Compaq Attempts to Calm Channel

At the vendor?s Innovate Forum in Houston, CEO Pfeiffer sought to reassure channel partners over Compaq?s direct move

Compaq has made its first consolidated move into the internet market as the vendor reiterated its commitment to the channel despite setting up a worldwide direct sales operation.

In a keynote address to 5,000 customers and channel partners, Eckhard Pfeiffer, CEO of Compaq, confirmed the manufacuturer will now have a direct component to its business worldwide, but stressed it would not dump its channel.

?The indirect channel remains our primary means for delivering products and services. Compaq is investing in channel partners to enhance their ability to provide these value add services. We?re substantially increasing our large account sales force and reseller support teams. Our key resellers fully support our optimised customer delivery initiative,? he said.

As part of Compaq?s push into the internet arena, the firm has developed acceleration server technology, in conjunction with US company ICE, that uses compression software to allow ISPs to offer faster access to Web pages. The technology works by compressing graphics images at the NT Server level and users can download a plug-in to take advantage of it with any browser.

At the same time, Compaq launched its Rainmaker initiative, a partnership with 17 independent software vendors, which will develop electronic commerce, video conferencing and telephony applications.

Compaq US fleshed out details of its switch in manufacturing from forward forecast to a build-to-order (BTO) model, as well as allowing the channel to do more configuration. But the UK has already ruled out adopting the BTO model.