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Magirus plots growth path

Value-added distributor Magirus plans to develop business units to promote sales of IBM and EMC kit through the Middle East channel in 2005.

Value-added distributor (VAD) Magirus plans to develop business units to promote sales of IBM and EMC kit through the Middle East channel in 2005. Having already established a strong business with HP in the region, Magirus is now looking to open up its Middle East value-added distribution skills to a wider selection of vendors.

At a corporate level, Magirus, which has operations spanning Europe, the Middle East and even the US, boasts an extensive vendor portfolio including HP, IBM, EMC, VMware and Red Hat Linux among others.

Rainer John, general manager sales and marketing at Magirus Middle East explains: “The new vendors that we support in the Middle East will always come from the wider group portfolio. We do not set up local distribution contracts. We look at the portfolio and then take the decision whether or not it makes sense to set up a business unit for that specific vendor in the region.”

Vimal Kocher, finance and operations manager at Magirus Middle East operation, adds: “The IBM business unit is under development in the Middle East and we are recruiting staff for this part of the business. We are also in discussion with EMC about the potential for working together in the Middle East.”

“IBM believes in the value add that Magirus can bring to the market for them,” says John. “IBM is really looking at how VADs can improve the channel efficiency and lower their selling costs.”

Magirus’ Middle East operation focuses on sales and marketing. Purchasing, stocking and back office operations are all centralised within the wider group. Focused on the value-added distribution of infrastructure solutions, Magirus offers extensive pre-sales services and financing options to resellers and integrators operating in the Middle East.

“We have had strong success with contractual resellers of HP’s infrastructure offering,” adds John. “But we are also working with systems integrators and ISVs delivering vertical or horizontal solutions and operating on a platform independent basis.”

Magirus currently serves approximately 70 resellers across the Middle East and expects that number to become a triple digit figure during 2005. With the Middle East channel maturing fast, Magirus claims that its services offer resellers the opportunity to evolve their business model, increase their ability to add value and deliver complete solutions to customers. The company also offers innovative financing schemes and hopes to eventually introduce leasing models to the market.

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