August 1999

The 3000 division settled on a single distributor for all of North America

After a months-long evaluation process, the HP 3000 division (CSY) selected Client Systems, LLC as the sole company that will handle up to 80 percent of all new HP 3000 sales in North America. HP put its Channel 2000 program in play this summer, narrowing its list of distributors throughout its product lines. The selection means that all HP 3000 resellers in North America will now receive their systems from Client Systems, a company that has been busy this spring launching the Phoenix 3000 authorized used hardware distributor service and 3kworld.com, the new Web site that is working to become the online forum and information exchange for the 3000 community. CSY’s decision means that Integration Alliance Corp. will fold up its HP 3000 operations, and that company’s several dozen reseller partners will now source their 3000s from Client Systems.

CSY’s Worldwide Marketing Manager Christine Martino said HP is making the change “to create a partnership with a distributor that would work outside the typical distributor mindset, to extend the life of the 3000.” HP also wants to get a more efficient supply chain for the servers and related hardware from HP, “and there’s a lot of opportunities for that in less stocking points and more efficient processes. The 3000 is a very complex product, so this is a good thing. Moving forward with Client Systems, we’ll be able to take the next step — and go out and look at our reseller part of the channel, and make things work better there. Working with one distributor is going to make that a lot simpler.” Martino said she believes as much as 80 percent of all HP 3000s sold in North America — in this case, defined as Canada and the US — flow through this reseller channel. Client Systems set itself apart from Integration Alliance last year by dropping its HP 9000 and NetServer authorizations to become focused on the HP 3000. Integration Alliance became part of the General Electric IT Distribution Group early in 1998, then continued to serve as a distribution point for all of HP’s business servers, including Unix and NT systems. Now it peaceably turns over its resellers to Client Systems and focuses on its HP Unix business.

“Client Systems is pleased at this vote of confidence in our 100 percent focus on the HP 3000 product,” said the company’s CEO Pat Maley. “We will continue to be the link between HP and HP 3000 users served by resellers.” Maley said the exclusive distribution arrangement will lower costs for both HP and customers, “while together we will provide optimal products and services to the HP 3000 community.”


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