Horizon established as Sun Channel Development Provider

With growing demand for its hardware, software and services in sub-Saharan Africa, a Sun Microsystems Channel Development Provider (CDP) with distribution services has been established to improve solution delivery in these markets.

Dubbed Horizon, the CDP is a joint venture between distributors Pinnacle Micro and Workgroup, and will recruit, develop and manage indirect Sun iForce partners to increase the vendor's overall market coverage.

Furthermore, says Jos Nickmans, channel development manager at Sun Microsystems SA, the new business will provide a distribution service focused on taking Sun's hardware, software and services into the enterprise and mid-market, while increasing the traditionally high-end vendor's presence in the small and home office sector.

"With Sun's focus broadening, we needed a partner that could hold stock to improve solution delivery times. Also, because we are moving strongly into new markets throughout Africa, there is a requirement for a distribution operation in sub-Saharan Africa to service these territories," says Nickmans.

He believes Sun solution providers as well as Sun customers will see tangible benefits from the establishment of the new company. "Because Horizon will hold an inventory of Sun products, solution delivery to end customers will be achieved more rapidly. Partners will also benefit from improved availability of a wider range of Sun technologies, providing for greater cross-selling opportunities," he elaborates.

Doug Woolley, managing director of Workgroup Distribution and Horizon, says the new entity will operate out of Workgroup's existing Midrand premises. "We opted for a joint venture because this leverages Workgroup's software distribution expertise as well as Pinnacle's hardware knowledge," he says, noting that Pinnacle is a 35% shareholder in Workgroup.

"As such, Horizon will be able to offer resellers pre-configured systems, while Pinnacle's tender division will assist resellers with preparing for government tenders, increasing their potential to address government's technology requirements with Sun solutions," he says.

Woolley adds that Pinnacle has a significant footprint in Africa. "While there are pockets of Sun customers in Africa, the vendor has never focused strongly on the continent. Horizon will actively target the African market leveraging the existing presence," he says.

The CDP is expected to improve control of Sun's channel by monitoring the support and skills levels of its partners. "End-users will benefit from dealing only with certified iForce partners, which have had proper training and certification from Sun," he says.

A conservative first-year turnover of U$23 million is projected for the new business, says Woolley. "We expect to see quite aggressive growth, especially since Sun has been perceived as an enterprise-only vendor, although it has increased its focus to the mid-range and SME segments. In parts of Africa, where Sun hasn't been represented, we will be breaking into virgin markets, which should have very good upside potential, especially in medium-sized environments," he concludes.