IT Distributor Is All About Services

If an IT distributor isn't selling any products, then it's either one of two things: out of business or Coast Solutions Group (CSG), a 2-year-old company based in Irvine, Calif. The company refers to itself as a value-added distributor of enterprise professional services. In other words, CSG doesn't sell any PCs, servers, routers or software.

"We're sort of a technology-resource provider," says CEO Paul Freeman. "We follow the distribution model, but we only do services. That's what makes us different."

What CSG does offer its resellers is presales and technical support, project-management consulting and integration services, along with selling packaged vendor-related services to its customers. Currently, the company has approximately 80 solution-provider customers within its network of independent service providers, including such VARBusiness 500 members as Sanz and Midrange Computer Solutions. Freeman says the network of customers acts as a collaborative group where solution providers are able to partner with one another on joint engagements. For example, a CSG customer that needs storage-integration expertise for a project can call on another CSG network member for assistance.

The company recently prepared a formal membership service for its VAR customers. Freeman says the model is similar to Ingram Micro's VentureTech Network and Tech Data's TechSelect, which represent groups of roughly 300 North American solution providers who receive exclusive pricing benefits and services. The company eventually wants to have around 1,000 solution-provider members within the network. As for competing with traditional IT distributors, such as Ingram Micro and Tech Data, Freeman doesn't believe there will be much friction; after all, CSG doesn't sell any products.

"We see ourselves as complementary," Freeman says, "to everyone--vendors, distributors and resellers."