IBM/tplc talks collapse

Did Sun pressure distributor to pull out?

IBM has announced that talks with Sun channel development partner tplc over the distribution of its Unix and storage products were terminated last week.

Big Blue confirmed that it has been looking to appoint another UK distributor for several months.

"Tplc was considered to be the best choice for us because of its enterprise culture," said Ian Simmons, eServer channels director at IBM.

"Primarily, we wanted to appoint another UK-based distributor to help support the number of new resellers we have coming to us from Sun Microsystems and Hewlett Packard [HP]. But in the past week we came to a mutual agreement that the deal would not be beneficial for either us or tplc."

However, channel sources claimed that the vendor ended the talks after it was rumoured that tplc's parent company, Fujitsu Services' Multivendor Computing division, was due to be sold by Fujitsu Services.

A representative for Fujitsu Services said: "The whole story is rumour and speculation, and we don't ever comment on that."

Sources in the channel said that PC World Business, the IT arm of the Dixons Group, is the favourite to buy the firm.

Derek Lloyd, managing director of PC World Business, said: "I can understand why people have been putting us together; we're in the same locality, and the whole marketplace is going through consolidation at the moment. I can confirm that we are not looking at it, but you can never say never."

Talks between tplc and IBM began in May, and a deal was expected to be signed this week.

"IBM has been trying to appoint a UK-based distributor to target specific vendor markets," said Tony Stirrup, managing director of IBM distributor Magirus.

"But it would be a surprise for tplc to try to take on IBM when it is so Sun-focused. It's obvious that Sun has managed to pressure tplc into not signing anything."

Simmons explained that IBM was also in talks with other distributors, including PSL and CCD. PSL confirmed that it has set up an initial meeting with IBM, but both companies insisted that the talks were at a very early stage.

"PSL is part of HP's distribution channel at the moment. Sun would have been easier to knock off its perch than HP, so IBM went for the easier target first," claimed one channel source.

Stirrup said: "Attacking Sun's channel was a very considered move by IBM. But IBM will still want to capitalise on Sun's weak market position."

Both Sun and tplc declined to comment.