Having signed a deal with local SMC Networks distributor, LAN Design, Pinnacle Micro is on the verge of tying up OEM agreements with all of the big three network interface card (NIC) vendors.
Christo Cilliers, product manager of the networking division at Pinnacle Micro, says the move comes as a result of the company`s recent drive into the corporate market.
"Our Proline brand has historically been strong in the Soho space where networking is rarely required. But its popularity has now begun to extend beyond SME and become recognised in other areas."
This tallies with the outlook of SMC country manager, Greg Perkins, who says that just as the SMC brand is increasingly being asked for by name so too is that of Proline. "It therefore makes sense to ensure the two are available together upon request."
This agreement and a previously negotiated deal with 3Com means Pinnacle now has OEM status with two of the big three NIC vendors. "We are currently in discussions with Intel and expect to conclude these shortly ," says Cilliers.
Unconventionally the SMC deal involves three parties. OEM agreements are typically signed between a PC manufacturer and networking vendor without the participation of a distributor.
Prime instigator of the deal and SMC business unit manager at LAN Design, Lloyd Wood, says since a typical OEM agreement would have required Pinnacle Micro to keep stock a three-tiered model has been adopted. "LAN Design holds inventory and Pinnacle simply places orders as needed."
Cilliers says the advantages of this arrangement for Pinnacle are twofold: "We are not required to hold any stock; and are afforded price protection from fluctuations in the Rand/Dollar exchange rate."
"The SMC OEM agreement also enables Pinnacle Micro to offer cost-effective networked PCs as part of its entry-level offering," explains Wood.
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