But distributor says Microsoft will continue to form a significant part of its business

VIP “disappointed” with Microsoft contract decision

Distributor VIP Computers has issued an official response to Microsoft decision’s not to renew its COEM (Commercial Original Equipment Manufacturer) distribution contract with VIP.

VIP says it is disappointed with Microsoft’s decision but says it will ‘continue to be a significant element within VIP’s business’.

VIP purchasing director Duncan McAuley said: “Naturally, we are disappointed with the outcome of Microsoft’s review of the distribution partnership, as it brings to an end a strong and prestigious relationship we have had for over seven years in terms of the COEM business.

“We believe Microsoft’s change in strategy over the past couple of years has caused the COEM business to become commoditised, with price being the major determinant of sales in the UK. Also with Microsoft facing significant challenges within the PC business, including threats from Apple and Google, they have been forced to take difficult decisions.

“VIP has been anticipating a change in the distribution line-up in order to streamline the Microsoft business and as a result we have also moved our focus in a different direction. However, VIP Group retains a strong relationship with Microsoft through the direct partnership with CMS Computers, and as the largest distributor of PC components in the UK, Microsoft will continue to be a significant element within VIP’s business”.

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