AST forms new products division to focus on software, hardware products

The AST Group has consolidated its comprehensive product offering into one stronger and strategic division, AST Products, which will enable AST to raise its profile and to provide one interface between AST and suppliers - taking their strategic partnership to a new level.

In the past, the business units within AST Group each dealt with products in their own areas. As part of the AST Group`s Business Improvement Programme, it was decided that it would be more beneficial with a strategically focused division. AST Products is reviewing its current product suppliers and regrouping them into the relevant technology areas, where there are a natural fit and synergies and do not compete against each other.

"AST has defined certain evaluation criteria for their strategic partners in terms of potential revenue, the partnering model from suppliers, technological leadership in their field and current market share in SA," explains Henrik Stanley-Madsen, Managing Director for AST Products. "In addition to strategic partner relationships, we will establish relationships with other suppliers that are important to our customers and our go-to-market strategy.

AST Products is in the process of establishing the new partnerships, enabling them to commit to providing the necessary investment and to work with their partners in joint account, market and marketing planning. "When evaluating the current AST product portfolio, we will consider suppliers` relevance against the bigger AST strategy to ensure that our products fulfil AST`s customers` needs and drive increased service opportunities for AST`s other business units," adds Stanley-Madsen.

AST Products has already identified three partners that are considered strategic to AST; they are IBM, Symantec and Hummingbird. In parallel, they are also in the process of talking to AST`s key customers in order to identify other suppliers that should be part of AST`s strategic partner or product portfolio.

"We believe, like the leading analysts, that within the IT sector the first area to pick up will be the software products arena," continues Stanley-Madsen. "AST Products intends to lead the revitalisation of AST with a strong product business, with first class products, people and processes that have been brought together to provide a unique service offering."

While AST Products` initial focus will be on software, it is already progressing into looking at opportunities for selling specialised hardware, such as high-end servers and network storage devices. In line with this, AST has also become the South African distributor for cash-handling devices, such as ATMs, from leading German supplier, Wincor Nixdorf.