PCR May 2010 - Issue 80

Page 1

CHANNEL EXPO We preview some of the key exhibitors at the London event P17

COMPUTER & IT RESELLERS • RETAILERS • SYSTEM BUILDERS DERS • DISTRIBUTORS • VENDORS

MAY 2010 ISSUE 80



COMMENT

Issue 80 May 2010 Incorporating

PCR CONTACTS Editor

Andrew Wooden andrew.wooden@intentmedia.co.uk Staff Writer

Matt Grainger matt.grainger@intentmedia.co.uk

“So far, Best Buy has announced the opening of six stores in the UK. Unless things change, it’s hard to see DSGi being toppled from its throne any time soon” AMERICAN INVASION Having been one of the most talked about issues in the UK

Staff Writer

industry for around two years now, Best Buy finally opened

Nicky Trup nicky.trup@intentmedia.co.uk

the doors to its massive Thurrock flagship store at the end of last month.

Editorial Production Manager

Helen French helen.french@intentmedia.co.uk Sub-Editor

The news won’t be welcome to everyone in the retail community here. For smaller independents, the firm’s boasts of top-notch customer service will raise alarm bells – and

Gemma Messina gemma.messina@intentmedia.co.uk

larger chains like DSGi have just as much to lose by the

Managing Editor

business model. Indeed, it didn’t take long after the

Lisa Foster lisa.foster@intentmedia.co.uk

announcement of Best Buy’s intentions on UK soil for

Executive Advertising Manager

of a buyout.

Katie Rawlings katie.rawlings@intentmedia.co.uk Sales Executive

presence of a large, cash-rich chain operating a very similar

speculation to begin whipping round about the possibility DSGi is certainly liable to be feeling the heat this month, but the situation should really be kept in perspective. So far,

Carly Bailey carly.bailey@intentmedia.co.uk

Best Buy Europe has only announced the opening of six

Production Executive

hundreds DSGi operates through its various brands. Unless

Rosie McKeown rosie.mckeown@intentmedia.co.uk

things change dramatically, it’s hard to see DSGi being

Designer

Kelly Styles kelly.styles@intentmedia.co.uk

stores in the UK – albeit big ones – compared with the

toppled from its throne any time soon. While retail will be keeping a careful eye on the US firm’s megastores, vendors and distributors have come out supporting its arrival, celebrating the growth in competition it

Publisher

Stuart Dinsey stuart.dinsey@intentmedia.co.uk

is expected to spark (see page 9). The low-key UK launch of fellow US firm Buy.com in February couldn’t have been more different from Best Buy’s swaggering entrance. The firm is promising to cause a storm

Editorial: 01992 535646 Advertising: 01992 535647 www.pcr-online.biz

in the technology e-tail sector, and like the former, the e-tailer will be looking to solidify its position this year by brokering strong partnerships with vendors and distributors. But while there may be little for retail to celebrate with the launch of Best Buy, Buy.com has a number of ways smaller retailers can sell within its Marketplace network. Both US firms look set to have significant impact on the UK retail and e-tail scene in very different ways through

PCR - Total average monthly net circulation for January 1st to December 31st 2009: 11,443 Intent Media is a member of the Periodical Publishers Associations PCR is published 12 times a year by Intent Media - Saxon House, 6a St.Andrew Street, Hertford, Hertfordshire SG14 1JA Fax: +44 (0)1992 535648. © Intent Media 2010 No part of this publication may be reproduced in any form or by any means without prior permission of the copyright owners. Printed by Pensord.

2010. How quickly the general public adopts them will dictate to what extent.

Andrew Wooden, Editor andrew.wooden@intentmedia.co.uk

SUBSCRIPTIONS UK £50 Europe: £60 Rest of World: £90. The international cost applies per subscription and covers airmail dispatch of 12 issues. To order your subscription via Visa, MasterCard, Amex Switch or Delta contact: pcr.subscriptions@c-cms.com or call 01580 883848. Alternatively visit our website www.pcr-online.biz Subscriptions Manager: Hannah Short, Hannah.Short@intentmedia.co.uk

May PCR 3



incorporating

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PCR Contents News 9

Buy.com

Frontline

The european managing director of US dotcom pioneer Buy.com talks to PCR about its long-term strategy for the UK market

Retail Focus 34 Indie Profile 37 Mystery Shopper 38

GfK Analysis 45

26

Appointments 90

I’d just like to thank....

Brigantia 94 TCA 96

Interactive Ideas marketing director, Michael Breeze tells us how he feels about winning a PCR Award

ITACS/NASCR 98 Out of Office 108 KOCH MEDIA COMPETITION

ISSUE 80 APRIL 2010

30

24

PCR presents a preview of what some of the key exhibitors are showing at this years Channel Expo event in London. Included in the guide are directions for where to find them, and what to expect at their stalls

17

Hardware

Pages 43-58

GFK Analysis Senior account manager Greg Allen examines the effect of the netbook segment on the laptop peripherals market

45

Margin Makers

SanDisk Company Profile

A rundown of easy to sell products that present add-on sales opportunities for retailers struggling with PC margins

Regional marketing manager Nikki Willcock discusses the memory market and highlights how the firm is trying to stand out in this competitive sector

55

49


Software

Pages 63-72

Microsoft

Gaming PCR presents a round-up of some of the biggest PC games to hit the market this year, driving the high-end sector

Head of Office Chris Adams and partner engagement group manager Tanya Shirlow talk about Office 2010

68

65

Consumer Electronics

MARKETPLACE

Pages 75-83

76

Tablet PCs

81

GPS Devices

An in-depth analysis of the burgeoning tablet PC market, as well as a showcase of some recent and forthcoming products

We take a look at the sat nav market, examining some of the newest technologies to be introduced and cheking out some of the latest products

MP NEWS 86 | APPOINTMENTS 90 | BRIGANTIA 94 | TCA 96




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NEWS

UK trade embraces Best Buy launch Flagship Thurrock store opening marks first step in firm’s 2010 strategy Vendors and distributors look forward to ‘healthy’ competition on the High Street Rumours of possible DSGi acquisition continue By Andrew Wooden & Nicky Trup

AS THE FIRST UK Best Buy megastore begins trading in Thurrock, vendors and distributors have come out in support of the US retailer’s arrival, celebrating the boost to competition and choice it is expected to bring to the nation’s technology market. The store – which measures 50 thousand square feet – officially opened doors on April 30th, after management pulled the launch date forward at the last minute. The mammoth site is the spearhead of the firm’s first year strategy in the UK, paving the way for a further five megastores in Southampton, Merry Hill in the West Midlands, Aintree near Liverpool, Croydon and Bristol in the coming months. “In the local area, whenever I go out wearing a Best Buy shirt, people always ask me when it’s going to open,” René Wright, head of computing for Best Buy UK, told

www.pcr-online.biz

PCR. “There was a lot of speculation and rumours about when we were going to launch and for us this is the absolute optimum time.” Chris Connell, sales director at VIP Computers, commented: “VIP always welcomes a new player to the industry and the fact that Best Buy is a big US outfit will enable a strong credit line for distributors to work with. Assuming

training and focus on customer experience as key in the initial drive to attract UK consumers away from the likes of PC World, Currys and Comet. “The emphasis on the in-store experience means the customer is genuinely assisted in finding the correct product that really enables them to use the latest and greatest technology,” said Richard Lamond,

“Best Buy’s entry shows just how crucial the UK market is to global retailers. Its background in the US should enable it to hit the ground running” Richard Lamond, sales manager for Northern Europe, Nvidia the trading terms are beneficial to both parties, I’m sure we will see some strong and healthy relationships develop.” Jon Atherton, commercial group vice president at EntaTech, added: “On the whole, I think this is a good thing – competition is always good for the consumer and opens up new doors for the channel.” Big name vendors have highlighted Best Buy’s high investment in staff

sales manager for Northern Europe at Nvidia. “For the industry,” he continued, “Best Buy’s entry shows just how crucial the UK market is to global retailers. Its background in the US marketplace should enable it to hit the ground running with excellent customer service and sales support.” “In the US, Best Buy is well known for its knowledgeable staff and deep

understanding of technology, helping match the product to the consumer,” added Mikael Zeitlin, senior channel marketing specialist at AMD. “This goes hand-in-hand with our vision philosophy, to demystify technology to help the consumer buy a PC or notebook based on their needs, not simply based on their budget.” Meanwhile, speculation that Best Buy may make a swoop for the currently dominant DSGi continues to be a subject of speculation amongst trade figures. “DSGi will be feeling the pressure now from the rhetoric that Best Buy is giving out and even more so when Best Buy’s doors open and there are prices it has to beat,” said Mark Reed, MD of Realtime Distribution. “With regards to the rumours that Best Buy may acquire DSGi, I feel it is very unlikely and part of me hopes this is right... However, given the current share price of DSGi and cash position of Best Buy it would be easy to see this being possible.”

May PCR 9


NEWS

NewsBytes PC MARKET GROWS The global PC market grew 24.2 per cent in the first quarter of the year, compared to the same period in 2009, when the market declined by almost seven per cent. According to the IDC Worldwide Quarterly PC Tracker, the year-onyear gain in desktops reverses a series of quarterly declines that began in Q3 2008. IDC attributes the renewed growth to continued recovery in emerging markets, improved feeling in the business sector and the rising popularity of form factors such as all-in-one PCs. LENOVO UNVEILS NEW NOTEBOOKS Lenovo has launched its new L Series of ThinkPad laptops, designed for business, Government and education customers. The ThinkPad L412 and L512 both feature a choice of Intel Core i3 and i5 processors, tough durability and web conferencing features. According to the vendor, the devices meet eight different military specification tests for high and low temperatures, vibration, altitude, dust and more. The L412 sports a 14-inch HD antiglare display, while the L512’s is 15-inch. Both come with Windows 7 and multi-touch touchpads. RECORD QUARTER FOR INTEL Intel has released record-breaking results for the first quarter, with net revenue of $2.4 billion representing

IPHONE DRIVES APPLE PROFIT RISE iPhone sales jumped 131 per cent year-on-year to 8.75 million units in the first three months of 2010. According to Apple’s fiscal 2010 second quarter results, while iPod sales dropped one per cent to 10.89 million units, sales of the iPod touch were up 63 per cent. The exact number of units wasn’t specified. Overall, Apple’s quarterly revenues were $13.5 billion, up 49 per cent year-on-year. Profits jumped 90 per cent to $1.62 billion in the same period.

10 PCR May

Eoin Matthews

a 288 per cent increase over Q1 2009, and overall revenue up 44 per cent to $10.3 billion. Although earnings were down compared to the Christmas quarter of 2009, the vendor was able to report massive year-on-year gains, with earnings per share up 32 cents.

MICROSOFT ENTERS SMARTPHONE MARKET Microsoft has announced the launch of its KIN smart phone, which will be available in the US from May and in the UK from autumn. Developed in partnership with handset vendors Sharp, Verizon and Vodafone, the device has been designed to help active social networkers “publish the magazine of their life”. Two models have been created for the launch – the KIN One is compact and has been designed to be operated with one hand and can fit in a pocket, while the KIN Two carries a larger screen and keyboard, larger memory, a higher resolution camera and the ability to record HD video. IT DEALER RELEASES STOCK APP Online stock sourcing tool IT Dealer has created an iPhone app which provides resellers with up-to-date stock information. To subscribe, resellers need to call IT Dealer and set up an account before visiting the App Store to download the application. Subscriptions to the IT Dealer App, which can locate 360,000 products from 61 major UK distributors, are free to its 3,000 web subscribers or £69 for a year to new customers. Applications for other platforms, including BlackBerry, are in development. GOOGLE MAPS NAVIGATION FOR ANDROID RELEASED IN UK Google Maps Navigation has been released as a beta for Android phone users in the UK and Ireland. The application combines turn-by-turn navigation with Google Maps, along with voice search, satellite views, Street View, live traffic data and a special mode for when the handset is placed in a car dock. Google Maps Navigation was initially only available for Android 2.0 devices when it was first unveiled in October, and a version for Android 1.6 handsets was released a month later in the US.

Intel urges retail to focus on education CHIP GIANT INTEL has boosted its education offering with the launch of the second generation Classmate PC, and has claimed retailers are not making the most out of this sector. Launched last month, the new device is designed and manufactured in conjunction with MSI, and has tailored touchscreen capabilities and applications for children. Intel claims retail could benefit from a keener awareness of the issues surrounding the education sector. “Education has been a major driver in home PC usage in recent years,” said

Tristan Wilkinson, EMEA director for the public sector at Intel. “From the High Street perspective, I think the real challenge is going to be how do you position the features and benefits of this type of design to a family in a traditional retail environment. We have been talking to a few retailers here in the UK about how they do exactly that – creating education areas, and training the staff to talk to families more.” The firm is looking to pilot an instore programme this year, which will showcase what it sees as the huge potential for education hardware sales.

www.pcr-online.biz


NEWS

New e-tail force sets sights on UK tech market US online retail firm sets up shop in UK Exclusively targets online technology sales Looking to form strategic deals with regional distributors and partners this year By Andrew Wooden

BUY.COM IS looking to take on the UK’s online technology retail sector, going head to head with the likes of Amazon, Ebuyer, and DSGi. After a somewhat muted UK launch in February, the huge US e-tailer will be looking to ink deals with more distributors this year, and then to aggressively expand its product range to fortify its position. In the US the firm operates in a wide range of sectors, but in the UK it will be concentrating exclusively on the technology market. European MD Eoin Matthews told PCR that the low-key nature of the firm’s arrival here was very much a deliberate move, and that it is more concerned with ‘the long game’. “Rather than spend the marketing dollars on pushing the name at this point, we’re focussing on the very

bottom line channel. And we’ll be putting a lot more resources into expanding the catalogue and getting distributors on board. Our goal for the UK is to get a very broad range of tech and media products this year. “We wouldn’t be going into the market if we didn’t think we could compete, but we look at it as a very long-term game. There’s been plenty of experience in the last few years with different people trying to break through the market, which has shown that you have to be in it for the long run, and we definitely are.” Buy.com does a great deal of its business through marketplace channels, mostly associated with sites like eBay. According to Matthews, independent stores in the US are increasingly utilising avenues such as Buy.com to bolster shop sales, highlighting that it could be a potential life raft for smaller businesses struggling here in the UK, too.

Buy.com says it’s more important to work on the bottom line channel than on marketing its name

“We wouldn’t be going into this market if we didn’t think we could compete, but we look at it as a very long-term game. You have to be in it for the long run and we definitely are” Eoin Matthews, Buy.com

“If you look to the US, what you see is a lot of the smaller single store bricks and mortar guys have come up with very innovative hybrid models. Some have used their physical bricks and mortar buying skills to become great hybrid businesses, where they sell through their own site, through Amazon’s marketplace, through Buy.com’s marketplace, and eBay. And they’ve become very nimble effective online marketers. Maybe not on the scale of bigger firms, but they are very important contributors to the marketplace.”

Microsoft gears up for Office launch “We’re surpassing all the targets that we set ourselves for the testing phase. Interest in beta is a good forward indicator for demand on release” Chris Adams, Microsoft

www.pcr-online.biz

SOFTWARE VENDOR Microsoft is “quietly confident” about the imminent launch of Office 2010, after clocking millions of beta downloads and receiving positive feedback from retail and reseller partners. The company has tied down the release date for volume sales to May 12th, with the general release scheduled for June. With seven million

beta downloads currently registered, Microsoft’s head of Office, Chris Adams, told PCR demand has smashed its own expectations. “We’re certainly surpassing all the targets that we set ourselves for the testing phases, so it’s really great that there’s that amount of interest,” he commented. “I think that the interest in beta is a good forward indicator for consumer demand once the product is released.” The company is also keen to highlight the cloud possibilities for the new suite, and has underlined the benefits that these new methods can bring to the business sector.

“We’ve been hearing some fairly consistent themes from our partners. It’s all about improving their business without having to increase or decrease their headcount, so it’s all about efficiency,” said partner engagement group manager Tanya Shirlow. “Customers seem to be cautiously optimistic; they want to see how they can grow business through the use of technology and, as far as we can see, that is where the opportunity exists for channel partners right now. With the extensive deployment of the beta and the confidence that our channel partners feel around the product, we’re quietly confident ourselves.”

May PCR 11


NEWS

Tech sites top reliability index Major e-tailers including Amazon dwindle at the bottom of the chart while technology specialists storm ahead By Nicky Trup

DSGI, COMET and Ebuyer have led the pack in a survey checking the reliability of retail websites, beating e-tail giants Amazon and Play.com. Five of the top ten retailers in Sitemorse’s April rankings were retailers dealing exclusively in technology products. The ratings are based on hundreds of thousands of site audits, testing tens of millions of URLs for errors. Comet was top of the tech websites in the index, coming in fourth place behind DFS, La Senza and Tesco Direct. Ebuyer was the only tech

e-tailer to make the top ten, coming in at number six. “It is crucial to have a reliable website, as obviously our customers depend on the site’s accuracy and security,� Ebuyer operations director Armando Sanchez said. “Ebuyer has an in-house team of developers who continuously monitor the links, pricing, information and check-out process. We run approximately 2,000 tests per minute on every aspect of our site so that customers are guaranteed that what they see online is correct.� DSGi-owned PC World, Currys and Dixons came in at numbers five, seven and ten

PC World, Ebuyer and Comet all made Sitemorse’s April top ten

respectively. “There are plenty of customers who will only shop in a store and others who swear by online shopping, but the majority fall somewhere inbetween,� said DSGi’s head of media relations, Mark Webb. While he was keen to stress that DSGi takes a ‘multi-

“It is crucial to have a reliable website, as customers depend on its accuracy and security� Armando Sanchez, Ebuyer

channel’ approach, the group has invested in improving its online presence in recent months, having hired David Walmsley as director of e-commerce in October. Amazon.co.uk and Play.com ranked 36th and 45th respectively in the index.

Amp maker enters PC market with hybrid offering “It was built for musicians, but because of its versatility people outside the music business have been interested – people who like gadgets�

Š Copyright VIP Computer Centre Limited. 2010. Information correct at time of publication E&OE

Cliff Cooper, Orange Amps

BRITISH AMPLIFICATION pioneer Orange Amps has created a hybrid PC and guitar amplifier under its new computing division, OMEC Personal Computers. The vendor is now on the lookout for distribution partners for the OPC, both in the music and IT channels. “Initially it was built for musicians because that’s what we do, but because of the versatility of what it does people outside the music business have been interested – people who like gadgets,�

Orange CEO Cliff Cooper told PCR. “We will be looking to distribute through PC firms after the reaction that we’ve had.� The machine, which was designed and built in the UK, features a 500GB hard drive, 4GB of DDR2 RAM, Windows 7, wi-fi capability and an optional ATI Radeon HD 5670 512MB graphics card. It also comes with free software including a recording package. Physically it looks much like a normal guitar amp and comes in the

vendor’s signature bright orange colour. “It’s a fully functioning PC; I use one myself all the time,� Cooper said. “It has a large high quality guitar speaker in it, which we put in a plastic guitar amp case, rather than a metal tower case. We modelled it on the sound of the Orange amplifiers, so people can plug in and play their guitar, record it and play it back.� While the OPC is suitable for experienced musicians, Cooper believes it could also prove popular with entry-level

guitarists who have taken up the instrument after playing music-based games such as Guitar Hero. Pricing and distributor details will be announced this month.

