Suspect servers ring alarm bells

Resellers are being warned to check the quality of the equipment supplied to them after second-source distributor AT&C placed an order for 32 Compaq servers and received only 18, none of which were valid Compaq equipment.

All servers had inconsistent serial numbers and none had valid warranties.

Meredith Davis, managing director of AT&C, said that when he contacted original distributor European Micro for replacement servers, four of the 12 that arrived had broken seals, showing they had been tampered with since leaving the factory.

He said he was left with little choice but to sell the replacements.

"We are having problems getting the right products to our customers without losing money," he said.

Lawrence Gilbert, managing director of European Micro, said that market pressure on the company had seen it attempt to fulfil the AT&C order. "European Micro does not typically purchase server equipment, so we are less likely to spot flaws than a specialist," he admitted.

"Resellers should check products very carefully in the current climate, as even a company as large as European Micro can be mis-sold a product that could make its way into the channel."

Tough market conditions are seeing smaller suppliers looking increasingly to buy-in equipment at reduced prices from the so-called 'grey market'.

Mike Morgan, channel sales director at Compaq, said it does not endorse dealings in the grey market. "Compaq has warned channel partners that multivendor and counterfeit goods circulate the channel and there is no guarantee of quality," he said.

First published in Computer Reseller News