentially the print-head with'two little ink containers, which can be individually replaced for less cash, at $12.50 for black and $35 for the color container.

Color accuracy was reasonably good, with excellent reds and slightly dark blues. Black was a little spotty using the color cartridge, with almost no differentiation between shades of black.

Color photographic reproduction was good, with a bit of spottiness. Printing on glossy paper provided even better results.

On the down side, print speed was a bit slow, and black draft resolution suffered from the same problem as high-quality black because of the color cartridge. Once again, color draft printing was better.

The printer is rather compact, with the paper output tray sliding in neatly under the unit when not in use. The cartridge switching system is also quite nice; as opposed to software control or a non-obvious button, there's a dedicated "cartridge" button inside the loading area.

One feature of the B JC-4300 that sets it apart is the ability of the printer to be quickly converted into a 360 dpi form-feed scanner. The optional IS-22 scanner package has a scanning cartridge (which fits into the same spot as the regular ink cartridge), scanning software and carrier sheets. Granted, dedicated flatbed scannerscan now be purchased for$200 or less,but if space is really at a premium on the desktop, this is a fairly inexpensive solution, at $186 suggested retail (about $150 on the street).

Although not a market leader in terms of print technology and speed, the BJC-4300 is extremely popular, and widely distributed as part of home PC bundles by a number of mass retailers. It is easy for even a novice PC users to set up and use, and its slower speed is only apparent when it is being operated next to a faster printer — not a typical situation in the average home PC setup.

The warranty period for the BJC-4300 is one year.

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StreetPrice $549 Another one of the standard-bearers in the ink-jet printer field, Hewlett-Packard checks in with the DeskJet 890Cxi model. Listed as a "Professional" model, the unit's price is on the higher end of the scale for this roundup, but is still a viable choice for the personal or small office user.

Certainly, the 890Cix has a lot going for it. Of all the units tested, it has the most accurate color reproduction. There was a patch of crimson on one of the test pages, but where most of the other units turned it into a muddy brown color, the HP reproduced it with no problem. All of the other colors were accurate as well.

Gray-scaling was handled well, providing distinct shading. One problem we ran into was print-head alignment on solid patches„'which caused a striping effect on patches of black (and occasionally on larger patches of color, but not as noticeably).

Photographic reproduction was excellent apart from minor striping, which mostly disappeared when using glossy paper. Text quality was also excellent, providing near-laser-quality text with a minimum of bleeding.

With 6.5 pages per minute of high-quality black draft output, the HP is without question the speediest of the printers. Even at the highestquality setting, it zipped through the sheets in a rapid-fire manner. If speed is an issue, this is certainly the printer to get. Unfortunately, the unit is also the noisiest of the bunch, with occasional loud grinding and whirring, which could be distracting in a quieter setting.

The warranty period for the DeskJet 890Cix is one year.

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Suggested Reteil Price: $349 Street Price, $279 The Okidata Okijet 2020 is a bit of a good news/bad news situation, with the good thankfully outweighing the bad. Good news first.

Like the NEC and Canon models, the Okijet is more for the budget-conscious consumer, coming in at under $300. In addition to the complimentary copy of Broderbund Print Shop, this compact and solidly built machine isbacked up with a two-year warranty.

The nicest part of the package, however, is the configuration of the print-head and cartridge system. With many printers, there i • one black cartridge and one color cartridge. The problem is that the colors rarely get / used in the same proportions, but the cartridges cease to function properly when any one of the colors run out. What this means is that when the cartridge runs out of cyan ink, users may be throwing out a nearly full section of magenta, or yellow. The Okijet uses the approach of splitting the three colors into separate cartridges, and making the print-head easily accessible and removable for quick and efficient individual cartridge changes.

The Okijet is also good at reproducing colors, although some of the shades came out a bit darker than the originals (a common problem, it seems). Black patches print nice and solid.

The bad news? The black patches print in a bit too solidly. A greyicale test showed little distinction between each gradient from 90 per cent „ tlt uough 99 per cent black coverage: What this means is good crisp text, but expect a lot of blockiness in darker areas when printing photographs or graphics with subtle contrast variations. Color photographs looked okay, although there is definitely room for improvement in this area.

The second problem is the speed. The Okijet is the slowest of the bunch, clocking in at a very slow two pages of black text per minute in draft, and taking up to 30 minutes for a full page of full color.

The last problem is one of compatibility. The Okijet software drivers were a bit picky about the environment the printer was running in; the printer didn't work properly until all other printer drivers were removed from the system. For most home users, this shouldn't pose too much of a problem, but for users who want to have more than one printer installed at the same time, it could cause a few headaches.