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NEWS

Looming component shortages could impact UK channel Asian manufacturers warn that supply levels are 20 per cent short of demand

“With such an entry-level category, it would be unthinkable for vendors to raise their prices” Eszter Morvay, IDC

By Matt Grainger

A NUMBER of manufacturers and industry watchers have warned that prices for components may rise due to a shortage of chip resistors, and increased competition for certain components and manufacturing fuelled by new tablet PCs Taiwanese chip makers Ta-I Technology, Yageo and Ralec Electronic have revealed that supply is currently around 20 per cent short of demand, while original design manufacturer Inventec has warned that tablets like the HP Slate could have an impact on netbook prices as the device uses many of the same components.

“I would certainly agree that there’s potential for a component overlap,” commented GfK’s account manager for IT, Sian Rogers. “While we have seen a rise in prices for netbooks, I’d say that this is chiefly down to increasing screen sizes. It will be hard to say for sure until tablets hit the market.” IDC research manager Eszter Morvay notes that although prices on individual

Sian Rogers

components may rise, the likelihood is that the additional cost will be soaked up by vendors, as they cannot afford to raise prices on products like netbooks. “With such an entry-level category, it would be unthinkable for vendors to raise their prices,” Morvay told PCR. “Vendors routinely use the retail price point as a strategic method of competing with their rivals. The first supplier to increase its netbook prices will be pricing itself out of the market.”

Eszter Morvay

Brigantia forges trans-Atlantic alliance BUYING GROUP Brigantia has teamed up with the ASCII Group in the US, allowing its members access to 40 new IT certifications. The courses, run by NEF University, cover a wide range of subjects, including A+, Networking, Databases, Web Design and IT Security. “Members will be encouraged to record

“Members will be encouraged to record certifications to enhance their end-user facing listing and website” Iain Shaw, Brigantia

certifications achieved by employees within the Brigantia Computer Experts selfaccreditation system to enhance their end-user facing promotional Brigantia Directory listing and minisite,” said founder Iain Shaw. The organisation, which says it will also soft launch a Brigantia Central Purchasing Hub during Channel Expo on

May 12th, has seen a recent jump in new memberships, after suffering a knock-on effect from the economy. “Q1 saw new members joining Brigantia to replace some of the businesses unfortunately lost to the recession and has also seen new associates supporting the community including Fujitsu and VeryPC.”

Sales: 0871 622 7500 www.vip-computers.com/uk


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SHOW GUIDE CHANNEL EXPO

The great exhibition After waving goodbye to Birmingham's NEC last year, Channel Expo opens doors at its new venue in London this month, promising a line-up of exciting speakers and exhibitions from key players in the industry. PCR highlights some of the standout firms that will be exhibiting at the show…

www.pcr-online.biz

THE UK’S premier trade show for the PC and IT industry will take place in its new home, the London Olympia, this month – a move which organisers claim will bring the show closer to the majority of its visitor base and offer better opportunities for exhibitors. The main focus for the show has always been the stands themselves, and the opportunity to meet and network with professional contacts. Indeed, some exhibitors this year have taken bigger stands than ever before. However the education and seminar aspect has been growing in importance in recent years, and this year a strong list of speakers from firms such as Google, IBM, HP and Gartner have lined up to discuss some the key issues facing the trade.

“It is an interesting time for the IT Channel and Channel Expo 2010 offers IT Channel professionals the

“As well as showcasing all the latest products and services from more than 100 exhibitors, Channel Expo presents an exceptional line-up of educational seminars” Mark Burton, Incisive Media unique chance to network with their industry peers, reflect on the current trends and market issues and to look forward to future opportunities,” says

Mark Burton, channel publisher at Incisive Media. “As well as showcasing all the latest products and services from more than 100 exhibitors, Channel Expo presents an exceptional line-up of educational seminars in the CRN and Technology Theatres, with expert speakers from Google, Gartner, HP, IBM, Intel, Microsoft and AMD. I look forward to welcoming our visitors to the exhibition on 12-13 May.” As the only trade event of its type currently operating in the UK, Channel Expo holds a unique importance to the trade. Here we provide a preview of what some of the key firms will be exhibiting and where you can find them.

>>>

May PCR 17


SHOW GUIDE CHANNEL EXPO

>>> AVG SECURITY vendor AVG will be using this year’s Channel Expo to communicate its message to key resellers. The ‘It’s all about you’ mantra focuses on independent resellers, which AVG believes need better support from suppliers in order to give their customers faster, lighter protection. At the show the vendor will be distributing its Battle Book, containing detailed company, product and security software information. The team will also be demonstrating AVG Internet Security Business Edition 9.0 and other key SMB products, giving resellers the chance to experience its solutions first hand. Resellers will be encouraged to leave their business cards at the firm’s stand, entering them into a

EntaTech ENTATECH has invested in its largest stand yet at Channel Expo, comprising 12 supporting vendors who will each be offering demonstrations, information and interaction with key contacts. Participating vendors include Microsoft, with key information about Office 2010, as well as

Stand 260 competition to win £500 worth of AVG products. Meanwhile, firms that register as resellers at Channel Expo will receive exclusive deals including a 50 per cent first order discount and £50 of M&S vouchers with a first order over £250.

Stand 395/290

Intel, Trust, Webroot, Freecom, Belkin, Billion, Startech, Swann, Madcatz and Saitek all demonstrating how they can benefit visitors’ businesses. Also on offer over the two days will be literature, point of sale materials for visitors to take away, various competitions to be entered, show exclusive deals, and the option to place orders directly on the stand. EntaTech is currently celebrating 20 years in business and recently won the Distributor of the Year and Sales Team prizes at the PCR Awards 2010.

BullGuard BULLGUARD described its stand as “a comfort zone where you can put your feet up and have a chat with your fellow resellers and the delightful BullGuard team.” The security vendor will be offering discounts on all orders placed on the day, giving away an all expenses paid trip to Copenhagen, as well as free copies of BullGuard Internet Security. The firm will also be pushing its revenue share programme, which gives resellers 25 per cent of the profit for every product renewed online after the initial sale has been made. All orders of BullGuard Internet Security 9.0 placed at Channel

Ingram Micro BROADLINE distributor Ingram Micro is a platinum sponsor of Channel Expo, and is this year hosting its largest stand to date, taking up a mammoth 256 square meter. Ingram promises it will have a ‘dramatic, eye catching stand’ which includes a dedicated area for presentations from key vendors, including Microsoft, which will be talking about the imminent launch of Office 2010.

Stand 535

Expo will be heavily discounted. The software includes a gaming mode, 5GB of online backup, a three PC licence and round-the- clock live support.

Stand 340/350/360/361 A variety of vendor partners will be attending with the distributor, showcasing their product portfolios and the latest technologies. The firm’s partners are leading vendors across every product category, including software, hardware, networking, print and accessories. The stand will also have private meeting rooms, breakout and coffee areas for informal meetings, and its own onsite barista.

>>> 18 PCR May

www.pcr-online.biz


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SHOW GUIDE CHANNEL EXPO

>>> PNY Technologies PNY PLANS to use this year’s Channel Expo to strengthen its position as the UK’s number one volume supplier of USB products. The firm will be showing a range of products at the event, including upgrade components catering to devices from PCs to video cameras. These include PNY’s range of Verto Nvidia Geforce graphics cards,

RET Group

RET GROUP is returning to Channel Expo again this year in order to meet its customers faceto-face and show off some of the latest additions to its product portfolio. This year’s show will see RET launch its GreenEnergy range of laptop batteries, which come with a three-year warranty and bear the Nordic EcoLabel for long life and sustainability. The firm will also be showing new products in the Powersquared

20 PCR May

Stand 234 Quadro professional graphics cards, SSD, desktop and laptop memory modules. The vendor also stocks a range of flash cards including SD and microSD cards, which enable memory upgrades for mobile phones, cameras and camcorders. PNY, now in its 25th year of operation, offers a variety of warranties on its products including 10 years on memory modules, three years on graphics cards, five years on flash cards and two years on USB.

Stand 371

range, having increased the warranty on all of its AC adapters to two years. As well as new product launches, RET will be unveiling a new web configurator, which allows resellers to integrate RET's entire range into their own online stores. The company hopes to use the event to expand reseller awareness of its spares and repairs services, which it claims can provide its partners with particularly strong margins.

PSA Parts RETURNING for its fifth year at Channel Expo is distributor PSA Parts, sees the event as a key opportunity to interact with its existing customers and the independent dealer and reseller market. As Europe’s leading distributor in its field, PSA prides itself in offering a complete and high quality range of power-related products for mobile devices. At the event, the firm will be talking visitors through the range of products and services it has to offer and, it hopes, signing up some new customers.

Sage BUSINESS management software vendor Sage, which claims to work with more than 780,000 organisations in the UK, will be at Channel Expo demonstrating its accounts, payroll and customer relationship management software, aimed at small and medium-sized businesses. On the accounting side, the firm will be showcasing Sage Instant Accounts and Sage 50 Accounts 2010. Both products are designed to improve management of money, invoicing, online VAT returns to the HMRC and end of year accounts, with no prior

Stand 417

PSA will be showing a comprehensive range of its Duracell digital camera and camcorder products, which are exclusive to the distributor. In addition, the firm will have its new universal laptop and netbook AC adapters and a selection of its popular 2-Power range of batteries and adapters.

Ingram Zone experience necessary. For more complex businesses, it also handles budget and stock management, departmental reporting and foreign trading. In the payroll market, Sage Instant Payroll and 50 Payroll 2010 software will be on display. Both packages are designed to facilitating easy payment, and manage payroll essentials such as tax, National Insurance, holidays, absence and online year-end submissions to HMRC. ACT! by Sage 2010 will also be available at Channel Expo. The software apparently helps build business relationships, track marketing performance, store important customer information and organise diaries.

www.pcr-online.biz


SHOW GUIDE CHANNEL EXPO

TP-Link

TP-LINK will be announcing new products at Channel Expo, including a range of 450Mbps wi-fi routers, which are not currently available from any other brand on the market. Wireless products are a strong part of the firm’s portfolio, and it will be promoting its core range, which includes 54Mbps, 150Mbps and 300Mbps routers, range extenders and adapters. Two kinds

Varlink DISTRIBUTOR Varlink will be showcasing its range of rugged handheld computers, scanning PDAs, tablet PCs, barcode scanners and label printers from leading manufacturers including Datalogic, Opticon, Psion Teklogix, Trimble and Zebra. The firm specialises in or of mobile computing and data capture products. It markets these at specialist and general IT resellers, along with system integrators who want to strengthen their position in the supply of

Stand 270

of 3G routers will also be present at the show, as well as outdoor products, ADSL switches, powerline technology and IP cameras. The firm will be promoting products aimed at SOHO and SMB market, as well as home users. The firm says its main goal for this event is to let UK resellers and distributors know more about TP-Link as a firm, and its reliable products range.

Stand 485 mobile computing and data capture products or solutions. Varlink says it has partnered with manufacturers that can bring to market products which meet the needs of end users, and which also understand the role and requirements of IT resellers and system integrators. Its product range caters to growing sectors such as parcel delivery, mobile ticketing, waste management, patient identification, parking enforcement, facility management and meter reading.

>>> www.pcr-online.biz


SHOW GUIDE CHANNEL EXPO

Company Name Adobe AEG Power Solutions

Stand No.

Company Name

Stand No.

Ingram Zone

Gamma Telecom

560

PSA Parts

417

G Data Software AG

497

Qurius

570 565

537

Company Name

Stand No.

Amplidata

Ingram Zone

Gen-X IT

370

Racktivity

Antec

Ingram Zone

GfK Etilize

372

RET Group

371

Gigabyte

556

Ricoh

220

A-Server Asus

565 Ingram Zone

Global Telecom News

522

Sage

Ingram Zone

Avenir Telecom

590

Griffin Internet

540

Seagate

Ingram Zone

AVG

260

Hauppauge

BlackBerry

Ingram Zone

ICE Cat

Ingram Zone

Seiko Instruments

424

299

Snom Technology

494

Blockmaster

250

Ingram Micro

Softek

250

Brigantia

390

Intel

470

Sophos

280

535

iSell Pty

558

Spitfire Network Services

J&J Associates

180

Startech

BullGuard CA

Ingram Zone

340/350/360/361

557 Ingram Zone

Cables To Go

385

Just Lamps

300

Stock in the Channel.com

275

Call2Action

160

Kaseya International

450

Sunde Technologies

542

Canon

Ingram Zone

Kell Systems

122

Synaxon UK

472

Kingston Technology Europe

282

Targus

Computer Bookshops

150

Laplink Software

473

Technology Channels Association

Connect Business Continuity

529

Lavasoft AB

496

The Email Laundry

Corporate Rewards

380

Logitech

CSI Leasing UK

126

Daas

565

Data Robotics

415

Microsoft

Ingram Zone

Uniworld

Datafort

550

NetClean

250

Vanilla IP

516

Dell

230

Netset & CNET

170

Varlink

485

Dicota UK

387

Norman Data

546

Vistage UK

575

Emerson

330

Oobu

325

Wasp Barcode Technologies

124

EntaTech

395/290

Ordnance Survey

320

Webpost

480

Ergotron

Ingram Zone

Compellent Technologies

Ingram Zone

Toshiba

McCue Cartridge Expert

120

TP-Link

Microsoft Ltd

475

Trend Micro

255 Ingram Zone 587/675 235 Ingram Zone 270 Ingram Zone 560

Overtis

250

Windsor Telecom

483

Exponential-e

655

PCR

490

Workbooks.com

554

Foxconn

426

Peak UK

305

Y3k

130

Fujitsu Europe

530

Pillar Data Systems

478

Zenith Infotech Europe

565

570A

PNY Technologies

234

8el

277

Funkwerk Enterprise Communications

22 PCR May

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INTERVIEW BUY.COM

A quiet revolution While Best Buy has been grabbing the headlines with its UK launch this month, fellow US firm Buy.com has been quietly establishing its own operation here as well. The colossal e-tailer also has bold plans to take on the big guys in the tech retail sector, and insists it is ‘in it for the long game’. Andrew Wooden talks to managing director of Buy.com Europe Eoin Matthews… You launched your site here in February and have been stepping up marketing in the last couple of months – how has initial interest in the site been? Buy.com has a lot of history in the US – we were one of the dotcom pioneers, launching in 1997. We operate a virtual stock model, which means everything is drop shipped. A major part of our strategy in Europe has been with our eBay partnership. As well as that, we operate a very successful marketplace business in the US, which has around 1,500 to 2,000 merchants. We wanted to bring those two parts of our business to Europe. When we launched in the UK initially last year it was all focused on eBay. We launched our own site in February, and so far so good. Rather than spend the marketing dollars on pushing the name at this point, we’re focussing on the very bottom line channel. And we’ll be putting a lot more resources into expanding the catalogue and getting distributors on board. Our goal for the UK is to get a very broad range of tech and media products this year.

with efforts on the Buy.com Marketplace paying significant dividends in recent years – as of Q1 2010 Buy.com Marketplace orders accounted for over 50 per cent of the company’s orders for the first time in the firm’s history – this is something we are proud of and it is an achievement we will build from.

Tell us some more about the firm’s history in the US. Founded in California in 1997, the firm achieved records for revenue in its first year, so it was very much a dotcom whirlwind company. The business grew rapidly over its first few years – recording 1998 sales of $125 million and 2000 sales of $787million. The company was taken private in 2001, after the dotcom bust happened, and refocused on its core business. Since 2006, the company has been profitable every quarter, and we’ve been getting stronger since then

Do you believe you can take on companies like Amazon in the online retail space? We wouldn’t be going into the market if we didn’t think we could compete, but we look at it as a very long-term game. On the customer side we do think the market would benefit from a big multi-category brand with a very strong, broad offering. And competition is always healthy. In terms of the long run it really is an efficiency thing; we don’t need to make a big bang. We’re launching in several

26 PCR May

In the US you appear to sell all types of products, while in the UK the site is just technology. Why have you decided to focus on that area here? Although we have about five million lines of stock in the US, tech is the category we’re most familiar with. And when it comes to drop shipping, generally we find the big tech players are the most efficient. So we have our own specific protocol that we operate for drop shipping to keep that customer service at a very high level. Drop shipping is not something companies really did when we started out; now a lot of distributors do it, but it’s generally tech guys that are best. So we’ve started relationships with the likes of C2000 and Ingram Micro, and we’ll be adding a lot more as we get familiar with this market.

www.pcr-online.biz


Eoin Matthews believes that in two to five years Buy.com will be competing with the UK’s top e-tailers

European markets all at once and each market is very unique. We need to get the launches right so that we can get the loyalty that any retailer needs in this modern day. You can’t afford to market to the customer every single time, again and again; you really need those repeat purchases. How do you think you’ll compete with the specialist retailers in the UK, such as PC World and Comet? From a consumer perspective, we have a significant advantage in the breadth of offering that we have and the overall price. Because we don’t operate on individual mark-ups per product, we have very strict margins operating across the board. We look at it as a very long haul to win customers, and we don’t really look that much at the competition in that respect. If you focus on your own business and set your own benchmarks really high, you begin to see the results over time. Is there anything unique about the UK market that you think will cause you problems or prove beneficial? One thing about the UK is that it has a large population for quite a small area.

www.pcr-online.biz

INTERVIEW BUY.COM

So we’ve actually been able to achieve consistency on service levels of drop shipping that is maybe more challenging in other markets, especially in the US. There you can say there’ll be a shipment in 24 hours, but depending on where the warehouse is it can take two or three days to get to the house. You don’t have those sorts of problems in the UK. The unique challenges would be making sure we can get the right vendors on board. There are some brands that

mortar buying skills to turn that into a great hybrid business, where they sell through their own site, through Amazon Marketplace, through Buy.com Marketplace and eBay. And they’ve become very nimble effective online marketers. Maybe not on the scale of bigger firms, but they are a very important contributor to the market. For those guys that begin to buy and sell and treat online like an additional channel, albeit with a

“We wouldn’t be going into the market if we didn’t think we could compete, but we look at it as a very long-term game. We do think the market would benefit from a brand with a very strong, broad offering. And competition is always healthy” Eoin Matthews, Buy.com are unique to the UK, and the relative strength of vendors is different from country to country. That’s something we’ve had to build an expertise in. What do you think of the current state of the bricks and mortar retail market? If you look at the US, you’ll see that a lot of the smaller single store bricks and mortar guys have come up with very innovative hybrid models. Some have used their physical bricks and

completely different margin structure, you’ll find they have a lot of success because they tend to know a lot about products and have a feel for them – that’s not to be underestimated. You’ve arrived in the UK at a similar time to Best Buy – do you think there’s any reason international retail giants seem to be taking a greater look at the UK at the moment? Companies that went into the recession in a relatively strong position,

as would be the case for us, saw opportunities to improve their position in relative market strength terms. This is an opportunity to move. In the UK, Amazon has made great strides in the last few years by being very, very aggressive and it’s almost used the economic climate to its advantage. The move is something we would have been looking at nearer 2005, and it was a coincidence that the recession hit – but it definitely provided the impetus for us to accelerate our efforts. What do you think the defining factor in the technology market will be over the next year? Service to the customer is going to define who comes out with the best hand and who is in the strongest position. Margins are going to be extremely thin across the board. Where will you be in a few years? We’re looking at five or ten years to get into the very top tier online resellers and online destinations for customers to shop. In two years you will see us listed top ten and top five in certain categories and hopefully a lot more customers will know about us. In the two to five-year period we will be competing with what the top guys do and setting down our marker.

