LANDesk Software, a leader in integrated desktop, server and mobile device management solutions, moved a business step further in the fledgling Chinese market recently by inking an OEM (original equipment manufacturer) agreement with Lenovo Group Ltd, China's largest PC manufacturer.
"We regard the deal hammered out as a win-win agreement, since it is the result of leveraging both sides' strong points," Joe Wang, president and chief executive officer of LANDesk Software, told China Daily on Wednesday.
Wang admitted that what his firm specializes in is a frontier area in China, therefore LANDesk has to turn to some quality local partners to explore the vast but untapped local market, and to make its products household names.
"If we were to do the job by ourselves, rather than joining hands with Lenovo, the cost would be much higher. I assume it is a similar concern that prevents Lenovo from developing its own management solution products, though the local flagship high-tech firm also wants to be an IT service provider," Wang said.
Under the agreement, LANDesk Software has granted a technology license for use of LANDesk(r) Management Suite to Lenovo, providing the foundation for Lenovo's new systems management suite Lenovo Sure Eyes. Lenovo will bundle this solution with the company's enterprise PC (personal computer) products.
Lenovo will have to pay a fee to LANDesk for this technology. But Wang believes bundling LANDesk's solutions with their commercial PCs will enhance Lenovo's sales.
"There is no doubt that consumers will favor PC products with systems management functions," Wang added.
In addition to OEM cooperation, LANDesk will be able to utilize Lenovo's extensive sales channels to promote its products.
"We will rely on both our own local expert solution providers (ESPs) and Lenovo's sales networks to seek further expansion. We see little possibility of market overlapping, because the potential is so huge," Wang said, in response to being asked whether there may be some conflicts between LANDesk's ESPs and Lenovo's sales agents.
Talking about the potential of the market, Wang replied that it was hard to give an exact number, since the market segment is so big and few clients use one single product or solution.
"But what I can show you is that in developed markets, such as the United States, almost all the large and medium enterprises adopt, to some extent, systems management solutions."
Agreeing with Wang's opinion, Lenovo also sees the cooperation as a chance to drive business forward.
(China Daily September 26, 2003 )
