AMD has plugged the hole in its distribution strategy by appointing Digiland as a national distributor.
A win-win for both players, Digiland is already adept at pushing AMD product as it previously sold AMD stock under a sub-distribution arrangement with Avnet.
AMD's channel has been turbulent of late, with the vendor dumping its largest distributor APD International under controversial circumstances in late May. APD claims it still has a large quantity of stock available to the market.
But AMD and Digiland representatives both deny that the new distribution arrangement was necessary to fill in the gap left by APD. Stephen Fraser, regional sales manager for AMD Australia, said the goal was not to increase sales of AMD product, although he is confident this will occur. Instead, he said the issue was about "getting closer to the customer".
"What particularly impresses us about Digiland is that they have salespeople on the ground in every city of Australia," he said.
George Skaf, general manager of components at Digiland, said the company has been actively selling the product as a sub-distributor of Avnet since November 2001. The issue of supplying product directly from AMD came up earlier in the year. "We started kicking the ball around on this idea in about March," he said. "We have been gearing up to have a crack at AMD for some time."
Digiland will continue to market AMD's desktop chips (Duron and Athlon) as per normal but will be making extra efforts to push AMD's MP range for servers to its reseller base, Skaf said.