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Logical searches for e-volution

Logical searches for e-volution

In announcing its "strategic repositioning" Logical, a global network and systems integration company, has highlighted its intention to evolve into an e-business solutions and services focussed company.

In addition, the company has hinted at further acquisitions in the e-business space.

In a recent statement the company claimed the refocus would see Logical consolidating its worldwide integration, application development and consultancy operations into "a single e-business integration company".

Logical is owned by South African-listed technology and services group, Datatec.

The announcement signals the final consolidation in Australia and New Zealand of recent acquisitions such as CNI Group, Anite Networks, CCS NSW, CCS Victoria, C:DRIVE and ACT Networks, under the banner Logical Asia-Pacific.

The company claims the implementation of the "refocused organisation" in Asia-Pacific will take place this year.

Logical Asia-Pacific CEO Lyle Potgieter said the company is strengthening its focus specifically on e-business. "We've come from the network infrastructure world and we are now going to take our same customers and help them transform their businesses to e-business," said Potgieter.

"We've actually been doing it for the last two years, but in an unstructured fashion," Potgieter added. "And we spent the last six months formalising which products we're using, which services we're packaging."

According to Potgieter, Logical has made 29 acquisitions worldwide, seven of which have been in Australia and New Zealand. "Of course we collected a whole lot of brand names as a consequence and we needed to brand all the companies one name, hence the name Logical," explained Potgieter The CEO also confirmed Logical Asia-Pacific will continue its strategy with more acquisitions.

"There's two on the go at the moment," he said. The companies are both in the e-business space, one with a specific focus on the development of portals, the other focused on e-commerce payment engines.

Potgieter said it was making these acquisitions because it needed to add "more depth and capability in those areas".

He also highlighted Logical Asia-Pacific's move towards encouraging the vendors it dealt with to direct ship and build to its customers.

"That's a trend that's happening out of Europe and the US and we need to adopt the same trends here," he said.

If this trend was adopted more generally in Australia it would mean less "directly booked" revenue for resellers, added Potgieter. "But the true value, I think, has to come from services and from provision of software development services rather than shipping a box with no margin in it, which has been the traditional reseller model."

Potgieter doesn't believe it currently has many direct competitors in the Australia and New Zealand markets. He said Logical had spent a lot of time preparing itself for the e-business market and was now ready to deploy solutions. "We've got the capabilities, we're ready and we have a market advantage right now."

He said it would be "transforming and transitioning" its customers to e-business. "What they are seeking to do is put in place the infrastructure and applications for e-business," Potgieter said. "That's the hottest thing on their agenda, it's what the board's asking them to do and they need people to help them through it."


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