For journalists, customers and business partners.: This document is designed to answer any potential questions in relation to our rebranding and portfolio realignment
Rebranding and portfolio realignment
Which business areas will be the main focus in the future?
We will be focusing on the three pillars of software, consulting and services.
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Why is PC-WARE repositioning itself?
Our group is not repositioning itself; we are simply taking a further step towards our strategic focus on the core segments of software, consulting and services. By playing to our strengths, we aim to serve our existing customers more comprehensively and become more attractive to our partners. Our target markets are global customers, public authorities and medium-sized enterprises. We want to focus all of our energy and attention on the complex demands of our customers rather than presenting our customers with the choice of two brands with in some cases different portfolios.
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How have PC-WARE and COMPAREX been positioned up until now?
PC-WARE has more than 20 years of experience in providing advice on the most effective software models, as well as a comprehensive portfolio of services.
COMPAREX has more than 30 years of experience in the field of data centre infrastructure and consulting.
As a result, we have been making two sales and product pitches to markets that in some cases overlap.
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This process is bound to be very complex. Was it necessary to take this step?
This step was necessary to ensure we address our customers with a clear and consistent message.
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Brand
Unlike PC-WARE, the name COMPAREX has had very little presence in many countries over the past few years. So why persist with the name COMPAREX of all names?
This decision was based on the results of a great deal of testing and analysis. The PC-WARE brand is well known among our existing customers, and many employees who have been with us for years now have an emotional attachment to the brand. Regionally, PC-WARE also plays an important role in the company. PC-WARE is one of the few companies set up after reunification in Saxony that has managed to grow to an impressive size with international reach.
PC-WARE began 20 years ago as a software dealer in Leipzig and that name is still associated with PC and software reselling in the minds of some people.
Internationally speaking as well, the company name is ambiguous in terms of our business orientation.
We see ourselves as experts at optimising the business processes of our customers. Our motto is "WE SUPPORT YOUR SUCCESS!" So our consulting and service focus will be better represented by the COMPAREX brand.
The COMPAREX brand was established 30 years ago by Siemens and BASF in many markets. Even back then, the corporate focus was on servicing the needs of international clients for crucial business processes.
We are convinced that the COMPAREX brand will better support our growth strategy. This applies to new customer acquisition, the roll-out of our complete portfolio in all of our markets and the process of tapping into new markets.
Over the past few years, we have been consistently expanding our global presence, to the point where we are now represented in 28 countries by some 75 branch offices that offer a wide range of services for all aspects of software and IT infrastructure. This is why we need a brand name for the future that is globally applicable, timeless and forward-looking and also reflects our expanded product portfolio.
The decision to adopt the COMPAREX brand name was made for three reasons:
- The name "works" internationally and reflects our global outreach.
- As a word creation, it is flexible enough to carry certain values and performance promises, while also offering scope for future growth.
- The COMPAREX brand is internationally established and stands for 30 years of consulting expertise.
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Will the "PC-WARE" brand disappear completely?
COMPAREX will be launched on 5 May 2011 in Germany.
After the summer months, nearly all our foreign branches will be rebranded, and this will ensure the global consistency of our Group structure.
We want to assume a uniform market presence under the COMPAREX name. But we still retain ownership of the PC-WARE brand and will continue to do so.
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Why do you want to retain the brand? Is the intention to use it again in the future, for one business area perhaps?
In the German market in particular, it has a high profile.
We do not intend to comment on our plans for the brand at this time.
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Portfolio realignment
In future, the three pillars of your portfolio will be Software, Consulting and Services. Please explain what you mean by each of these.
- Software stands for licence consulting and the best possible, legally compliant use of licences, while optimising costs and maximising the benefit to our customers.
- COMPAREX-led consulting is understood as commercial consulting with the emphasis on IT.
- COMPAREX services encompass all services that selectively or permanently improve, protect and expand the business of our customers over the long term. This ranges from protection of critical applications to our MultiVendor Helpdesk and the COMPAREX Academy.
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Will you stop offering certain services you used to provide before the portfolio realignment?
