sunflash-Distributed to mailing list sun/NC/north-carolina sunflash-Send requests, problems to owner-sunflash@suntri.east.sun.com ---------------------------------------------------------------------------- The Florida SunFlash SMCC signs master reseller agreement with Merisel SunFLASH Vol 58 #9 October 1993 ---------------------------------------------------------------------------- 58.09 SMCC signs master reseller agreement with Merisel SMCC Simplifies Value Add Model. The value-add provided by a reseller will now be determined by the reseller's business model. Historically, value-add was evaluated on a per transaction basis. Master resellers are now Merisel, Inc. and Access Graphics, Inc. ---------------------------------------------------------------------------- SMCC Simplifies Value Add Model MOUNTAIN VIEW, Calif. --October 4, 1993-- In an effort to provide focused support to its resellers in the United States, Sun Microsystems Computer Corporation (SMCC) has narrowed the number of master resellers authorized to sell SMCC equipment to two. As part of this effort, SMCC announced today that Merisel, Inc., of El Segundo, CA has joined Access Graphics, Inc., of Boulder, CO as an SMCC master reseller. Both Merisel and Access will have a dedicated SMCC support team comprised of sales, marketing and technical personnel. Merisel and Access will provide the majority of SMCC's value added resellers (VARs) and certain original equipment manufacturers (OEMs) with distribution and logistical and operational support. Under the agreement, master resellers will also help create business opportunities for SMCC's indirect resellers through ISV recruitment programs and vertical market development activities. "The two tier model has been successful for SMCC," said Neil Knox, vice president of the national reseller area. " SMCC is focusing its attention on two master resellers, who in turn will increase their investment in the resources and infrastructure required to successfully support SMCC's commercial and technical indirect resellers and thus effectively enhance SMCC's business proposition. Merisel is a full-line channel specialist with extensive knowledge and experience supporting the UNIX(R) operating system. The company offers customized service for specific reseller segments. In addition, it provides fast delivery, aggressive pricing and flexible credit terms. Merisel, the world's largest publicly held distributor of microcomputer hardware and software products, is an international corporation with 27 sales offices and 21 distribution centers worldwide. Last year, Fortune magazine named it the third largest of the 100 fastest-growing U.S. companies in terms of revenue and added it to the Fortune Service 500 list. New Direction for Value-Add In addition to consolidating its master reseller channel, SMCC has redefined its value-add requirement for resellers. The value-add provided by a reseller will now be determined by the reseller's business model. Historically, value-add was evaluated on a per transaction basis. The new model calls for resellers to derive no less than fifty percent of their annual revenue from the sales of services associated with their industry expertise or software, training, consulting, network integration and project management. A business model based equally on value-add services and hardware demonstrates a commitment from the reseller to provide Sun customers with the necessary support and services. This model promotes a consistent implementation of the value-add policy, enhancing the proposition for resellers who derive the majority of their revenue from the sales of services and support. Resellers will provide an annual business plan to SMCC. They will also work with SMCC on a biannual basis to ensure that their business mix is equally balanced between hardware and services. For SMCC, the fundamental objective of having a channel that adds value remains. By working with resellers that add value, SMCC can gain entry into new markets and achieve better coverage by leveraging the resources of the resellers. "Value-add remains critical to our channel strategy," said Knox. "SMCC is a product company and looks to the VARs to provide customers with solutions. This model sustains the integrity of the channel as well as enables the reseller to better meet customer needs." Sun, Sun Microsystems, Sun Microsystems Computer Corporation and the Sun logo are trademarks or registered trademarks of Sun Microsystems Inc. UNIX is a registered trademark of UNIX System Laboratories, Inc. All other product or service names mentioned herein are trademarks of their respective owners. ********************************************************************** For information about SunFlash send mail to info-sunflash@Sun.COM. Subscription requests should be sent to sunflash-request@Sun.COM. Archives are on draco.nova.edu, ftp.uu.net, sunsite.unc.edu, src.doc.ic.ac.uk and ftp.adelaide.edu.au All prices, availability, and other statements relating to Sun or third party products are valid in the U.S. only. Please contact your local Sales Representative for details of pricing and product availability in your region. 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