That said, the printer is a good low-cost alternative, as long as subtle shades of grey aren't a major concern to the user. With the longer twoyear warranty, and the ability to replace individual colors instead of the whole color cartridge (and consequently at a lower cost to users who use mire cyan than magenta, for example), certain users may end up much further ahead with this unit.

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S"-'..e:. -'r '@v»,' $255

May 98

Although reasonably new to the ink-jet market, NEC comes in solidly with the sleek-looking SuperScript 750C, which is a great choice for the budget-conscious user. At 600 by 600 dpi, the machine doesn't have the best resolution of the machines tested, nor is the 750C particularly speedy.

However, coming in at about half the price of the higher-priced printers in this lab, a bit of a trade-off in theseareas is to be expected.

Text quality was generally good, but began to fail at smaller font sizes. This was especially true on lower quality paper, where it produced a bit of speckling on both black and color text. Full-color photo-quality printing produced speckling and blocky areas in places, although use of glossy photo-quality paper produced much better results. Color accuracy was fair to good, generally coming in a bit darker than the source material.

Solid black and greyscale giaphics were handled ct, surprisingly well. Part of the reason for this could be the cartridge configuration. Rather than a black cartridge and a second three-color cartridge, the 750C adds a "graphic black" to the color cartridge, which helps to better blend the color with the regular black.

Speed was generally good on high-quality jobs, but the draft was a bit disappointing. Color came in at 2 ppm, but black only came in at a slightly better 3 ppm.

This wouldn't be quite so disappointing if the quality of the draft were better; while other units provided fairly good-quality draft, the 750C's draft text appeared more like dot-matrix output.

The unit is at the middle of the weight range, but has a pretty large footprint at 18.11 by 18.30 by 9.29 inches. It appears a bit more fragile than most of the other printers — users with small children should beware, especially of the slightly flimsy loading door on top. (Side note: The visual instructions on the inside of that door for setting up the unit and installing cartridges are baffl ing, but thankfully also appear in an understandable text form in the manual.) ', "."'~'"~~tt, ''~'>®":Jii",;: ':~ I f the 750C's low price . . . isn't enough to grab the customer, the printer also comes with the Broderbund Print Shop CD-ROM, a Sesame Street Art Workshop CD-ROM, and an NEC Media Sampler Pak. The Superscript 750C is backed up by a one-year warranty. ,

46

"'tg' ges".'::. KarsII f'"Ki@e:$439

May 98

Street fari'ct $399 Lexmark raises the resolution bar a bit with the 5700, offering a full 1,200 dpi in both directions.

This means a coverage capability of 1.44 million dots p er s quare i n ch , a s opposed to 1.04 million from Epson's Stylus 800.

In addition, the 5700 features a nifty little innovation in the paper feeding mechanism, which auto: ~ j""'~,; matically adjusts for overly thick paper, without manual intervention.

Another nice feature of the 5700 is the size of the unit. While not in use, the paper-receiving tray slides right into the underside of the machine, bringing it to lessthan eight inches deep.When desk space is ata premium, this becomes a huge plus for such a high-quality printer. And at just six-and-a-half pounds, it's the lightest of the pack.

Despite that, the 5700 isn't a lightweight when it comes to print quality. Both black and color text are extremely sharp, even at very small font sizes. Except for very minor bleeding when printing on plain bond paper, the quality is comparable with a laser printer. Draft speed is quite good, and draft quality is excellent.

Color accuracy was good, although distinction between greyscale gradients was only fair. Photographic reproduction was very good with the black and color cartridges, although there were blocky sections in areas with solid coloring.

Switching black with the optional photo cartridge improved this even further, providing the best photo-quality reproduction of this batch of printers.

Considering the performance of the machine, the $399 price tag is even more impressive. The package also includes the Lexmark Workshop CD-ROM, which has photo editing software, greeting card and T-shirt creation software, and more.

The big drawback: At nearly $50 a crack, the ink cartridges are expensive when it comes time to replace them. The good news is that they last a long time (during our tests we printed out quite a few full-color pages, and the ink levels changed only marginally during that time).

The 5700 comes with a one-year warranty.

CA N A DIAN COMPUTER WHOLESALER May 1998 ht t p//wwwccwmag.corn

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Editors' Choice One important thing we realizedafter conducting t h e te s t s: Every single one of these machines provides rather impressive results, and differences between each model's output are, in l arge part subjective All of the printers produce photographic results that are applaudable.

That said, the following are our picks:

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NEC SuperScript 750C For the budget-minded buyer, the NEC gets the nod for ease-ofuse, color reproduction and good-quality black text at highest-quality output.

