Compaq's each way bet on ITG

Compaq's each way bet on ITG

Mystery surrounds just who Compaq will bed down with as its national distributor following recent moves by high-profile distributor ITG Computers to move in on the prime patch already occupied by Prion Technology Distribution.

ARN spies recently spotted representatives from both ITG and Compaq chatting over lunch and the rumour mill has been buzzing since, with suggestions that the Compaq distribution game is not big enough for two players as large as ITG and Prion.

Braham Shnider, national sales and marketing manager for ITG Computers, said he could not comment on any discussions the company was having with any other company.

It is believed the starting point for the discussions between Compaq and ITG was Prion's runaway success with Digital's desktops and servers and a lower-than-average performance with Compaq's products.

A spokesperson for Compaq, who preferred not to be named, said although the company was in discussions with ITG Computers, no agreement has been reached.

When asked to comment on rumours that Prion was being dropped as national distributor, the person said, "It's business as usual with Prion."

Michael Bosnar, managing director of Prion, said as far as he was aware Compaq would continue its association with Prion.

"Compaq wants to extend its distribution model and the appointment of a second national distributor makes sense," he said.

But, whether Prion can stay healthy to compete with the likes of ITG remains a mystery.

ARN attempted to contact Prion last week to seek its reaction to the ITG/Compaq rendezvous only to find that the distributor's 1800 phone number and direct lines were being redirected, and Prion's Web site ( was offline.

Business is booming

Bosnar claimed that since Prion had pulled the plug on its phone systems available to the public (see ARN, June 25, page 6), it had grown its business by 27 per cent.

However, the only number listed for Prion Technology Distribution with Telstra Directory Services and in the Electronic White Pages is a 1800 number that is answered by a fax machine.

Prion can be reached on 1300 363 609.

ITG Computers is on 1800 800 426.

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