Thursday, June 25, 2009

New Delhi
The Financial Express

With small and medium businesses (SMBs) representing around 60% of the domestic technology sales, global technology giant Microsoft is expanding its distributor network to offer SMBs better access to its IT solutions.

The company has created a new 40-member strong sub-distributor network across 33 cities in India, which will support Microsoft’s existing distribution model. Built with an aim to expand its SMB partner community in India, the network will operate on a hub and spoke model and will support over 1800-3500 additional business partners.

Aditi Computers and MC Modi & Co have been appointed as its sub-distributors in New Delhi.

“This would really help us service our customers better and also improve Microsoft’s footprint in the country,” said group director, small and medium enterprise of Microsoft India, Rajeev Mittal. He added that the economic downturn has brought on an additional problem of credit crunch.

“With the new model, partners can get support from the sub-distributors on understanding Microsoft’s policies and products, supply, as well as credit,” he said.

The announcement is part of Microsoft’s geo-expansion programme, which was kicked off two years ago along with its effort to increase the number of Microsoft offices from four in financial year 2007 to sixteen by end of financial year 2009 and reaching out to tier II cities across India. “The SMB community in these regions has benefited from Microsoft’s presence and from the stronger partner network it has created and we believe that with the sub-distributor model we will be able to create similar impact,” said Mittal.

According to market estimates, the technology demand in SMBs has doubled in less than a decade and is growing steadily, despite the global slowdown.

However, a large part of the SMB market continues to be under serviced. To address this gap, Microsoft has launched several initiatives. The company has a presence in 16 cities across the country through which it reaches out to over 200 cities.

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