$439 $399

NA $255

$349 $279

Overall

Lexmark 5700 $37.99 black/45.99 color/ 49.99 photo

$29.99 black/$34.99 color

$15.39 black/$16.79 each color (list)

1 year

1 year

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1-800-358-5835

1-800-632-4636 www.nec.corn

1-800-654-3282 www.okidata.corn

www.lexmark.corn

For the combination of sharpest text and best photo quality, Lexmark edges out the Epson, especially with its compact size and lower price. CCW

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esktoP:Puirblishnig isn't ~ t u sed to bu;-t , PaulBrainerd,t' hefounder'OfMus Corp. (ss ' h original>y W-" duced PageMaker before Aldus was sold to Adobe), used to say desktop publishing was the application that "saved the Macintosh" back in the mid-1980s.

Thes y s>,h e , it s than li u wo r t in sa v '

MsgIfls~ $Qgg

* ' Just when desktop publishing was staiti ng to gain h'~a popularity & ' the best kind of tool for designing professional-looking publications, two things happened. The first was that word-progre sin sg software~ began to take on many of the features typically found in desktop pub-" lis h ing apphcations — including, f ' mple, thevility to handle ear tsIblesrr fleur.

Ieitt ~ Q g a pthics en ' ~ t l rt t ~ $ ~Tl t r t i g ha s a " 3"" major outfall from the success'oft It's an "i'route'"state of 'aff~ " es op p ' p publishing ~ that a second come full circle from its humble origins — and completely changed tier of "entry-level" applications emerged and scooped up most of the the software industry in the process. What started out as a specialist volume in the market. While many would argue that @is consumerapplication that appealed to a ~ l , e nthusiastl~ of cr eative style product was actually a key e~ t o f the marketsthe ou users mushroomedinto something,@at could be ~ asa pubbcation . of desktop puhhsturig,there is no'doubt that basic, t~ - to-usersub ' ' ' ',I designtoolby millions,, $l05 tools sudt as Microsoft Publi~ have captu ' e l ion's sh 4

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50 C ANADIAN COMPUTER WHOLESALER May:1998

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D E S K T O P P U B L IS H IN G of the publishing applications market by unit volume.

With the recent launch of Publisher 98 and Microsoft Office 97 Small Business Edition Version 2.0 (which includes Publisher 98), Microsoft Canada's general manager Simon Witts says this trend is likely only to accelerate. Microsoft is now focusing more of its energy on winning the hearts and minds of small businesses, a segment in which he admits Microsoft has not been as successful as he would like.

"The bit we haven't done is gotten to the end-customer and driven demand," he said. "We need to rely on our reseller relationships and drive [our message] down to customers."

The Web Factor

company releases a new beta version of FrontPage," concluded the report. "Additionally, as the company continues to bundle FrontPage with the NT server product [IDC found 50 percent of NT server customers are active users of FrontPage], Microsoft's market share grows significantly."

The study also suggested that some traditional desktop publishing companies have misjudged this market and are suffering for it.

"Regardless of Microsoft, there have been some serious false starts in this market, including Interleaf's promised CyberLeaf product and Quark's Immedia, which missed the HTML compatibility mark," stated the report.

This has left the "heavy hitters" in the computer-based publishing market looking for new ways to attract users — either by adding features, changing their product positioning or becoming more speciali zed. Quark is a perfectexample of that.Foryears,Quark was happy to make lots of money from an enthusiastic band of QuarkXpressusers running theirsoftware on Apple Macintosh systems.

But in the last year or two, all that has begun to change. Not only

Desktop publishing vendors have also had another major market force to contend with — the advent of the World Wide Web. Increasingly, many small businesses are using the Web as vehicle for "electronic" versions of flyers, newsletters and brochures, and desktop publishing applications are not necessarily the tools they use to accomplish this.

Web design applications are likely to scoop up some of the market that would otherwise have gone to desktop publishing software.

A recent report by International Data Corp. clearly illustrates the strength of tins trend. At the end of March, IDC released a report suggesting that the tremendous growth surrounding the Web — specifically the number ofsites created and the number of users accessing those sites — has resulted in "a dynamic high-growth opportunity" (fslltUP 70UP forWeb authoring and design software.

According to the report, Web authoring and design revenues worldwide will reach m more than US$290 million by 2002. IDC forecasts that the Windows market for Web ma authoring products will increase at a compound annual growth rate of 32.6 per cent for unit shipments worldwide between 1997 and 2002.

"Publishing content on the Web continues to explode and is increasingly becoming more complex as competition grows unabated," saidJoan-Carol Brigham, a research manager in I D C' s I n ternet program.

