Novell deals blow to Vars with Web sales

Internet Selected resellers allowed on site as networking vendor seals IBM technology deal.

Novell has placed itself in conflict with its own channel after iteals IBM technology deal. launched an e-commerce site this week selling its entire product line direct to customers.

The site, shop.novell.com, allows customers to buy product directly, which Novell executives pledged would sell at list prices. There are also links to selected resellers. But unlike Microsoft, which launched shop.microsoft.com (PC Dealer, 4 March 1998), Novell will not use the channel to fulfill products ordered direct.

Novell claimed business partners would benefit from leads generated by the site. However, only Business Expert accredited resellers are listed on it, leaving other resellers at a disadvantage. Only US customers are able to purchase directly from shop.novell.com.

But Peter Joseph, corporate strategist at Novell UK and Ireland, confirmed it was 'something we'd like to do locally in the future', but conceded that no date for a UK launch had been set.

One Novell business partner told PC Dealer: 'If it does happen over here, we won't be very happy. I don't think the rest of the Novell reseller community will be either.'

But Richard Blanford, director of Fordway Solutions, disagreed: 'As long as the ground rules are clearly defined and Novell adheres to those rules, then it's fair play. It already sells direct in some areas and vendors selling direct is becoming a fact of life that just has to be dealt with.'

Novell's decision to launch an e-commerce site comes just one year after it raised the bar for UK resellers by reducing the number of available partner levels and introducing fees for accreditation.

Meanwhile, Novell has revealed that it will bundle IBM's Websphere application server standard edition with its NetWare operating system. According to sources, it will also build links to connect Novell Directory Services (NDS) with the WebSphere set of tools.

Kirsten Ludvigsen, program manager, server operating environments at analyst firm IDC, said the arrangement will strengthen NetWare's position against Microsoft's Windows NT platform. She added: 'Novell also needs to get more support from other vendors.'

As to whether IBM's decision to partner with Novell on NetWare compromises its commitment to a Windows NT strategy, Ludvigsen said: 'The partnership is a sign that IBM is open to working with different vendors to win customers.'