Like all its models, Motion is positioning the unit (M1400) for the health-care, field sales and service, government and education markets. Although Microsoft believes that within five years all notebooks sold will ship with the WinTablet PC operating system, Lewis said the market for pen-based computers will remain verticals.

Title: Motion wants ISVs for Tablet PC resellers

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Peter Lewis also said, "In the end it will be the value-add that gets the deal, not the fact that someone can come in and drive the cost (of Motion's tablets) down to nothing."

I agree with him that resellers and VARs are essential to Tablet PC success.

I think Motion has a bigger issue though in attracting VARs. VARs can help increase sales by preinstalling certain niche software and other components for a client, however, the VAR will have to remain competitive with the hardware too. A client may need the VAR for the first set of orders, but once they become experienced and established with the platform, who is to say they won't just go buy from Motion directly the next time they need product. With Motion's program right now the VAR has to compete with Motion direct sales. Not a good way to build trust or a partnership, if you ask me. First, Motion will have to answer "how is my company going to make money by selling Motion products," for VARs, not just "what type of reseller are you?"

All the Tablet PC companies that sell direct have to address this. So far, it's stomp on the resellers and VARs. Not a very good approach :) VARs and resellers need to be persuaded to offer Tablet PCs. I see the best way to engage them by allowing VARs and resellers to do what they do best -- 1) great customer service and 2) control the product by building / branding their own Tablet PCs.

Acer learned its lesson and pulled its direct sales. (What a nightmare that was with bids and quotes.) Viewsonic is learning their lesson, hopefully. When will Motion? I think when Motion offers a realistic reseller program with real profit margins on the hardware, then Motion will grow its VAR program. Hopefully, that is sooner than later. Then, it can have 200,000 resellers and VARs in North America instead of 15 (in Canada) plus US #s.