"Because standards such as HTML prevail, vendors are finding more creative ways to compete asidefrom pure features through ease of use, added peripheral features, such as ISPhosting primers for Web sites, and application interfaces."

The IDC study further suggested that products such as NetObjects' Team Fusion are addressing the ne e ds of the group, while Macro-Media's DreamWeaver and GoLive's CyberStudio are targeting the creative designer. NetObjects is also striving to s become the prominent front-end for Web Introducing SuperDisk andthe 15-120drive. application development, stated the report.

Plike IheZipddsc, sheid.i tii drive ir rcmpemble; The IDC study revealed just how much with standard3.5disks. of a shift in the vendor leadership "pecking So you onlyneedonedrive. order" this change is producing. "Microsoft We --' — -- Please visit ourwebsire for moredetailed information. has played a sizable role in shaping the general landscape. Many companies have felt 1 ~ Id ~ RIe onci , ; . C a mjcti V ' 8 ) e -. 11 taf ~ : 1 , e 0 5 8 7. the aggression of Microsoft each time the h:(8v0 7 8 - 2 l5 Ji Fsgx". ,$278

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P U B L I S H IGN

has Quark Qu ventured into in Web publis ' tionss such as Immedia ia, but ut iti has also made e amuchbi e arket and ex~an d e into networked and ow applications.

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In mid-March,, Quark and Micros

eve op eme ent, and joint sales gy, business devel and marketin ing.. ur strategy is to focus d d th helps them meet th I i dS F' he publishing industry is is changing chan rapidl . M' i es e most extensible si e, robust platform f ' novative soluI31 od d" aons our cu a r is thus joinin t h i ie Sol tio P o ld a e to take ad h Q s in uture versi p 'ng y an support. As a result u ark has

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's news mi ht e company seemed to b 11 ith i i t' s Macintosh was careful d ' ne to a ppease them "Quark' icrosoft in no way ic wa le essens our comm mitment to su is ing a li ca 'tions for th M 11' a logical result f pansion into the r so utions arena, ar in which W'

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dh g p o f customers thhave made u rs t at in e past. We are s' p y anticip t "g " g' a 'ng the steps nec ' to meet thos ose needs when en t s.Th e alliance ' cates a halt' pport for QuarkXPress ress, QPS, and Immedia f (So there.) anada's bi e rp., which d b th C ID is er (former fact, Co ilouilced id-M h t h at is designed to b providing improved rove integration ' wi

I

SomV RWARE DISTRIBUTORS

obe see est in all this, od i b f d- p o s of pro ro ucts such as o , which h ' hav op, ave successfullyblended the a ' essional-lookin ing paper pubhcations ' a ions with a strong c e site design. ese are challengin da r s e s kto p pubI o ul da ppea r , however th at with s o popular 'mdustry platfo orms (such as h p and enoug henhancements e to o keep its core py, a 1 the ma'or j r players will likel i e ysu survive beyond the mili '

Busmess Product'Ivt't y, Educational and Games.

1 800.510-90'I I Monday to Friday 9AMoto 8PMEa s tern Time I I' I I

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Contacts: Adobe Systems Inc. nc. — (408) 40 536-6000 orp. — 1-800-772-6735 Quark Inc. — (303) 894-8888

I I I II

CANADI AN COMPUTERWHOLESALER W Maay11998

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potenttal virus code. A"cording to Symantec, a large majonty ot new virus repcfts i'PCB]vpd b)' SARC if>vulva macro viruses, even thougli thefp are far larger numbers of olde] v<rustypes, such, I<I 9 as boot sectof'and pofyf'f]oi'pf]UUs vi<'uses n ex s" tpf>ce compared to the newer macro vatic y* Id<acro v]:uses sp<e~d rapidfyove A<'~ 8 "L It" via the Internet, sinc6 they are buried inside legitimate and harmless-looking Word and Fu(cel

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U]ll<]ies. WinFax I'ro, and Noitoi) Anti-Virus • C<et out ol thc plodL<ct ci]tcgoly. cause thpm to fail to functjon As wpll as thj Lither in release or due shortly. I] is finding. in Do a bette>1 »loch ]110>'e highly featured pi od, '@reform of vi us "mutation," somemoore vjfu's.; es are actually "breeding,' according t o I'ac i , that Microsol'I l>us pcih:>ps iinintcntion;iluct.;>ttr ictive to p r ot'essioni>ls 'md othe<

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lv la)y >98 9 CANADIAN COMPUTER VVHOL ESALER 53

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B USI N E S S B A S I C S perate to sell for some other negative reason, for example, competition opening up nearby. Possibly the agent is eager to make a commission or the listing will soon run out. Never put yourself in a situation where you have to make a quick decision on something as critical as buying a business.

