(Weymouth, MA) March 4, 2003…To determine the future of the European Digital Peripherals channel, CAP Ventures conducted in-depth interviews with leading European office equipment and channel players in the peripherals market, specifically those that are active in the workgroup environment. According to the report, Digital Peripherals Channel Trends, general opinion indicates that there will be no immediate change in the distribution of office technologies, but the business models for these vendors are certainly changing.

Faced with diminishing hardware revenues and changing customer behaviour, vendors must evaluate current business models and make adjustments to remain successful in the future.

The transition from selling boxes to selling solutions is clearly a major factor affecting vendor business models. While a shift to the solutions-sale offers new revenue opportunities, it requires a shift in the mindset of the dealer channels. Vendors must choose to invest their time and money in dealers to develop the expertise needed to sell solutions, or make new partnerships to exploit the experience and expertise with uncharted channels such as Value Added Resellers (VARs) or Systems Integrators (SIs).

CAP Ventures’ report examines the current distribution trends of the workgroup environment in the European Digital Peripherals Solutions market. It also evaluates industry opinion to predict the future for the Digital Peripherals channel.

The research for this report was performed between September and November 2002. In-depth telephone interviews were conducted with leading European office equipment and channel players in the peripherals market.

The complete study is available immediately to clients of CAP Ventures’ Digital Peripherals Solutions Consulting Service Europe. To learn more about the study or to make a purchase, please contact Alison Hipp at , ext. 126 or via e-mail at .