Executive Suite: John Kamen, Delta Computer

John Kamen, president of the Delta Computer Group, based in Farmingdale, started his business in 1990 with just himself -- and his mom to keep the books. (May 16, 2011) Credit: Steve Pfost
John Kamen, president of Delta Computer Group in Farmingdale, is a computer technician turned entrepreneur. After working for years as a technician installing mainframe systems, he founded Delta in 1990, with just himself and his mother as the bookkeeper. They worked in 2,500 square feet of office space he rented in a client's building. His mother has since retired.
Today Delta Computer has 100 full-time employees, including about 50 on Long Island, and 300 part-time workers and 22,000 square feet of space.
Companies contract with Delta to fix what ails their computer systems, or to install or maintain them. The company has 400 clients, from small fry to Fortune 500 companies with global operations. Delta restored the computer operations of securities firm Cantor Fitzgerald after its World Trade Center headquarters were destroyed, Kamen said. "We actually put Cantor Fitzgerald back in business," he said.
He talks about growing a company during the recession and facing industry challenges.
How do you successfully manage a company during a recession, especially without a sales decline?
"A recession can actually help us. And the reason why is because these big companies have to save money in a recession. And they come to companies like us to help them do that. So it's actually created opportunities for us. We're having a great year. Last year was a very good year. . . . We did lose business, but we gained more than we lost. We did get hit with some of the small companies going out of business. But it's [the recession] also created a lot of opportunities at the bigger companies that wouldn't normally look at a Delta to help them with their computer maintenance."
How did you bring in more business?
"We doubled down. We invested more in marketing; we hired more sales people. . . . We provide a lot of training to our employees, our technicians. . . . We do a lot of cross-training, which keeps our expenses down."
Are more companies outsourcing their IT operations?
I find it to be cyclical, depending on their management. They'll outsource, then they'll bring it back in-house. And then they outsource; then they'll bring it back in-house."
What key issues does your industry face?
"Right now one . . . is that the manufacturers are trying to get back the maintenance business, and they are trying to lock out third-party companies [like Delta] from providing maintenance by not allowing us to have diagnostics and updates. . . . I belong to a group called the SIA, which is the Service Industry Association. We've been writing letters to attorneys general. . . . It's something that happened with IBM a long time ago. IBM now is partnering with us [more] than ever before."

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