Altech loses Microsoft distie status

Microsoft has demoted distributor Altech, reassigning the Australian company as a Microsoft Managed Reseller from this month.

"From Tuesday, 1 April 2014, Altech will become a key Microsoft Managed Reseller account in Australia, transitioning from its current status as an Authorised OEM and FPP Distributor," said Microsoft Australia OEM director Renee Gamble through a post on the Microsoft Partner Network blog.

The move means Altech may no longer distribute on its own.

"Altech may purchase Microsoft products directly from Authorised OEM and FPP distributors and continue to sell through to its loyal partner base," said Gamble.

Altech managing director Antony Sheen told CRN that the company has " a new relationship with Microsoft that will allow us to make more profit but hold less stock".

"Market is changed and we all need to adjust to the new conditions," said Sheen. "If we don’t adjust, we will all fail the businesses."

The 17-year-old distributor has been through some turbulence recently, making 21 employees redundant from its workforce of 150 and relinquishing distie rights for Samsung last year.

"Altech had to make unpleasant decisions on cutting headcounts – mostly in warehouse and service – but software efficiency helped us to keep improving the level service," said Sheen.

"I see Altech growing not much in revenue but more in profit levels in the next few years," Sheen told CRN. "This is a huge change and our plans so far are on schedule for our targets".

Altech has also lost some senior staff along the way, including general manager Michael Chong in November.

"I am taking care of all the duties that Michael Chong used to carry," Sheen told CRN.

Sales director Kevin Hartin had also indicated on LinkedIn that he finished with Altech, though Sheen said: "He works for Altech part time remotely from Samoa."