HDS, Ingram move to SME space

Hitachi Data System (HDS) is hoping to bite a bigger chunk out of the small and medium enterprises (SME) market by launching a reseller recruitment drive with distributor Ingram Micro around its SMS 100 product, says ITWeek.

Having released the SMS 100 in October last year, HDS and Ingram Micro have set aggressive sales targets.

Neil Evans, regional sales director for UK channels at HDS, said: "HDS's relationship with Ingram has gone really well and now HDS would like to see 40 more reseller partners to build upon it."

Nick Kalisperas, director of the IT suppliers' group Intellect, gave a qualified welcome to the UK government's move to grant more public sector contracts to SMEs as a positive step, but thought more clarification was needed, says Tech World.

"Setting a target like 30% raises a range of questions about how it will be enforced, how SMEs will be encouraged to participate and how equitable it really will be. The chancellor simply announced the creation of an advisory committee on SME access.

"It is vital that not only a wide range of sectors, including technology are represented, but also that SMEs are consulted about the practicalities of such an initiative and what they feel would really help them."

India's information technology SMEs are considering relocating their operations to Malaysia, says Bernama. A leading software company, Buzznet, has moved its operations to Petaling Jaya while at least eight other SMEs are thinking of shifting their bases either to Malaysia or Singapore to take advantage of the attractive tax holidays and low operating costs.

"The Indian government's policies do not help SMEs. It only helps large IT companies and we can't withstand the competition from our own large companies," says Indian IT SME Association's chairman Sankaran Raghu.

The 3 200 IT SMEs, which generate nearly RM80 million (US$25 million) annually, will be in a knot if the Indian government fails to extend the tax breaks beyond 2009 under its Software Technology Park scheme introduced in 1991 to boost the IT sector.