Synnex steps up IBM partnership

Synnex steps up IBM partnership

Ascendant Melbourne-based distributor Synnex is moving forward rapidly with its IBM partnership, stepping up to full distributor status for the personal computer division on October 1.

The promotion comes just five months after being appointed as a business partner.

According to Frank Sheu, managing director of Synnex Australia, the latest development in the company's relationship with Big Blue is directly related to its initial success as an IBM business partner, when it focused purely on Thinkpad notebooks.

To get its resellers interested in selling IBM Thinkpads, Synnex promoted an offer that included 12 months free insurance against theft and transit loss on the IBM notebooks it sold.

"We used a very creative idea to start building up an IBM business and it worked," Sheu said. "The challenge now is how Synnex can turn this IBM business into one that has sustainable volume and profit.

"My immediate goal is $1 million per month, and I intend to eventually grow it to $3 million per month by the middle of 2002."

Sheu said monthly turnover on IBM products as a business partner was already approaching $1 million per month and he expects it to rapidly move past that figure as desktops, servers and NetVista appliances are added to the inventory.

"What we bring to IBM is channel diversification," Sheu said. "Seventy per cent of the business we bring to IBM is new business for them, that is the value proposition we bring to them from the partnership."

Sheu said Tech Pacific would currently be IBM's leading distributor, but added that Synnex will become IBM's second largest Australian channel partner when it meets the set revenue goals. He expects to eventually become number one.

"I think we will catch them very quickly," Sheu said. "We have always been successful with every brand we take on."

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