Detailed terminology for compuBase activities
MANAGED SERVICES PROVIDER
1-Internet Service Providers
SaaS (Software as a Service) ASP (Applications Services Providers).
An ASP or a SaaS provider uses internet to "rent" applications. They offer the use of software in the form of an on-line service for remote users. They may have their own infrastructure or use that of a PaaS (Platform as a Service). This category of activity arose from ISVs (Independent Software Vendors), vertical web portals or large software publishers. These companies oppose the "on premises" model whereby software is installed on site.
PaaS (Platform as a Service)
Cloud computing has evolved to include platforms for the creation and execution of personalized applications which are not on your own site, but on a service platform. This concept is known as Platform as a Service or PaaS. Platforms as a service generally operate on a system of usage on-demand.
IaaS (Infrastructure as a Service)
This is the first level of cloud computing. It is generally a virtualization platform which has all the base services such as a datacenter, network equipment a level of server virtualization and which is externalized at a third party. These resources may be totally privatized but are most often shared by different clients with invoicing by usage depending on the resources used, the level of activity or the level of guaranteed availability required.
ISP (Internet Services Providers)
An ISP opens the gates of internet to companies and to individuals. They have regional entry points and a piggyback connection via the telecom operators; they sell bandwidth to users of the Net. In an extremely competitive universe ISPs have deployed more and more services around their original offering. They offer services such as email, Website hosting or even directories. Enterprises such as Orange, Free and Alice belong to this category.
Web Architects.
Companies that cover all aspects of the creation of an IT site (design, development, hosting).
DISTRIBUTION
2– Retail industry
Hypermarkets and supermarkets.
Hypermarkets for food and other products (DIY etc.). They have a surface area greater than 800m², and can be event bigger (over 20 000m² for some). Their strong point is the breadth of their offering for consumers. IT is often one section of the hypermarket, often a well structured section. In this category one finds stores such as Carrefour, Auchan, Conforama or But.
Department stores.
Stores such as Printemps, PHV, Galeries Lafayette. These now have an IT department. Originally these stores specialized in fashion and home decorating or even DIY.
Multi-specialists.
Large stores specialising in electronic goods for the general public, photographic equipment or, for some, home appliances. Names such as Darty and Fnac, Boulanger and Hypermédia etc. These stores all have a micro IT offering.
3-Intermediaries
Group purchasing organisation.
Structure responsible for referencing and purchasing products for a company or a group of companies with structures in different geographical locations.
There are three major types of purchasing organisations.
1) Those that are part of major chain stores and that handle the global sourcing strategy for all entities in the chain.
2) Group purchasing centres, which are primarily centres for referencing and grouping together the purchases of their members.
3) Super or megastores, these operate on the same model as chain stores (Carrefour) or sometimes as groups (Leclerc).
Distributors
These are the intermediaries between the manufacturers or software publishers and their network of resellers. Suppliers often work directly with 5 to 10 big reseller partners and rely on distributors to reach out to their capillary network.
Generalists
The generalist is a distributor who works for the masses. A generalist uses the large volume of its purchases to generate a margin. Most generalists (Techdata, Ingram Micro, Actebis...) try to diversify their services to improve their operating margins.
Specialists (VAD, SOD)
As opposed to the generalists, specialists choose a business model with a low volume of purchases and high added value. They often offer training and modeling services for VARs. If their specialisation is not in high added value "service" it may be, for example, in specific niche markets such as components, fields where pricing can be volatile and availability uncertain (Logix...)
4-IT Distribution specialists
IT hypermarkets / Super-stores
A distribution structure specializing in computer or digital products e.g: Surcouf, PC City…
Independent IT resellers.
Independent IT resellers are not associated with any group of chain. They often work from a shop or an office but they may have several points of sale. Their client target can be the general public or enterprises (often SMES). Independent resellers are very heterogeneous in size. Most of them have at least 7 staff; some may have several hundreds of people working for them (Computerland).
The notion of reseller implies the fact that such a company buys products from distributors or manufacturers and then invoices in its own name what it sells. In other terms it is an agent or a business provider. The independent reseller offers a range of products which may be more or less completed with a services offering. Depending on the turnover made with these services, one may consider that a reseller is a "pure" reseller or a "VAR" (Value Added Reseller). However, if the turnover for services is less than 30% of the total turnover, one can consider them to be pure resellers.
IT resellers for a chain.
Any agency belonging to a national or regional chain and working under the same name. Employees of such agencies are paid by the head office. Companies such as SCC are in this category.
IT resellers for a group.
An IT reseller for a group has the same profile as an independent reseller except that it works for a regional, national or European organisation.
Belonging to such a structure entails certain obligations in terms of the marketing and referencing developed by the group.
The aim of the group is to allow its members to benefit from increased purchasing power with distributors and suppliers. It is also to create synergy in marketing and communication. Lastly, it is a means for isolated resellers to share skills in services that they may not have individually.
Some groups insist that their members work under their brand (e.g: Séquence), others don't (e.g: Aredia, Escrim).
Such resellers have either a "pure" reseller profile or that or a VAR (as for Euralliance).
Reseller Assemblers.
These assemble PCs or servers themselves. Assembling accounts for more than half the volume of their PC or server sales.
Generally they buy their components form specialised distributors.
Software resellers.
These are only interested in software. Their profile has changed a lot in recent years, as a result of pressure regarding software licenses by the major software publishers. Today a software reseller mainly manages licenses for SMEs and large accounts.
