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Distributor Scan: Slow and steady

Focusing on value business, Avnet Technology Solutions intends to create a strong brand presence in the region. But it is moving ahead with a very measured go to market strategy, with HP and IBM, two of the vendors it works closely globally.

The company has only recently started building out the team for Avnet TS. The company brought in Jamal Qaffaf, MD MEA, Avnet Technology Solutions EMEA to head the operations., Qaffafwill be responsible for Avnet Technology Solutions business serving as the General Manager for the Middle East including United Arab Emirates, Oman, Qatar, Yemen, Bahrain, Kuwait, Jordan, Lebanon, Egypt and Saudi Arabia. Prior to this, he led a team of 80 staff at Qatar Datamation - an Emitac joint venture company. Qaffaf will report directly to Sukh Rayat, SVP Sales Avnet Technology Solutions EMEA.

Qaffaf has been part of the region's IT industry for over experience will stand him in good stead in steering the company's fortunes. Qaffaf says, "This opportunity with Avnet looks like an interesting challenge because Avnet is a leading distributor and its entry into the region means some good opportunities for the resellers.

Avnet being a global distributor, vendors are more confident working with us because they are familiar with how we work and our business practises. We are focused on the value business although there is small volume component as well. We are one of the few distributors who are focused on adding real value."

Avnet started its TS business here when it bought out Magirus' HP and IBM-focused division in Dubai as well as similar operations in other European countries. Prior to this, only its components and semiconductor units were operating in the region. The business for the TS unit encompasses the distribution of servers, storage systems, software and services from HP and IBM.

Daniel Mueller, VP PBG HP EMEA at Avnet Technology Solutions says, "We bought the HP and IBM businesses from the enterprise division of Magirus. The Middle East was not a big focus for this part until this happened a couple of years back.

Now we have brought in a senior person in Jamal to spearhead this in this region. We realise there is a need for a much bigger sized operations. We are opening an office in Riyadh and there are many other markets outside of Dubai in the region that we need to strengthen our focus. "

The company is looking at growth strategies for the markets of Africa and KSA. The distributor has in fact appointed a senior executive to oversee HP business in the Kingdom recently and more such staffing and investment decision may follow.

Qaffaf adds, "We are investing in those markets where we see possibilities of substantial growth. We have brought in someone quite experienced to look at the Saudi market. We are bringing in someone to look at the Africa market as well. I have as well worked in the Saudi market as well and am quite acquainted with the dynamics there."

Tarek Massoud came on board as the Regional HP Sales Director, effective on the created role, Massoud will be responsible for Avnet Technology Solutions HPsales organisation for Saudi Arabia. He will report directly to Jamal Qaffaf, General Manager, Avnet Technology Solutions, Middle East.

ist of August. In this newly  that region," Qaffaf said. "Our objective is to deliver value to our customers and HP through technology knowledge and industry-centric expertise so they can make the most of opportunities, solve business problems and accelerate their success." Qaffaf continues: "Overall, we will continue to invest in innovative programs and services in the Middle East that are designed to achieve our business partners' long-term goals."

Avnet is going about its expansion very steadily and is in no hurry to add new brands without a strategy in place. The distributor prides on the technical and sales expertise its team brings to the table as well as the fact that it has the responsibility of expanding a stronger channel footprint for its principal vendors.

Mueller says, "We have a strong specialised pre-sales team that can assist the resellers very competitively in approaching customers. We enjoy a strong relationship with our vendors as well. It is not our intention to focus on selling printers or PCs." Qaffaf adds, "One of the aspects of great focus is to identify new resellers for HP and IBM in the market.

We develop the market and make sure resellers are aligned with the business strategies. We help the resellers achieve certifications. We have actually convinced some of the large resellers to broaden their solution sets and sell the hardware from HP."

2005. Mueller says, "Christopher Green who was looking after the UK office moved to Dubai to start the operations here in 2005.

He has done well over the past five years and now has a team. His existing customers might be interested in the other franchisees from TS as well." Avnet TS is adding some more HP products from  HP Procurve. The distributor will be adding a new team as well to focus on this.

Mueller says, "Our strategy is twofoldgeographical expansion as well as franchisee expansion. The Magirus expansion in

2007 was a first step in franchisee expansion here. With CC,we had Hitachi, Kingston and a few others. With the addition of HP and IBM, we have two more and will increase over time. We make sure we have a team that can provide the value that we promise. We are not randomly opening new franchisees."

As an instance of the fact that the company is focusing on its core competence of delivering value add services, it has also outsourced its logistics services. It holds it central stock in Europe but local stockholding in the Jebel Ali warehouse helps time to customers as well as offers reduced costs. The company is expanding its technical manpower and in fact prides on the fact that HP uses some of its presales consultants when there is a need.

Qaffaf says, "We are looking at a

20 large team in the region. However, we have outsourced our logistics to a logistics specialist based out of Jebel Ali with a warehouse there. The value that we bring would be with the senior people we bring on board, who have worked with leading vendors in the region and have 15-25 years experience in those verticals." Mueller adds, ''''Logistics is not a value in value distribution anymore. There are specialists who do this."

The distributor is focusing on creating more reseller coverage in Africa. The idea is to extend the engagement it can have with customers in the marketplace and gauge customer leads.

Mueller says, "In reality, it is seen that very few of the new resellers who come on board have the capability to execute as well as have the resources and strategy. We are targeting resellers who are selling high end IT infrastructure solutions because server room solutions could be a good fit for their portfolio."

The distributor has a very pragmatic business strategy and is in no rush. However, it has shown the intent to invest in strategic markets and is on the move with the confidence that the markets in the region will continue to defy slowdown trends as clearly seen in Europe.

Qaffaf concludes, "The markets here are much unlike Europe. There will not be the kind of slowdown seen in the developed West because these are younger countries and developmental investments cannot stop as well as the oil money is also there."

The distributor will be hoping to leverage some of the advantages that it can offer such as access to global relationships with vendors it partners with. In addition, the fact that the company is quite financially strong does mean a strong capability to invest in growing its regional business. By that reckoning, the company looks a strong contender to emerge on top despite any slowdown.