World Computer Systems (WCS), one of the fastest growing IT distributors in SA, has lashed out at the IT industry for continuing to "cheat" the unsuspecting public. It says companies are losing millions of rands each year by making the wrong IT decisions and this has put the IT industry in disrepute once again.
WCS CEO Mohammad Denath says the public are still ignorant when making IT decisions. "We are committed to re-establishing the ICT industry as a reputable industry, but IT vendors continue to take advantage of the public`s ignorance by overcharging for products and services."
Denath says end-users are easily influenced by advertising and he believes they still trust the so-called IT professionals.
"Clients continue to make purchasing decisions based on reseller recommendations. When it comes to purchasing PCs, they typically purchase known brands like HP, IBM and Dell, but they don`t realise that they can buy better technology at a portion of the price. They are not aware that `white boxes` contain the same, or even better components, than branded computers.
"Furthermore, clients continue purchasing high-performance computers when they actually don`t need them. This is often as a result of recommendations made by unscrupulous computer resellers who want to make as much profit as possible, they are not really concerned about the company`s specific requirements," he stresses.
Every computer in the world comprises a motherboard, hard drive, central processing unit (CPU), random access memory (RAM) and a casing. Intel has the largest market share in processors and motherboards while Seagate and Western Digital dominate the hard drive market. Although there are various manufacturers of RAM, there are only a few that are ECC registered and provide guarantees.
Denath says customers can save up to 70% on unbranded computers. "Many people believe branded PCs are better. This is certainly not true, they are exactly the same, the only difference is the price. Computer manufacturers such as IBM, HP and Dell also use Intel processors and Intel-based motherboards, they merely re-brand them. At 70% less, we can provide our customers with a `white box` computer with the same hardware, if not better than the branded ones."
Companies are seeing the benefits of dealing with smaller resellers, they are fast realising the advantages of being offered a personalised service. The downturn in the IT industry has had a far bigger impact on the large consulting companies than the smaller resellers. There is no guarantee that any of the large consulting companies will survive in future. If at all, the smaller ones have a better chance of being successful.
"CS Holdings is prime example of how quickly a large consulting company can fold. Although the large consulting companies have alliances with all the large vendors such as HP, Dell and IBM, they cannot always offer the service required from their customers," he explains.
Denath recommends that companies invest more in support and less in hardware. "By dealing with reputable resellers, companies will be able to purchase the right IT solutions according to their specific needs. With the savings on hardware, they will be able to spend more on support.
"Beware of fly-by-night resellers who also sell white boxes, but with inferior components. Reputable resellers are normally companies that have partnership agreements with the larger vendors like Intel and Microsoft. Finally, it is crucial that the public educate themselves with regards to IT and they must also understand their specific requirements," concludes Denath.
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