List story 4-6. J. Johnson/dt1st/mark2nd
Executive Summary
Computer “reseller” has become a generic term that refers to vendors who sell a wide range of computer products and services. But these resellers usually do more than sell computers. They may also help businesses assess technology needs, install systems, and train future users. They handle projects as simple as adding more memory and as complex as setting up new computer systems for large corporations.
According to a survey by International Data Corp., U.S. businesses, government agencies and educational institutions spent $307.4 billion in 1997 on information technology equipment and services. This number is projected to increase to $445 billion by 2001.
Recent expenses for many companies include upgrading to Windows 95 and installing faster Internet connections. Many businesses must replace systems that are only four or five years old to keep up with the bigger, more complex software now available. And as installing and configuring these systems get more complicated, companies will spend more on outside help.
The computer resellers on this week’s list sell, install and service computers from all the major brand-name manufacturers. Some of the companies work with multinational Fortune 500 companies, while some serve medium and small businesses in L.A. County. MicroAge Inc. is No. 1 on the list with $300 million in L.A. County revenues.
The Pacesetter
Phoenix-based MicroAge Inc. supplies computers and computer-related equipment and services to many of the nation’s biggest companies. Besides selling computer systems, the company provides consulting, installation, networking and training. California Regional Manager Paul Rajewski said Los Angeles is one of the company’s largest markets. MicroAge has seven locations and over 240 employees in L.A. County. Rajewski said MicroAge serves mainly Fortune 2000 companies in all industries and many of these companies spend hundreds of thousands or even millions of dollars on computer technology each year. MicroAge’s L.A. clients include the Los Angeles Police Department, the County of Los Angeles, and several prominent corporations.
MicroAge is the largest corporate reseller in the nation’s three biggest markets: L.A., New York and Chicago. The company reported record earnings of $25 million in fiscal 1997, up from $13.3 million in 1996, but has recently fallen on tough times. After reporting a net loss of $5.4 million for its first quarter ended Jan. 30, the company accelerated its plan to reduce costs by cutting staff and splitting into two divisions.
Founded in 1976 in Tempe, Ariz., MicroAge now has 60 locations across the country.
