Another reseller turns to services

Warranty extension and support services startup MGR.eco Solutions has bought a small Melbourne IT reseller, ComputerGate, for an undisclosed sum.

Mario Greco, managing director and owner of year-old MGR.eco, said the merged company -- Computergate Australia -- would continue its traditional reselling activities but would increasingly focus on services and 'solutions' provision nationwide. The acquisition was completed early October.

“I don't think you can survive if you are just selling boxes these days. The margins aren't enough to sustain life,” he said. “The previous owner of ComputerGate has gone back to his farm -- he had health problems in the family. We acquired ComputerGate from him holus-bolus.”

The acquisition included Computer Gate's sole office in Melbourne, four staff and partnerships with storage-focused distributors ACA Pacific and TData. Computer Gate was a Tier1 IBM solutions provider and worked with vendors such as Adobe, Kyocera and NEC, Greco said.

“I'm expecting to see $1 million in revenue this financial year, which means there will be significant growth. How that develops over the next two to three years ... we're still looking at how we can develop the business in services as well,” he said.

Greco said that MGR.eco had 250 services outlets in Australia, which the new company -- Computergate Australia -- would use to expand its coverage.

Computergate Australia has also signed a deal to resell wireless broadband packages from another Melbourne company, Access Providers. The deal is Computergate's first move into the telecommunications space, he said.

“It will be competing with Telstra. They're a supplier of their own [wireless broadband] access to SMBs and corporations,” Greco said. “We think they have an interesting product.”

Greco and Access Providers CEO Keith Ondarchie would run quarterly seminars on wireless broadband for potential customers seeking cheaper broadband options, Greco said.