May PCR 27



ANALYSIS BEST BUY

Industry opinions Following the retail giant’s launch at the end of last month, we ask key trade figures: Do you think Best Buy’s arrival is a good or bad thing for the UK trade?

Chris Connell, Sales Director, VIP Computers “VIP ALWAYS welcomes a new player to the industry and the fact that Best Buy is a big US outfit will enable a strong credit line for distributors to work with. Assuming the trading terms are beneficial to both parties, I’m sure we will see some strong and healthy relationships develop. Best Buy’s size inherently means that it will, directly and indirectly, help customers get the most ‘bang for their buck’.”

Jon Atherton, Commercial Group Vice President, EntaTech “ON THE whole I think this is a good thing; competition is always good for the consumer and opens up new doors for the channel.”

Mark Reed, MD Realtime Distribution

Mikael Zeitlin Senior Channel Marketing Specialist, AMD “BEST BUY’S arrival on UK shores will open up competition on the UK High Street and bring with it even greater choice for the consumer. In the US, Best Buy is well known for its knowledgeable staff and deep understanding of technology, helping match the product to the consumer. This goes hand-in-hand with our vision philosophy, to demystify technology to help the consumer buy a PC or notebook based on their needs, not simply based on their budget.”

www.pcr-online.biz

“DSGI WILL be feeling the pressure now from the rhetoric that Best Buy is giving out and even more so when Best Buy’s doors open and there are price it has to beat. However, it could be three years before Best Buy gets close to having the same retail presence that DSGi has. The fact is, DSGi has to lead or follow and at the moment Best Buy is very nimble and willing to try new things to establish business. “It will be interesting to see what BB has planned from an online perspective. They have strong online sales in the US but it will take time for them to establish themselves against companies like Ebuyer in the UK. With regards to the rumours that Best Buy may acquire DSGi, I feel it is very unlikely and part of me hopes this is right, as for the first time for a decade or more there is competition on the High Street and retail parks, which can only be healthy. However, given the current share price of DSGi and cash position of Best Buy it would be easy to see this being possible.”

Richard Lamond, Sales Manager Northern Europe, Nvidia “BEST BUY’S entry into the UK market gives consumers more choice – a greater breadth of product from entry level right through to the enthusiast sector. The emphasis on the in-store experience means the customer is genuinely assisted in finding the correct product that really enables them to use the latest and greatest technology. For the industry, Best Buy’s entry shows just how crucial the UK market is to global retailers. Its background in the US marketplace should enable them to the hit the ground running.”

May PCR 29


PCR AWARD WINNERS INTERACTIVE IDEAS

I'd just like to thank… Each month we catch up with a winner from the PCR Awards 2010, to find out how business has been after winning the prestigious prize. This month, we talk to Michael Breeze, Marketing Director at Specialist Distributor Award winner Interactive Ideas… “We have always placed an emphasis on providing great customer service, understanding our customers’ and suppliers’ businesses and supporting them in achieving their objectives” Michael Breeze, Interactive Ideas

30 PCR May

"WINNING PCR’s Specialist Distributor Award is a great endorsement of our service and the team of people we have at Interactive. It came as a major surprise but is fantastic to think that our customers, suppliers and partners value our service. The past year has been another great one for Interactive Ideas and, with our financial year ending at the end of April, we’re likely to achieve sales of over £22 million growing over 35 per cent year-on-year. We moved into a new office and training facility in November, allowing us room to expand up to about 70 people and double our warehousing and logistics space.

When looking at what made us win then I can only relate to the conversations and feedback we receive from customers and suppliers that they really appreciate the style of distribution we offer. Right from the time Mike Trup started the company 16 years ago, we have placed a huge emphasis on providing great customer service, understanding our customers’ and suppliers’ businesses and being able to support them in achieving their objectives. Being privately owned we make decisions quickly and ensure we have motivated, skilled people. Companies and the people within them are all under enough pressure managing their

workload and business issues, so we help rather than hinder. We’re very positive going into our new financial year that we can continue our growth. As mentioned earlier we have invested heavily in our office and warehousing to cope with increased business levels and are recruiting people across all departments to support further growth. In the past month we have achieved Silver Investor in People status – a further endorsement of our staff and service. There are still many companies, both vendors and retailers, that aren’t getting the service they deserve from their current distributors. We can offer a fresh approach."

www.pcr-online.biz


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Retail

Focus

PCR’s monthly look at the issues facing the retail sector

P 34

FRONTLINE A look at the month’s best selling products and the appeal of entry-level machines P 37

INDIE PROFILE We talk to Jeremy Stuart, shop manager of Ashbourne Computers in Derbyshire P 38

MYSTERY SHOPPER PCR heads to Manchester to find out how to convert a PC into a high-spec gaming rig

RetailNewsBytes ‘HIGH STREET TAX’

TESCO NON-FOOD UP

VIRGIN RETAIL DEAL

JOHN LEWIS AD DRIVE

UK shoppers pay an average of 31.79 per cent more for goods on the High Street than online, price comparison website PriceRunner.co.uk has found.

Tesco’s global non-food sales have risen 6.2 per cent to £13.1 billion, with electricals showing particularly strong growth.

Virgin Media has signed a deal to provide Best Buy customers with instore interactive demonstrations of its products and internet services.

John Lewis has launched its biggest ever TV ad campaign. The six week, £6 million campaign focuses on the "never knowingly undersold" slogan.

www.pcr-online.biz

May PCR 33


RETAIL FOCUS FRONTLINE

From the Frontline This month infinite Field Marketing has visited 250 stores across the UK to gather real ‘grass roots’ feeback and opinion on the best-selling products in-store and issues affecting the industry... THE PRICE IS RIGHT ONE OF the most frequent comments made to us by the retailers, is that cutomers know pretty much what they want, and just come in to store to try and get it at a cheaper price. In the internet age, the likelyhood of the customer having done his or her homework prior to shopping is pretty high. However, this months sales charts indicate that many retailers are taking advantage of this practice. The best sellers in both the desktop and laptop categories is a Compaq device. This is run by Hewlett Packard as an entry level brand, and it could be fair to say that Compaq has been designed to appeal to those customers who come in to a store, point at a machine that they’ve seen advertised and say “I’d like something like that but cheaper.” The Compaq WE086EA is billed as offering versatility and quality without compromising on price. It runs on a dual-core Pentium T4300 with Intel’s GMA4500M integrated graphics and carries 2GB of RAM with 320GB of storage. The Compaq Presario CQ5305 meanwhile carries pretty much the same specifications but utilises the dual-core Pentium E5300 processor. Another noteworthy example of this is the fact that Symantec’s Norton 360 v3 remains the best selling piece of anti-virus software, with its successor Norton 360 v4 in second place. Although v4 offers a broader and more up-to-date range of coverage, it is the older version that gets the sales. PC sales have not suffered a drastic slow down in sales and many retailers are reporting solid footfall, but having just come out of recession, it’s clear that price is still a defining factor. matt.grainger@intentmedia.co.uk

34 PCR May

LAPTOPS 1

COMPAQ WE086EA

2

TOSHIBA L450

3

TOSHIBA L500

4

COMPAQ CQ61-4155A

5

ACER ASPIRE 5532

DESKTOPS 1

COMPAQ Presario CQ5305

2

PACKARD BELL IMEDIA A2620

3

ACER ASPIRE X1301

4

HP PAVILLION SLIMLINE S5306

5

ACER ASPIRE Z5610

KEYBOARD 1

MICROSOFT Wireless Desktop 3000

2

LOGITECH MK300

3

LOGITECH EX100

4

MICROSOFT COMFORT CURVE 2000

5

PC LINE SLIMLINE

www.pcr-online.biz


RETAIL FOCUS FRONTLINE

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“Still plenty of sales, people just want to keep up to date as PCs get quicker and have more storage”

MICE 1

LOGITECH Wireless M205

2 LOGITECH WIRELESS M305 3 MICROSOFT

WIRELESS MOBILE 3000

4 PC LINE PCL-FL1 5 IT WORKS MW01

GRAPHIC CARDS 1

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BFG Nvidia Geforce GT220 PCI-E

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BFG GEFORCE 9800GT PCI-E

3

BFG NVIDIA GEFORCE 7600GS AGP – 512MB

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KASPERSKY ANTIVIRUS 2010

www.pcr-online.biz

“Laptops were the best sellers in New Year sales” “Laptops are our best sellers but notebooks are also doing well for people who just want web and walk aspect” “Customers know pretty much what they want and just come into store and try and get it cheaper” “Plenty of confidence in the market, the need for these products is strong especially with those getting Broadband” May PCR 35


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RETAIL FOCUS INDIE PROFILE

INDIE PROFILE This month Roger Humm talks to Jeremy Stuart, shop manager of Ashbourne Computers in Derbyshire... ASHBOURNE COMPUTERS was founded 15 years ago by Adrian Blake as a sole trader. Adrian’s brother John joined the business in 2003, when it became a limited company and moved to new premises. In 2004 the sales space was tripled and Jeremy Stuart joined the brothers as shop manager the following year. “First and foremost Ashbourne Computers is a laptop and PC repair centre, being the only laptop repair centre in the locality,” Stuart said. “We stock a range of new and used laptops and PCs, together with a range of peripherals, consumables, cables

www.pcr–online.biz

and accessories. We also provide a popular special order service and can even have special orders delivered direct to the customer.” Over the years the Blake brothers have noted many changes in the industry, especially the move from PC to laptop sales, the increase in the repair side of the business and the huge growth in hoax anti-virus infections and other malware. “We have made customer help sheets to assist in understanding internet security and taking care of your laptop and battery,” Stuart added. “We saw that customers had a great deal of difficulty understanding that a machine covered by internet security could still get infected. These helps sheets work very well and prevent much customer misunderstanding.” Of the future, Stuart told PCR that Ashbourne intends to further develop its business with BullGuard and continue to build up the parts, repairs and upgrades side of the business.

FACT BOX Year established: 1995 Number of outlets: 1 Number of staff: 4 Regular vendor lines: Asus, BullGuard, Fujitsu, Gigabyte, HP, Lexmark, Microsoft Contact name and address: Jeremy Stuart, Shop Manager, Ashbourne Computers Limited, 49 Compton Street, Ashbourne, Derbyshire DE6 1BX Telephone: 01335 342814 Email: jeremy@ ashbournecomputers.co.uk Website: www.ashbournecomputers.co.uk Roger Humm is Head of Membership Relations at Brigantia Computer Experts – roger.humm@brigantia.com

May PCR 37


RETAIL FOCUS MYSTERY SHOPPER

Manchester This month, our Mystery Shopper heads to Manchester looking for advice on which components or equipment to invest in to upgrade a desktop to a top-end gaming rig…

PC WORLD I WAS GREETED by a woman on my arrival and led to the desktop PCs. “I don’t want a new PC but to upgrade the one I already have so I can play the newer games,” I told her, and was taken to the Tech Guys instead. “I’m a PC gamer myself” said the Tech Guy. “Unfortunately the best graphics cards are the most expensive ones so I’d say that the BFG Nvidia (1GB DDR3, 260 PCI-E), which costs £159.99, will suit your needs the best. There is a ten-year warranty on this one but you will also require an external power supply of 500 watts, as these games are just so power thirsty.” He then pointed out the Jean Tech PSU, which cost

38 PCR May

£59.99. “The PNY Nvidia graphics card (250 PCIE) is a bit cheaper at £129.99, but I would recommend the BFG as it will last longer. You’ll need to update graphics cards on a regular basis to keep up to date with the latest releases. The games and software themselves tend to have a higher spec, then we have to wait for the hardware to catch up half of the time. “You could also expand your memory, as that tends to help with the quality of gaming.” He pointed to a Corsair DDR2 1GB memory costing £34.99 and the 2GB version (£64.99). “I would suggest that you bring in your PC so we can have a look at it, see which operating system

www.pcr–online.biz


RETAIL FOCUS MYSTERY SHOPPER Turn the page for more Mystery Shopper results

>>>

COMET

COMPUTER WAREHOUSE

ALL THE SALES people were busy with customers, so I had a quick look around the computer section before heading straight to the customer service desk. “I’d like some advice about upgrading my boyfriend’s PC for gaming please,” I said. The man behind the desk didn’t need long to consider my request. “I know that you will need a high spec graphics card, but we don’t sell anything like that here, I’m afraid. Try this place,” he said, writing down ‘Aria.co.uk’ on a Comet leaflet. “They will be able to help you with your requirements, they are really good technically.” I thanked him for his time, took the leaflet and left the store.

A CONFUSING location and a store half filled with clothes meant my expectations of Computer Warehouse were mixed before a conversation had even begun. A jolly man was standing behind the counter. He smiled and asked how he could be of assistance. I

“This was one of two stores that recommended Aria.co.uk to me, so I had a look. There are a multitude of components and deals to be had if you know the sort of items you are looking for” you use and then we could upgrade your PC with all of the necessary requirements at the same time,” he advised. I was pleased to find a store that could help with my requirements and offer a service that could administer the upgrades as well. It did seem a bit expensive, and I wasn’t told how much it would be to install everything, but the option was there. I was happy with the recommendations and was given advice from a person I trusted, as he clearly knew SCORE what he was talking about without confusing me with too much jargon.

9/10

www.pcr–online.biz

This was one of two stores that recommended Aria to me, so I had a look at this salesman’s choice of website. There are a multitude of components and deals to be had if you know the sort of items you are looking for. My eye was immediately drawn to a front page deal of a specific Nvidia Avatar 3D package, and a list of components I would need to play the game. This was very useful. The personal recommendation of the Aria website was appreciated and the customer service was as SCORE expected, but this store was not the place to go for PC component upgrades.

4/10

"A store half filled with clothes meant my expectations were mixed before a conversation had even begun" explained my requirements to him and was told: “We have loads of graphics cards that will enable you to enhance your gaming experience. They start from £20 and go up to £300.” He recommended the BFG Nvidia GeForce 8800 (GTS OC 512MB PCIE 2.0) graphics card, which was on sale from £166.37 to £195. He went on to tell me: “You could also get more memory, as higher spec games tend to use a lot and that will slow down your PC and gaming experience as well. We have a Corsair 2GB DDR2 at a promotional sale price of £32.99. We can also install everything for you here in store if you bring your PC with you next time. If we make those upgrades I think you will be very satisfied with the results.” Despite being sceptical on entry I was very pleased with the advice and customer experience I had in this store. The sales assistant’s recommendations were clear and given with confidence from a wide variety of products available. The suggestions were also backed up with the option to have the upgrades SCORE completed in store by someone who knows what they are doing.

9/10

May PCR 39


RETAIL FOCUS MYSTERY SHOPPER This Mystery Shop was conducted by infinite Field Marketing Solutions, a leading provider of field marketing services to the technology sector. The solutions provided include Training, Market Research, Mystery Shopping, Demonstration Days, Roadshows, Merchandising and Compliance & Data Capture. Visit our website for details and to request a Case Study.

CURRYS

CURRYS DIGITAL

JOHN LEWIS

THE VISIT to Currys began with a long game of pass the customer, due to what the store admitted was a lack of staff knowledge. After initially explaining my request to the customer service desk, a salesman who proclaimed he knew nothing about computers was first to offer help. “If you know what you want I can get it for you,” he told me. I told him I would like some advice, and he went to find someone else.

I ENTERED the busy store and headed for two free staff members. Once they had finished talking to each other, they turned and acknowledged me. “Could someone help me with a PC query please?” I asked. “I’m afraid there aren’t any staff available,” said the male sales assistant, tapping away on a computer. I turned to the other sales person and she asked about my query and went to get some help. She appeared a few minutes later with another lad and I told him what I needed. He looked at me a bit blankly and then asked the store manager for help. Finally, I was told: “I’m sorry but we don’t sell anything like that here. PC World would probably be your best bet. I know for certain that they do upgrade PCs as well as having the likes of graphics cards, but it is not going to be cheap.” I thanked him for his advice and left the shop. Since the retailer sold a variety of components and gaming equipment on its website, I was a little surprised that the concept seemed so alien to them in store. The staff were initially quite unhelpful and the comment about the high cost of PC SCORE World was somewhat unexpected coming from a fellow DSGi colleague.

I FOUND the consumer electronics section with ease, and it was quite busy with customers. However, the only sales assistant in the PC section was actually in the middle of training with a manufacturer representative. After looking interested and trying to make eye contact for five minutes I went to find some help. After requesting some assistance from the ‘aftersales care’ desk, a member of staff approached me dressed in smart business attire and told me that unfortunately they didn’t sell anything like what I was after. “In fact, we don’t even have high-end PCs or desktops for gaming either. Try PC World or somewhere online. Can I help you with anything else?” the salesman said. I declined his offer, thanked him for his time and made my exit. The customer service was fine once I found it, but the mystery shop was cut short again due to the specialist nature of my requirements. A more appropriate store was recommended but I would have thought there would be more high-end machines on display, as John Lewis’ website does list some expensive desktops SCORE and a range of monitors which could have been classed as an upgrade for gaming.

