Pent-up demand, exciting technology and big power savings spur systems refresh

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After years of flat sales, companies have begun to replace one of the oldest desktop fleets the channel has ever seen. No longer able to put off a hardware refresh, end users are now taking advantage of exciting new form factors, hot products like Windows 7 and the Apple iPad, stronger and faster processor technologies, and power-saving innovations that deliver real ROI.

At the same time, companies are mixing and matching devices as never before in their search for the best blend of power, utility, mobility and price. Others are looking further ahead to lay the groundwork for more efficient application deployment through desktop virtualization.

The New Computing Landscape
As with any rush of new products hitting the market, end users are increasingly reliant on VARs to help them sort through their options and build the right solutions.

“The lines are blurring between desktop and notebook sales, and the sales of other devices,” says Carl Wilhelm, director of computing and print architecture, Paragon Development Systems, a VAR in Milwaukee. “Companies just have so many choices.”

In addition to more choices, Wilhelm says the added complexity for many companies is whether or not they are ready to adopt a hosted virtual desktop solution. Under this model, virtual desktops run as virtual machines on a server in the data center, accessible by desktop, notebook, thin client, smartphone and other client devices.

This new computing landscape of desktop virtualization is changing the way companies manage and deploy devices, says Ira Grossman, group president of Personal Systems at MCPc, a VAR in Cleveland.

“While some companies are going ahead with desktop and notebook refreshes, others are extending the useful life of existing devices while they research the total cost of ownership and infrastructure, and the business process implications of desktop virtualization,” says Grossman.

Overall, though, customers are responding to innovative new products, driving sales and creating new opportunities for VARs. Going into next year, Tech Data and its vendor partners want VARs to be ready for more of the same, as new products with strong value propositions hit the channel.

“Intel is seeing growth in the entire compute continuum,” says Jay Wilson, distribution channel business manager with Intel. “This continuum spans from smartphones to desktops to notebooks. The choice of platform depends on individual needs and what the user values.”

Wilson says Intel expects strong demand for client devices will continue when it introduces the Sandy Bridge CPUs and platforms in early 2011.

“These new CPUs and platforms will deliver stunning visual and compute performance increases, while enabling individuals to customize solutions to their needs,” he says.



iPad: A Game Changer
A game changer in the client systems market has been the rebirth of the tablet PC—a phenomenon achieved largely by Apple’s iPad. After months of selling millions of units in the consumer space, the iPad is now finding acceptance as a notebook alternative in the business world.

“Already we’ve seen iPads provided as solutions for school systems, SMBs and some enterprise verticals,” says Greg Parsonson, vice president of Client Systems Product Marketing at Tech Data. “This device is amazingly versatile. Its versatility is only limited by the number of applications, which are multiplying steadily.”

Parsonson says Tech Data expects many of its other vendor partners to introduce their own slate-based devices in the first quarter of this year, with platforms ranging from Android to Windows.

ASUS, HP and Lenovo are among the vendors planning to offer tablets in the next six months or so, Parsonson says.

	Enterprises Buying More Macs Macs are making significant inroads into the enterprise, according to a recent survey of IT administrators conducted by the Enterprise Desktop Alliance (EDA). According to the survey, Macs will climb from 3.3 percent of all systems in 2009, to 5.2 percent in 2011. Over that same period, more than 25 percent of all net-new systems added in the enterprise will be Macs, making them the fastest-growing systems in the enterprise through 2011. Much of the growth in Macs will happen in organizations that already have them installed. The median percentage of Macs in those organizations will double from 5 to 10 percent, according to the report. Apple To The Core VARs looking to capitalize on the rising demand for Apple-based solutions in the enterprise should contact Tech Data’s Apple Specialized Business Unit (SBU). Its inside and field-based sales, technical and product management resources provide expertise VARs can leverage to more profitably develop, sell and support all Apple solutions available in the channel. Tech Data now distributes all six Apple iPad models to authorized Apple resellers nationwide. The iPad is the latest addition to Tech Data’s extensive Apple product offering, which includes Apple TV, iMac, iPod, Mac Mini, Mac Pro and Xserve, as well as a host of accessories, peripherals and software from leading vendor partners developing solutions designed for the Mac platform. All members of the Apple SBU sales teams are recognized Apple Product Professionals, the most comprehensive Apple certification available. When resellers contact the Apple SBU, they engage a team of professionals who are well versed in Apple solutions and backed by Tech Data’s immense resources, leading technical expertise and broad product knowledge.

Desktops, Notebooks Remain Dominant
Despite the surging interest in tablets, however, vendors note that desktops and notebooks continue to be the top-selling devices.

“Desktops and notebooks remain the devices of choice for content creation,” says Intel’s Wilson.

“We continue to see demand in the desktop market,” he adds. “This demand has been higher than forecasted due to exciting new designs and the falling cost of desktop PCs. We are seeing a lot of growth in the small form factor and all-in-one segments.”

Lenovo’s desktop and notebook sales are both 30 to 40 percent higher than last year, says Chad Duhon, director of ThinkCentre Brand, North America at Lenovo.

“Companies are definitely refreshing their PCs,” says Duhon. “The move to Windows 7 is certainly a factor as companies want to leverage the power of faster processors and higher RAM.”

Lenovo, along with Intel, is seeing an uptick in demand for all-in-one systems.

“The companies buying our all-in-ones get powerful systems—including 19- to 23-inch monitors without any price premium—and are willing to trade off expandability to save money on power usage,” says Duhon. “Power savings can be as much as 60 percent.”

Intel’s Wilson adds that many people are not choosing a single device but, instead, are opting to deploy multiple devices for specialized application.

“There are great opportunities for resellers to sell products across the entire compute continuum,” says Wilson. “Many opportunities exist for both new and existing technologies.”

Wilson says Intel has seen growth in the healthcare, digital signage and physical security markets.

“Managing and implementing solutions incorporating diverse products will be key to resellers’ success and profitability,” he notes.

To help resellers progress down that road, Intel recently launched a program for resellers to learn about the business opportunities, customer solutions needs and the technologies available in the devices they already sell.

“The program focuses on enabling resellers and end users to maximize the technology in today’s desktops and notebooks,” says Wilson. “Many PC features—such as manageability and anti-theft—are not understood and are underutilized.”

To learn more about Tech Data’s extensive client systems product portfolio, contact authority@techdata.com

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