SMEs tempt Compaq to take direct route

Long-standing relationship with indirect channel is threatened as vendor plans to bypass its dealers and sell direct

Compaq dealers have raised fears that the vendor will begin to sell direct after the company called a high-level meeting of its top tier of resellers at short notice.

The vendor has called a meeting of many of its major channel partners ? to be held on 20 March ? at which it is expected to launch more products and map out plans to bypass dealers and sell into the small to medium enterprise (SME) market.

One dealer said the meeting had been called at very short notice, adding that it was unlike the normal product briefing format.

?A major vendor doesn?t call all its direct-buying resellers together just to talk about new kit,? the source said. ?You don?t have to be a super sleuth to have worked out how desperate Compaq is to break into the SME market. Selling direct could be the way it decides to go about this.?

Observers speculated that Compaq could sell direct to SMEs but fulfil orders through the channel.

A Compaq representative, who asked not to be named, refused to confirm or deny the rumours.

?We are not at liberty to discuss this matter,? the representative said. ?But I can confirm that we will be meeting with representatives of our channel to talk about channel strategy and our investment in our indirect channel.?

Roy Howitt, sales manager at Business Systems Group, said he would surprised if Compaq decided to go direct.

?That sort of turnround in channel policy would be disastrous for Compaq. It has to decide if it?s 100 per cent behind the channel or not,? he said.

Sources have suggested that Compaq?s telephone support centre, set up in Ireland last month, could be transformed to become part telesales centre.