MMD steps away from the Edge

MMD steps away from the Edge

Amid the confusion and frustration of the high profile collapse of Edge Technology last year sprang a new distribution outfit which is now reaching out into metropolitan Australia.

MMD Computers, which begun just over a year ago to help service the warranties of customers left in the lurch by the Edge failure, aspires to combine the aspects which made Edge one of the leading IT companies of its day while recognising the issues which led to its downfall. On that basis, each of its 25 staff members are former Edge employees.

"We saw an opportunity with the closure of Edge," explained MMD managing director Andrew Reeves, former Vice President for Edge Technology in Europe. "There were a number of customers that needed servicing and we offered Edge customers warranty for their product because [as former Edge employees] we knew where it came from and who the suppliers were."

Beginning in Adelaide, MMD now has offices in Newcastle and Hobart is looking at opening two more operations in metropolitan Australia to complement its regional reach.

"We have initially focused on servicing regional areas with less competition," Reeves explained. "There's no point in setting up in Sydney and Melbourne if you can't make any money."

Learning from the mistakes of the past, Reeves set about setting up a business that is focused on profitability, particularly in the white box market.

"We are not prepared to sell products for a dollar - it doesn't give you longevity," he said.

The Edge connection has actually helped the company, because staff know the business inside and out.

"Edge lost money in a number of overseas areas and it became difficult for Australian operations to make any money because of the cash-flow problems," Reeves said. "We can learn from their mistakes and we have had a number of suppliers prepared to give us a go. They know it was not the staff that were the problem."

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