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NEC picks Mustek for South African VAD role

by Stuart Wilson, Friday 14 March 2008

NEC has appointed Mustek as a value-added distributor of its server, data storage and networking products as well as its corporate solutions. Johan Degroote, VP EMEA at NEC has declared that Mustek will provide NEC solutions including delivery and support services.

Hein Engelbrecht, managing director at Mustek, said: “We are working with the server and storage products from NEC. These are areas that we are not currently targeting with our Mecer products. We took a strategic decision to investigate these market areas and identified the NEC products. They are attractive and competitive - and they look like great products.”

Mustek will offer NEC’s Virtual PC Centre (VPCC) solution. Degroote commented: “One of the main reasons why we picked Mustek was their reputation in this market, their ability to work well with various channels as well as their excellent logistics capacity.”

“There’s no such thing as a big deal or a small deal for us. A customer problem is a customer problem, and between Mustek and ourselves we will be able to offer technology that not only solves the problem but has the potential to give the customer deep savings and efficiencies,” he added.

Mustek also recently announced its unaudited financial results for the six months ending December 2007. Sales hit US$194.9m up 3% from US$189.3m in the corresponding period a year earlier. After tax profits came in at US$3.56m, down from US$6.56m a year earlier.

In terms of industry outlook, Mustek offered the following guidance in its financial statements: “The much anticipated Service Pack 1 for Microsoft Windows Vista was released this month and we believe enterprise adoption rate should accelerate now that the service pack has been released. Performance and compatibility improvements should convince users to migrate. This should have a positive effect on PC sales.”

“The imminent launch of High Definition Television in South Africa will stimulate the creation of High Definition content for consumers. Once consumers have experienced High Definition TV they will not be satisfied with Standard Definition for their own content. Typical file sizes for an hour of High Definition video are over 5GB sometimes even 10GB. This pushes the hardware and storage requirement beyond notebook computers. Typical notebook hard drives top out at 500 GB with a punitive cost per gigabyte. Desktop computers by virtue of their form factor can accommodate multiple hard drives with a maximum size of 1 Terabyte,” the statement continued.

The Mustek group comprises various units including PC and notebook brand Mecer, components and peripherals supplier Rectron, public sector ICT supplier Brotek and systems integrator Comztek.

View Channel EMEA’s recent video interview with NEC’s Johan Degroote by clicking here

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