“It was unfortunate it took so long to be given the right sales person as he obviously knew about the subject” Next in line was a sales lady who, after listening to my story, explained she didn’t know enough about graphics cards to help. “I’ll find someone who can,” she said. Finally, after another five minutes a young salesman met me and understood my request. He told me: “Does your boyfriend play games like Call of Duty or World of Warcraft? You would need a graphics card of at least 7000, but we don’t sell them here. Your best bet would be to try either Aria or Micro Direct online. You also need to know if the platform is AMD or Intel. AMD works better on an ATI Radeon graphics card while Intel works better with an Nvidia graphics card; it gives you better clarity if you choose the right one.” It was unfortunate it took so long to be given the right sales person as he obviously knew about the subject. Recommending rival websites when Currys’ own site stocks graphic cards was an interesting suggestion from a salesman who was friendly and SCORE helpful, but couldn’t provide me with anything other than words.

4/10

40 PCR May

2/10

3/10

[SUMMARY] THE LIST of shops where PC upgrades are available are limited, but my request was vague enough that other products could have been pushed my way, such as gaming controllers, monitors, or speakers. Customer service was fine in most of the stores once I managed to locate the right member of staff, but the nature of the request meant their knowledge tended to be from personal experience rather than what was required by the retailer. PC World and Computer Warehouse both did the computer specialists proud by offering applicable advice and a full service. Website recommendations were welcomed from Comet and Currys, but without any prior knowledge buying the correct equipment would have been difficult.

www.pcr–online.biz


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Contact the VIP Sales team on 0871 622 7500 or buy online at www.vip-computers.com/uk © Copyright VIP Computer Centre Limited. 2010. Information correct at time of publication E&OE



Hardware PCR’s monthly look at recent developments in the hardware market

P 55

MARGIN MAKERS We look at the add-on sales that can prove lucrative while margins on hardware remain slim

P 49

P 45

GFK

SANDISK

Greg Allen, GfK’s senior account manager for IT, looks at the often under-rated peripherals market, which is set for a boom thanks to the rise of the 'digital home'

PCR talks to the memory vendor's regional marketing manager, Nikki Willcock, about what separates SanDisk from the competition and some of the latest trends in the memory market

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HARDWARE GFK ANALYSIS

A peripheral concern? Greg Allen, GfK Senior Account Manager for IT takes a look at the often forgotten strength of the peripherals market, increasingly driven by the ever-growing netbook sector… “Peripherals are rarely in the limelight, despite being a very varied and dynamic arena of the IT landscape” Greg Allen

www.pcr–online.biz

WE ALL KNOW the PC market has been showing excellent growth over the last couple of years. Despite a decline in desktop PC sales (down 9.7 per cent this February against February 2009) the total PC market has continued to see good growth, with notebooks and, more recently, netbooks driving sales forward (up 5.1 per cent over the same period). However, the peripherals market is rarely in the limelight, despite being a very varied and dynamic arena of the IT landscape. When we look at the historical trends of peripherals and set them against those of the PC market in general, we can see that since around Q4 2008 key

peripherals markets have seen declining sales. Communication devices (e.g. wireless routers, access points and USB hubs), communication cards, printers and keying devices have all been affected by the inherent or increasing capabilities of PCs themselves. The fact that most laptops are sold with integrated wireless capability (98 per cent of mobile computers sold between February 2009 and January 2010) has had a significant impact on communication card sales. And, as more and more ISPs give away wireless routers with subscription packages, the retail markets suffer. However, companies in these segments are rising to the changing

dynamic and trying to boost sales. The N standard is becoming more popular in the router market, representing over 50 per cent of the sector in February. Printers have also had a tough time of late, but again movement towards wireless functionality is improving sales for manufacturers. Wireless printer sales represented 45 per cent of the market in February, compared with 25 per cent during the same period last year. There are two clear-cut peripheral categories showing growth: mice and storage. The growth of mice sales shows consumers prefer these devices over built-in trackpads. With regards to storage, external devices are driving the market, which year-on-year was up 42 per cent in volume and 25 per cent in value during February. These two categories comprised £78 million in January and February alone, and this makes up 45 per cent of value in the total peripherals market. So what can we learn from these trends? With peripherals it is becoming increasingly important to focus on the quality and the technological capabilities of the product. There are great opportunities in these markets as ideas such as the ‘wireless home’ become more of a reality, and consumers focus in on enhancing their PC experience. Greg Allen can be contacted on 0870 603 8121.

May PCR 45


Windows®. Life without Walls™. Panasonic recommends Windows 7.

SINCE NATURE HASN’T EVOLVED A MORE VERSATILE TOOL, WE DID. THE PANASONIC TOUGHBOOK CF-U1.

Always highly flexible and ready for use: the ultra-mobile CF-U1 opens up very many possibilities for use: with Windows Vista® Business or Windows® XP Professional (Downgrade), an Intel® Atom™ processor and 5.6” LCD touch screen. Extremely robust and without any fans, it is also resistant to dust and water according to IP54, MIL-STD 810F; it can even withstand being dropped from a height of 120 cm. On top of everything it offers you freedom to move thanks to integrated WLAN, optional HSDPA and rechargeable batteries which last for 9 hours. For a mobile solution flexibility matters.

EVERYTHING MATTERS.

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EVERYTHING MATTERS.

Centrino, Centrino Logo, Core Inside, Intel, Intel Logo, Intel Core, Intel Inside, Intel Inside Logo and Intel vPro are trademarks of Intel Corporation in the U.S. and other countries.

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www.toughbook.eu



HARDWARE SANDISK

Enter SanDisk As the world’s thirst for mobile media keeps growing, it’s not just the content providers that benefit. With portability and, in the case of netbooks, affordability often the defining factors in the development of mobile devices, onboard memory is sometimes sacrificed, leaving memory vendors to pick up the slack. Andrew Wooden talks to SanDisk’s regional marketing manager Nikki Willcock… "Many of the portable devices on the market have relatively small inbuilt memory – therefore it is likely that there will be a boom in demand in the near future for more memory" Nikki Willcock, SanDisk

www.pcr-online.biz

Some might say that the only real factor in memory products is the capacity. How do you differentiate your products from other vendors’? Memory is not just about the capacity, but the reliability, durability and speed of the product. For instance, in a recent US survey, reliability was ranked as the most important attribute when it came to imaging memory. Capacity is important to help store all of the content you want, but it’s irrelevant if the product is unreliable and your content gets lost.

As the global leader in flash memory cards, SanDisk guarantees the most reliable products, as well as the most durable. Its memory cards can withstand the most extreme conditions and temperatures ranging from -25°C to 85°C. All of this helps consumers feel confident when buying SanDisk and, in turn, increases brand loyalty. With the ever-increasing demand for media, are we likely to see a boom in memory products?

Memory products are hugely important and there will be increased demand for them, especially as consumer habits evolve. People want to be able to access social networking websites, download and use applications, take and view images or video and store information and files on the go. However, many of the portable devices on the market, whether it’s netbooks, notebooks, digital cameras, MP3 players or smartphones, have

>>>

May PCR 49


HARDWARE SANDISK

>>>

relatively small inbuilt memory and are therefore unable to support the usage demand. It is likely that there will be a boom in demand in the near future for more memory, and SanDisk will continue to push the capacity boundaries in 2010. Is there a particular area in the memory market that’s on the rise? Demand for additional mobile memory is definitely growing. With the explosion of smartphone adoption, microSD memory cards are essential as they allow people to use their phone to its full potential by offering larger memory capacity to store all types of content such as images, movies and music. Imaging memory is also starting to see an increase, especially with the launch of the SDXC format, which is capable of reaching 2TB capacities. However, with so few cameras supporting this format is it unlikely that this size capacity will be launched anytime soon, as there is

no current consumer need or demand for it. How can retailers best make money out of memory products? The great thing about memory for retailers is that there is a need for it on almost every host device you can think of including, laptops, cameras, phones, printers, game consoles – the list just goes on. There are even memory slots in some cars now. This means that whatever device a consumer is purchasing, there’s always a memory solution for them. The trick is to find out what the consumers will be doing with the device, e.g. when buying a DSi, will they be using the camera facility or playing music on it? If so, they will need a Nintendo DSi SDHC card in 4GB or 8GB. Our

Some of SanDisk’s memory cards can withstand temperatures as low as -25°C or as

high as 85°C

“With the explosion of smartphones, microSD memory cards are essential as they allow people to use their phone to its full potential by offering larger memory capacity to store all types of content such as images, movies and music” Nikki Willcock, SanDisk

Nintendo cards have the official Nintendo seal of approval, so retailers can sell with confidence. The retailer has already added value to the consumer and made an additional sale, which equals more margin and more money in the till. How has business been for SanDisk over the past year? The past year has been very successful for SanDisk, with Q4 2009 proving to be its best ever quarter for product revenue, margins and cash flow. This reflects a dramatic reversal in results when compared to the fourth quarter of 2008. Pricing held up in Q4 and product margins benefited from a 20 per cent sequential reduction in cost per gigabyte.

50 PCR May

The last few months of 2008 marked the bottom of the industry down cycle, with all flash memory manufacturers operating at negative margins and reporting heavy losses.Yet, despite the recession, global demand for NAND flash has continued to grow over the past year and by the second half of 2009, flash manufacturers returned to 100 per cent capacity utilisation. What are the SanDisk’s plans for the coming 12 months? Is a UK expansion on the cards? 2010 will definitely be an exciting year for SanDisk. There are some great UK product launches scheduled for the latter half of the year, which will further solidify SanDisk’s position as the global leader in flash memory cards.

www.pcr-online.biz






CONTACTS

HARDWARE MARGIN MAKERS

EntaTech: 0333 101 1000 Gem Distribution: 01279 822 822

[

Interactive Ideas: 020 8805 1000

They say: “Obtain the maximum throughput of your devices”

Target Components: 01977 739 300

Specs: Four USB ports, designed for minimum power consumption, over current detection and protection, compatible with Windows and Mac OS

VIP Computers: 0871 622 7500

TRUST MICRO MOUSE – ZEBRA

]

SRP: £6.99 Distributor: Meroncourt

Meroncourt: 01462 680 060

[

SOYNTEC NEXOOS 371 PINK USB HUB

]

SRP: £6.99 Distributor: Interactive Ideas, EntaTech They say: “Ideal to use with your (mini) notebook or netbook” Specs: Micro-sized optical mouse, suitable for right and left handed users, 70cm cable, Plug and Play, compatible with Windows 7, Vista and XP

Shake your margin maker The past year may have caused many consumers to tighten the purse strings, but add-on sales can prove to be an essential way for tech retailers to keep their margins up. Nicky Trup spoke to those in the know to find out why PC accessories are for life, not just for Christmas… “Add-ons or attachments such as software, laptop accessories, printers and cables tend to offer excellent margin making opportunities” Naeem Adam, VIP

www.pcr-online.biz

AS ANYONE in the PC retail trade knows, there are very slim margins to be made on hardware these days. The value of the market shrank by three per cent last year*, and a full-scale recovery will not play out for a while to come. But the good news is it’s easy to make up the numbers elsewhere with add-on sales or impulse purchase products. With tablet PCs set to have their breakout year in 2010 and netbooks coming to represent an increasingly sizeable chunk of the hardware market, the industry’s growing emphasis on mobile form factors provides retailers with a range of opportunities to accessorise these devices.

“From our selection of products, we find notebook bags will provide the best margin for the reseller. With notebook sales at an all time high, a notebook bag is the perfect sales opportunity,” says Rene Batenburg, Trust’s UK country director. “Add-ons or attachments such as software, laptop accessories, printers and cables tend to offer excellent margin making opportunities. Resellers can reap rich rewards from the add-on sales opportunities generated by these lines,” adds Naeem Adam, product manager for VIP. Interactive Ideas’ senior marketing executive Andy Miles suggests that attracting the market’s notoriously big

spenders – gamers – is key to getting a healthy margin. “Console gaming accessories are still proving to be the greatest margin maker in terms of value which is no major surprise, but it has become an area where companies should focus on products which differ from the norm to stand out in the crowd,” he observes. But it’s not just typical peripherals that provide healthy margins. VIP product manager Matt Parrish claims novelty items can provide “spectacular” results, but are sometime a bit of a risk. “It can be difficult to judge the public’s reaction to them until you take the plunge,” he comments. “Add-on sales can be

>>>

May PCR 55



HARDWARE MARGIN MAKERS

[

LEGO WALKIE TALKIES SRP: £19.99 Distributor: Interactive Ideas

]

[

They say: “Quality walkie-talkies with cool Lego styling to stay connected to fellow Lego maniacs up to a mile away”

ANTEC NOTEBOOK COOLER SRP: £34 Distributor: VIP Computers

]

Specs: USB-powered cooler, pass-through connector included, compatible with both Mac and PC, low power consumption, two double ball-bearing fans, quiet operation

>>>

more successful, although their popularity is dependent on the success of the products they are associated with.” Leanne Smith, primary buyer for storage and consumables at Target Components, agrees: “The most popular margin makers are the sensible accessories. These are the types of products that can be used all year round, whereas the novelty products are more seasonal items and may only be used two or three times a year.

www.pcr-online.biz

[

GENIUS WIRELESS MINI NAVIGATOR MOUSE

]

LOGITECH WEBCAM 2200 SRP: £15.31 Distributor: Gem Distribution

]

They say: “Easy to install and use… lets you add video and audio to your favourite instant messenger”

Specs: Full-size, ambidextrous shape, Plug and Play, high-definition optical tracking (1000dpi), smooth cursor control and easy text selection

[

They say: “Protect your valuable investment and reduce heat-related instability”

SRP: £9.99 Distributor: Gem Distribution

]

They say: “Gives users just the basics for comfortable, reliable control of any computer”

Specs: One simple push/talk button, one channel, volume control, works at a distance of up to one mile, includes two walkie talkies

[

LOGITECH MOUSE M100 WHITE

Specs: Built-in microphone, captures video and stills, true VGA sensor, manual focus, USB connection, compatible with instant messengers, works with Windows 98, ME, 2000, XP and Vista

[

PEAK EXTERNAL 4 PORT USB 2.0 HUB WITH AC ADAPTOR

]

SRP: £17.99 Distributor: VIP Computers

SRP: £6.99 Distributor: VIP Computers

They say: “Not only eliminates tangled cables, but also is smaller in size, lightweight and easy to store”

They say: “Provides high-speed data transfer rate of up to 480 Mbps”

Specs: Two interchangable faceplates, mini USB reciever, 800dpi optical sensor, power saving switch, batteries included

Specs: LED indicator when processing, Plug and Play, rubber coating, four USB ports, compatible with USB 2.0 and USB 1.1, comes with AC adaptor

“The most popular margin makers are the sensible accessories. These are the types of products that can be used all year round, whereas the novelty products are more seasonal items” Leanne Smith, Target Components

“If you market the product correctly you should be able to sustain sales all year round but the likelihood is that run rates tend to be less throughout Q1 and Q2. I would say the Christmas period is definitely the most popular and profitable quarter for these types of products.” Parrish adds: “The Christmas market is obviously good for the sale of novelty gift items, but I don’t think you should necessarily fall into the trap of thinking that these are the only margin-makers

available to you. Printers still need USB cables and laptops still perform better with laptop coolers, whatever time of year it is.” As well as seasonal concerns, another challenge for retailers can be how to choose and sell these products. Certain items, such as mice and peripherals, will always be popular, but certain niche or novelty accessories sometimes need to be more actively sold to consumers. Certain accessories vendors, such

>>>

May PCR 57


HARDWARE MARGIN MAKERS

[

EXSPECT XBOX 360 PLAY AND CHARGE KIT

]

[

]

[

TRUST HD WIDESCREEN WEBCAM

]

SRP: £9.99 Distributor: Gem Distribution

SRP: £14.99 Distributor: Gem Distribution

SRP: £34.99 Distributor: Interactive Ideas, EntaTech

They say: “This kit enables the user to charge and play their console simultaneously”

They say: “A neat, compact in-car holder for iPhone. Offers versatility for optimal use in your car”

They say: “Perfect to chat using MSN/Live Messenger, Skype etc: just plug in and start”

Specs: Contains one rechargeable battery, one USB charge cable and two battery covers (black and white), charges during play or while the console is on, fully compatible with official Xbox controllers

[

EXSPECT IPHONE IN-CAR HOLDER

TRUST COMBAT NETBOOK SCHOOLBAG WITH MOUSE AND HEADSET

] [

SRP: £24.99 Distributor: Interactive Ideas, EntaTech They say: “Safely carry your netbook or just use it as a cool school bag” Specs: Backpack with dedicated netbook compartment (up to 12 inches) made of strong padded and water resistant material, lightweight stereo headset with adjustable flexible microphone, compact three-button optical USB mouse

>>>

as Trust, run training programmes to teach resellers how to upsell their products. “Of course, by placing notebook bags and mice close to the notebook display, you are going to get a share of impulse purchases,” says Batenburg. “We believe that the sales teams in the store need to be aware of the add-on opportunities and what the benefit is to the customer.” Adam believes that sales opportunities can be lost simply through not talking to

58 PCR May

Specs: Ultra high definition 3MP (2048 x 1536) video resolution, up to 12MP (4096 x 3072) still resolution, inbuilt LED lights for better image quality in low light, integrated clamp system to attach to screens, built-in microphone, includes software with special button to upload videos to Youtube with one click

Specs: Fastens to windscreen via suction mount, twist and turn mechanism, portrait or landscape use, allows access to all the iPhone’s functions

VEHO BLUETOOTH DONGLE SRP: £12.99 Distributor: Target Components

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[

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They say: “Amazing micro size bluetooth dongle. Transfer information from your bluetooth device to your PC or notebook”

They say: “It's always annoying having to turn your PC on to charge your MP3 player or iPod. Now you don't have to”

Specs: Micro size, 20m range, works with USB 1.1 and USB 2.0, maximum date rate of 1MB per second, LED status light indicator, compatible with Windows 98, 2000, XP and Vista

Specs: Plugs into UK Mains, compatible with USB products including all Veho devices and new iPods and iPhones

the customer to find out what they expect to get with their hardware and what their needs are. “In retail, a lot of the time it’s just a case of asking the customer. From past experience, I’ve found that customers were disappointed when they took their purchase home to find that it didn’t include everything they needed or expected. Internet security software, laptop carry cases, printers and printer cables (which aren’t always included with all printer sales) are prime examples,” he notes.

