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Sahara, AMD announce strategic alliance

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 08 Sept 2005

South African distributor Sahara Computers and global ICT manufacturer and supplier Advanced Micro Devices (AMD) announced a strategic alliance yesterday.

Speaking at a media conference in Johannesburg, Gary Naidoo, Sahara chief sales and marketing officer, said several emerging and growth markets exist in SA.

The alliance, he said, would elevate Sahara's international standing and create several benefits for the local market.

Naidoo identified three areas in which he expects growth in the South African market, and where the Sahara-AMD partnership is anticipated to be an advantage: the channel programme, and .

The partnership will also provide wider access to and greater availability of product, direct involvement with technology research and development initiatives, as well as improved pricing, all of which positively influence existing ICT supply and demand, he stated.

Sahara's integration and distribution of AMD products has helped to entrench the local distributor's position within this competitive market, said Naidoo, and the group has seen sustained growth throughout 2005.

Non-traditional

[VIDEO]From its involvement in the retail sector, the company expects to see sales growth of 20% to 25% next year. Sahara has been distributing its products through nationwide retail chains with regional dominance, including furniture stores.

This non-traditional PC channel is expected to be a platform for growth, as Sahara's participation in the retail sector deepens, Naidoo commented.

The alliance positions Sahara within reach of "tier one" status and will empower businesses with access to greater variety of product, improved pricing structures and direct access to research and development initiatives, he noted.

Henri Richard, AMD executive VP and chief sales and marketing officer, said the partnership is expected to add value to the local market, which has high growth potential.

While he stressed AMD's commitment to SA, he added that the group still has a relatively low market share in this country, as not enough has been invested in the local market.

"Much still needs to be done by AMD in SA."

Richard also announced AMD would launch its 50x15 initiative in this country. The initiative is a global programme that the group committed to at the recent World Economic Forum.

In terms of this initiative, AMD is part of a drive to provide Internet access to 50% of the world's population by 2015, he explained.

To achieve this, AMD has repackaged its X86 technology into a device suitable for developing regions. The device is resistant to dust and heat and requires no maintenance.

The initiative was launched in the Caribbean and China, Richard said, adding that there is a huge need for it in Africa, specifically within the education sector.

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