Storage distributor Ideal Hardware has signed UK third-party memoryge presence. manufacturer Hypertec as it branches out from its core products and minimises the risk of depending solely on memory products from South East Asia.
The deal with Hypertec - worth between #15 million and #20 million, according to Ideal - means the distributor can back up its existing memory agreements to sell LG Electronics, Samsung and Simple Technology memory.
For Hypertec's part, the vendor will use the deal to enter the storage market, from which it has been absent up until now.
Hypertec previously sold only into the PC memory and upgrade market, using ETC as its exclusive UK distributor, but is now looking to expand its partners since its management buyout in March 1997 (PC Dealer, 16 July). The vendor is also looking to move away from the processor upgrade market, where its performance had begun to deteriorate.
James Wickes, MD at Ideal, described the Hypertec agreement as its first decent franchise for memory products. 'Previous associations have not been fruitful,' he said.
Wickes dismissed any problems arising from selling memory which has become commoditised and therefore low-margin business. 'It all depends on your distribution model. We rarely hold memory in stock. If you sell on a broker model then you're normally OK,' he said.
Ed Bateman, product manager at Ideal, said: 'Hypertec will allow us to move forward without memory business.'
Ideal will sell Hypertec products on both the spot market as well as to systems integrators.
But delays are expected before the products are available on Ideal's online ordering system. 'The plan is to take it online, but no date has been set,' Bateman said.
Lianne Denness, chief operating officer of Hypertec, said the vendor had been experiencing difficulties feeding products through to enough resellers. 'Dealers have not been getting access to our products. Ideal will now take our products to other dealerships,' she said.
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