“Retailers should be finding a balance, focusing on the quality of their ranges, picking uniqueness over price, with a variation in styles and colours to keep their customers happy and coming back” Andy Miles, Interactive Ideas

Miles, however, takes a different approach. “Retailers should be finding a balance, focusing on the quality of their ranges, picking uniqueness over price, with a variation in styles and colours to keep their customers happy and coming back,” he comments. “We would advise for retailers to position margin makers with their related key product to get the best results from impulse buys, leaving the active selling focusing on the key products.” *GfK figures, February 2010

www.pcr-online.biz


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Software PCR’s monthly look at recent developments in the software market

p 65

GAMING We look at the titles that will be driving sales of high-end gaming PCs, from Supreme Commander 2 to GTA: Episodes from Liberty City

p 68

MICROSOFT PCR talks to two Microsoft execs about the thinking behind Office 2010, the software’s new features, and when we can expect to see it on the shelves

www.pcretailmag.com

May PCR 63



SOFTWARE GAMING

Are you

game? Supreme Commander 2 Publisher: Square Enix Out now Chris Taylor, who heads up developer Gas Powered Games, has made a name for himself in massively-scoped futuristic RTS games ever since Total Annihilation hit the shelves in the late nineties.

Supreme Commander 2 represents a slightly scaled down version of the epic-scaled original, in an effort to make it more accessible to casual players. The title has a huge multiplayer fan base, and if the original is anything to go by will hold onto it for years to come.

From entrenched fantasy MMO franchises to brand new action blockbusters, Andrew Wooden takes a look at the biggest PC games on the market and on the radar that will be driving the high end-PC market for the rest of the year‌

R.U.S.E Publisher: Ubisoft Released: June 4th The Second World War is a neverending source of content for games. But these days developers often feel they need a hefty USP to separate a new title out from the wealth of war games already on the market.

R.U.S.E’s marketing makes a big deal out of the deception abilities of the game, meaning bluffs are just as important as the actual combat itself. The game has some impressive graphics to boot, and sales will benefit from a high profile campaign courtesy of publisher Ubisoft.

>>> iwww.pcr-online.biz

May PCR 65


SOFTWARE GAMING

Crysis 2 Publisher: EA Released: 2010 Crysis made a huge splash – being held up as an example of what high end PCs can do – and its stunning attention to visuals looks set to continue with the sequel.

Set in a New York City in flames after an alien invasion, players take on the role of a super solider, armed with an experimental battle suit, and must attempt to fight back the alien menace. Expect this to be a flagship title, with plenty of marketing buzz and media hype.

Battlefield: Bad Company 2 Publisher: EA Out now While first person shooters have been fully proved on the console market these days, some of the best gameplay to be found in the genre remains on the PC.

The latest Battlefield game takes the fast-paced action and large scale maps the series is famous for, and adds more vehicles to boost tactical options. A plot-driven single player campaign is included, but expect the focus of the action to be online. Could be one of 2010’s key PC titles.

Command and Conquer 4: Tiberian Twilight Publisher: EA Out now The granddaddy of the real-time strategy genre, Command and Commander returns this year with the fourth instalment, promising a conclusion of the long-running

storyline which began with the original game back in 1995. Twilight introduces a new player class system, offering strategic options online and in single player. With a big marketing push from EA and as one of the most popular series in PC gaming history, it should continue to sell well.

Napoleon: Total War Publisher: Sega Out now Essentially a follow up to the bestselling Empire: Total War, Napoleon is a standalone title which takes the combination of real-time battlefield combat and turn-based empire management to new levels, with a

range of advanced features such as attrition damage for armies behind enemy lines and recruitment options for generals in the field. The title has been a top seller since it was launched in March. If previous games in the series are anything to go by, this one will be selling for years to come.

GTA: Episodes from Liberty City Publisher: Rockstar Out now For those that like their gaming decidedly more criminal in nature, the two new instalments in the GTA 4 series have arrived on PC.

Episodes from Liberty City comprises The Lost and the Damned and the Ballad of Gay Tony, which sees players immersed in the murky world of criminal bike gangs and Liberty City’s high-end nightlife respectively. Always a sure-fire hit on whatever platform it appears on.

StarCraft 2 Publisher: Blizzard 2010 Hailed as one of the best strategy games of all time, StarCraft has left players waiting for a sequel for nearly a decade. StarCraft 2 picks up where the add-on Brood War left off,

and again charts the battle between the Protoss, Terran, and Zerg. Players can expect new units, strategies and a graphics engine rewritten from the ground up, bringing the franchise up to date with the latest RTS titles. Likely to be one of year’s biggest launches.

66 PCR May

www.pcr-online.biz


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SOFTWARE MICROSOFT INTERVIEW

Office space With Office 2010 swiftly heading towards its release, Matt Grainger talks to Microsoft UK’s head of Office Chris Adams, and partner engagement group manager Tanya Shirlow about the software’s new features and channel opportunities… LIKE WINDOWS 7, Office 2010 has seen an almost unprecedented level of interest from consumers and businesses in its beta testing phase, and with the release dates looming, Microsoft is keen to show off some of the new features that the package contains. For Office 2010, the software giant has taken a dual strategy of improving on basic functionality and bringing in features that are likely to be popular and useful in the future. With over seven million downloads of the beta software, the latest version looks like it will be as much of a hit with users as Windows 7 has been. What has been the primary aim of the beta release – is it about gauging public opinion on certain features? Chris Adams: Yes, it’s a big part of what we do from an Office release point of view. It’s been the largest Office beta we’ve ever done and we’ve had a huge amount of positive feedback, both from consumers and businesses, about the new features that they like. In addition, this is really the first release where we’ve spent a lot of time and effort focusing on the consumers as a market for Office.

“The most commonly used feature on Office is undo. This means that people aren’t getting the results they want the first time, so we’re now adding an automatic live preview” Chris Adams, Microsoft

68 PCR May

What kind of improvements are you making to the basic functionality? CA: We collect a huge amount of user data that highlights some of the things people have issues with when using our products. A simple example is copy and paste; when we look at the

most commonly used feature on Office, it’s actually undo. This means that people aren’t getting the results they want the first time, so we’re now adding an automatic live preview for people to see what it’ll look like in their document or spreadsheet before pasting. This is something that has proved to be popular with a lot of the beta users. Another change to the basics is the new print experience. We now offer a default print preview so it really is a case of ‘what you see is what you get’ when you print a document. We’ve found that this reduces paper wastage by up to 60 per cent. What about features for the future? CA: Well, let me take photo and movie editing as an example. There are now tools in PowerPoint that allow the user to edit pictures much more easily without having to go third party, while basic video editing has also been added. That’s really a feature that we see people using a lot more in the future. Tanya Shirlow: One of the things we’re hearing is how people are using more social networking in the workplace, and some of the features that we’ve got in SharePoint really enable social networking in the work environment straight out of the box. CA: Obviously this is the first time where we’ve introduced Office web applications too…

www.pcr-online.biz


SOFTWARE MICROSOFT INTERVIEW

This is the online suite? CA: Yes, consumers will be able to use the online web applications for free through the Windows Live service. These provide lightweight basic editing functionality for users who want to take advantage of the flexibility that using a browser based service can offer them. We’re still very confident that there’s a huge market for people using Office on the desktop, and we see these services more as an extension rather than a replacement. Regarding these online apps: I’ve heard rumours that Office 2010 will not be compatible with Windows XP. Would this be because XP doesn’t provide the kind of cloud support that Vista and Windows 7 do? CA: I can confirm that the specifications for Office 2010 do include Windows XP with Service Pack 3. One of the other features that we’ve included is that we’ve actually made Office 2010 cross-browser and crossplatform. It works on Windows and Explorer, as you’d expect, but it also works on Safari on a Mac, Safari on Windows, on Firefox – we really wanted to make it as cross-platform as possible so people could get the full Office experience irrelevant of what configuration they’re using. You’ve restructured the SKUs but you’ve also reduced pricing, what was the main reason for that? CA: By bringing the price down and adding increased value to the release, we’re covering that gap between people who just want Outlook and people who want to be fully commercially licensed. It’s really combining the SKUs in the middle space and providing an attractive offer there.

www.pcr-online.biz

We’ve tried to make the SKUs much easier for people to select the product that they want and having fewer versions makes it easier for our channel partners too. There’s fewer stock items, less shelf space, less learning for the sales teams – it makes things easier for everyone. Do you have a more precise date for the release? CA: For business customers who are buying in volume, we’ve tied the launch date to May 12th. For general release, we’re still aiming for a June launch but we’ll be announcing a more specific date in the coming weeks. The policy of making the beta so widely available has worked very well for Windows 7 and seems to be working for Office 2010 too. Is this going to be standard Microsoft practice going forward? CA: Yes, I think that these betas show there’s a lot more demand for businesses and consumers to have access to the latest software and technology. We’re certainly surpassing all the targets that we set ourselves for the testing phases, so it’s really great that there’s that amount of interest. I think that the interest in beta is a good forward indicator for consumer demand once the product release. TS: Customers seem to be cautiously optimistic; they want to see how they can grow the business through the use of technology, and as far as we can see that is absolutely where the opportunity exists for channel partners right now. With the extensive deployment of the beta and the confidence that our channel partners feel around the product, we’re feeling quietly confident ourselves.

"Customers want to see how they can grow the business through the use of technology – that is where the opportunity exists for channel partners right now" Tanya Shirlow, Microsoft

May PCR 69


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SOFTWARE PC GAMES

Game On PCR looks at the best-selling PC games and those due for release over the coming months...

GAME OF THE MONTH TOM CLANCY’S SPLINTER CELL: CONVICTION Publisher: Ubisoft Contact: 01279 822800 Released: April 30 2010 Price: £34.99 CONVICTION is the latest installment in Splinter Cell, the celebrated stealth action series of games, endorsed by military action novelist and ex-soldier Tom Clancy. The game once again follows Sam Fisher as he skulks around unleashing covert death on various bad guys. During

an investigation into his daughter’s death, he discovers he’s been betrayed by his former employers the Third Echelon. Deciding to take down his one-time bosses, Fisher quickly finds himself embroiled in a dangerous terrorist conspiracy, and must somehow stop a fiendish plot to kill millions of civilians. Players will be required to adopt a mix of carefully honed stealth tactics, and gun-blazing strikes in order to take down a professional force of elite operatives and save the world.

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Consumer

Electronics PCR’s monthly look at recent developments in the consumer electronic market

p 76

TABLETS ,We take a look at the emerging tablet PC sector and talk to some key industry figures about what they think the main developments will be as the market grows

www.pcr-online.biz

P 81

GPS With a wave of new features and applications available, we investigate the reinvigorated GPS market

May PCR 75


CONTACTS

CONSUMER ELECTRONICS TABLET PCS

Distributor Phone Numbers Bluepoint: 0844 571 8001 Micro-P: 01282 776 776

Apple iPad: Apple has been the trailblazer in pushing the Tablet category in to the public eye. It’s iPad features a 9.7-inch multi-touch screen powered by the 1GHz Apple A4 processor and offers up to ten hours of battery life Distributor: Direct

VIP Computers: 0871 622 7500 Vendor Websites Acer: www.acer.co.uk Apple: www.apple.com Archos: www.archos.com Asus: www.asus.co.uk HP: www.hp.com Toshiba: www.toshiba.co.uk

A clean slate 2010 is set to be the year tablet PCs finally break into mainstream computing, after spending a number of years on the back-burner. With more reliable hardware and sleeker designs, consumer interest in these devices is at its peak. Matt Grainger investigates this emerging market... “Thanks to the marketing clout behind Apple’s iPad, the form factor is just now starting to get a lot of recognition” Nigel Owens, Motion Computing

76 PCR May

THE CONCEPT behind the tablet PC has been floating around for a while now, from the pages of science fiction novels, to the initial promise of Windows XP Tablet Edition in 2001. However, the idea floundered in the past as successive generations of hardware have been unable to meet the demands of consumers. “Battery life was poor, functionality was not good and processors were not up to the job,” comments Archos’ managing director for Northern Europe, Tony Limrick on the previous generation of tablets. “All this has changed and they can now offer true portability with functionality.” Following years of development, the technology behind the components and software interface has advanced to the point where the tablet form can offer a realistic and sustainable model for general release.

It would be remiss to write an article on tablet PCs without mentioning the iPad. While it has faced some criticism about certain features, for example the lack of multi-tasking and the absence of Flash support, the advertising drive behind the device has raised public awareness of these devices in an unprecedented way. NEXT GENERATION “Thanks to the marketing clout behind Apple’s iPad, the form factor is just now starting to get a lot of recognition,” says Motion Computing’s vice president for worldwide sales, Nigel Owens. “With business and social lifestyles becoming more demanding, many industry sectors are adapting their workforces to embrace tablet PCs due to the increase in productivity among workers and lower administration costs compared to pen and paper.”

VIP’s purchasing director, Duncan McAuley adds: “Apple has created the demand that we are seeing, just as they did with the iPhone and iPod. They have released an aspirational product, which offers many of the same attractions as the iPhone. The launch of any new Apple device will invariably attract a lot of consumer attention, and the release of the iPad is no different.” While the release of the iPad has certainly raised consumer awareness, the device itself sits in a separate category from the majority of other devices that will be coming out over the course of this year due to the inclusion of Apple’s own A4 processor. In terms of hardware, we can expect most of the new releases to utilise Intel’s Atom range of mobile processors and to run on the Windows 7 operating system.

www.pcr-online.biz


CONSUMER ELECTRONICS TABLET PCS

HP TouchSmart tm2-1000: The TouchSmart is another of the hybrid style tablets, however this features the multi-touch support offered by its Windows 7 operating system. It also carries an Intel Pentium SU4100 and utilises the Intel GS45 chipset

Toshiba Portege M750-159: This device is a convertible netbook which allows the screen to be swivelled an folded back on itself to make a tablet. It runs Windows Vista, and carries an Intel Core 2 Duo processor with the Intel GM45 chipset

Distributor: Bluepoint

Distributor: Bluepoint

Acer Aspire 1825PTZ: This device is powered by the 1.3GHz Intel Pentium SU4100 and features a convertible design and an 11.6inch multi-touch screen. Battery life is eight hours and the system utilises the Windows 7 Home Premium operating system Distributor: Micro-P

Although the development of increasingly sophisticated hardware has gone a long way to foster the creation of a new category, Micro-P’s PC product manager Derek Jones feels that new software has had an obvious effect: “Advances in software have been the prime motivator in allowing a better user experience, and are the main reasons behind the sudden growth in popularity,” he told PCR. “Multi-touch screens offer a improved user experience over resistive models and have allowed the development of applications designed to be navigated by touch rather than mouse.” The inclusion of touchscreen support in Windows 7 has been a key development as it has allowed vendors to create solid multi-touch devices without the need to develop dedicated software. The establishment of a standardised multi-touch software

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interface is likely to have a great effect on the third party software market, and reduces chances of the app market becoming a series of walled gardens. MARKET SHARE While the tablet form does offer a number of advantages to the channel, the real measure of success will be consumer sales. If the release of Apple’s iPad is anything to go by – where international sales had to be delayed due to strong US consumer demand – then the segment could prove to be very strong indeed. Limrick feels the tablet could become the mobile PC of choice for future generations of PC users: “We believe the form factor is ideal for portable PC use. Why waste space with a keyboard when this can be via the touch screen? When we travel we want light, and small devices but with great functionality.”

Although the current generation of tablets are forecast to prove popular with consumers, the likelihood of them outright replacing traditional desktop and laptop PCs is low. HP’s PR manager for the EMEA Personal Systems Group, Manuel Linnig, feels that the two categories can complement each other: “Tablet PCs or convertible notebooks have been around for some time and are categorised as part of the notebook range. Rather than seeing this as a replacement of netbooks, it’s perhaps more appropriate to say that it’s an extension to the notebook family.” “Whilst tablet PCs certainly have a part to play in the market, I’m not sure that they will be the main form factor of the future,” predicts McAuley. “They could certainly replace or even complement some other form factors for a significant

period of time, but much will depend on the usage of tablet devices and whether they can be perceived as really beneficial to consumers.” With this in mind, it seems probable that the tablet will take a complementary role alongside desktop and laptop PCs. There are certain aspects to these devices that can never be replicated or emulated by a tablet PC and they can act as a hub for larger files while handling more intensive tasks, like gaming or active downloads. “I would expect to see some of the netbook business transition to tablet but much will depend on whether the form factor attracts the mainstream market as well as the early adopters,” forecasts McAuley. “Initially I think we will see the tablet as an additional product, especially given that Apple doesn’t currently offer a netbook.” During the unveiling of the iPad,

May PCR 77


CONSUMER ELECTRONICS TABLET PCS

HP Slate: Leaked specs reveal that this device offers comparable hardware and performance to Apple’s iPad. It has an 8.9-inch multi-touch display, powered by the 1.6GHz Intel Atom Z530 and offers high definition playback as well as forward and rear facing cameras Distributor: TBC

Asus EeePC T91: This convertible device includes an Intel Atom Z520 processor and a gigabyte of DDR2 RAM. It runs on Windows 7 and comes with 32GB of onboard storage with another 500GB of remote storage Distributor: VIP Computers

Archos 9: With an 8.9-inch touchscreen, up to 120GB of storage, and powered by the Intel Atom Z510 with Windows 7, the Archos 9 offers performance comparable to many laptops. It also offers instant access to a wide variety of internet TV and radio stations and podcasts Distributor: Micro-P

>>>

Steve Jobs indicated that the device would sit in a separate category between laptops and smartphones. But the reality of the consumer market is that most people are unlikely to invest in both a netbook and a tablet PC, so the question remains: will tablets sit comfortably in their own category, or eat in to netbook market share? “Our belief is this will be a bit of both,” says Limrick. “The portability and size of a PC tablet will see some consumers buying a tablet who didn’t purchased a netbook as the size benefit was not sufficient over the laptop. “We also believe that some users will see the benefit of space and weight of the PC tablet over the netbook and make the change, thus taking some market share from netbooks. Over time, netbooks and laptops have almost morphed into one – the tablet is a true portable alternative.” Jones, however, points out that an equally vulnerable market is the

78 PCR May

emerging e-reader segment: “Tablet PCs will take some market share from netbook, however, most growth will be in the relatively new category of ereaders and portable media devices.” SOFTWARE PIPELINE There is a critical difference between the netbook and the iPad. While the netbook functions primarily as a light weight browsing device, the iPad creates a pipeline directly to Apple’s App Store. The only other devices to have a similar style of software distribution are the ereaders, for example Amazon’s Kindle, and it is this business model that has generated such high levels of interest from software developers and media. “The opportunities for developers are huge as the application store model allows individual programmers to monetise their creations very easily,” observes McAuley. “Many companies are starting to realise the benefits of

having bespoke applications which allow them to engage with consumers on the go, albeit for marketing new products or providing additional services. The popularity of the Apple application store has already proven how much demand there is from consumers looking for entertainment or extra features.” This is the real key to success and – if Steve Wozniak is to be believed – it’s possible that this is what Apple had its eye on throughout the development of the iPad. The device links straight through to its proprietary content download portal, and offers a controlled environment for software developers to offer applications and for media and entertainment companies to provide content. It is the existence of a monetised and effective software pipeline that will be the measure of success in the tablet PC segment, and it is this business model that makes these devices a truly outstanding category.

