Memory is the heart and soul of Kingston

Standing firm behind its generic memory business Valueram, parent Kingston Technology has confirmed that the arm will definitely...

Standing firm behind its generic memory business Valueram, parent Kingston Technology has confirmed that the arm will definitely not be spun off or shut down like its networking division.

John Holland, vice president of European sales and marketing at Kingston Technology, also dismissed suggestions of a conflict within the company between staff at Valueram and its traditional OEM memory business.

"Our core business is memory, so Valueram won't go the same way as our networking division or Store Case - it is our heart and soul," he said.

According to Holland, both divisions were targeting distinct market segments, so "there is no basis for a rift - they contact a different customer base".

But he admitted: "There is the potential for a small amount of cross-over, but that is about as probable as my shoes fitting on your feet - it could happen, but it's not likely."

Holland's calls for calm follow claims by one industry source that there was a "dichotomy" within Kingston that was causing conflict between both businesses.

"The Kingston old guards that sell branded memory have seen the Valueram boys move into their space and that has caused real rifts," claimed one source.

Another source argued the market for generic memory was growing and encroaching on the OEM space and that Kingston was cannibalising its traditional business.

Michael Peters, UK and Ireland country manager for Valueram, argued the memory market was changing, with "generic products becoming stronger in the education sector".

"But our figures would suggest our business has not encroached on Kingston's OEM business - it's purely incremental," he added.

"When the dust settles, it will be seen as a far-sighted and highly successful initiative," stated Bill Key, sales manager at Kingston Valueram distributor Upgrade Options.

Paul Kunert

Read more on Managing IT and business issues

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