New distribution model for MS OEM products

Chennai : In order to bring its OEM products a step closer to channel
partners (system builders) Microsoft has appointed Associate Distributors across
the country and has created a new distribution model effective Nov 1, 2008. It
may be noted that just recently Iris Computers was announced as the national
distributor for OEM products.

Microsoft has appointed eight Associate Distributors across the country. The
Associate Distributors will cut response times of the partner's customer
needs/requirements. They will also ensure timely and immediate availability of
stocks to ensure faster delivery timelines and the regional expertise of these
Associate Distributors will enable them to work with partners, understand the
business requirements and be responsive and flexible to address them.

These Associate Distributors will be dealing with Microsoft's OEM products
only and those sub-distributors who were involved in volume licensing program
will continue to be in the scene.

While earlier there were people distributing OEM packs but Microsoft did not
recognize them, and partners dealing with them weren't entitled to any schemes.
However, with the appointment of Associate Distributors, partners will be
entitled to all the partner programs of Microsoft, including foreign trips.

Speaking about the new initiative, Chandan Sonowal, Director-System Builder
Channel, Microsoft OEM team said, "The appointment was part of our overall plan
to reach out to newer markets and newer partners. In the first phase we have
appointed eight Associate Distributors and even in the second phase we are
looking at appointing the same number of partners in order to increase the reach
of the product."

While KK Software will take care of distribution in Delhi, NCR, UP, Haryana
and Rajasthan, Modi will distribute the OEM products in Delhi, Haryana and NCR
region.

"Now we are the legal and authorized distributors of Microsoft OEM products
and can avail rebates and discounts as a distributor. We will be in direct
coordination with Microsoft and will get the benefits like a distributor,"
opined Shailesh Jha, Business Partner, KK Software.

Speaking on the company's appointment as an Associate Distributor of
Microsoft, Anuj Modi, Director, MC Modi & Co, said, "As Associate
Distributor of Microsoft OEM products we will be taking care of Delhi, Haryana
and NCR region. This way, we have become tier-1 distributor of Microsoft. This
will help us in increasing our revenue. It is beneficial for us to get into
direct distribution of Microsoft products and we will enjoy better market
presence."

Cyberstar Infocom has been appointed for overall South and West excluding
Gujarat. Another appointment in the West is Pune-based Sujata Computers, which
will take care of Maharashtra and Goa, excluding Mumbai.

Sounding excited on the appointment, Raj Rathi, MD, Cyberstar India said that
the association with Microsoft would help Cyberstar reach more partners. "Basically
any association with Microsoft is an excellent opportunity and this is our first
opportunity with them. Microsoft offers excellent support and we will take their
OEM products to more number of partners," Rathi said. Accepting that piracy is a
big challenge, Rathi said that Cyberstar will put all its effort in to
increasing the reach of Microsoft's OEM products. This is the first time that
Cyberstar is dealing with software products, since it was primarily distributing
hardware peripherals till date. "This is our first experience with dealing with
software products. However we are going into the same channel community that we
were dealing with all these days, but particularly with the system builders,"
Rathi claimed.

Santosh Gaikwad, Regional Manager, Sujata Computers too felt that this was an
excellent opportunity for Sujata to work with Microsoft. "We have a good
experience in dealing with licensed software solutions and have a very good
reach. We would definitely make this product a huge success in Maharashtra and
Goa," Gaikwad averred.

For South, CCS Infotech has been appointed as the Associate Distributors
along with Cyberstar Infocom, where CCS will distribute the OEM Products in
Tamil Nadu, Kerala and Karnataka, whereas Cyberstar will distribute it in Andhra
Pradesh too.

"Previously there was no distribution model for the system builder community
and anyone could buy in bulk, set a price and distribute it. However, now
Microsoft has introduced a proper model for distribution by appointing Associate
Distributors," informed G Vinod, President, Info Logics, CCS Infotech.

He said that the company is looking to take the OEM products of Microsoft to
around 350 partners (system builders) in next three months and increase the
mindshare of the original software among the partners.

KS Nagendra, Manager-Accounts and Finance, Matrix Technologies, said that
the appointment as Associate Distributor for Microsoft OEM is a step ahead for
the company as they were dealers. "It's a good development and we would be
distributing the products throughout Karnataka. It is also a beginning for us,
we have to wait and see for two to three months for the actual development,"
Nagendra claimed.

(Inputs from inputs from Amrita in New Delhi and Lipsha in Bengaluru)