OUR EXPERTS

Duncan McAuley VIP

Nigel Owens Motion

Tony Limric Archos

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48 5 St an d us on se e an d Co m e

Mobile Computing and Data Capture Distribution

Varlink Ltd, Unit 1, Osbaldwick Industrial Estate, Outgang Lane, York, YO19 5UX Tel: 01904 717180 Fax: 01904 438999 WPAN Radio IRDA - Bluetooth

WLAN Radio 802.11b/g

www.varlink.co.uk WWAN Radio GPRS - EDGE - HSDPA - 3G

The features listed are a selection from all products shown, please contact us for individual handset speciďŹ cations.

CE


CONTACTS

CONSUMER ELECTRONICS GPS

Chameleon Direct: 0800 0132 204 Garmin: 02380 524 000 Ingram Micro: 0871 973 3000 Pama: 0161 494 4210

[

Total PDA: 0870 220 4800 Westcoast: 0118 912 6000

]

Garmin Nuvi 3790T SRP: £TBC Distributor: Direct They say: “Easily the thinnest portable navigator on the market – an irresistible design that begs to be turned on and shown off”

Widget: 01438 842362

Specs: 4.3-inch capacitive multi-touch display, 2D or 3D view, screen lock, predicts the user’s destination based on frequent journeys, fuel saver mode, lane assistance, speed limit indicator, Connect Photos function associates images with saved locations, ‘wake-up phrase’ initiates voice-activation

Getting from A to B Sat nav systems broke out into the consumer electronics sphere just a few years ago, but since then the segment has seen its fair share of ups and downs. Nicky Trup talks to the sector’s leading vendors to find out about the latest technologies that have customers coming back for more…

“A lot more people are looking for feature-led products that will enrich their journey, not only from A to B but also when they arrive there” Matt Wallis, Mio

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GPS DEVICES have had a tough time of late, thanks in part to the rise of free mobile navigation applications and the steady drop of average selling prices. The recession didn’t help either, contributing to a 15 per cent decline in value of the personal navigation market last year*. However, the devices are back on the rise, with a whole host of features that are enticing customers to return to the sector. As with most consumer electronics, one of the key trends for sat navs is connectivity. “A lot more people are looking for feature-led products that will enrich their journey, not only from A to B but also when they arrive there,” says Matt Wallis, UK country director for Mio. “You may not want to look up a particular brand but, for example with our products, you can

pretty much say ‘coffee’ and it will give you all the local options.” TomTom’s vice president of sales and marketing for the UK and Ireland, Damien Woodward says: “You can Google points of interest, so rather than relying on a set database of points you can just go in and use Google to find the nearest restaurant or whatever it is you’re trying to find.” It’s not just consumers buying GPS devices; Navevo specialises in creating sat navs aimed at niche markets, including long-distance truckers. David Guiver, the firm’s sales and marketing director, tells PCR that connectivity is key to its ProNav range. “We’re launching the first PND for trucks that has online tracking built into it as well, so it’s an off-the-shelf tracking device,” he comments.

However, what Woodward sees as the “real golden egg” of personal navigation device features is traffic data. Wallis agrees, but with one caveat: “More and more people want these devices to avoid traffic hotspots, but in this economic climate consumers are very concerned about buying something and then having to continue to pay for services.” According to Anthony Chmarny, public relations manager for Garmin Europe, some of the latest technologies include predictive routing, which learns the driver’s habits from each drive, and voice activation software. Garmin’s newest PND allows the user to name the device, simplifying voice activation. “You can call the device Bob, George, Jemima or

>>>

May PCR 81


CONSUMER ELECTRONICS GPS

[

TomTom Start 2 SRP: £119 Distributor: Widget, Ingram Micro, Total PDA

[

]

Specs: UK and Ireland maps, ultrawide 5.1-inch screen, 3D landmark viewing map, multiview display, 14mm thickness, up to two hour battery life, streaming traffic alerts available with subscription, compatible with Bluetooth-enabled phones for hands-free communication, professional installation can connect the device to MP3 players

Specs: Maps of UK and Ireland, simplified menu with just two options – ‘plan route’ and ‘browse map’ IQ Routes, compact 3.5-inch screen, advanced lane guidance, Map Share, spoken street names, high quality speaker, help menu

[

]

They say: “Combines our cutting-edge navigation with the ability to watch hundreds of digital TV channels across Europe” Specs: European map data, 4.7-inch widescreen, digital TV tuner (for use when stationary – cuts out above 5mph), 3D junction views and lane guidance, built-in traffic information, local search, spoken road names, speed limit data, walking mode, eco routing, photo navigation

>>>

whatever and it will do as you ask,” he suggests. Sat nav screens have also seen a revamp of late. Chmarny comments that Garmin is moving towards capacitive screens over the traditional resistive technology that most GPS devices feature. Featured on devices such as the iPhone, capacitive screens detect the user’s finger without the need to physically press it. “The screen is a lot clearer, it’s a lot brighter – and the actual ability to go from one page to the next is made easier,” he notes. “Screen sizes will go bigger,” adds

82 PCR May

]

They say: “A standalone navigation device that can seamlessly integrate with existing mobile communication and music needs”

They say: “A smart new device that makes driving even more stress-free”

Mio Navman Spirit V505 TV SRP: £199.99 Distributor: Westcoast

Motorola Motonav TN760t SRP: £259.99 Distributor: Chameleon Direct

Wallis. “Whereas mobile phones get smaller and smaller, in satellite navigation the quality of information is key, therefore the 3.5-inch market will slowly decline and the standard size will be a 4.3-inch screen.” Mio is even going so far as to add an inbuilt digital TV tuner to its topend devices, allowing them to fully utilise the higher-end displays. “Once you hit 5km an hour, which is an average walking speed, it will disable the audio and visuals from the TV. Otherwise there would be instances where people try and watch while

[

Navevo BBNav SRP: £199.99 Distributor: Pama

]

They say: “The first dedicated blue badge sat nav solution specifically designed to support disabled drivers and those caring for the disabled” Features: On-street disabled parking bays Specs: UK maps, 4.3-inch touchscreen, bluetooth, details of over 10,000 blue badge and red route parking bays and over 3,500 disabled-accessible car parks, local council blue badge parking concessions, thousands of points of interest for disabled people including toilets, accessible accommodation and Shopmobility centres

they’re driving,” he laughs. For Navevo, there are other lifestyle factors to take into consideration. The firm’s BBNav device is aimed specifically at people with mobility issues. “For people with disabilities, they need to know a lot more about things like toilets and so on – the things that we take for granted everyday,” says Guiver. “We’re looking at the GNSS (global navigation satellite system) because it lets you navigate within one metre, which for people with disabilities is really crucial if you want to find a bench

“Whereas mobile phones get smaller and smaller, in satellite navigation the quality of information is key, therefore the 3.5-inch market will slowly decline and the standard size will be a 4.3-inch screen” Matt Wallis, Mio

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CONSUMER ELECTRONICS GPS

[

TomTom XL IQ Routes 2 SRP: £139 Distributor: Widget, Ingram Micro, Total PDA

]

[

They say: “Helps drivers navigate with the best quality map at all times” Specs: UK and Ireland maps, extra large touchscreen, IQ Routes, advanced lane guidance tells the driver which lane to take, spoken street names, Map Share technology makes and downloads corrections to maps

[

Garmin Nuvi 1690 SRP: £279.99 Distributor: Direct

]

[

They say: “Real-time information you need at your fingertips, with roaming throughout Europe” Specs: 4.3-inch touchscreen display, pedestrian navigation, fuel saver mode, lane assistance, text to speech function, maps for 33 European countries, speed camera warnings, bluetooth to pair with compatible mobile phones, can remember and direct the user back to where the car is parked

or wheelchair access.” “BBNav also covers all types of parking, because different councils all have different rules on parking with a blue badge. For example, in Westminster you’re not allowed to park on any yellow line – you’d be towed away instantly.” Navevo’s device is clearly targetted at the 2.1 million people in the UK who have a disabled parking badge. The more mainstream sat navs, however, have a much broader audience to please. “A wide range of people buy sat navs, from the younger

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Navevo ProNav SRP: £199.99 Distributor: Pama

Mio Navman Spirit 475 SRP: £TBC Distributor: Westcoast

They say: “Find and navigate to destinations more quickly and reliably than ever” Specs: 4.3-inch widescreen, IQ Routes for optimised routing, built-in traffic information, 3D junction views and lane guidance, spoken street names, keyword search, speed limit information, rental maps, tunnel guidance, QuickSpell keyboard

]

They say: “Calculates the best route to ensure you are not confronted with roads or obstacles not suitable for your vehicle or your goods” Specs: UK and Ireland maps, 4.3-inch touchscreen, navigation based on height, weight, width, length and hazmat, potential hazard warnings, HGV points of interest including truck stops and loading bays, bluetooth, can switch to regular car navigation

people who have just started driving, to the older generation that want to have the comfort of a device in the car in case they get lost or there is an emergency,” notes Chmarny. “The great thing about any sat nav is that you can upgrade the maps and you can upgrade the speed cameras, so it has longevity. But we are now starting to see the repeat purchase.” Both Wallis and Woodward estimate that around 40 per cent of the PND market is comprised of second-generation users. “These are the people who went and bought

]

[

TomTom GO 550 Live SRP: £229 Distributor: Widget, Ingram Micro, Total PDA

]

They say: “More intuitive and easier to operate, giving drivers all the information they need about their journey before they set off” Specs: Maps of UK and Ireland, IQ Routes technology to calculate the most efficient route, hands-free calling, voice command and control, eco routes, frequent destinations menu, Live services include real-time connection to HD Traffic, safety alerts, fuel price information and Google local search

devices for an A to B route. And they’re now at the stage where they want to buy another newer product which is slimmer, lighter and more feature-rich,” says Wallis. Woodward describes the situation as a polarisation of the market. At one end are the first-time users who are looking for simplicity and good value, and at the other are repeat customers who are “looking for the next stage in technology. What they spent around £400 on four years ago, they’d probably get twice the technology for almost half the price.”

But what about the supposedly growing threat of mobile phones applications encroaching on the GPS space? All of the vendors are equally dismissive of the threat, claiming convergent devices would not become the mainstream any time soon. “There will be a certain market out there that wants to buy the application to put on their mobile device and have it all in one, but the majority of people will continue buying a dedicated device to do the job they want, and do it properly,” Wallis concludes. *GfK figures, December 2009

May PCR 83



>>> THE PLACE FOR BUSINESS

MARKETPLACE

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

ADVERTISER CONTACTS Bluepoint 0870 121 8001

bluepoint.net

Brigantia 01765 603 300

brigantia.com

Cartridge Expert 01489 795 668 cartridgeexpert.co.uk CD Writer 0208 293 0777

cd-writer.com

Computer gear 0121 503 0666

computergear.co.uk

DSL 01604 924 516

dslplus.co.uk

Expodata 0870 077 0077

pctestpro.com

GEM 01279 822 822

gem.co.uk

Ideal Software 01767 689720

idealsoftware.net

Interactive Ideas 0208 805 1000 interactiveideas.com Keyboard Co 0845 205 5555

keyboardco.com

SDA 0161 819 1515

sdatrading.com

SJ Software 01282 865 500

sjsoftware.co.uk

Sweex sweex.com TADL 0845 370 8668

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TP Link info.uk@tp-link.com VIP 0871 622 7500 vip-computers.com/uk

To advertise on these pages please call Carly Bailey:

01992 535647 carly.bailey@intentmedia.co.uk www.pcr-online.biz

May PCR 85


MARKETPLACE NEWS

NewsBytes SYNOLOGY SIGNS UP NEW UK DISTIE CCI Distribution has partnered with network attached storage vendor Synology to provide systems integrators and resellers with lowcost storage for home and business users. One of just two UK distributors, CCI is now stocking various Synology NAS subsystems, including the DiskStation DS210J and DS410. Synology UK sales director Victor Chiang said: “When looking for a suitable route to market in the UK, CCI stood out from the crowd not only because of its distribution expertise and ambitions, but also its genuine added-value approach to both resellers and end-users.”

MICROSOFT TO PROVIDE FORD ELECTRIC CAR SOFTWARE Microsoft is joining forces with Ford to provide energy management software for the car maker’s electric vehicles. Ford is the first car firm to use Microsoft’s Hohm software, which will make its debut in the Focus Electric next year. The application tells owners when and how they should recharge electric and hybrid cars. According to Microsoft, Hohm should also help utility companies manage the increasing strain that electric vehicles place on the electrical grid. STONE SIGNS £13M UNI DEAL Public sector IT provider Stone Group has been awarded a £13 million contract to supply IT hardware and maintenance services to The University of Nottingham for four years. The package offered by Stone includes providing up-to-date equipment including desktops and laptops, as well as secure data erasure and recycling displaced equipment. NEW TECH 'COULD CHANGE COMPUTING' HP’s research division has developed a technology that could potentially change the way PCs are designed, creating much more efficient machines. Scientists at HP Labs have discovered that the ‘memristor’, which was first demonstrated by the firm in 2008, has a larger and broader range of capabilities than previously thought. As well as being used in its traditional storage

86 PCR May

Midwich’s business manager for displays, Lee Baker says the deal is well timed with the World Cup

capacity, the device – a resistor with memory that represents the fourth basic circuit element in electrical engineering – can be used to process data, meaning that in future the chips themselves could store and process data in the same device. EPSON OFFERS TWO PROJECTOR PROMOS Epson has launched two new promotions to coincide with this year’s major football tournaments. Epson customers will receive a free 80-inch portable screen with the Epson EH-TW450 projector, and a free Philips Blu-ray player with the EH-TW3500 projector. The offer runs until July 11th. CCI INKS DEAL WITH DATASTOR CCI Distribution has signed an agreement with DataStor to provide UK systems integrators and resellers with its backup solutions for the SOHO, SMB and enterprise markets. DataStor’s products remove redundant data simultaneously across multiple physical and virtual machines, reducing backup storage requirements to one twentieth of their original capacity and speeding up network transfer rates by around 20 times. DataStor’s Armand Dietrich said: “We’re delighted to be partnering with CCI in order to develop our presence in the UK, as well as working together to educate and encourage businesses to adopt these best practice data backup strategies.”

PHATTY AND SLIMMY UNVEILED Slovenian software developer Notorious Solutions has launched a new hardware brand, Notorious Gadgets, which is making its debut with two new desktop ranges – Phatty and Slimmy. The vendor claims the machines are energy efficient with low noise levels. Both ranges are 214mm x 22mm, but vary in thickness. The Phatty measures 80mm deep, compared to the Slimmy’s 55mm, however, the latter has no integrated DVD drive. Available initially through the vendor’s website, Notorious hopes to roll the Phatty and Slimmy out in stores across Europe.

Interactive earns Silver IiP accolade INTERACTIVE IDEAS has been awarded Silver Investor in People status, putting the distributor among the top two per cent of employers recognised for being highly committed to the professional development of their staff. Investors in People helps businesses to improve their performance through good practice in human resource development. Overall, only two per cent of the 40,000 organisations with IiP accreditation have achieved silver or gold levels. Mike Trup, Interactive Ideas’ managing director, said: “We sought IiP accreditation six years ago because we believe in developing the professionalism of our people. This is a core value for us, so when IiP introduced the higher Silver standard

“This is a core value for us, so when IiP introduced the higer Silver standard we wanted to be one of the first companies to get it” Mike Trup, Interactive Ideas

we wanted to be one of the first companies to get it. Having a highly skilled, stable and professional team is not only good for us but good for our clients and vendors.”

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NEWS MARKETPLACE

Midwich expands AV portfolio New deals see Norfolk-based distie stock new lines of PC displays, LCD TVs and desk-top boxes By Nicky Trup

MIDWICH has finalised three new distribution agreements that will see it increase its audio-visual offerings across the corporate and consumer markets. The distributor is now stocking NEC Display Solutions monitors, including the 90 series of high-end desktop displays and the PA series, which offers additional eco-friendly features. Under the terms of the deal, Midwich will also have access to the SpectraView range of displays, which use in-plane switching technology to offer a viewing angle of 178 degrees and high quality colour reproduction. These devices are used in industries where colour is crucial, such as design, and the distributor will be focusing on

screen sizes of 24-inches and above. Meanwhile, the company has also inked a deal with leading European settop box vendor Sagemcom to stock a

“The deal with Sagemcom is timely because the World Cup will drive demand, while Cello gives our customers another budget TV option” Lee Baker, Midwich

range of its products, from Freesat and Freeview devices to twin-tuner HD MPEG4 digital TV receivers with integrated hard disk drives.

Midwich has also formed a partnership with Cello Electronics, a UK-based LCD TV vendor. The firm focuses on manufacturing affordable LCD televisions, including a range with integrated hard disks and DVD players. Cello’s recently-launched iViewer allows the user to access social networking sites and stream content directly from BBC iPlayer or YouTube without an additional set-top box or games console. Lee Baker, business manager for displays at Midwich, said: “We want to give our customers the best possible choice, so we are always looking for new opportunities.

The deal with Sagemcom is timely because the World Cup will drive demand, while Cello gives our customers another budget TV option. The addition of NEC desktop displays means that we now stock the full range of NEC products, including projectors and large-format displays.”

Software vendor ABBYY boosts market presence Specialist distributors to help boxed and download versions of the firm’s document recognition, data capture and linguistic software

ABBYY is looking to increase UK and Ireland market penetration for its document recognition software

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SOFTWARE VENDOR ABBYY UK has inked deals with two specialist distributors to boost demand for its products across the UK and Ireland. US-headquartered Douglas Stewart EDU and UK-based Sigma Software Distribution will carry a range of ABBYY’s boxed retail products, as well as download versions of the software. Douglas Stewart’s focus lies in distributing computer products into the education and charity markets, while Sigma is a value added distributor of specialist technical, development and business software. Jane Silk, Sigma’s head of vendor relations, said: “We believe that Sigma

“We believe that Sigma can help ABBYY translate the benefits that their highly effective tools provide into real business opportunities for our resellers” Jane Silk, Sigma Software can help ABBYY translate the benefits that their highly effective tools provide into real business opportunities for our resellers. We will be educating our partners and helping them to

communicate to their customers about how ABBYY solutions can save time and money by solving real day-to-day issues around managing information.” Douglas Stewart’s managing director, Lori Mercier, added: “Our strategy with ABBYY products will be to clearly communicate their suitability within education to our reseller partners and help them proactively promote to their end users.” ABBYY – which specialises in document recognition, data capture and linguistic software – expanded its team earlier this year with a new channel sales manager for the UK, Fiona McCormick.

