CMS divides to boost margins

UK storage distributor CMS Peripherals has split into two and hired more resellers to attack the high-end storage market.

UK storage distributor CMS Peripherals has split into two and hired more resellers to attack the high-end storage market.

In an attempt to expand its range of channel services, CMS has formed an enterprise storage group to focus on the high-end marketplace, offering channel partners consultancy, specification, design and installation services. A new commodity storage group will focus solely on high-volume products.

Koby Amedume, CMS's marketing manager, said the move had followed pressure from the boardroom and discussions with the firm's reseller partners.

Following the restructure, Amedume said CMS has set out to increase the amount of business it does through its high-end group. "The high end is where the real margins are. Our customers want to develop their businesses to handle this level of service, and with our new structure we believe we are in a position to help them," he said.

Amedume said existing partners would not need to be re-accredited, because it would slow down business for all concerned. "We want to increase our reseller base, not hinder it."

Atif Malik, business development manager at CMS channel partner Simply Computers, said the changes at CMS were overdue. "They were the same as any other distributor before this: they did not talk enough to their partners. We have experienced a noticeable improvement since then," he said.

Malik also said Simply Computers will try to take advantage of the increased services available from the enterprise group. "CMS is looking to move more partners to the high end and we are going to do that because it has the services in place to help us migrate," he said.

Tony Stanford, sales director at reseller Kingswell, said the move would help resellers that did not have their own support and training facilities.

"Distributors have to add value beyond just holding stock. Adding these resources will help the channel," he said.

• Logical, the ebusiness integration division of Datatec, has appointed Mansel Jenkins as director of services for the UK and northern Europe. Jenkins was previously national operations manager at NTL Workspace Technologies.

The move follows the appointment of Rikke Helms as chief executive of Logical, as the company refocuses on ebusiness systems integration.