Open Source To Help Double System Builder Margins

FOR IMMEDIATE RELEASE 

6th JUNE, 2006

Cybersource has released a free toolkit which offers system builders and 
whitebox hardware resellers a method for differentiating their PCs and 
laptops from those of top-tier hardware vendors. By bundling a range of 
excellent open source applications with their hardware, systembuilders 
can increase the perceived value of that hardware. They can then 
increase the prices and therefore margins for that hardware, with no 
increase in costs.

"For system builders, the biggest medium and long-term threat comes from 
the brand-name (tier-1 and tier-2) vendors," said Ron Fabre, Cybersource 
products and services manager. "These big vendors buy OEM Windows 
licences for much less than systembuilders. This creates an unequal 
playing field and unfair competition for the smaller players. 
Cybersource wants to level that playing field and boost the profile of 
open source software in the process, so we built this toolkit."

The Cybersource Systembuilder Margin Doubler Toolkit shows resellers how 
they can package open source software with their hardware in such a way 
that they are able to charge more for their PCs. As open source software 
will not add to the per-unit costs, this increases reseller margins.

"The toolkit takes a recipe-like approach, offering a sample process by 
which systembuilders can bundle open source applications, how to market 
the new hardware/software product bundles, when to introduce 
Windows/Linux dual-boot products, and a catalog of top-notch open source 
software which runs on Windows," continued Fabre.

"Because the name-brand vendors are too scared of offending Microsoft, 
they will not play in this emerging market, leaving it totally open for 
the smaller players. The open source industry is therefore most happy to 
deliver value to the smaller industry players who may be struggling to 
find the differentiation and margins which they need to remain 
competitive. And it's a win-win situation. The more systembuilders that 
bundle this software and pre-install dual-boot Windows/Linux PCs, the 
more that software gains desktop traction, adding even greater perceived 
value to the software, thus further boosting customer demand and thus 
systembuilder margins," concluded Fabre.

Download a full copy of Systembuilder Margin Double Toolkit from:

http://www.cybersource.com.au/product/systembuilder_margin_doubler/


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About Cybersource Pty. Ltd.

Cybersource, founded in early 1991, is the second longest running open
source solutions company in the world. We have been demonstrating the better
value, security and robustness of open source technologies to our clients
since then. We also produce products like:

* The Small Business Linux Server: the best value small business server
  on the market and 75% less expensive than the Microsoft alternative. 

* Datasafe: Stores copies of all your documents. Easy and direct access 
  to all past revisions.

* Cybersource TrimClient; All the advantages of a thin-client with none 
  of the disadvantages.

http://www.cybersource.com.au/

Spokesperson/Contact: Ron Fabre
Phone: +61 3 9621 2377
Email: info@cybersource.com.au

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