CHA convinces Compaq to play ball

CHA convinces Compaq to play ball

Only weeks after causing a channel furore with the announcement of a possible reduction in the number of distributors, Compaq Australia has signed Computer Hardware of Australia (CHA) as one of its national distribution partners.

Already a thriving importer and wholesaler of a significant range of networking and PC products, CHA agreed to distribute Compaq's notebook and desktop computers, as well as server and network connectivity products, through its network of resellers Australia-wide.

"We are pleased that Compaq has chosen CHA as a national distribution partner, as there are many synergies that exist between our companies. We are both very aggressive businesses that are experiencing solid growth," CHA's managing director Roger Bushell said.

Commenting on the possible rationalisation of Compaq's distribution force, Bushell said CHA - currently doing some $20 million worth of Compaq business - has received no indication that the relationship is going to be a short-term one.

Relationship review

However, he is aware of Compaq's intention to review its relationship with its existing channel distributors.

Revealing that "originally, Compaq was going to do an assessment [of their distribution situation] around August-September", they have since decided to do a full evaluation of all channel partners in the first or second quarter of next year.

"However, Compaq has made no statement to us about drastically reducing their number of distributors - and we talk to them every day," he stressed.

Meanwhile, for CHA, looking to expand its business into consulting services, the agreement with Compaq represents a great opportunity to move in a desired direction.

"CHA is very strong in server business and we intend to grow this substantially over the next 12 months, " Bushell added.

"We will facilitate this growth through the introduction of the new CHA enterprise division which focuses specifically on high-server and thin-client solutions."

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