HP's Personal Systems Group (PSG) has signed up Pinnacle Micro to distrbute its products within the SMME and corporate markets.
Louis Fourie, the head of Pinnacle Micro's HP business unit, comments: "This is an extremely important strategic move for us and allows our resellers to offer the marketplace an additional, market-leading range of products, including desktops, notebooks, thin client and PDAs. It is very likely that it will enable us to grow revenue from our current client base – and move into sectors of the corporate market that our reseller base is not presently operating in."
Fourie says stock is due to arrive this month.
"We will be taking a cautiously optimistic view regarding stock holding and will be making all attempts to maintain reasonable levels of stock so that we can comfortably supply the market. In addition, it is important to stress that this move does not constitute a major investment from a resources and infrastructure point of view as we believe we have enough critical mass – and we will be extensively leveraging off our existing infrastructure.
"This means we will not be laying additional cash. In the normal run of business we have already expanded our operations in Cape Town, Nelspruit and Bloemfontein – and this gives us extra muscle and capacity to manage the distribution of HP products."
He says that taking on the HP PSG range will not detract from the company's other product offerings, including its Proline range.
The company will appoint dedicated heads of business at the larger branches, including Johannesburg, Port Elizabeth, Durban and Cape Town, but will be "mainly making use of a focused HP team in Johannesburg" – which will leverage off the company's existing distribution channel.
"We have appointed a dedicated product manager and account manager – as well as a number of product experts. The specialist team brings with it a wealth of experience to the marketplace.
"he bottom-line is that we believe our existing infrastructure is adequate. While this new distribution deal is naturally highly important to us, we are not going out on a limb to service it."
He was unwilling to divulge the revenue stream expected to emanate from the new agreement.