One-off resellers.
The term "one-off resale" is used when reselling is not the main activity of the company, for instance service companies may make one off resales. A one-off reseller may represent a strong potential market for a supplier that may consider it as a VAR. However, this resale activity remains "anecdotal" in the overall activity of the company.
Office automation resellers
Stemming from an old category of resellers that sold typewriters, text machines and photocopiers etc. this branch covers companies that make more than 70% of their turnover in sales of photocopiers, fax machines and videoconference equipment.
Telephone resellers and installers.
This is a category of resellers specialised in anything to do with telecoms. This category covers PABX and "VOIX" network installers as well as resellers specializing in telephones.
VARs
A VAR (Value Added Reseller) does not exist as such. It is an evolution of the concept of a reseller opposing that of a « box mover », or a «pure» services company. In the first instance, the reseller develops the distribution activity to include more service offerings in order to maintain its margins. In the second instance, the service company turns to resale as a supplementary service it can offer its clients.
The difference between a VAR and an integrator is slight. However, a VAR has more general service skills (maintenance, training, installation) than an integrator which is more linked to a specific product, technology or profession. To generalize one might say that integrators are specialized Vars.
IT & Telecom Brokers –end of the line.
These are specialists in recovering rented parks or unsold stocks. Brokers often work with resellers of second-user equipment, and often have an export network, for instance to Eastern Bloc countries and the Maghreb. BS Computer is an example of such a broker.
Resellers of second-user equipment.
Some resellers specialise in reselling second-user equipment. However, the major part of this market goes via brokers who work a lot in export.
Exclusive brand dealers.
Exclusive dealers for a brand are fairly rare these days. One used to find them in the field of office equipment – for instance Xerox, Canon, and others Ricoh. IBM also used exclusive dealers. As their name implies, they work almost exclusively for one supplier.
5-Resellers not specialising in IT
Video game resellers.
Engendered by the « game console » phenomenon, these resellers make most of their turnover by selling software for Sega, Nintendo or Sony game consoles, or even software for PCs. Multimania is a good example.
Resellers of electronic equipment.
Specialists in electronic components, these sell memory, various cards and various sorts of computing components.
CONSUMER ELECTRONICS
Resellers specialising in video and photo.
Companies such as Camara and Foci are good examples of this type of specialist. They are mainly oriented towards the general public. They originally came into IT with digital image enhancement offerings followed by digital cameras. They now offer complete solutions for handling the digital imagery on PC or Mac.
Resellers specialising in sound and images.
New arrivals in the IT sector, these points of sale are specialists in the digital chain for the home. These companies mainly sell large flat screens and digital products to go with digital recorders.
Phone shops.
These can be independent or part of a chain (phonehouse, Mobilstore...) They are flourishing in France and their activities cover more than simply the sale of subscriptions and phones, but also PDAs and telephone peripherals.
6-Resale via Internet
Retail websites – virtual shops (e-tailers)
A retail website or a virtual shop is an on-line shop administrated either by a reseller which already has a « brick & mortar » activity (fnac.com) or by a new arrival to the internet market (Rueducommerce.com). Clients can choose, order and pay for products on the internet site.
Sites for auction sales
For the moment these are mainly for the general public. They replicate the activities of an auction salesroom over the Web.
Manufacturers sales websites
The web site of a manufacturer is similar to that of a reseller, but it is administrated directly but the manufacturer or the software publisher. In this category we find sites where the manufacturer makes direct sales (Dell), but also sites of manufacturers such as Apple, IBM, HP who also sell indirectly.
SERVICES
Service companies
Computing services companies, develop software solutions to the specifications of client project statements.
The development make take place on the client site in the form of a staff delegation or at the service company.
Independent developers
These are structures are very often made up of just one person who develops for a SoHo or SME or as a subcontractor to a service company.
Software and application integrators
These are companies which have developed strong skills in software solutions requiring configuration and integration. The solution integrator works in symbiosis with the software editors it represents and has generally had to invest significantly in training or human resources to develop such skills.
Integrators of computing or telecom architecture
These are companies with strong skills in understanding client infrastructure issues. They know how to install and implement complex solutions comprising hardware from different suppliers and for which they manage the interoperability.
Third party Application Maintenance
These are companies specializing in ensuring the maintenance and future evolution of solutions developed by a client or a supplier.
Audit—Consultancy
These companies are specialised in analyzing systems and solutions that have already been installed. Their vocation is to make recommendations for a specific client problem.
Independent Consultants
These are generally one person companies which intervene to support a company in its choice of IT products, or even for certain development or integration issues.
Consultancies
Consultancy structures specialising in the choice and deployment of technological solutions. These companies may carry out integration themselves but most often call on third parties to do so. When this is the case, the consultancy will act as the project supervisor (e.g: Ernst & Young, Price Waterhouse Coopers...).
IT facilities management
These are structures that purchase all or part of a company’s IT department to then invoice its activities in the form of services. For the client company this amounts to externalizing its IT department, whether the department remains in the same building or not.
Delegation of IT staff
Companies with an address book of developers and specialised engineers who they delegate to other client companies on demand. Unlike service companies, they do not play any part in overseeing the implementation of project specifications they simply provide the human resources.
Services Bureau
A service bureau is a company which provides business services for a fee. These services may be tasks such as word processing, making draft plans, PAO or website graphics.
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