| August 18, 1997 |
MicroAge Expands Services
Telephony and Net support added
MicroAge, in Tempe, Ariz., has implemented two service groups-Computer Telephony Integration and Internet Solutions-that are intended to aid the company's resellers in providing corporate customers with solutions in these high-demand areas. The Computer Telephony Integration group offers expertise in setting up telephony solutions such as videoconferencing, and the Internet group provides help with Web-based solutions such as distance learning.
"We're expanding the
breadth of our services, in areas like telephony and Internet, because customers are demanding those services and they are becoming a larger part of our profit stream," says MicroAge chairman and CEO Jeff McKeever. Although the bulk of MicroAge's $3.5 billion net revenue in 1996 was generated by product sales, services-related revenue is growing nearly three times as fast. "Services are growing at 60% and products at 20%," he says.
MicroAge isn't the only VAR ramping up such services. Over the last several months, rivals such as Entex Information Systems, Inacom, and Vanstar also have introduced new systems-integration services targeting large corporate customers.
To facilitate its expansion, and to support various geographic regions, MicroAge plans to acquire a number of local and national systems integrators over the next few months, a company spokeswoman says. MicroAge last week disclosed the first such U.S. acquisitions: three former MicroAge franchisees in Boca Raton, Fla., Exton, Pa., and Pitt
sburgh. Among the geographic regions slated for expansion are international markets, such as the Asia-Pacific, as well as areas in the United States, including the Mid-Atlantic states.
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