Ingram Micro is in growth mode, focused particularly on the Wellington market where it plans to increase staff numbers soon.
The company currently has around 250 staff and turnover last financial year of $535 million.
That’s good news for resellers and systems integrators such as DTSL, whose specialist technical resources are freed up by using Ingram Micro’s solutions teams, which specialise in different product sets to add value. It’s a defined move away from being a box shifter.
DTSL has primary business partnerships with Hewlett-Packard, IBM, NCR and Datacraft.
In the case of Hewlett-Packard, it uses Ingram Micro’s HP Care Pack services, a portfolio of services that include enhanced warranties, increased levels of support, and training.
“If you’re hooked into it, you’re hooked into 80 percent of what you need,” says DTSL owner Ian McGough. “It allows us to be much more focused on the customer, and that means more billable hours.”
McGough established DTSL in 1997. Today, the company has 150 staff in 15 locations around New Zealand. Its main business is in the up-to-200-user market.
“Care Pack is the best way to access resources,” he says. “We provide level one support and Care Pack takes care of the rest, depending on what the customer wants.
“For DTSL, the value is very quick additional revenues.”
HP Care Pack comes in different flavours: for example, extensions to the usual three-year warranty up to a four-hour restore.
Each packaged service comes with a part number for immediate identification. Costs range from $49 for a basic printer service to, say, $500 for a 24/7 email server contract.
The margin for a company like DTSL on Care Pack services is around 12 to 14 percent, which compares favourably with margins on servers of around 10 percent.
An IDC/Dataquest study shows the value of such services. The study found that more than 85 percent of customers buying hardware with services became repeat purchasers, while only 62 percent of customers buying hardware without services became repeat purchasers.