Market consolidation, which has swept through the ranks of global IT vendors, has reached the local reseller level.
Microware USA said last week it would sell its technology product distribution business to JOS Technology Group for an undisclosed sum.
The sale would create the largest information technology products distributor in the SAR, JOS said.
Microware USA traditionally has split revenues equally between distribution activities and direct sales, its president Peter Yang said.
Selling Microware Distributors would allow Microware to focus its resources on direct sales, Mr Yang said, adding that developing systems for government and company accounts was 'more challenging'.
He said it required a lot of resources to maintain a wide product range and a broad reseller network to run wholesaling. However, the computer wholesaling business was less value-added than corporate direct sales, as it depended more on efficiency than technology knowledge.
Michael Lam, country manager of Hewlett-Packard Hong Kong in charge of computer channels, agreed that competition between distributors was based on efficiency.