The market for IT services is highly competitive. What is your strategy for ensuring the successful survival of COMPAREX?
We aim to become the technology leaders, so we can offer our customers the best possible advice as trusted, manufacturer-independent advisors.
We are in a position to offer our customers end-to-end support in all three areas of software, consulting and services.
By integrating both areas, we offer IT infrastructure solutions across the entire IT landscape. COMPAREX Consulting has Windows specialists, Linux and Unix experts as well as mainframe and virtual services professionals.
There are few companies in the market of a comparable size to us (nearly EUR 1 billion in revenues across three continents, with a worldwide partner network) that are able to offer commercial consulting with an IT focus, plus professional project management and managed services, combined with staff training and back-up support via a MultiVendor Helpdesk.
The software business will be further expanded as an important growth segment of the Group.
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Where are the resultant synergies? What are they and what are some of the expected spin-off effects?
In marketing, first and foremost. We currently maintain various web formats for what are in some cases identical service options. In the past, we have acquired an excellent reputation as virtual service experts under both the PC-WARE and COMPAREX brands.
In the back-office area, where we want to serve all 28 national organisations with one Group structure.
In the sales area, where one sales team will be pitching our corporate portfolio to our customers.
In procurement, where we will be approaching our partners as one entity.
In our portfolio, where we will offer complementary services in areas like the storage environment.
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Roll-out
How will the name change be effected?
Technically speaking, it is simply a matter of a "name change". This means changing the trading name of a company without altering the legal structure and/or legal form of the company.
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Why doesn't it all happen at once?
There are technical and logistical reasons for this. Our day-to-day business was not to suffer as a result.
The minimum prerequisite for rebranding is to launch our new website and arrange new corporate stationery and forms, such as invoices etc. The prerequisite for that is registration of the new brand in the relevant company registers. This is a time-consuming process that we could not see ourselves completing in one day, given the need for confidentiality.
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Over what period will the portfolio be internationally standardised?
We are starting right now in Germany, where we already have a market presence in both business areas. The speed with which the subsidiary companies will be able to make the portfolio available in the respective markets under their own steam will depend on how quickly we succeed in doing so, without jeopardising any of our existing business. The pace of change must be a healthy one. The worldwide roll-out of our unified portfolio will occur on a step-by-step basis and should be completed within the next three years.
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What measures will be taken to offer the portfolio in every country?
The General Managers will have the task of developing the respective areas in their markets on a step-by-step basis. The process and sequence of events will be up to them to decide and plan, as they are in the best position to make this judgement. Quite clearly, they are familiar with the goal, and their performance will be assessed accordingly. Where appropriate, we will also support the process via inorganic growth measures (acquisitions).
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Organisation
What is your growth strategy?
To maintain a strong growth rate and develop complementary business in the individual countries. This means Software in COMPAREX countries and in new markets and Consulting increasingly in markets where we are already active. Such a strategy is only sensible if we have a single, consistent brand.
The goal we have set ourselves is to be able to meet the needs of our customers more comprehensively than before. We intend to double our revenue within the next three years.
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Where is the head office of COMPAREX?
Leipzig is the head office of the company. Leipzig is the place where all back-office work will be handled for the ten locations in Germany and all of our 27 foreign branches.
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Will some of the locations in Germany be closed or merged?
All of our German locations will be retained. As part of the rebranding process, the organisational units of Comparex PC-Ware Deutschland GmbH will be incorporated within the new structure of COMPAREX Deutschland AG. In making this change, we will in future maintain a strong branch office in Baden-Württemberg to represent our entire portfolio in a highly attractive market.
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What legal form will COMPAREX take?
No change of legal form is associated with the name change. It is purely a matter of a change in company name, so we continue to be an Aktiengesellschaft (German stock corporation).
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How will the management roles be allocated?
There will be no changes to management positions as a result of this rebranding.
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Investors
To what extent did Raiffeisen IT determine the decision?
Our parent company, the Raiffeisen Group, supported our proposal for rebranding and gives us a great deal of scope to choose our own strategic and tactical direction.
