The joint venture company Midrange Distribution Services (MDS) 50-50 owned by JSE-listed Faritec, South Africa`s leading reseller of IBM RS/6000 servers, and TCM, the foremost reseller of IBM AS/400s, has adopted a value-add channel model to support its African region initiative.
"We are currently negotiating with potential African channel partners", says Dave Futter, MD of MDS. "We have the IBM distribution rights in the central African region and by identifying the right partners and combining their skills with our value-add services we are confident of making a serious impact in the market."
The products included in the distribution rights are the IBM midrange servers, namely RS/6000 and AS/400, as well as the full PC, notebook and printer product ranges. MDS will source products directly from plants in the USA and UK. They will be shipped to African partners and their customers via ports such as Amsterdam. When needed, MDS will do some staging, installing software prior to shipping.
MDS offers resellers a comprehensive range of pre- and post- sales support from configuring products to service contracts. "We will provide our customers with products and services of the greatest possible value, thereby gaining their loyalty. Continuing market penetration hangs on good service and value you bring to the table," says Futter.
Futter believes that there are excellent opportunities in the midrange and desktop areas. Governments, large industries such as mining and multi-national companies all make up this diverse and emerging market territory.
IBM has projected $100 million for sales in the Africa region, including all its distributors. Futter sees this figure as conservative saying that the market is under-serviced. He says: "The African region needs companies that enable them to develop their skills and help their economies grow. MDS is well-positioned to do this and we expect to realise excellent returns."
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