MicroScope
Search our Site
.

Blue Solutions walks away from certified OEM status after Microsoft raises barrier too high

  
by Simon Quicke

30 September 2008


Blue Solutions and Microsoft have changed their relationship with the distributor opting to end its authorised OEM partner status at the end of today.

 

The decision follows the impact of changing contracts that came into effect at the start of July that raised the bar to a height in some areas that Blue Solutions could not reach.

 

“In May 2008, just prior to the expiration of the 2007/08 contracts on 30 June, Microsoft announced to all distributors its news strategy and corporate guidance for OEM contract renewal. This essentially consisted of a long list of criteria, each noted as ‘mandatory’, ‘desirable’ or ‘optional,” said Darren Stokes, director of Blue Solutions.

 

“Unfortunately we did not comply with a small number of the ‘mandatory’ criteria, most critically the one that stated “Is hardware component distribution to system builders and assemblers core to your business?” Microsoft had clearly decided that it could profit more from distributors that attach software to a hardware sale,” he added.

 

Blue Solutions was given time to comply with the demands but the distributor opted to stick with its business model and let its certified status slip.

 

“In some ways, our direct relationship with Microsoft has meant that we have been less able than we would like to focus on our strengths; of being dynamic, innovative and flexible. Dealing directly with Microsoft frequently slowed us down, created barriers and forced rules, policies and procedures that made it more difficult to make available the right products, at the right time and at the right price,” Stokes added.

 

Simon Aldous,  partner group manager at Microsoft, confirmed that it would continue to work with Blue Solutions despite walking away from its certified status.

 

“It has decided that it doesn’t suit its business model at the moment,” he said.

 

Jon Atherton, vice president at Enta Technology, said that there had been a mixed reaction to the decision by Microsoft to extend the number of distributors in early 2007 and welcomed the reduction.