VARs hit back at rise of Office Ready PCs

Channel firms are missing out on lucrative revenue streams in the Microsoft Office market

Resellers have claimed the rise of Office Ready PCs has frozen them out of the lucrative Microsoft Office
market because SMEs and consumers are unlocking the software online via Microsoft or the PC vendor.

Microsoft Office Basic 2007, Office Small Business 2007 and Office Professional 2007 are pre-installed on PCs. They need to be unlocked using a licence key, which can be sold with the PC or after a 60-day trial.

Microsoft launched its Office Ready programme in July 2006 to give resellers a second chance to sell Microsoft Office 2007 if they fail to do so at the point of sale.

However, Stewart Hayward, sales director at reseller WStore, said: “A VAR can take up to 24 hours to unlock software because it has to go back to its distributor. It is not a smooth transaction, which is why customers are going direct. Most of the big brands are selling PCs this way.”

Lee Bevan, managing director of reseller Leapfrog Computers, said: “Customers are not buying Microsoft Office on CDs anymore. The channel appears to be in a bit of a mess as more and more vendors choose to sell direct or in this case the end user can unlock the software straight from the vendor.”

Ian Newall, director of commercial and channel business at vendor Fujitsu Siemens Computers, said: “VARs do not need to lose out. The process of selling up and buying the code from distribution is relatively simple.

“However, so they do not lose out they must ensure their sales teams are trained and fully understand how to capitalise on these new ways of selling.”

Michala Wardell, head of anti-piracy at Microsoft UK, also claimed Office Ready PCs give channel partners more sale opportunities because before the 60-day trial was introduced, they could only sell Office at the point of sale.