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Bytes to reduce reliance on Microsoft

Microscope contributor

Bytes Technology Group is seeking to reduce its reliance on Microsoft sales in light of the vendor's pending restructure of the fees that large account resellers can accrue.

The Surrey-based reseller is looking at getting back on the acquisition trail in 2011 more than two years after its last buy, and the changes that Microsoft plans to introduce next autumn have provided management at Bytes with food for thought.

"Going forward we'll need to diversify the business to make sure we are not too reliant on one vendor, in this case Microsoft," said Bytes boss Neil Murphy, adding that around 80% of revenues were based on the vendor's software.

The software giant is reducing LARs' fees for Enterprise Agreements in the largest global accounts and is dangling a carrot for those that develop new mid-market and corporate accounts.

Murphy said virtualisation and storage continued to be market growth areas and it was seeking to make acquisitions in these spaces to further develop annuity services.


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