Apple VARs cheer 'game-changing' university framework

New £500m framework signals move by universities to procure Apple products through the channel

Resellers have been invited to tender for a £500m university Apple framework, which channel players have labelled a "game changer" because they say it is a deviation from Apple's direct approach with universities.

Apple has traditionally been known for cutting resellers out of the loop on university business and selling direct through frameworks.

But now the Higher Education Purchasing Consortium Wales (HEPCW) has invited suppliers to bid for a new framework that will see up to six Apple suppliers awarded on to it. The HE National Apple Equipment & Services Framework Agreement covers the supply of hardware, software, peripherals, accessories and services.

The framework will run for four years and be worth between £400m and £500m according to the tender document. While it is run by HEPCW, universities across the UK can purchase through it, CRN understands.

Mike Bacon, founder of Apple VAR Academia, said the fact this framework is open to resellers reflects universities' desire to move away from Apple's direct model.

"Universities want the service that resellers can offer at the price that Apple is offering," he said. "So it's 100 per cent driven by the universities wanting to buy from resellers.

"And that's because of the services and the service that resellers offer. Apple is very prescriptive in the services that are available; so typically what's missing is the integration with all the processing systems. Apple won't do that."

Apple is one of the UK's biggest higher-education suppliers, with CRN's 2015 Education Report putting it as the third-biggest supplier of universities in 2013/2014, with 26 of the universities surveyed noting it as a top-five provider that year.

Bacon said this new framework represents a turning point in the way Apple sells to universities.

"It's a game changer, or a quantum shift, because the channel are involved," he said. "You could say it's Apple responding to the universities' requirements for a more reseller-focused service.

"It's a positive, in my opinion. It shows a positive approach from Apple in that it is supporting what the universities want and obviously [the] resellers, by bringing more business through the channel in the customers' interest... The universities have been wanting it for a number of years, and effectively Apple is now fully supportive of that."

Warren Peel, managing director of Apple reseller Trams, agreed, saying it had previously been a "closed book" with Apple and university frameworks, and that he was delighted with this new procurement vehicle.

"It's great we can all bid and tender for it now, because it's the type of business we want," he said. "It's great it's open to resellers and hopefully there will be lots more like this."

A source at a third reseller, who did not wish to be named, said this was the first time he has encountered an Apple framework with resellers on it.

"There are other frameworks out there that you can sell Apple products to universities on," he said. "But in terms of an Apple-specific framework, to my knowledge it's never had resellers on it."

But while Bacon was positive about the inclusion of resellers, he said it was "highly likely" that Apple will also go for the framework alongside resellers.

He said Apple currently offers lower prices to universities than its resellers, but that might change with this framework.

"What they might do is put their pricing up to match ours," he said. "At the moment it's cheaper for the university to buy a MacBook from Apple direct than from me, an authorised reseller. With this tender, the price differential is likely to be removed and what that means is the university can buy from Apple or from me at the same price. But they'll buy from me, the reseller, because the service is more tailored."

He said that even with pricing discrepancies, universities could still choose resellers over Apple direct.

"If a university has to buy 100 MacBooks, it's a lot of work to put those onto the desktop and configure those onto the network and Apple won't do that," he added. "So the university can justify a small premium and pay a bit more from the channel for that extra service."

Suppliers have until 29 January to bid for the framework.