With Compaq sowing the seeds of direct selling it seems the channel is cannibalising itself in order to get a piece of the vendors' lucrative PC and server pie.

ARN has learned that one of Compaq's high-profile resellers is in danger of getting the shunt in favour of a crowd which goes back a long way with the kids from Compaq. Our spies recently witnessed a cosy luncheon attended by senior members of the two factions and word has it secret handshakes were had all round.