HP’s e3000 Worldwide Marketing Manager Christine Martino said that the Phoenix 3000 distribution operation is in a position to give customers an authorized alternative to the broker channels. “This will be the year of Phoenix,” she said. “We’re starting to end the startup phase, and it’s really getting off the ground now.”

Phoenix 3000 is an operation run by North American channel distributor Client Systems, one that provides authorized resellers with used HP 3000s to sell. Phoenix also buys used HP 3000s from the customer base.

Supply of systems has been a challenge for Phoenix in its first year of operation. Martino said CSY is “looking for ways to get them more sources of systems. As Phoenix gets access to more systems to please more of the marketplace, there’s not going to be a reason for people to go to other areas and take the risks that they’re taking by doing that.” She suggested that authorized 3000 resellers working outside of a specific application sale, such as Forsythe Solutions (847.982.6834), Logical or Advizex, would be sources for used HP 3000s from the Phoenix program.

Phoenix’s launch

Client Systems Business Development Manager Sean McCloskey is in charge of the Phoenix operation, and he admits that the program is still looking for mindshare among the resellers it was created to protect.

“It’s getting into an established market with what is essentially a startup,” McCloskey said. “Customers have been turning to certain companies for years. The resellers haven’t had this option, so it’s new to them. It takes time.

“We’ve encouraged them to sell new for so long, and we have to get a business plan changed to get them to take those other opportunities — which frankly are much smaller in revenue. But we still want them to take care of their customer. We still have a lot of education to do.” Systems Technology Associates (714.734.1340), a California reseller, and Commerx (905.542.8010) in Canada have led the way in reselling Phoenix’s used 3000s, McCloskey said.

Customers might not be aware they can call their reseller to buy used 3000 equipment — and McCloskey said a recent survey shows a majority of customers don’t even know who their reseller is.

“They’re in more of a ‘procure it where you get it for the right price’ strategy,” McCloskey said. Customers who tried to identify their reseller on the Phoenix survey named used hardware brokers as often as authorized resellers, he added. It’s a habit to think of a hardware source as a reseller, and the used market has been vital to the 3000’s survival.

“The used equipment market has done as much as anything to keep the HP 3000 installed base as big as it is,” he explained. “It’s kept people on the platform. HP should do something for its aftermarket, but I don’t think you can make a case they should let people cheat.”

The Phoenix operation will buy HP 3000s (customers can call McCloskey at 303.873.4152 for a quote), but the distributor is only buying Series 9x9 and 9x8, 997 and 987 systems. Its current stock is top-heavy on Series 9x7s. “More current servers are harder to find, and more in demand,” he said. “Inventory in this kind of business is critical, and it’s a challenge for all concerned.”

McCloskey expects that Phoenix will be able to inventory 3000s more than smaller brokers do, and so in time offer a better selection and quicker delivery. He also points to the one-year warranty on Phoenix systems as a way to stay competitive on price. Buying a used 3000 from an authorized reseller eliminates the need to purchase the first year of hardware support, he said.