Emotionally based interest?

If you are considering a business that you have a very positive emotional feeling for, and that feeling tends to dominate the decisions you are making, don't proceed any further. Emotional over-enthusiasm, unrealistic expectations, overly inflated projections and excessive optimism can quickly turn into a financial disaster. A business that you buy has to make objective good business sense first, in terms of being a viable idea at a - 'o' 7 pricethatyou can afford.

Owner clahns cashwhimming?

A business owner may try to S induce a sale by claiming that the financial statements do not accurately record the actual amount of cash that has come into the business. The seller could claim discreetly (and obviously not in writing), that half of the cash is pocketed without recording or paying tax on it. Don't purchase such a business. The situation would mean that you couldn't rely at all on the financial records,

by Douglas Gray which places you at high risk.

In addition, you cannot base your purchase price on the assurance of the seller that they evaded taxes. Obviously the seller is not credible and consequently the business is not credible enough to consider any further.

re you currently in your own business as a reseller? If not, have you ever been tempted to buy a business?

About 25 per cent of the small business population entered the wild and woolly world of entrepreneurship through that door. Maybe you want to get into an established business for the first time. Possibly you want to expand or diversify your existing business by buying another.

Whatever your motivation, when searching for a business, there are a number of classic warning signs that should alert you to potential problems. Buying the wrong business could result in a financial disaster.

Here are some common warning signs of w hich you should be aware:

A

Unfamiliar business?

It would be a serious mistake for any buyer to invest in a business that the buyer knows nothing about. The dangers in running the enterpriseare accentuated by inexperience and unfamiliarity. If you are the potential buyer, you could be buying a business totally unsuited to your personality, talents or interest. You would be at a considerable disadvantage in trying to survive and compete with your competitors.

Partner-wanted business?

Some business partnerships that are based on sound economic data can work out well and may be worthy of your consideration. On the other hand, many business partnerships do not survive in the long run. This could be because of conflicts of personality, philosophy, policy, priorities, or contribution of money, time, or skill into the business. Some unstable and undesirable business operations attempt to d efraud the unwary investor by obtaining an injection of funds into the business and then using those funds in an inappropriate fashion without any controls. For example, investment funds could be used for paying past creditors' debts rather than for working capital for future needs and growth. Be cautious of any business partnerships that promise a disproportionate return based on the investment of money or time.

N%at are the warning signs to avoid buying into a bad company?

Business which uses up all investment capital?

If you are considering a business that would require all of your financial resources to pay the purchase price, you could be in a situation that you are starting off undercapitalized, without working capital or reserve for future needs. For example, if you take over a business and there is a decline in sales and profit during the transition phase, you would not have any resources to be able to buffer the financial crunch. Never buy a business without taking into account your workingcapitaland contingency fund.

Failing or dis~ bus i ness?

Don't proceed any further if you are considering a business that is going through serious financial problems. The exception would be if you are an expert in that type of business, have clearly identified the reasons for the financial difficulties, and know that you have the expertise and management resourcesto turn itaround.There are people who buy businesses with a turnaround strategy in mind, and skilfully negotiate a purchase package that is very attractive. This can be done effectively of course, only if the buyer knows what they are doing and is sophisticated in this type of distress purchase.

Remember, before you decide on any business,check itoutthoroughly. Ask lots of questions, comparison shop, be objective (not emotional), and speak to others in the industry. Finally, get professional analysis, feedback and advice from a street-smart accountant and business lawyer. ICCW I

High pressure to buy?

If you are experiencing a situation in which the seller or an agent of the seller is putting considerable pressure on you to buy the business, resist and be wary. Possibly the seller is ready to go under or is des-

Douglas Gray, LL.B., formerly a practising lawyer, is a Vancouverbased consultant, speaker and author of 16 best-selling books, including The Camplete Canadian Small Business Guide, published by McGraw-Hill Ryerson.

54

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Microsoft's newPC99standard hopes to a@hressthe issue of limited inter'ru jtPbut what's taking so'long?

by Alan Zisman

CP

Oh where, oh where have your interrupts gon@?

Sort of like your kids (or mine), whenever any of the devices attached to the computer need to get some attention from the CPU, they have to interrupt it. Unlike our children, they can only do that if they have an interrupt request (IRQ) number. It gives them the ability to butt in on the CPU's time.

Part of the appeal of the PC-style computer is its upgradeability. Sealed box, non-upgradeable versions have been released from time to time (and are under discussion yet again as one way to lower corporate computing's Total Cost of Ownership (TCO)), but have never attained mass-market acceptance. However, in order to be able to easily add hardware to a PC, there need to be available IRQs. Otherwise, the new devices can yell for attention all they want, but the CPU will never hear them. In other words, they won't work.

