LinuxWorld Preview

jlttb writes "LinuxWorld gets under way this week in New York City, and CRN has some extensive preview coverage this morning, including a look at Raptor, IBM's first Linux mainframe, and other IBM and Compaq Linux servers to be announced at the show. A second feature takes a look at the growth of the Linux services channel, from industry heavyweights like IBM, Compaq, Red Hat and Caldera, to smaller 'mom and pop' Microsoft and Novell shops that are re-focusing on Linux. Finally, the magazine looks at how Microsoft and Sun are each fighting back against the gains made by Linux in corporate America." I still haven't packed yet, but I'm looking forward to the show.

Comments

Re:What the heck is a channel?

[jcorgan]

A sales channel is the method by which a product goes from manufacturer to end-user. There are many varieties, some of the more important ones are listed below:

• Direct channel: sales made directly (duh) by the manufacturer to end-users. Typical of companies which have high-price, low-volume, standalone products. Manufacturer is responsible for warehousing, distribution, extending credit to customer, collection, support, maintenance, etc.
• Single-tier Value Added Reseller (VAR) channel: Resellers purchase a variety of gear from different manufacturers, integrate them, and offer a completed product to end-users. A VAR channel can specialize in certain types of technology and can provide specialized services over and above any individual manufacturer. Typical of medium-volume products. In this case, the manufacturer "creates demand" by marketing, advertising, and even offering customer support to end-users.
• Two-tier VAR channel: For fast moving, high volume products, the first tier is made up of distributors, who provide warehousing and consolidated ordering to manufacturing. They are able to get volume discounts and allow the manufacturer to concentrate on shipments to just a few, large "customers." These distributors, in turn, then sell to individual VARs, extending them credit, etc. There is not typically end-user support or interaction at this level. Finally, individual VARs, which can be both mom-n-pop shops to large retail focused outlets, integrate and deliver whole products and associated services.
• Retail channel: For "shrinkwrap" products and consumer-focused items, the retail channel has two or even three tiers to get from the manufacturer to the consumer (think supermarkets, Good Guys, etc.)
• Dealer Channel: Similar to retail, but more in the franchise model where individual dealers are directly licensed by the manufacturer (think cars).
• Multi-level Channel: A network of people that both sell manufacturer's products as well as recruit people to become additional dealers (and can be very annoying in the process :)

There are endless variations on these, but you get the gist, I hope.

Does this answer your question?