Logical conclusion for staff of failed CSI

By ADAM GIFFORD

The collapse of major IBM reseller Computer Systems Implementation has allowed networks specialist Logical to expand its reach, taking on CSI's staff and renaming itself Logical CSI.

Computer Systems Implementation has been renamed Technology Providers and placed in voluntarily liquidation in advance of a move by IBM to wind it up over unpaid equipment bills.

Logical managing director Murray Jurgeleit said Logical bought most of CSI's assets, including customers, intellectual property and contracts, while debtors and creditors remained with Technology Providers.

The CSI Retail division is a leading provider of specialised technology to retailers nationwide, including developing and hosting the Kachingo loyalty scheme.

Logical is the country's largest Cisco reseller and implementer, but Jurgeleit said the technology trends like network attached storage and IP telephony means pressure was growing from customers that it also provide systems and applications services.

"Around the world Logical has that sort of mix. New Zealand was unusual in that we were still a purely network integration company," he said.

All but two of CSI's 42 staff and about 20 contractors have accepted offers to join the new company, meaning Logical CSI has just over 200 staff.

An IBM spokesman said IBM has already admitted Logical CSI Limited to its business partner programme, "and is looking forward to a successful business relationship."

Jurgeleit said as CSI was IBM's largest systems channel, IBM was keen to preserve the market space CSI occupied.

"It would be quite dangerous if CSI went belly up. IBM's competitors would have filled the gap. IBM understood that, and saw us as the white knight," he said.