View From Distribution: Time To Add Value

The custom-systems business continues to be a lucrative one for the channel, but distributors such as Ingram Micro, Tech Data and Synnex have learned that the best way to increase sales is to help system builders integrate complementary technologies into their offerings.

This could mean making white-box servers virtualization-ready, or building desktops and notebooks with the necessary processing power and memory to handle Microsoft's Windows Vista, or ensuring that machines are configured ready for managed services capabilities.

"System builders have to adapt. They have to have some additional value. Many are doing that," said Steve Ichinaga, senior vice president and general manager of the Systems Integration Division at Synnex, Fremont, Calif. "We see they're getting into virtualization, more managed services. Really what it is, solution providers are providing a custom solution along with their value-added service."

System builders are very good at understanding the customer requirements and designing a full solution with hardware and software, Ichinaga said.

"They will go with this particular motherboard, this platform, this processor because these are the things that are best optimized for this application. That's a key area and that will continue to be the case as more opportunities come up."

Added Frank Raimondi, associate vice president of marketing at Synnex: "System builders have always been on the very leading edge of technology, whether it's digital home, or mobility or digital office stuff, virtualization. They're on the forefront and able to incorporate that [technology] more than a non-custom-system builder."

More system builders are interested in becoming certified in virtualization software or selling applications like Microsoft's Windows Server 2008 because they have evolved to become full solution providers, said Brian Davis, vice president of systems product marketing at Tech Data, Clearwater, Fla.

"Server 2008 requires a lot more memory, especially with virtualization capability built in," Davis said. "And if you look what Intel is really promoting, not just on the system builder side but on the branded side as well, they're really pushing the idea of remote monitoring, remote servicing."

Tech Data added Zenith Infotech, a managed services platform vendor, in part to help system builders build out more complete solutions, Davis said. "[Intel Corp.] has built that [services] capability into the processor itself. A growing portion of our processor biz is Xeon, which allows for a much easier services play, and quad Xeon is growing quickly," he added.

Another area where system builders are increasing their offerings is in digital signage, combining custom systems with larger displays, said Tim Ament, vice president of Ingram Micro's components division.

Next: Virtualization And Storage