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What influence do investors have on the actual business activities of COMPAREX?
We have a great deal of scope to determine our own direction and the day-to-day business of our company.
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What plans does the investor have for the company?
Increasing the value of the investment through sustainable, long-term growth.
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What goals has Raiffeisen IT set for the "new" COMPAREX?
The goal we have set ourselves is to be able to meet the needs of our customers more comprehensively than before. We intend to double our revenue within the next three years.
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Are rebranding and refocusing the precursors to a possible exit by the investor in the form of an IPO of COMPAREX or a sale to another strategic or financial investor?
The Raiffeisen Group achieved its goal by taking over 100% of our Group of companies in January of this year.
The Raiffeisen Group is famous for being a long-term investor in the market.
The rebranding came about as a management initiative.
There is currently no talk of a renewed IPO.
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Customers
What will change for customers?
In sales terms, customers will in future have only one key contact for our entire portfolio of products and services, which we will be offering under the COMPAREX umbrella.
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Will existing customer contracts still be valid?
Yes, because it is purely a name change for the company.
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How are customers responding to the rebranding?
A customer survey conducted in the lead-up to the rebranding showed that the COMPAREX brand is synonymous with international reach, competence and trustworthiness. As a result of this perception of the COMPAREX brand, we anticipate a positive response from our customers.
We maintain close contact with our customers and anticipate a positive response.
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Will existing customers retain the same contact person?
Yes, existing key contacts will be unaffected by the rebranding.
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What kind of companies are particularly interesting to you as customers?
Public-sector clients, key accounts and medium-sized enterprises are the main focus for us.
Our strengths really come into their own in our work with international companies and customers with special requirements.
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Will you continue to meet the needs of small to medium-sized enterprises?
Yes, we have developed special mechanisms for them, to ensure these markets are served in the best possible way. (Telesales)
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Are there any sectors you will be targeting in the future?
We will continue to offer cross-sector solutions. We are particularly successful in many countries in the public-sector arena and in the automotive, finance and healthcare sectors. We aim to build on our previous experience to expand these areas.
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Employees
What impact will rebranding have on employees? What will change for them?
From a purely legal perspective, nothing changes for our staff as a result of the rebranding. There will be no change in the legal entity of their employer. The validity of all work contracts naturally remains unaffected, and no amendments to employee contracts will be necessary.
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Refocusing is often associated with job losses. Are any planned?
No job losses are planned.
On the contrary – we are currently in great need of additional employees. We have employed more than 50 new staff in this calendar year here in Germany alone. At the moment we have about 40 outstanding vacancies within our head office in Leipzig and our German branch offices. We are also making ongoing efforts to expand our workforce abroad too.
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Partners and manufacturers
What does the rebranding mean for your partners? Will their contracts still be valid?
The rebranding will have no effect on our existing contracts with partners.
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How do you expect your partnership with Microsoft to develop?
Since the summer of last year, we have succeeded in substantially expanding our Microsoft business. According to the latest available information, we have managed to improve our worldwide position even further and are now ranked fifth-largest LAR in the world. Our success in this area was aided by the acquisition of numerous new industrial clients in Germany, our general organic growth and our entry into new markets.
The investments we have made in our new AX-based ERP system enable more professional processing of our transactional business, and our CRM system is particularly beneficial to our major clients and industrial customers.
Future partnership models will require more emphasis on the consulting and service side of our business. We will be able to meet these requirements with our new focus.
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What is happening with the smaller partners?
As well as our major partner, Microsoft, for the past financial year we have increasingly concentrated on so-called focus partners. They are the strategic partners who are supporting and financing us with the expansion of our business. These partnerships are for the most part international in nature, but may vary from country to country.
Over and above this focus, we aim to continue providing our customers with a "one-stop-shop" service.
All of our infrastructure partners, such as IBM, EMC and Oracle, have a large software portfolio, so this consolidation of our Group is very much in their interests.
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Are you on the lookout for any new partnerships?
We are always open to new partnerships and constantly monitor the market very closely for new trends and themes.
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