Memory manufacturer Kingston Technology is launching a campaign to help system builders cash in on the craze for server virtualisation. It said virtualisation could help system builders make good margins on memory sales, but they are being hampered by Spanish practices.

Server virtualisation is probably the fastest growing market in the IT industry, argued Steve Hall, product manager at Kingston. Since this is a memory intensive technology, the growth of virtualisation should see a proportionate boom in memory sales, he told CRN.

“But system builders are missing a trick. They’re allowing themselves to be forced to use a branded vendor’s memory in the servers. This is often twice as expensive.”

The price of branded memory then puts unnecessary constraints on the end user’s spending power, which then limits the capacity of the server platform the system builder can provide them with, he said.

“The upshot is that end users get a platform that will run out of memory in a few years. And in a couple of years, when all corporate applications are running on virtualised servers, it is going to be very painful to take down the company systems for an upgrade. So they will not thank you for not giving them the memory they need now, even if it is not your fault,” Hall warned.

In the meantime, the bullying tactics of manufacturers are creating a suffocating atmosphere of fear, he warned. “People tell us that they would like to upgrade on our memory, but they are scared in case their warranty is compromised.”

Hall called on the channel to help Kingston reassure IT buyers that they have the freedom to shop for the best prices.
HP, he pointed out, does not even make its own memory. It does insist, however, that its ‘own brand’ re-badged memory is used in its servers, on pain of dishonouring the warranty. “In the US, the practice of forcing users’ buying decisions has been outlawed,” said Hall. “We think a campaign to get a similar law in place in the UK is a good idea.”

Hall could not yet reveal further plans for the campaign. However, analysts seemed to think there could be mileage in Kingston’s campaign.

Bob Tarzey, service director at Quocirca, said: “These restrictive practices should be curtailed, but with some provisos. There is no reason that a hardware company should be able to force you to buy a commoditised, standardised component from just itself.”