The original IBM PC and XT offered a mere eight interrupts, most IN

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of w h i ch were al l y s poken for by devices such as the keyboard and the floppy disk drive. In 1984, IBM doubled the number to 16 with its AT model. And that's where we' ve stayed ever since. During these 14 years,processor speeds have gone from 6MHz to 333MHz, and hard drives have grown from the AT's original 10MB to nearly 10GB. It used to be that a typical new PC had somewhere between three and five free interrupts, but those numbers have been slowly whittled down as systems come more fully equipped. You may be shipping (or buying) systems with empty slots (particularly as more and more functions come integrated right onto the motherboards), but unless you have free IRQs, these slots are unusable. And some of today's fancy adapters require two interrupts each!

Ironically, while the Macintosh started life as the proverbial sealed box, lacking expansion ports, the adoption of built-in SCSI in 1986's Mac-Plus has proven a wise choice. SCSI allows relatively easy addition of up to six devices, and when implemented on a PC, these devices all share a single interrupt. But aside from a few areas such as high-end network servers, SCSI has never really caught on as a PC solution where the added cost and complexity of SCSI hampered its adoption.

There have been other recent proposals to get around IRQ rationing Like Universal Serial Bus, which allows connection of up to 256 devices sharing a single external USB bus. Presumably, we could be seeing keyboards, mice, sound cards and scanners all using a single interrupt. But USB still hasn't caught on, though most modern motherboards are shipping with at least the possibility of adding a USB port. We' ll see if the upcoming release of Windows 98, with built-in USB support, provides this technology its long-needed jump-start.

The villain in this scenario is the AT's now-antiquated ISA bus.

Even when the system's not using any ISA cards, on today's motherboards the keyboard, the parallel and serial ports, hard drive and floppy controllers are all connected to the ISA bus, along with other functions built into the motherboard.

Last year, when Microsoft released its PC-98 specifications, it boldly called for the demise of the ISA bus. But even mighty Microsoft has lacked the power to impose its will on the chaotic PC industry. At the recent seventh annual Win HEC (Hardware Engineering Conference), Microsoft again attempted to set standards, this time presenting a trial version of recommendations for PC99, realistically aimed for implementation in Year 2000 models. In the meantime, implementation of the PC98 proposals to finally seeing an end to the ISA bus and the shortage of IRQs have been postponed, yet again.

Take a good look at the systems you' re buying, selling, or distributing. Use the Win95 Device Manager (or even the old DOS MSD utility),and check how many IRQs arein use,how many arefree for new devices. Be prepared — it's a question that your more aware customers may very well be asking you. But who has the courage to be the first to release a PC without a 1984 legacy ISA bus? LLN Alan Zisman is a computerjournalist and teacher, living in Vancouver.

He can bereached atazismanI rogers.wave.ca.

CA N A DIAN COMPUTER WHOLESALER May 1998 ht t p//wwwccwmag.corn

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57

N EW

P RO D U CT S

IBM Corp. rolls out new line of high-speed systems IBM Corp. has announced systems to take advantage of Intel's latest 350MHz and 400MHz Pentium II chips. IBM introduced its new line of Windows NT IntelliStation M Pro "personal workstations," which can run up to two 400MHz Pentium II processors. The new IntelliStations also incorporate new manageability and security features, including IBM Asset ID, Alert On LAN, and LANClient Control Manager (LCCM) 2.0. IntelliStation M Pro models start at a suggested price of $5,275.

IBM also announced a new ultra-light ThinkPad 600 multimedia notebook that weighs less than five pounds (about 5.5 pounds with removable CD-ROM drive), at a price ranging from around$4,500 to $6,500, depending on configuration.

IBM has moved into the 19-inch monitor market, starting at a suggested list price of $1,116 Okidata adds 20-ppm printer Okidata of Mississauga, Ont., has introduced for the G94 model. And the company announced a price reduction in its network computers, the OkiPage 20 Series, including a 20-ppm with the entry-level model 100 now priced at about $700.

IBM Canada Ltd. has expanded its Aptiva Series of PCs with the addition of the Aptiva printer with standard duplex printing.

Pricing starts at $1,999, and all the print- E56, E84and E86, priced at$2,398,$2,448 and $3,048, respectively.

The E86 includes ers are driven by a 40MHz RISC processor.

They come standard with a 530-sheet input DVD technology. The tray and a 100-sheet power feeder. The prod- E56 and E84 have uctsaresupported by a five-yearwarranty on 256KB Level 2 cache, t he L E D pr i n t - 266MHz and 300MHz head, and a one- AMD K6 processors, year on-site limited 48MB or 64MB RAM, warranty on parts 4GB hard drives, a and labor.

