MB Technologies (MBT) is transforming itself to go beyond a pure channel player into one that also offers aligned services as the sector comes under extreme margin pressure.
In a bid to reach this aim, it has removed silos from within the organisation, is putting its African operations under one umbrella, and has been buying companies that complement this strategy.
CEO Miles Crisp, who has headed the company for about a month, says the drive is because the traditional channel model is under increasing margin pressure, although revenue continues to grow in decent double digits.
MBT, which Crisp claims is the biggest hardware player in the local market, is diversifying into aligned services and has also removed silos from within the company so it can go to market as a group, he explains.
New additions
Crisp joined SecureData as CEO in July 2012, and then moved over to MBT when SecureData was bought out for R85 million last year. He replaced Glenn Fullerton, who stepped down in November 2013 after 14 years with the company due to a "horrible" cycling accident.
Crisp notes MBT bought Yeahpoint - a mobile device management company - a few weeks ago and has also acquired a majority stake in Cloud On Demand. He says there are more deals in the pipeline as MBT moves towards being an end-to-end provider with an aim to aggressively grow its aligned services.
Combining offerings
MBT, which is now fully owned by Investec after it bought out Royal Bafokeng in the middle of last year, moved into its new 35 000m2 building near Midrand, in December. The site houses around 550 of its 1 200 staff as well as its distribution centre.
Currently, several MBT offerings, including Tarsus and Channel Capital, are already in the building, with SecureData staff set to move in next month, says Crisp.
Crisp adds Channel Capital, which provides financing, is also an area of growth for the group as it allows companies to turn capital spending into operational expenses. He adds the group wants to play more of a role in providing financial services such as designing deals that aid companies' cash flows.
Another growth push is the cloud, which MBT will drive through the channel, notes Crisp. He says the group is putting offerings such as disaster recovery and SecureData products in the cloud.
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