JDM Infrastructure
Customers think so, too. “We have a really good relationship with them. They’re very responsive to our needs,” said Doug Rusk, vice president and IT director at Fidelity National Financial, Jacksonville, Fla. “A lot of times we have situations where we might need something quickly or something out of the ordinary, and they are always right there to help us. Of course pricing is always an issue, and they are always competitive in that way, too.”
When John Marks, a former vice president at CDW, left the reseller to start his own company, he focused on maintaining low overhead. Unlike the mammoth CDW, Marks’ new company, JDM Infrastructure, was started in the basement of his home with one salesperson.
The time was 2001 and the downturn in the technology market meant there was little capital to start a large company with swank offices. “After I left [CDW], I tried to buy a couple resellers, but it didn’t work out with the downturn in the tech market, so I went out on my own,” Marks said.
With his experience at CDW and a prior position as vice president of purchasing at Hartford Computer Group behind him, Marks decided to specialize in hardware and software sales, but with a twist: This time he would offer professional services primarily by outsourcing. “I had to find a business model that was right for the times,” he said.
With the sluggish economy, Marks found that many integrators had technicians who were underutilized. He began subcontracting with those companies, paying about two-thirds of their regular rate. He continues with that model today, keeping only a few technicians on staff while focusing training on his sales team. “It’s been a huge positive for us,” he said. “Most of our contractors don’t compete with us and they’ve started sending us hardware business. It’s a win-win for everyone.”
Marks’ strategy has paid off. He reported that sales grew 200 percent, to $36 million from $12 million, over the 12 months ended June 30, 2004, by offering products and services to vertical markets such as finance, retail and health care.
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