24X CD-ROM drive and a K56 Flex moO kidata c an be reached at: (905) dem. The Aptiva E86 238-4250. includes a 300MHz •

Intel Pentium II processor, 64MB of RAM, a 8GB drive, 512KB Level 2 cache, a DVD-ROM II drive, a K56 Flex modem, and a variety of multimedia features.

All sales include the World Book Multimedia Encyclopedia CDROM, and 90 hours or 90 days of free Internet access.

Visit http: //www ibm.corn/pc/ca/aptiva.

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UMAX Mobile Computer Group has launched the ActionBook 500 series, a slim-line product designed to ott'er flexibility and upgradeability.

The notebook weighs 5.5 pounds and features a 166MHz or 233MHz Pentium processor with MMX technology, plus a 13.3-inch TFT screen. Memory starts at 32MB, expandable to 80MB. The ActionBook 500 is priced from US$1,999 to US$3,499, depending on configuration.

Seehrrpr//www.umax.corn.

NEC Canada adds flat-screen displays Offering a very large flat-screen system that includes pivot capability, NEC Technologies Canada of Mississauga, Ont., has released a 20.1-inch MultiSync LCD2010, priced at $9,459. 'i.

The company also launched two 15-inch flat-screens — the MultiSync LCD1510V and LCD1510, priced at $2,139 and $2,569 respectively.

On the CRT front, NEC has launched the MultiSync E900 19-inch monitor, which offers a 1,600 by 1,200 resolution at 73Hz, with a 0.28-mm dot pitch. It's priced at $1,189.

NEC can be reached at: (905) 795-3600. lani

CANADIAN COMPUTER WHOLESALER May 1998 httpsgwwwccwmag.corn

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ana a' Canada's P1 Information Technology Event for Aesellers and Corporate Decision IVlakers.

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Archer names vice-president Archer Enterprise Systems Inc., a Toronto developerof sales force automation software, has named Shon Wedde as vice-president, research and development.

H e is responsible for the technical development of the organization's sales Tech Data force automation software Canada gets products and services. new president Wedde has 22 years of Rick Reid started this industry experience. Prior month as the new presito co-founding Archer dent at M i s sissauga, ShooWedde with Rick McCutcheon in Ont.-based Tech Data 1991, he held positions Canada. Reid was most with Northern Telecom, IBM Canada Ltd., recently senior v i c e- Microsoft Canada Inc., Symantec Corp. and president of SHL Systemhouse Inc. AT&T Canada Inc. "This is an exciting extension to what In January, he was appointed to the I' ve been doing," said Reid, in an interview executive board of t h e A ssociation of prior to starting the job. "It's a great compa- Microsoft Solution Providers and has been a ny, with a lot of opportunity." member of the Symantec Act! Certified Reid said he wouldn't talk about specifConsultants advisory board. ic plans for his new job at that time. He said Merisei president resigns current issues facing distribution include Robert McInerney has resigned as president margin pressures, and insufficient vendor and chief operating officer of Merisel Inc. support for the channel.

"I' ve enjoyed the past year with Merisel," Reid is replacing Elio Levy, who comsaid McInerney in a statement. "And I' ve been pletes a three-year international assignment and returns to the Tech Data Corp. corporate impressedwith and proud of the progress that office in Clearwater, Fla. Reid said Levy did the company hasmade. However, relocating a "fantastic job" at adding sales and growing from the East Coast to the West Coast has not been an easy transition. As a result, I have made the business.

Reid has more than 23 years of experi- the decision to return to my family and my home in New York. Merisel's management ence in the Canadian computer industry, including stints at Unisys Canada Inc. and team is strong and talented, and I have no doubt that they will continue to build on the momenCrowntek Business Centres Inc. tum that Merisel has gained."

Cancom has new chief Chief executive Dwight Steffensen (NB) — Canadian Satellite Communications will assume the title of p resident, and Inc. (Cancom) has promoted Duncan McEwan Merisel's executive vice-president and chief to the post of president and chief executive. financial officer James Illson will take McEwan, formerly Cancom's viceresponsibility for Merisel operations as president of business development, replaces executive vice-president of operations and Alain Gourd. finance, retaining the title of CFO. McEwan said in a teleconference with The company also announced that industry analysts and reporters that he plans vice-president of finance Timothy Jenson to review Cancom's strategic business plan has been appointed to the role of senior over the next few weeks and look for oppor- vice-president of finance, overseeing all of tunities for further improvement, but, he Merisel's financial operations, including added, "I am inheriting a mantle that is very financial strategy, planning and analysis.

