C2000 pips CHS to MS deal

Computer 2000 has beaten off competition from CHS Electronics to become the first broadliner to distribute Microsoft products to UK system builders, following its appointment as an authorised Microsoft OEM product distributor.

The contract, which was awarded to C2000 last week after a lengthy campaign, means the it now holds all Microsoft's distribution accreditation. CHS, which lost its status as a delivery service provider (DSP) in 1997, had its application rejected for the second year running. Microsoft has also appointed Osmosis Ireland, which was bought out by its management earlier this year, as its first Ireland-only distributor.

C2000 will join Ideal Hardware, Datrontech, Actebis and Enta from 1 September, and will run the franchise within its components business unit.

Sven Mahon-Daly, general manager of the components division at C2000, said the OEM franchise would lead the growth of the business unit, which he estimated would be 'substantial' in the next 12 months, especially after the launch of Windows 2000.

Des O'Carroll, OEM channel sales manager at Microsoft, said the decision to appoint C2000 ahead of CHS was 'very close'.

'We told C2000 to prove itself a year ago and it has, especially over the past few months. Also, C2000 ranks higher as a preferred distributor within the channel over CHS,' said O'Carroll.

Peter Rigby, director of marketing and communications at CHS, said: 'We are disappointed because we put a lot of time and effort into it, but we'll continue to sell the product by second sourcing it. Microsoft has had pressure from us and C2000 to increase the channel, and pressure from existing distributors to reduce it, so it has gone half way.'

Fiona Squire, product marketing director at Datrontech, denied that the appointment of C2000 would harm Datrontech's sales. 'Obviously it's not great for us, but C2000 hasn't got the customer base on the OEM side. Also, Osmosis has only just gone so there are still five distributors,' she added.