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Ingram Lands Distribution Deal with Dell Line of PCs

Ingram Micro Inc., a Santa Ana-based distributor of technology goods, software and consumer electronics, recently inked a deal with PC maker Dell Inc.

Ingram is set to distribute Dell’s “Vostro” line of PCs and accessories to small businesses via its network of technology resellers in the U.S.

Distribution to Canadian resellers likely is to be added later, according to spokeswoman Carol Turpen.

The deal is significant because Dell’s modus operandi always has been to sell directly to consumers and businesses through stores, its Web site and over the phone.

But selling to small businesses with 100 workers or fewer is a tougher market to reach.

“Distribution offers Dell the specialized marketing expertise to reach niche markets and the small business owner,” Turpen said.

Ingram declined to say the value of the deal.

“It’s a revenue-enhancing deal, but we don’t talk about our contract,” she said.

Dell also has a distribution agreement with Ingram’s top rival, Clearwater, Fla.-based Tech Data Corp.

In other Ingram news, the company again is No. 1 on our annual list of largest local public companies (see related story on page 14).


MSnap Snatched Up

Irvine’s SmartReply Inc., which creates voice message-based marketing campaigns, recently bought San Francisco-based mSnap Inc., which runs a network for mobile advertising via text messaging.

Terms of the deal were not disclosed.

“We’re now able to bring to advertisers an immediately scalable mo-bile advertising network,” said Eric Holmen, SmartReply’s president. “We believe it’s our mission to make the mobile phone valuable for consumers and advertisers.”

SmartReply went after mSnap’s technology that allows advertisers to send targeted text messages and small ads to people via their mobile phones.

Privately held SmartReply, which got its start in 2001, has 47 workers in Irvine.

The company was initially funded by a $250,000 loan and hasn’t solicited any venture funding.

It originally focused on technology that manages voice message-based marketing campaigns, where customers can opt in to be alerted about sales and promotions via pre-recorded voice messages.

Some deals are exclusively for those with a retailer’s own credit card. Other messages act like a sort of mobile coupon, with a barcode that can be scanned directly from a cell phone at the checkout register.

Retailers are interested in developing voicemail and text message ad programs because they tend to be more effective than e-mails, according to Holmen.

“We learned that e-mail is becoming easier to block and more ignored,” Holmen said. “But when people opt in for voice messages, they only pick the brands they really care about.”

In 2003, SmartReply decided to focus on retailers. In 2005, it added mobile marketing to its product lineup.

“Especially in this kind of economic environment, people are interested in deals,” Holmen said. “Text messaging gets the word out really fast and has some of the highest returns.”

SmartReply’s technology helps retailers manage their databases, which are full of customer information and messaging preferences.

The company said it has half of the top 100 retail brands in the U.S. and Canada as customers.

Some are SuperValu Inc.’s Albertsons, Macy’s Inc.’s Bloomingdale’s Inc., Euromarket Designs Inc. (Crate & Barrel), Road Runner Sports Inc., Wet Seal Inc. and Tween Brands Inc.’s Limited Too.

SmartReply’s retailer customers pay monthly fees and fees per message.

The company is profitable and saw roughly $11 million in sales last year, according to Holmen.

SmartReply also went after mSnap for its customers.

MSnap, which started in 2006, counts more than 1,100 radio stations, newspapers and cable TV stations as customers.

It provides text messages to traditional media companies for free. Radio stations, for example, use text messages to encourage listeners to sign up for updates about concerts or contests.

MSnap and its media company customers make money by placing an ad in each text message sent.

Next up for SmartReply is targeting other markets that want to do mobile marketing, such as fast food restaurants and banks.


Toshiba Cuts U.S. Jobs

Irvine’s Toshiba America Information Systems Inc., the U.S. headquarters of Japan’s Toshiba Corp., cut some 118 jobs recently.

The cuts were “across the board,” according to Jack Milliken, vice president of administration.

Milliken said the cuts were a result of the “overall slump in the economy” and that they came from all four of Toshiba’s local business units.

The hardest hit was the digital products division, which designs and markets laptops and digital projectors here.

Milliken said Toshiba doesn’t have plans for further reductions.

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