Vice-president of N o rth A merican strong." McEwan said his long-term goal will be to continue to build shareholder value in operations, Ricky Stephens, was appointed Cancom, but that "for the time being, I'm to senior vice-president of North American very much here to listen." o perations, overseeing al l a s pects o f McEwan was also named to the compaMerisel's distribution, configuration and ny's board of directors,as was Robert channelassembly, returns,customer service Manning, a d i rector o f W I C W e stern and traffic fo r t h e U n ited States and International Communications Ltd. Canada. Il'le'

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httpitwwwccwmag.ccm May 1998 CANADIAN COMPUTER WHOLESALER 80

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Our c o u ntr y ha s , d e l i v eietl numerous technological advancements to the vvorld community. And many b r ight i n d ivicluals f r o ip Canacla are vvorking hard at.: furtliering the capability and '„:i effectiveness of c o mputing technology

That includes Canatlians who are responsible for innovative hardvvaie or software development, as well as u nique integratioll all(I technological solutions. If you l<novv of individuals deserving recognition fo r t h e i r t e c h nical e xcellence, please t el l u s :. about them.

Cat)arliat) Cotnpurer Wl)olesalerg — Canada'stechnical magazine for computer i esellers, vvants j to honor Canadians vvho are noteworthy for their technical c o i)tributioi)s

: Nominations will be evaluated by a p a ne l o f E d i tors from Canaclian Computer Wl)olesaler and Canada Computer Paper Inc. The vvinners will be featured in a special July 1998 issue. N o m inations close May 15,1998.

to advallcillg comptltillg

techi)ology a n d th e ii)formation technology u) d u st Iy.

NOMINATE ON-LINE' -' at http: //ccwmag.corn '

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Services Industry IsGrowing

by Leslie Arrand and Margery Leach The Canadian IT professional services industry has developed a strong presence both within Canada and in international markets.

This industry showed significant growth in 1997, demonstrating that the market is still very much alive for system integration, custom application development, IT education and training, and IT consulting.

The Branham500database,which tracks the top 50 independent Canadian professional services companies based on annual revenues, indicates that the top 50 Canadian professional services organizations collectively generated $1.7 billion during 1997. This represents a 21 per cent increase over the $1.4 billion generated in 1996.

Furthermore, these top 50 companies are responsible for employing more than 16,500 people worldwide.

Some of the Canadian industry's key players are such globally known entities as

R aaida r

Source: Branham Group

Deloitte & Touche, LGS Group, PROCOM, Andersen Consulting and The CGI Group.

CGI holds the number one position, reporting revenues of $232 million in 1997.

The top services companies are relatively mature, with 40 of the top 50 companies established prior to 1990. In contrast with the software industry, this sector of the IT industry is not prone to public trading, with 82 per

P n lI

Last issue, we asked: We asked you to predict the most likely scenario in the handheld market ayear from now.

cent of the top 50 companies being privately held. Intense competition has created a changing face for the sector, which is characterized by a high degree of industry consolidation. This past year has seen some major mergers and acquisitions take place within the top professional services companies worldwide, such as Coopers and Lybrand merging with Price Waterhouse and Ernst & Young merging with KPMG. In Canada, the CGI Group Inc. has maintained an acquisition-based growth strategy as witnessed by its purchases of CDSL Canada Ltd. and Bell Sygma.

The professional services industry is expected to continue to play an important role, despite the apparent increasing sophistication of users. Year 2000 conversion issues alone have taught us that technology has touched almost every aspect of our lives, and our dependence on the experts is likely to continue. lM Leslie Arrand and Margery Leach are -consul tants at The Branham Group Inc. in Ottawa (http: /Iwww . branhamca) — an international marketing and management consulting firm with a stated commitment to: "Delivering competitive advantage to the IT industry."

Phone: (6I3) 745 - 2282; or f ax: (613) 745-4990.

Vou said: 3Com's Palm platform will be by far the leader in the cate-

8$ gory, in terms of revenue and unit share.

CE handhelds will come into their own in the et|/ Windows next year, and market acceptance will happen in a big way. other next-generation handheld product will emerge 8 Some and will be on its way to capturing the market.

I "

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This issue: Our Lab Test (page 40) reviewed a number of ink-jet printers on the market. But we'd like to hear about your experiences with selling ink-jet products to your customers.

Our question to you: When it comes to YOUR customers, which is the highest priority criteria for their ink-jet purchases?

• •

Quality of black printing.

Quality of color printing.

Speed of printing.

Price of the printer.

62

C A N ADIAN COMPUTER WHOLESALER May 1998 ht t py/wwwccwmag.corn

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