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SGI SA operations to be handed-over soon

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 28 Jun 1999

SGI (Silicon Graphics) could name the distributor to take over its South African operation as soon as Wednesday. Short-listed business partners are presenting their proposals to senior Europe Middle East Africa VP Javaid Aziz, and an appointment is expected by the end of the week.

SGI says it will not only maintain customer service and satisfaction but intends to improve it.

The company is refocusing its worldwide operations by segmenting markets and moving away from a geographical orientation. The traditional SGI business will be handed over to a local partner, but the Cray Computing section will be retained by the UK-office. Local technicians will report directly to the European office.

The short-list has not been made public and the tenders are non-disclosed, but country manager Vaughan Wooler says about six applications have been received. The successful bidder is to take over operations during July.

SGI SA does in the region of R30 million worth of business annually, making for substantial revenue possibilities for the new partner. Business models and the new structure are still under wraps as they are protected by the non-disclosure clause of the tender agreement, but details should be available by the end of the month.

Local sales representatives will probably have the option to join the distributor, but a certain number of jobs will inevitably be lost. As Wooler puts it: "That`s just life for you."

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Phillip de Wet
ITWeb News Services
(011) 807 3296
phillip@itweb.co.za