MPU distribution leaning overseas

Electronic News, Dec 20, 1993 by Bernard Levine

NEW YORK--RISC microprocessor vendors are pursuing offshore distribution channels as their latest sales effort, with Digital Equipment Corp. signing British distributor Bytech for its Alpha AXP microprocessor and reportedly taking to others covering Europe, including Arrow Electronics.

Meanwhile, Sun Microsystems Computer Corp.'s SPARC Technology Business (STB) last week named Mitsui & Co. Ltd. and its Electronics Group to distribute all STB microprocessor, ASIC, module and system board products in Japan. Earlier (Off the Shelf, Oct. 4), IBM, as part of its merchant market thrust for PowerPC and other semiconductor products, designated a number of distributors in Europe and said it was hunting for more.

DEC last week named three of its domestic computer product distributors--Avnet, Pioneer and Wyle Laboratories--to sell Alpha in the U.S., as expected (Off the Shelf, Dec. 13). Arrow, however, which also distributes DEC computer products in the U.S., was conspicuously absent. DEC and Arrow reportedly discussed and rejected a U.S. Alpha franchise, but a possible Arrow-Alpha agreement for Europe may still be on the table. While both Arrow and DEC confirmed that talks on a proposed U.S. deal led nowhere, neither would commet on a possible European Alpha connection.

"We had discussions with Arrow, but the fit wasn't there," said Neil Edmundson, DEC manager of semiconductor customer marketing, referring to a possible U.S. Alpha franchise. On the same subject, Arrow President Stephen Kaufman noted, "We had the opportunity to discuss it with DEC, but felt that we have adequate suppliers and product lines in microprocessors." Arrow sells DEC computer products through its MTI Systems and Almac divisions.

A movement of Alpha into the distributor mainstream has been under scrutiny by DEC for months (EN, March 22), and Mr. Edmundson made clear the importance the firm places on distribution for its merchant IC initiative. "Semiconductor sales are key to Digital's future and distribution is one of the important steps in making that happen." He added, "We view it as important for Alpha to have distribution in the U.S., providing support for a large number of customers we cannot support directly." Asked when product would be available through domestic distribution, he said, "Customers can talk to distributors in the first part of January."

Noting DEC's "worldwide strategy," Mr. Edmundson indicated more European distributors would be sought, although the firm is satisfied with its U.S. coverage for now. "There will not be other distributors named in the near term int he U.S.," he said. Signed to distribute Digital's Alpha AXP MPUs as well as single board computers and PCI-based peripheral chips in the U.S. were Avnet's Hamilton/Hall-Mark division, Pioneer-Standard Electronics and its affiliate Pioneer Technologies Group, and Wyle.

At some of these distributors, Alpha will share shelf space with competing MPUs such as PowerPC and Pentium, but Mr. Edmundson said, "We perceive Alpha AXP( can coexist" with them. "For most companies, it is not an ether/or situation. PowerPC is one of the RISC alternatives. Distributors will sell Alpha AXP where it makes sense. The enthusiasm we have seen from these three distributors is genuine." Herman Paraison, DEC distribution program manage for semiconductors, claimed Alpha "definitely has performance advantages, twice the price/performance of Pentium."

The distribution initiative, added Ed Caldwell, DEC VP of Semiconductor Operations, "is part of Digital's strategy to establish the Alpha AXP architecture as an open market standard. We are significantly increasing the accessibility of products based on the Alpha AXP architecture as well as PCI peripheral chips such as the recently announced 21040 PCI Ethernet controller." Edwards Kamins, DEV VP of U.S. Channels, added, "We are very pleased to expand our relationships with Pioneer, Wyle and Hamilton Hall-Mark to include these products."

The distributors are also happy. "This agreement benefits both our customers and Pioneer," said Pete Heller, Pioneer chairman. "Wyle is very excited about taking advantage of Digital Equipment's thrust into the OEM marketplace with Alpha AXP microprocessors," said Joe Adamczyk, president of Wyle's Electronics Marketing group. "Avnet's relationship with Digital Equipment Corp. began in 1978 when we become the first distributor partner in the Digital channel," said Roy Vallee, president of Avnet. "Our mutual business relationship is very strong and we will continue to support Digital's technology efforts in the market we serve."

IBM Microelectronics also is seeking additional European sales outlest for its merchant thrust, after October naming a half-dozen distributors and sales reps in Europe and Israel. No new names have surfaced since then, however.

In late week's Sun-Mitsui alliance, meanwhile, Sun Microsystems Computer Corp. signed a marketing agreement with Mitsui & Co. Ltd., one of Japan's largest trading and distribution companies. s Mitsui will sell Sun's SPARC technology to manufacturers in Japan under the agreement, which links Sun's Mountain View, Calif.-based STB with Mitsui's electronics division, officials from the companies said. The technology includes SPARC-based processors, peripheral application-specific integrated circuits and system boards.