MS prolongs final decision on OEM deal

Microsoft's four Delivery Service Providers (DSPs) were facing an anxious wait this week to hear whether they would be joined by distribution giants CHS Electronics and Computer 2000.

Enta, Actebis, Ideal Hardware and Datrontech have all had their contracts for the lucrative OEM distribution franchise for the systems assembly market renewed for a further year, but Microsoft has delayed deciding whether to add a broadline player to the scheme.

Andy Gass, deputy managing director of C2000, told PC Dealer that a decision was imminent. 'I'm not sure what's got in the way, as it has been very slow. But I understand that Microsoft wants to do the right thing and communicate it properly. That's worth waiting for.'

Fiona Squire, product marketing director at Datrontech, stated that it was still very unclear whether Microsoft would appoint any more DSPs.

'The broadliners have been courting Microsoft for months, but I would be disappointed if it appointed them. Microsoft has limited resources just like the rest of us, so if it put in a fifth distributor, it is going to have to support it,' she said.

Jason Blair, Microsoft manager at Enta Technologies, added: 'Microsoft is keeping its cards close to its chest so I'm not sure what's happening either way. I think we would all prefer less DSPs, but that's up to Microsoft.'

Des O'Carroll, OEM channel sales manager at Microsoft, confirmed that the existing four DSPs had been issued with renewed contracts, but said any announcement regarding additional partners would be delayed until 7 June.

He added the term DSP had been changed to Authorised Microsoft OEM Product Distributor.

CHS Electronics was unavailable for comment.