More and more users are hopping online to buy network gear, as they learn that Web-based purchasing can mean dramatically fewer configuration problems and faster turnaround on orders.
However, some users say online purchasing has its drawbacks - you can miss out on the best prices and waste valuable time fumbling around on complex Web sites for information that a salesperson or systems integrator could more easily supply.
Online ordering is a system that allows network administrators to log on to their computer supplier's Web site and submit their orders directly to a company. The order then is passed through the company to the manufacturing floor, eliminating the salesperson.
Before online ordering, "there was a 20% error rate in orders," said Chris Sinton, director of Cisco Connection Online, Cisco Systems, Inc.'s ordering Web site. Sinton, who claimed 38% of the company's entire sales now come online, said having the system hooked to the manufacturing floor has cut the delivery time from several weeks to less than three days.
"For the informed buyer it's an awesome deal," said Dwight Gibbs, chief technical "fool" for The Motley Fool - an online financial advice company with 100 employees and a high-traffic Web site. "I can put in exactly what I want."
Gibbs estimates he now makes nearly one third of his computer purchases over the World Wide Web - compared to 5% last year.
Although online ordering streamlines many processes, including purchasing and delivery, John Gantz, senior vice president at International Data Corp., in Framingham, Mass., said network administrators still will want some personal contact with companies and resellers.
Gillian Gress, an account manager with Computer Discount Warehouse, a reseller in Vernon Hills, Ill., warns that getting rid of human interaction could be detrimental to buyers.
"Dell is not going to tell you if Compaq has a better product for you," Gress said. "You still need someone to help you with comparison shopping."
She said it is easy to order the wrong components; consultants or resellers could help find the right part for a specific system, helping to cut down on return requests and related shipping costs, she said.
Gress then specifically cited Cisco's Web site. "You better know exactly what you're looking for because it's complicated." She said she took 18 hours of Cisco training to help her clients figure out Cisco's complex product line.
Pricing also can be inflated on manufacturer Web sites, whereas resellers buy in bulk and can offer discounts so users end up paying list prices rather than wholesale, Gress said.
But this is a risk a lot of network administrators are willing to take, Gibbs said.
If you are purchasing on the Web, chances are you have already done your research and made your decision, he said. "For [high-end] purchases, salespeople really don't add value."
"Our Internet buyers are the most sophisticated users," said Bill Morris, senior marketing manager for Dell Online, Dell Computer Corp.'s Web store.
Morris contended that cutting out the middleman, i.e. resellers and salespeople, has allowed Dell to lower its prices tremendously. Dell hopes to do all of its business online within a few years, he said. The company already is selling around $3 million worth of computers and peripherals online, he said.
Cisco, meanwhile, estimates its daily online sales to be around $9 million, and Cisco expects online purchases to account for more than half of its total sales within a few years, Sinton said.
Gantz said such figures make sense given the target market - network administrators who sit in front of their computers all day.
Factory direct
Cisco's system illustrates how the process works. Once the order is placed by the user, he is sent an immediate confirmation of his order. The order then is dropped into the company's Enterprise Resource Planning business order system where a live cursory check is performed. Once the order is cleared, it is sent to the manufacturing floor, Sinton said. Cisco also features an integrated pricing and configuration engine that helps users figure out cost/performance numbers.Cisco's Sinton also touts online ordering's 24x7 availability as reasons network administrators are flocking to the Web. "We are simplifying and automating the mundane, making it faster and easier," he said.
Meanwhile, Dell said its special features such as Premier Pages and detailed reports on order and distribution attract network administrators.
Premier Pages, which currently has more than 500 clients, are tailored versions of Dell Online that allows network administrators to choose specific configurations of select computers and offer them to their users via the company intranet. This cuts down on the purchase approval cycle, Morris said.
