Novell partners tuck into Chips

The vendor?s latest scheme to pacify its distribution and OEM partners is a recipe for success

Novell seems to have solved the problem of conflict between distribution and OEM partners by taking its first steps towards electronic software distribution.

Previously, software could be bought from both OEMs and distributors.

Under the Channel Incentive Programme for Sales (Chips) there will be one purchasing point. OEMs will still deliver software, but dealers will have to buy an activation key from distribution partners to enable it.

According to Novell, authorised distributors in Europe will gain access to 18 per cent more sales as a result. OEMs, in turn, will be rewarded for their participation in the programme with marketing funds.

Hewlett Packard was the first OEM to join the programme, when it began to sell Netserver E40 with Intranetware for small business installed, but during the next 12 months, all products, all 30 OEMs and 90 distributors in Europe will be involved.

Bryn Jenkins, Novell European OEM director, said: ?The OEM market has changed because it is using distribution more and direct sales less. This means OEMs have ended up in competition with Novell?s established distribution base. The benefit to resellers is that they don?t have to wait for a red box to be delivered.?

Plans to establish a separate OEM distribution channel in the UK have been put on hold while the Chips scheme is rolled out.

Jim Sullivan, vice president of worldwide OEM sales at Novell, said: ?As the software industry evolves toward electronic delivery of licences and software, we realise that this is a perfect opportunity to reinvent our delivery mechanism in partnership with the channel.?

J Novell and Netscape are joining forces to set up a privately held company called Novonyx, which will sell Novell and Netscape integrated systems. The company, which will be jointly funded, is subject to government review.