A Switch To Storage Saves Sequel Data Systems

How did a small-town computer- services shop that began in 1986 transform itself to a multimillion-dollar solution provider whose growth in 2003 topped rates not seen even in the late 1990s' Internet boom? <P> "We became extremely focused on storage, and that really grew our business," explains Don Richie, CEO of Austin, Texas-based Sequel Data Systems (No. 437 on the 2004 VARBusiness 500). <P> Amazingly, that growth rate--125 percent--was the highest in the company's history. But it wasn't an easy path by any stretch, according to Richie. Not only was Sequel Data facing tight IT budgets, but the proposed HP-Compaq merger was causing a lot of fear and anxiety in the channel. Fortunately, Richie says, the merger process was largely painless. He gives kudos to HP for keeping the chaos to a minimum. "Things settled down last year, and suddenly business began to take off," he says. <P> Last year, sales for HP's StorageWorks NAS, SAN and tape-drive products blossomed for Sequel Data. And it was HP that encouraged Richie to invest in storage in the first place, in particular Mark Gonzalez, vice president of HP Network Storage Solutions for North America. "I took his advice and storage became our leading technology," he says. <P> As a result of increased storage sales, Richie's server business also grew last year, and the solution provider bolstered its consulting services, as well. In addition, consistent relationships with local customers are going strong. The solution provider has established a stronghold in Texas, as well as Arkansas and Oklahoma, thanks to Richie's longevity and dedication. "The salespeople and executives at HP have changed a lot over the years," he says, "but we've been the same at Sequel Data since 1986." <P> Now that IT spending is creeping back upward, the solution provider could be poised to make 2004 another banner year for the company's growth. "We're seeing capital investments from customers we haven't seen in three years," Richie says.