Long term UK Unix supplier TIS has reorganised its operations in response to increased competition and eroding margins. Bourne End, Buckinghamshire-based TIS, now a part of the Misys Group, has rationalised its operations by combining its VAR and direct sales operations into one. The move resulted in four redundancies, including Roger Dadd, head of the VAR group. According to Richard Fisher, TIS managing director, the move will allow TIS direct sales teams to work more closely with TIS VARs in providing systems for large corporates, who demand higher levels of service and support than many small VARS are able to provide. TIS will concentrate on specialised product areas, such as printing/publishing and health, and is setting up vertical industry business units and business partners. The company currently has between 75 and 80 VARs. In the last 12-18 months we’ve seen a maturing of the marketplace, with all the major manufacturers now offering Unix, said Fisher. This has led to an erosion of price for machines that are twice as powerful. According to Fisher, TIS has suffered a 40% drop in profits despite shifting 50% more units. The company sells Intel Corp machines built to its own specification at the bottom end, and MIPS-based hardware at the high-end. It also has a deal with Tandem for fault-tolerant systems, a business described as very slow by Fisher. We do have a number of pilot sites, he said. One problem is that customers are holding back on decisions due to the economic situation, and waiting for the next round of faster and cheaper boxes from the manufacturers. It’s a buyer’s market, said Fisher, and the sales gestation period is getting ever longer. Last year we had 182 prospects from VARs – after 9 months 82 had come to fruition, 10 were lost and 90 decisions had been deferred. The solution, said Fisher, is to add value in carefully targeted areas of expertise. The next 12 months will be even harder – in this business you either get a niche, get volume or get out, he said.