May PCR 87


MARKETPLACE

Creating amazing experiences. Driving sales. PC Sales Manager Competitive salary package including sales related bonus, car allowance, benefits and stock Reading At Microsoft, we’re inspired by our customers. This means we’ve listened, observed and taken a PC from a piece of hardware to something that creates an altogether different experience. Our software, such as Windows™ and Office™, is designed to transform the way you work, whilst the Xbox 360™ gives you an exceptional gaming experience. In addition, we’ve designed a suite of specialised devices, such as webcams and keyboards that ensure you get the most of our full product range. As part of the Entertainment and Devices Division, you’ll head up a small team of remarkable individuals to deliver on the broader PC strategy, driving specialised devices and software sales to the retail market – from high street and online retail, to working with key stakeholders across the PC ecosystem to produce amazing consumer retail experiences.

88 PCR May

A natural leader you’ll motivate your team to not only hit, but overachieve when it comes to targets. You’ll also consult with CEOs and Managing Directors on all aspects of the contract, ensuring they’re getting everything they need from us. And to ensure success is the only outcome, you’ll also help shape marketing plans and sales promotions, as well as forecasting and monitoring performance, adapting tactics as required. To improve on what we’re already doing however, your credentials will have to be impressive. You’ll need proven retail experience, as well as understanding the workings of the PC marketplace and how products are sold. And whatever role you’ve played, you’ll showcase a history of notable achievements. As important are your tenacity, enthusiasm and unswerving commitment to excellence in this competitive yet exciting and visible area of our business. If you’ve got the determination to achieve great things at a company where they’ll be recognised – and rewarded, the next step is simple.

Find out more about this exciting opportunity at www.microsoft.com/uk/careers Closing date for completed applications: Friday 23rd April 2010.

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COMPANY PROFILE MARKETPLACE

United we stand It’s no revelation to say smaller retailers and resellers have it tougher than most these days, and the IT and office market is no exception. Dealer group Integra Office Solutions claims to offer long-term boosts to businesses and is looking to sign up more members. Andrew Wooden talks to MD Aiden McDonough…

CONTACT Phone: 01633 653 000 Web: www.integra-office.co.uk

www.pcr-online.biz

HAVING FORMED in 1997 from a merger between the National Dealer Association and Instat, Integra Office Solutions currently has 300 members and claims to be the UK and Ireland’s largest dealer group in the office and IT supplies industry. The chief benefit of dealer and buying groups is the conglomerate buying power that members together can command – which in Integra’s case represents £450 million. The firm signed up swathes of members in 2009, and is looking to boost its ranks further through 2010. “We are actively recruiting currently and have had a very positive start to the year,” says managing director Aidan McDonough. “We recruited in excess of 50 dealers in 2009, which we felt was indicative of companies looking for a financially robust organisation to support and strengthen their offering to help them survive the testing economic climate.” Of course in times like this businesses, especially smaller ones, will need to see tangible benefits to becoming members of trade organisations and dealer groups. Integra cites some of the advantages of joining as preferential purchasing agreements with wholesalers,

distributors and vendors, access to a strong independent brand with end user sales in excess of £19 million, an all-encompassing marketing support programme incorporating traditional direct mail and catalogues together

“The IT hardware channel is a major focus for Integra this year as the stationery market is now converging into the resellers selling hardware due to the high margins that stationery offers” Aiden McDonough, Integra Office Solutions with e-marketing and web solutions, and comprehensive IT support. The firm says it is pouring money into support schemes for its members this year in order to give them more advantages in a hostile marketplace. “By the end of 2010 we will have invested over £1million into price support for members purchasing the initiative brand, helping them to

remain competitive against a backdrop of industry price increases,” McDonough comments. “We are continuously improving and updating our web solutions to ensure they meet with customer expectations and have recently launched Inprint 2 – our updated print solution with HTML functionality and email marketing campaign management tools. “The IT hardware channel is a major focus for Integra this year as the stationery market is now converging into the resellers selling hardware due to the high margins that stationery offers.” The sheer number of trade organisations with overlapping interests operating in the UK can make it seem like there is more competition than there actually is in this area. While this can make the landscape seem confusing, Integra highlights its strong relationships with other trade bodies as one of its key benefits. “We are members of BPGI, Business Products Group International, a multibillion pound global purchasing consortium providing members with additional buying power. We are members of the TCA and the BOSS Federation (British Office Supplies and Services Federation), together with BPIF (British Printing Industries Federation).”

May PCR 89


MARKETPLACE APPOINTMENTS/EVENTS APPOINTMENTS

Asus bolsters its UK channel team Trustmarque adds two to management CCI hires Reardon as sales director Focus promotes Grant Hughes ASUS Asus has hired MATTHEW POWELL as its new UK channel manager for servers and barebone products. A graduate of Bournemouth University, Powell previously spent four and a half years as sales team leader at business IT solutions supplier Upgrade Options. Powell said: “I’m very pleased to have joined Asus and look forward to developing the server and barebone business within the UK channel.”

Mark Penny

Grant Hughes

James Coombes

Matthew Powell

TRUSTMARQUE The value-added reseller has appointed SIMON RUTT as its new director of marketing and partner alliance and MARK PENNY as its strategic sales director, as the firm looks to consolidate its position as a leading services provider. Rutt comes with 15 years of experience, including upper management roles at Insight and Microwarehouse, while Penny has held senior positions at Insight, Microwarehouse and Equanet.

CCI DISTRIBUTION

FOCUS MULTIMEDIA

G DATA

CCI Distribution has added KEIRON REARDON as its new sales director. Reardon has worked in IT distribution for over ten years, starting out at media specialists Traxdata before moving to a senior sales position at data storage specialist E-net. In his new role, he will oversee the diversification of CCI’s business units and the development of its professional storage range.

PR AND marketing manager GRANT HUGHES has been promoted to business development director at Focus Multimedia. Hughes held roles at Datel and Game before joining Focus in 2004. His previous role will be filled by ALAN WILD, who has over a decade of experience in the software industry, most recently at BitDefender and Ascaron Entertainment.

AS PART OF its strategy to establish itself in the UK market, German security software provider G Data has appointed JAMES COOMBES as its first UK sales representative. Coombes previously worked at Panda Software and security software distributor Infinite Business. He will help UK business developer Jan Van Haver build up the G Data brand and channel here in the UK.

DIARY DATES 2010 The UK’s channel calendar is full of important events. Here are some upcoming highlights of the year ahead…

MAY

RETAIL VISION EUROPE MAY 10TH – 12TH Sofitel, London Heathrow Retail Vision gives retailers and distributors the chance to find the latest products to bring to market and meet vendors face-to-face in a structured business setting. Attendees can also make the most of relaxed networking events in the evenings.

CHANNEL EXPO

CHANNEL EXPO MAY 12TH – 13TH Kensington Olympia, London Building on the success of last year’s show, Channel Expo 2010 will feature in-depth education and discussion areas, as well as exhibition stands from all the leading distributors and vendors operating in the UK channel. It’s the largest and most influential

trade show of its type in the UK, and reduced room rates are also available in the hotel if you want to partake in the evening networking events.

MONETISING MOBILE MAY 26TH BAFTA, London Organised by ME, PCR’s sister publication, the Monetising Mobile conference focuses on how to make money from smartphone apps and widgets. Seminar topics include marketing, business models, formats and metrics. The conference will be followed by an evening of networking, dinner and drinks.

JUNE

ENTERTAINMENT INDUSTRY'S ANNUAL CHARITY GOLF AND SPA DAY

MAY 27TH Chandler's Cross, Herts The event will consist of 18 holes of golf on the prestigious Grove course, followed by a three course awards dinner in the Grove Hotel. Exclusive use of the Grove’s Sequoia Spa’s indoor pool and fitness facilities are also provided.

JULY

CHANNEL GOLF DAY JULY 8TH Staverton Park, Daventry The TCA’s annual golf day gathers together key players from the country’s IT and PC trade, offering the chance to network and compete with business contacts. For golfers and non-golfers, the event includes a networking dinner and charity pool competition, as well as a spa and free golf tuition.

If you would like to promote your event, please contact: andrew.wooden@intentmedia.co.uk CHANNEL GOLF DAY 90 PCR May

This information is believed to be correct, but potential visitors should confirm details with show organisers before making arrangements to attend

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BRIGANTIA OPINION

Pirates, ahoy! Brigantia’s Iain Shaw takes a look at how new distribution models and open source software are putting the future of piracy in jeopardy... MY THOUGHTS on piracy are based on the assertion that there is little point in having a law which is effectively unenforceable. Piracy is becoming almost a laughing matter, with a significant percentage of the population downloading movies and music, whilst the owners of the IP try to enforce old legislation that is no longer relevant, and invent new draconian laws to stop the practice. They might as well sit with King Canute while the tide of change washes over them against their collective will. A possible solution for the music sector would be to totally change the way in which it does business. In this scenario, all music is given away freely. Using the existing systems, from last.fm through to Pirate Bay, the bands and their promoters post the music themselves along with tour dates. The money is then made by touring most of the time. With no requirement to be signed by a label, the music world would be open to all and musicians would be judged on their own merits by the public audience. I do not think that piracy of software will continue to be a mainstream problem for much longer. I realise that this is a very rash statement given the history and the current massive percentage of pirated software out there, but I think this for two reasons, the first of which is cloud computing. The more a piece of software uses external servers,owned and hosted by the software creators, the less possible it is to pirate the software. To hack a piece of software it must first exist on a local computer. If, like Steam, the software fundamentally requires access to remote servers to fulfil critical functions and this cannot be achieved without a legitimate log in, then the software cannot be hacked to produce a copy unless the remote server can be emulated, (which is not very possible if the software has been put together sensibly).

94 PCR May

The second reason that I do not think that software piracy will be much of a problem in the future is the Open Source community. Almost everything on Linux is built to be used freely, and as time goes by the users of open source software have less and less requirement to be PhD wielding nerds as the user interfaces are getting better and better. For example this article is written in Open Office on a computer running Ubuntu Linux. My children run Linux on their laptops and love the fact that they can get lots of free games. My point is that if there is something for free that is available then why would anyone go to the trouble of breaking the law to illegally own a similar product? Open Source is only getting stronger and more people are using it from my kids with their laptops to savvy mobile phone users enjoying the massive flexibility and power of their Android driven phones. To conclude, I think that unless the creator of a piece of intellectual property is involved fundamentally in the continued use of it then it is not possible any longer to realistically regulate it. In software that means cloud computing and in music making that means touring for a living. Once the fixed content of IP is released, it is out there and people will pirate it simply because they can. Why try to stop them? Why not change how the process functions and work with them to benefit all? Lots of things are possible once enough thought is put into them. Stopping the tide coming in by will power alone is not one of them.

“I do not think that piracy of software will continue to be a mainstream problem for much longer”

CONTACT IAIN SHAW info@brigantia.com 0870 160 3215 www.brigantia.com Iain invites opinions from PCR readers and will respond though this column

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OPINION TCA

MAC

PC

Keith Warburton is the president of The Technology Channels Association. email: keith.warburton@tcauk.org

New gadgets, new opportunities Keith Warburton takes a look at some of the latest tech on show at last month’s Gadget Show Live and suggests a few products to up those all important margins... Deadlines being what they are, I’m writing this on the TCA stand at The Gadget Show Live at the NEC. Technology being what it is, I’m writing it on my mobile phone, which I also happen to use as a personal audio player as well as a GPS sat-nav device both in the car and also as a pedestrian. I know that this sort of usage is common for many people – in fact I am probably a rather late adopter. ‘So what?’ I hear you ask. Well, the ‘what’ is severalfold. Let’s talk first about the stuff on show here at the Gadget Show. This event underlines how broad the market is for digital technology and that there are still products out there which give resellers margins of up to 40 per cent. Take, for instance, earphones. It seems that these days everyone in the Western world has at least one pocket digital device with audio output. In fact, many of us have several. The device suppliers seldom provide the best quality earphones, and with time even the best ones can get damaged. There is, therefore, a potentially huge market for upgrades and replacements. Shure’s in-earphones range from £60 to £400 excluding VAT, and should achieve a margin of a lot better than 30 per cent. Even if you don’t want to invest in a display carousel of headphones and earphones, sending a flyer to your customer base featuring a great offer on them should more than

96 PCR May

pay for itself if you just get one order out of it. There is always room for innovation, and Elonex seems to be adept at recognising gaps in the market. Following the iPad launch, Elonex has come out with the iDock XL, which allows happy iPhone users to have the benefit of a 10-inch screen without the expense. You simply slip your iPhone into the dock and you’ve got a device with eight hours’ battery life for just £149. TCA member Acer was showing its 24-inch 3D monitors, using Nvidia’s 3D glasses and some superb demo material. The dealer price is expected to be around £234 with an RRP of £299 excluding glasses. 3D will be one of the hottest technologies of the next 12 months and more, with content following on.

“These days there is a limited demand for ‘basic’ computing, but innovation in digital technology continues at a great pace”

We met quite a few TCA Members at the Gadget Show, including a group from PC Pal, the franchise business based in the Midlands. As entrepreneurs they were all keen to find out what business opportunities the latest technological developments have to offer. These days innovation in digital technology continues at a great pace, virtually irrespective of the economic climate. And that means there are plenty of opportunities for the channel.

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TCA OPINION

MAC

Robert Peckham is a director of The Technology Channels Association. email: robert.peckham@tcauk.org

So long, Computer Warehouse Robert Peckham bids a fond farewell to the London firm that was once Apple’s biggest UK reseller...

I had this month’s column all sorted and almost finished when I was completely amazed by the extraordinary announcement that none other than Computer Warehouse had gone into liquidation. Call me naive, but I really didn’t think I’d be sitting here writing a column about the demise of the company that once enjoyed the acclaim of being the UK’s biggest Apple reseller, winning many coveted awards for their standards of customer service and satisfaction during their 20-year history. I certainly always held Computer Warehouse in high esteem, and visited the company’s superb showrooms in Brentford, London, on many

occasions. Meeting their many sales staff and directors at Apple events and product launches was a regular occurrence and I always viewed their unique and refreshing advertising style with much admiration.

larger, long-established dealers for online (or telephone) sales who have certainly suffered with the growth of Apple’s own direct and retail operations, alongside the multitude of new APR stores; the sales pattern has

"Quietly I suspected the company’s success might have stalled when their PopXpress venture – an ambitious attempt at setting up a chain of dedicated iPod-only retail stores – came and went in a short timeframe during 2006" Computer Warehouse deserved its success, and I was very pleased to help celebrate the firm’s 21st anniversary while looking forward to seeing the new, larger premises in Park Royal which it moved into late last year. But quietly I suspected the company’s success might have stalled when their PopXpress venture – an ambitious attempt at setting up a chain of dedicated iPod-only retail stores – came and went in a short timeframe during 2006. Jonathan Cole, CW’s managing director, confided to me at the time that the project had proved very expensive for the company. CW joins a growing list of

certainly changed for Apple's volume sales from online to the more personal ‘retail’ purchasing experience. It’s only two years since another major direct sales Apple reseller – Gordon Harwood Computers, based near Derby – also closed their doors for similar reasons. By coincidence, in 2008 GHC was taken over by Square Group, one of Apple’s most successful APR Store operations, who have announced they are the buyers of the identity, customer base and online sales operation of Computer Warehouse. Square has recently invested heavily in its new online sales operation and has also recruited senior members of CW’s sales team to ease the transition for CW's customers. Goodbye Computer Warehouse, the Mac channel will be a less interesting place without you.

The TCA is the not–for–profit trade body with membership made up of businesses from all parts of the channel.

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Visit www.tcauk.org for more information

May PCR 97


OPINION

MAC

ITACS

NASCR

It's a jungle

out there ITACS chairman Matthew Woolley asks how independent retailers can introduce higher standards and better educate consumers... I AM STAGGERED by the amount of work piling up around the removal of fake anti-viruses, or scareware as we like to call it. The consumer market is awash with these problems. We don’t do much business support, but we would be interested to know if the business market is suffering from the same problem. I know from others in the trade that they are doing well out of fixing these particular problems, but I still think this is a problem that needs to

98 PCR May

NASCR committee member George Carr discusses how the trade can streamline the laptop repair process...

and the consumers. We, the small guys, get higher prices and lower support for offering our customers excellent service. How many of our customers ring the vendor support lines? None. They call us. Why? Because we are better. A recent Trading Standards report stated that computers are the fifth most complained about item. Why is that? Are we lowering ourselves to the level of used car dealers? Or is it that what we sell is

“We, the small guys, get higher prices and lower support for offering our customers excellent service. How many of our customers ring the vendor support lines? None. They call us. Why? Because we are better” be sorted out at the top. AV vendors should get a grip, as should Microsoft – the programs only infect Windowsbased machines. We recently contacted Microsoft to find out about their support for consumers and those of us that support the consumer market, but we are still awaiting a reply. It seems they don’t have a department for that. As over 50 per cent of all computers shipped this year will go to consumers, this seems a bit short-sighted. A big industry of small computer retailers that offer excellent support is growing up and maturing. The major players should wake up and seize the opportunity to support us

New tricks

too complicated for most people? I suspect it is primarily the latter. Now is the time to educate our customers, introduce standards that we can all work to, something that we can show our customers: a benchmark. We cannot get it right every time for every customer, since consumers have different expectations about how a computer should work. They expect it all to be perfect with no error messages, AV should keep the machine virus free, and updates should make life better, not worse. If you are in the consumer market and have an opinion I would like to hear it. Please email me at chairman@itacs.org.uk.

"Notebooks suffer from inadequate cooling, the entire computer is fragile, the screens are easily broken and a drink spillage is a major repair"

IN THIS ever-changing market, we are regularly presented with new challenges. Popular IT needs to keep changing and those of us who have been around for a while know that we must adapt to keep up with the trends. Notebooks are replacing desktop PCs to a large extent as their technical capabilities are no longer inferior to those big and bulky immobile pieces of furniture. Yet it is precisely their compactness that brings the challenge. Notebooks have too much going on in a small space. Parts suffer from inadequate cooling, the entire computer is fragile, the screens are easily broken by shutting the case with something on the keyboard and a drink spillage is a major repair. Even a broken keytop can cost a small fortune. By choosing subcontractors who will happily take some or all of the laptop work off their hands, PC retailers involved in technical repairs can get involved as little or as much as they like. However, this is a whole new field to most of us. We have to trawl through the internet finding someone we’ve never heard of who can get the obscure and expensive parts for us in seven to ten days (if we’re lucky) while trying to keep the customer happy. More complex faults will need component-level motherboard repairs performed by a competent technician. In short, there is a fast growing market for notebook repairs, but completely inadequate support. NASCR would like to work with Mike Scott manufacturers, component suppliers and repair contractors to improve the situation. Anyone in those categories should be able to see the obvious benefits to sales they should see by having their product supported by as many specialists as possible. We need to talk.

