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New distribution model for MS OEM products



Author: NR Sethuraman
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New distribution model for MS OEM products
Wednesday, November 19, 2008

In order to bring its OEM products a step closer to channel partners (system builders) Microsoft has appointed Associate Distributors across the country and has created a new distribution model effective November 1, 2008.

Microsoft has appointed eight Associate Distributors across the country. The Associate Distributors will cut response times of the partner's customer needs/requirements. They will also ensure timely and immediate availability of stocks to ensure faster delivery timelines and the regional expertise of these Associate Distributors will enable them to work with partners, understand the business requirements and be responsive and flexible to address them.

These Associate Distributors will be dealing with Microsoft's OEM products only and those sub-distributors involved in volume licensing program will continue to be in the scene.

While earlier there were resellers who were distributing OEM packs but Microsoft did not recognize them, and partners dealing with them weren't entitled to any schemes. However, with the appointment of Associate Distributors, partners will be entitled to all the partner programs of Microsoft, including foreign trips.

Speaking about the new initiative, Chandan Sonowal, Director-System Builder Channel, Microsoft OEM team said, “The appointment was part of our overall plan to reach out to newer markets and newer partners. In the first phase we have appointed eight Associate Distributors and even in the second phase we are looking at appointing the same number of partners in order to increase the reach of the product.”

While KK Software will take care of distribution in Delhi, NCR, UP, Haryana and Rajasthan, MC Modi will distribute the OEM products in Delhi, Haryana and NCR region.

“Now we are the legal and authorized distributors of Microsoft OEM products and can avail rebates and discounts as a distributor. We will be in direct coordination with Microsoft and will get the benefits like a distributor,” opined Shailesh Jha, Business Partner, KK Software.

Speaking on the company's appointment as an Associate Distributor of Microsoft, Anuj Modi, Director, MC Modi, said, “As Associate Distributor of Microsoft OEM products we will be taking care of Delhi, Haryana and NCR region. This way, we have become tier-1 distributor of Microsoft. This will help us in increasing our revenue. It is beneficial for us to get into direct distribution of Microsoft products and we will enjoy better market presence.”

Cyberstar Infocom has been appointed for overall South and West excluding Gujarat. Another appointment in the West is Pune-based Sujata Computers, which will take care of Maharashtra and Goa, excluding Mumbai.

Sounding excited on the appointment, Raj Rathi, MD, Cyberstar India said that the association with Microsoft would help Cyberstar reach more partners. “Basically any association with Microsoft is an excellent opportunity and this is our first opportunity with them. Microsoft offers excellent support and we will take their OEM products to more number of partners,” Rathi said. Accepting that piracy is a big challenge, Rathi said that Cyberstar will put all its effort in to increasing the reach of Microsoft's OEM products. This is the first time that Cyberstar is dealing with software products, since it was primarily distributing hardware peripherals till date. “This is our first experience with dealing with software products. However we are going into the same channel community that we were dealing with all these days, but particularly with the system builders,” Rathi claimed.

Santosh Gaikwad, Regional Manager, Sujatha Computers too felt that this was an excellent opportunity for Sujatha to work with Microsoft. “We have a good experience in dealing with licensed software solutions and have a very good reach. We would definitely make this product a huge success in Maharashtra and Goa,” Gaikwad averred.

For South, CCS Infotech has been appointed as the Associate Distributor along with Cyberstar Infocom, where CCS will distribute the OEM Products in Tamil Nadu, Kerala and Karnataka, whereas Cyberstar will distribute it in Andhra Pradesh too.

“Previously there was no distribution model for the system builder community and anyone could buy in bulk, set a price and distribute it. However, now Microsoft has introduced a proper model for distribution by appointing Associate Distributors,” informed G Vinod, President, Info Logics, CCS Infotech.

He said that the company is looking to take the OEM products of Microsoft to around 350 partners (system builders) in next three months and increase the mindshare of the original software among the partners.

KS Nagendra, Manager-Accounts and Finance, Matrix Technologies, said that the appointment as Associate Distributor for Microsoft OEM is a step ahead for the company as they were dealers. “It's a good development and we would be distributing the products throughout Karnataka. It is also a beginning for us, we have to wait and see for two to three months for the actual development,” Nagendra claimed.

(Inputs from Amrita in New Delhi and Lipsha in Bengaluru)


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