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Cisco Makes Renewed Federal Sales Pitch

In the first week of July, Cisco Systems Inc. kicked off a channel program to increase sales of its low- and midrange products to the federal government.

Though the San Jose, Calif., company reports strong sales of its high-end products to the federal government, its sales of less expensive products are weaker.

The effort, called the dynamic reseller program, teams Cisco with its traditional distributors; Comstor Corp., Chantilly, Va.; Ingram Micro Inc., Santa Ana, Calif.; and Tech Data Corp., Clearwater, Fla. They will introduce Cisco's low- and midrange hubs and switches to government resellers. Cisco is providing the distributors with training and technical support.

Tech Data Builds New Distribution Centers

Tech Data Corp., Clearwater, Fla., has built two distribution centers as part of a facilities expansion plan and an effort to support its channel assembly program, aimed at reducing costs and inventory.

The 435,000-square-foot centers, in Fontana, Calif., and Swedesboro, N.J., are Tech Data's largest distribution facilities. The Fontana center replaces two smaller California facilities in Ontario and Union City, while the Swedesboro center replaces a 145,000-square-foot facility in Paulsboro, N.J.

Over the past year, Tech Data has added 1.3 million square feet of floor space to its U.S. facilities, including a new distribution center in Suwanee, Ga., and a new building at its headquarters in Clearwater.

Dell Promotes Role As Product Reseller

Is Dell a reseller?

The Round Rock, Texas, computer maker always has been, according to Robert McFarland, vice president and general manager of Dell's federal division. The company sells more than 2,500 products made by other manufacturers, including sound cards, software and printers, and the number is growing. A complete list of available products is compiled in the company's Dellware catalog.

"This is a little-known fact," McFarland said. "We do what the reseller does; we just do it at the time of manufacturing," he said, referring to Dell's build-to-order model.

In the government sector, McFarland said 65 percent of Dell's sales now are made directly to the customer, up from 40 percent two years ago. The remaining 35 percent goes through resellers, systems integrators and other vehicles such as indefinite-delivery, indefinite-quantity contracts. The trend is being driven by procurement reform, McFarland said.

Pacer Infotec, Dascom Deal Links Services

Pacer Infotec Inc., Burlington, Mass., has signed an agreement with Dascom Inc., Santa Cruz, Calif., to incorporate Dascom's network security products with services it supplies to the Navy, Air Force, Department of Interior, NASA and other government agencies.

Dascom's products focus on security for intranets and extranets, which more agencies are using to gather and distribute information.

Pacer Infotec is a subsidiary of AverStar Inc., also of Burlington. Both companies provide software and systems integration services primarily to the government. AverStar had sales of $125 million last year.

GTSI Offers Outsourcing On GSA Schedule

Government Technology Services Inc., Chantilly, Va., is offering desktop outsourcing services on its General Services Administration schedule. The services include basic hardware support, training, asset management and information technology assessment.

GTSI and systems integrators, such as Computer Sciences Corp., El Segundo, Calif., and Unisys Corp., Blue Bell, Pa., are offering the services to take advantage of outsourcing trends and streamlining in government.

- Richard McCaffery

Copyright 1998 Post-Newsweek Business Information, Inc. All rights reserved


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