Sweetwater and Compaq end relationship

Sweetwater manager Abbas Aly today confirmed the aggregation relationship between his company and Compaq had been terminated. Aly suggested that the relationship was originally formed on a trial basis with Sweetwater deciding to call off the deal.

"The trial period for aggregation is over," Aly said. "It was a trial for the channel and we decided to terminate the terms of the aggregation arrangement."

The controversial relationship was formed in December 2000, when Compaq signed Sweetwater to "aggregate" their Deskpro SB (small business) and Armada 100s into small business resellers.

"Our roll was to deliver products into the channel fast," Aly said. "We were progressing along that path."

While Aly commented that Sweetwater did have some concerns over delivery he said there were not specific conflicts leading to the break.

"I can state categorically we have not breached any clauses of the contract with Compaq," Aly said. "They needed to decide how they would get product to the channel, I believe Compaq is reviewing its whole distribution model again."

Compaq have been contacted, but have yet to return a comment regarding the changes to their relationship with Sweetwater.