INDEPENDENT TRADE ASSOCIATION OF COMPUTING SPECIALISTS

NATIONAL ASSOCIATION OF SPECIALIST COMPUTER RETAILERS

YOU CAN CONTACT ITACS ON 08445 763 760 OR VISIT WWW.ITACS.ORG.UK

YOU CAN CONTACT NASCR ON 08456 440715 OR VISIT WWW.NASCR.ORG

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MARKETPLACE

Sony to launch 3D TV in time for World Cup 3D-ready Blu-ray players to get firmware update in time for launch this summer

“The Bravia HX800 series TV will offer full high definition 3D cinematic capability using Sony’s latest 200Hz high frame rate technology. Customers of Bravia 3D TVs will also receive a free 3D stereoscopic PS3 game.”

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SONY is launching a new 3D TV and Blu-ray player to coincide with this year’s World Cup, which the electronics giant will be filming with FIFA in 3D. The Bravia HX800 series TV will offer full high definition 3D cinematic capability using Sony’s latest 200Hz high frame rate technology. Customers of Bravia 3D TVs will also receive a free 3D stereoscopic PS3 game. Sony will also be launching its first Blu-ray player to offer 3D playback straight out of the box, the S570. A firmware update will be released for existing 3D-ready Blu-ray players in time for the HX800’s launch, and the first match of the tournament.

The vendor’s range of 3D glasses use active shutter technology to deliver full HD 3D and feature adjustable side arms

and nosepad. They come in a variety of colours and include smaller versions for children.

May PCR 99


MARKETPLACE

Ozone Gaming gadgets hit the UK Meroncourt now stocking peripherals including the recently launched Attack headset and Smog mouse “It’s like the mouse was tailored and designed for your own hand” Ozone

GAMING BRAND Ozone is bringing its line of peripherals to the UK for the first time, having signed an exclusive distribution deal with Meroncourt. Among the range of gaming gear is the Attack headset, a set of stereo haedphones with integrated microphone, which has compact leather cushions and an ergonomically designed adjustable headband. The headset provides stereo sound and an adjustable microphone, which allows it to be used for regular multimedia and VoIP applications, as well as gaming. The Attack’s 3.5mm mini jack connector allows compatibility with MP3 players and other devices, while its braided cables are designed for quality and durability. The in-line controller also has volume control and microphone mute functions.

Another of the products making its UK debut is the Smog gaming mouse, which is ergonomically designed with a right side hand grip than can be changed to suit the

The device’s macro support allows five different modes. The ‘adjust lift’ function adapts the sensor to the mouse pad being used, while ‘tilt scroll’ allows omni-directional scrolling. The Smog also has programmable buttons, ceramic footpads and the option of weight customisation.

user’s preference. According to Ozone; “it’s like the mouse was tailored and designed for your own hand.”

To advertise in this section please call

Carly Bailey 01992 535647 Carly.Bailey@intentmedia.co.uk

100 PCR May

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MARKETPLACE

Spire takes stock of new mini-ITX PC

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‘One of the smallest desktops in the world’ sports top-end graphics and is full HD-enabled AOPEN HAS launched a new mini-ITX home theatre computer into the UK market, available exclusively from distributor Spire Technology. The Aopen XC Mini GP7A-HD features Nvidia ION graphics software in conjunction with an Nvidia

The XC Mini sports an Intel Core Duo T3100 processor, which can be upgraded to any Socket 775 Core 2 Duo. It also features 2GB of DDR3 memory, a six-in-one card reader, six USB 2.0 ports, and an e-SATA port – providing the user with a variety of connection options.

“The Aopen XC Mini GP7A-HD features Nvidia ION graphics software in conjunction with an Nvidia GeForce 9300 GPU to deliver high quality graphical performance. The PC is also full 1080p HD-enabled with an HDMI port, so can be used to view movies or play games in high definition” GeForce 9300 GPU to deliver high quality graphical performance. The PC is also full 1080p HDenabled with an HDMI port, so can be used to view movies or play games in high definition.

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Aopen claims its machine is one of the smallest desktops in the world, with dimensions of just 180mm x 166.1mm x 61mm. It is available from Spire, which believes it should prove popular with both end users and resellers.

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MARKETPLACE The Essentials range creates more options for customers and retailers

Serif debuts creative software for beginners First two products in the Essentials range are available now from EntaTech “The concept of entry level software that guides a user through their first foray into creative design offers real scope for upgrade opportunities and repeat footfall into retail outlets” Jon Atherton, EntaTech

CREATIVE software developer Serif has released an entry-level product range aimed specifically at creative design novices. The Essentials range, priced at £29.99, aims to simplify the tools provided by more advanced packages and provide additional support for beginners. The first two products to be made available are desktop publisher PagePlus Essentials and web design package WebPlus Essentials. According to the vendor, the range gives retailers the option to provide ‘better’ and ‘best’ options for customers and creates a natural upgrade path to the more advanced packages PagePlus X4 and WebPlus X4.

“The first two releases in our new Essentials range have been developed specifically for people who are keen to produce impressive

creative designs and websites, but don’t know where to start,” explains Ellie Dyke, head of business development at Serif. “The ease of use, provision of high-quality support and pricing are key to attracting those customers.” “We are really excited to be handling the newly launched Essentials range,” says Jon Atherton, EntaTech’s commercial group vice president. “The concept of entry level versions that guide a user through their first foray into creative design and help them develop their skills offers real scope for upgrade opportunities and subsequently repeat footfall into retail outlets.”

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102 PCR May

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MARKETPLACE

VIP stocks up on next gen graphics cards Distributor adds Nvidia’s new GPUs including cards by Asus and Palit to its portfolio VIP COMPUTERS is now stocking a slew of next generation graphics cards, featuring Nvidia’s new GeForce GTX 470 and 480 series GPUs. Hailed by Nvidia as the world’s fastest GPU, the devices allow gamers to experience stereoscopic 3D visuals. Available in two large memory options – 1.28GB (GTX 470) and 1.536GB (GTX 480) – the cards feature the high-speed GDDR5 memory interface. VIP’s stock of GeForce GTX 480 and 470 graphics cards now include: Palit GeForce GTX 470, Asus GeForce GTX 470, Palit GeForce GTX 480 and the Asus GeForce GTX 480. Fiona Faulkner, Nvidia’s sales director for Northern Europe, said: “Both these new GeForce cards usher in

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an amazing experience for gamers – the fastest DirectX 11 graphics, PhysX, 3D Vision and CUDA combine to create truly revolutionary products that game developers are creating some amazing new titles for. The GeForce GTX 470 is the best enthusiast price/performance GPU available and the GeForce GTX 480 is simply the fastest GPU ever made.”

May PCR 103


MARKETPLACE

Kingston teams up with David Ginola KINGSTON DIGITAL Europe has joined forces with French former footballer David Ginola to design a new limited edition USB memory drive The Kingston Football DataTraveler flash drive will be available at PC World this month, and will be rolled out across other retailers at a later date. “I got involved with Kingston for two reasons. I’ve been using their products for a while now so I know them well, and I like the fact that they regularly support the Vision Charity,” Ginola said. The footballer will be making special appearances at selected stores throughout May. The Football DataTraveler comes in four different capacities – 2GB, 4GB, 8GB and 16GB – and is designed to be mobile, compact and lightweight, with a keyring attachment. “We’re very excited about working with David Ginola,” said Kirsty Miller, consumer marketing manager for Europe at Kingston Digital. “Football

104 PCR May

fans in the UK will remember David one of the first overseas stars to join the English Premier League. This partnership is very much a part of our focus on doing high profile activities

“We’re very excited about working with David Ginola.This partnership is very much a part of our focus on doing high profile activities that support our retail partners” Kirsty Miller, Kingston Digital that support our retail partners.” Kingston is offering its partners various opportunities to advertise and launch promotional deals centred around the limited edition USB stick.

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MARKETPLACE

Zotac unveils new graphics cards Realtime Distribution signs deal to become the UK’s first distributor of Zotac’s new high-end range

PERIPHERALS vendor Zotac International has launched its new generation of DirectX 11 graphics cards, the Zotac GeForce GTX 480 and GeForce GTX 470. Available from Realtime Distribution, the cards are designed and developed to “take gaming to uncharted levels” with 32x anti-aliasing, Nvidia 3D Vision Surround and HDMI 1.3a. The cards contain a number of features to provide the player with a more lifelike environment. Microsoft DirectX 11 with Shader Model 5.0 technology provides the cards with GPU-accelerated tessellation, which create more realistic detail for characters and environments in

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“Our latest Zotac GeForce GTX 480 and GeForce GTX 470 incorporate all the latest technologies that users crave and combines them into a single PCI Express x16 graphics card” Carsten Berger, Zotac

Zotac’s new graphics cards have been designed to offer a more lifelike game environment

supported games. Nvidia’s PhysX technology, meanwhile, is designed to enhance effects such as weather, explosions and fires. The GTX 480 features a high capacity 1536MB frame

buffer, while the GTX 470 has a 1280MB version. “Zotac is always on the leading edge of technology. Our latest Zotac GeForce GTX 480 and GeForce GTX 470 incorporate all the latest technologies and features that users crave and combines them into a single PCI Express x16 graphics card,” said Carsten Berger, the vendor’s marketing director. “The result is a pair of technologically advanced graphics cards capable of delivering world-class performance.” As well as gaming, the GTX 480 and GTX 470 accelerate everyday tasks such as video processing and image editing through Nvidia’s CUDA technology. The inclusion of HDMI 1.3a provides eight-channel digital surround sound and technologies to support for up to 48-bit colour for more vibrant shades and richer black levels.

May PCR 105


MARKETPLACE

THE FASTEST GPU ON THE PLANET...

ASUS NVIDIA® GeForce® GTX 480 Graphics Card s *% *''5 PHPRU\ 0+]

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106 PCR May

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MARKETPLACE RECOMMENDED

SONY VAIO S11V9E/B INTEL’S INNOVATIVE Core series of CPUs, along with its accompanying chipsets, has allowed Sony to refresh several of its most popular families, and the VAIO S Series is no exception. Aimed at the business user who also likes a little entertainment, the S11 is a tough but lightweight 13.3-inch laptop that packs discrete graphics. The big step forward is the move to Intel’s HM55 Express chipset and Core i5 processor. The Core i5520M inside our version of the S Series, the S11V9E/B, runs at 2.4GHz, with Turbo Boost

dynamically pushing the two cores up (to 2.93GHz) or down depending on your needs. It’s one of the new batch of 32nm processors, and supports virtualisation technology and hyper-threading. Paired with 4GB of DDR3 memory, the VAIO S11 coasted through our benchmarks with a score of 1.55 – just a fraction short of the 45nm Core i7equipped Dell Studio 15, which demonstrates how advanced these latest CPUs are. The Sony VAIO11 ticks all the right boxes for an 80 per cent work, 20 per cent home laptop, but the best news is that the usual VAIO issue – the price – is only a small one here. This particular model is dearer than our previous favourite, Lenovo’s ThinkPad T500, but it bests its ageing rival in almost every area of specification. We haven’t yet seen Lenovo's Core i5 and i7 ThinkPad updates, but until we do, the Sony VAIO S11 takes the business laptop crown with ease.

[

URL: www.sony.co.uk SRP: £1,169

]

“Paired with 4GB of DDR3 memory, the VAIO S11 coasted through our benchmarks with a score of 1.55 – just a fraction short of the 45nm Core i7equipped Dell Studio 15”

SONY VAIO Z11 IMPROVING on excellence is never a simple task, and it’s even tougher with a laptop as good as Sony’s Z Series. But instead of eking out a little more battery life, or trimming a little more weight, Sony has taken a radical approach. The stamina-focused

“Build quality has taken a leap forward. The boldest change, however, is inside. Despite being so small and light – note, Sony squeezes a DVD writer inside – we’ve never seen a portable tear through benchmarks so viciously”

[

URL: www.sony.co.uk SRP: £1,799 - £2,399

www.pcr-online.biz

]

justify its huge price. That became clear very quickly. The superb keyboard has been improved. The keys aren’t just backlit, with an ambient light sensor to fade them in and out, but they also have a crisper action. Build quality has taken a leap forward too. The boldest change, however, is inside. Despite being so small and light – note, Sony squeezes a DVD writer inside – we’ve never seen a portable tear through benchmarks so viciously. The Vaio Z11 is a stunning, and genuinely portable, workstation. It has some minor flaws, but if portable power is what you’re after, you won't find anything better.

ultraportable of old has been rebuilt from the ground up, and completely transformed. The Z11 cuts a professional dash: all matte black and gunmetal grey, with a few scattered status light. It’s so understated we wondered how it could

May PCR 107


OUT OF OFFICE

THE IT CROWD

THIS MONTH: NBG Awards, Spire prize winners and the Gadget Show Live

NBG HITS THE BULLSEYE

EntaTech’s Jon Atherton wins Personality of the Year

The Network Buying Group held its first ever exhibition and awards dinner at the Saville Court Hotel near Windsor this month. Hosted by veteran comedian and Bullseye host Jim Bowen the awards were attended by over 100 NBG retailer members, and distribution and vendor partners. “I am overwhelmed with the positive feedback from the first ever NBG exhibition, awards and gala dinner,” said managing director Wayne Cockerill. “NBG members, vendors, distributors and press alike all commented that they received multiple business benefits from attending. An enjoyable night was had by all and we are already looking forward to next year’s event.”

Above: Ingram Micro collects the Distributor of the Year award Left: Acoustic Angels entertain the guests with their vocal stylings en amuses the crowd

Above: Host Jim Bow

r for Norton 360 s Product of the Yea Below: Symantec win

Above: Lee Reed of Ingram Micro is awarded Distribution Account Manager of the Year Left: Guests tuck into their three-course meal

108 PCR May

www.pcr-online.biz


OUT OF OFFICE

Send your pictures to: andrew.wooden@intentmedia.co.uk

ill, Reseller Acco Jennifer Kingw land, BullGuard Ire Manager – UK &

FUN IN THE SUN Tottenham Court Road-based Epsilon Computers was celebrating after winning Spire Technology’s prize draw for an all expenses paid holiday to Sharm El Sheikh, Egypt. The competition was run jointly with Intel, with retailers receiving a free entry for each Core i3, i5 or i7 processor sold. Epsilon’s managing director Sam Yildiz received the prize, and will be taking the trip with his family.

A day in the liunfte

and Left to right: Epsilon MD Sam Yildiz alez purchasing manager Marcio Gonz

"I'm really nice to my colleagues, laughing at all their witty comments so as to secure office support while I’m on the road for the rest of the week"

Clockwise from left: A ‘human statue’, e-sports teams battle it out, Interactive Digital’s Eye Massager, an exhibit of computing through the ages, blimps and immersive gaming in the Future Tech Zone, Nvidia’s 3D gaming demo

THE GADGET SHOW LIVE Like any trade show, this year’s Gadget Show Live at the Birmingham NEC featured plenty of wacky and wonderful exhibits, from an electronic eye massager to a display of computing through the ages – not to mention a somewhat out of place ‘human statue’. Over all though, 3D technology dominated the event, from Nvidia’s gaming hardware to 3D TVs from vendors including Sony, Panasonic and LG. PC World dedicated much of its stand to the technology, under its slogan ‘My world in 3D’, with a home cinema setup as the centrepiece.

www.pcr-online.biz

I have worked at BullGuard for two years as a first point of contact for our reseller base. Our resellers are our main route to our customers, so I strive to provide the most qualified service to them and believe it’s paramount that I am accessible in every sense of the word. Although no day at BullGuard is ever the same, mainly due to the variety of people I work with and meet, I pretty much work to a tried and tested routine which ensures I am in constant contact with both the office and our resellers. Mondays are our team meeting days, giving me the chance to catch up on the latest company happenings prepare for the week, and be really nice to my colleagues, laughing at all their witty comments so as to secure office support while I’m on the road for the rest of the week. Most of my time is spent on reseller visits. Having a personal face-to-face relationship with our resellers is extremely rewarding. I love to meet new people and feel a real sense of community with our partners. My visits enable me to pass on fresh POS material and discuss the latest promotions we have running. In addition, I gather feedback to report back to the office, which allows us to continuously service our customers at the very highest levels. As well as nurturing established relationships, a lot of my time is also focussed on acquiring new business, so when I am out on the road, I make a bee-Line for potential customers too and introduce them to the wonderful world of BullGuard. At BullGuard, we work hard, we get the job done, and we have fun while we’re at it. We are a committed team that enjoys coming to work every day and tries not to take things to seriously. I think our customers get a sense of what we are about and jump on board with both feet.

May PCR 109


OUT OF OFFICE

PCR Editorial Planner

In the

HOT SEAT This month, AVG’s head of retail and SOHO sales gives us an insight in to what makes him tick...

JUNE 2010: CHANNEL EXPO REVIEW Advertising deadline: May 19th Cooling and cases Distribution focus Internal and external memory EVENTS: COMPUTEX To advertise call Carly Bailey on +44 (0) 1992 535647 or email Carly.Bailey@intentmedia.co.uk For editorial please contact Andrew Wooden on +44 (0) 1992 535646 or email him at Andrew.Wooden@intentmedia.co.uk

JULY 2010 Advertising deadline: June 16th Mac special Mac peripherals Business software Ergonomic desk solutions EVENT: TCA GOLF DAY

AUGUST 2010 Advertising deadline: July 21st Back to school issue Back to school hardware and software

SEPTEMBER 2010 Advertising deadline: August 18th Gaming issue Graphics cards Peripherals Displays Gaming hardware EVENT: PIXEL EXHIBITION

OCTOBER 2010 Advertising deadline: September 15th Security special Security software Digital storage Photography EVENT: STORAGE EXPO

NOVEMBER 2010 Advertising deadline: October 20th Christmas Special Novelty Gadgets Notebooks Laptop bags and accessories

DECEMBER 2010 Advertising deadline: November 17th MP3 players and accessories External hard drives Distributor opening times 110 PCR May

Describe yourself in three words Open, loyal, maverick How do you relax away from work? I love playing golf, watching Manchester City and walking my dogs What's your favourite: Book: Last Testament of Lucky Luciano Film: Notting Hill Album: Hotel California – The Eagles, Nightfly – Donald Fagen What's your best memory from working in the industry? The best of the best are the incentive club trips at Memorex Telex. Bermuda, Puerto Rico, you name it Who's the funniest person you've ever met? My best friend from school. We go back some 35 years, but he still has me howling – always a good sign of true friendship When were the ‘good old days’? Both professionally and personally, 1992 to 1998. It was a great time to be selling Enterprise IT. Plus it was the years that I had my children, which is easily the most important thing that has ever happened to me

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