Reseller News

Computerland’s fall from grace

  • Kate Palmer (Unknown Publication)
  • 23 June, 2005 22:00

COMPUTERLAND has fallen from first to third place in IDC’s annual Mindshare report.

More dramatically, it has plummeted from being the top-ranked security vendor to tenth.

As part of IDC’s New Zealand Solutions Ecosystem report, 233 companies were asked to name which IT providers they used, or intended to use, across nine computing categories.

Prior to its acquisition by Tele-com, Computerland dominated the field, but IDC believes the drop has come as a result of a general sense of uncertainty on the part of end-users when they consider the future of the company.

IDC analyst Jenna Griffin says companies that have been purchased take a drop in Mindshare as end-users look at vendor viability and are increasingly sensitive to market changes.

“If organisations made their merger plans clearer it would be easier for the market to see where that product will be continued,” she says.

Ross Jenkins, chief financial officer at Computerland, says previous surveys were focused on rankings in the IT services provider category and points out that as part of the Telecom Group the company is now operating within a new category - ICT.

“The market may be uncertain as to the role we will play alongside Gen-i so it’s on the cards that the survey results might tip over this period,” he says.

“Our performance in the market as Gen-i and Computerland and the new services we offer clients will settle that in the coming year. We are already achieving very good financial results as the new company.”

Gen-i has increased its level in the Mindshare report, moving from eighth to fourth place overall this year.

IDC says there has been a significant shift in the placement of companies in the report and believes they can be segmented into three clear tiers.

Leading the market in top spot is IBM, followed by second-tier players HP, Computerland, Gen-i and Microsoft.

The third tier is made up of solutions provi-ders such as Datacom, Dell and Intel.

At the same time EDS, which held second position last year, has fallen out of the top ten.

Griffin says this is because EDS only targets the top 50 companies in New Zealand and, although ranking highly in terms of revenue, has a small customer base. “EDS doesn’t have a large perceived presence, plus a lot of the other companies have increased [their presence] due to the amount of publicity they have received in the last year.”

Griffin says vendors are always surprised at where they figure in the survey.

“It’s hard to gauge how vendors take the report. For those that care it may change some of the dynamics in the marketplace.”

She points out that the survey is subjective because businesses are partnering on solutions, so it depends who is seen by the market.

In the last year Telecom, Axon and Unisys have fallen out of the top ten.