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NEC eyes SA enterprise market

By Leon Engelbrecht, ITWeb senior writer
Johannesburg, 05 Mar 2008

NEC Computers has signed up Mustek as a value-added distributor to tackle the local market for server, data storage, networking and corporate solution products - and the companies plan to capitalise on SA's power crisis.

The two companies plan to seize a sizeable market share using "green IT" and NEC's Virtual PC Centre (VPCC) solution that cuts power use by nearly 60% and has a considerable energy reserve.

The VPCC effectively replaces the traditional desktop - with its support needs, security risk, theft and power supply problems - with a virtualised PC (VPC), a smart monitor that connects to the server and with all applications and data for that VPC residing in a secure partition on the server.

"This new kind of thin-client network means that network power consumption can be reduced by up to 57%, while making it much, much easier to manage things when people or offices have to be moved," says Mustek's NEC product manager, Marina Lancaster. NEC data storage products can also cut energy consumption by around 30% compared to standard systems, she adds.

"Given our electricity problems, the network is also a productivity shield for the employer, because each 'virtual PC' workstation has an eight-hour power reserve," Lancaster says. "It also means less need for IT staff on the workfloor, because there are no drives or installed software at the workstation."

A good fit

The two companies have also found much to admire in each other and consider themselves a good fit. "NEC offers the promise of some exciting new solutions technologies which promise better system efficiencies, data security and business continuity," says Mustek sales director Willem Viviers.

He adds that NEC Computers' decision is "a massive vote of confidence from an IT world leader that has $39 billion in revenues, employs 150 000 people and owns 70 000 technology patents" in SA. "With the Japanese management ethos of long-term relationships and collaboration, and with less of the focus on quarterly earnings that we see in North America, they see that we are a developing country and that the real growth is going to be in the longer term."

NEC expressed similar sentiments in a statement to mark the collaboration. "One of the main reasons why we picked Mustek was their reputation in this market, their ability to work well with various channels, as well as their excellent logistics capacity," says Johan Degroote, NEC Computers' vice-president for Europe, Middle East, Africa and Latin America.

"There's no such thing as a big deal or a small deal for us. A customer problem is a customer problem, and between Mustek and ourselves we will be able to offer technology that not only solves the problem, but has the potential to give the customer deep savings and efficiencies," Degroote adds.

"Mustek will be the centre of competence for NEC Computers in this market, ready and able to provide solutions, deliver the most cutting edge technology and support it to the highest standard.

"With our manufacturing facility and technological site in France, we are not only in the same time zone as SA, but we have the facility to 'build-to-customer' for even mid-size orders where a customer requires a specific configuration," adds Degroote.

Viviers says the partnership will also create jobs in the South African IT sector. "As we grow together, NEC Computers will need to expand its local presence with local staff, and we will also have to grow our sales, support and logistics capacity."

Mustek financial director Hein Engelbrecht adds that he is positive about the partnership. "It enlarges our market offering. We've tested the products in the market and it was positively received. I'm very positive about our prospects, especially in light of the quality of the product."

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