Frustrated resellers have claimed that Microsoft's Select Volume Licensing programme makes it harder for small companies to trade.

Under the scheme, Microsoft deals directly with its large account resellers (LARs) - firms such as Basillica, Computacenter and direct vendor Dell - at prices non-members say leave them "stranded".

"Microsoft is effectively telling end users who to buy from by narrowing the cheapest price to only a handful of select partners. I have to buy from [LARs] because their prices are still below distributors' even after mark-up, so what chance do I have?" said one Microsoft reseller.

Another agreed. "The group is based on turnover, not service provided, and even then companies such as MSL, Phoenix and Software Box are included at the expense of firms such as Software Catalogue and Hewlett Packard. If I became huge it would make no difference. The party's full, and they aren't sending out any more invites," a source said.

Dave Simpson, sales director at Software Catalogue, which buys Microsoft software from a LAR, said: "There is no doubt that the LAR scheme could do with some new blood. Software is being mis-sold and undersold by companies within the scheme."

"They have become complacent because large partners know they will never be removed. The last time I remember a company being released from the list was 18 months ago, when it went into liquidation," he added.

Simpson said Software Catalogue was working hard to gain membership, but that it was difficult because the Redmond giant does not specify membership criteria.

Edward Hyde, LAR sales manager at Microsoft UK, said: "Microsoft does not publish any criteria for becoming a LAR. We use our business judgement in individual cases and look for significant incremental turnover and breadth of coverage." Microsoft has many types of partners other than LARs, he added.

Separately, Microsoft is launching a $200m advertising campaign designed to position itself more directly with rivals Oracle, IBM and Sun Microsystems in selling software to large business customers. The campaign will focus on server software for websites.

First published in Computer Reseller News