PowerLAN shakes the reseller tag

PowerLAN shakes the reseller tag

Just months after PowerLAN and International Networking Solutions (INS) merged to become an integrated services powerhouse, the new company reports its days as a pure reseller are long gone.

Gary Ganis, PowerLAN's new chief operations officer, said the company is undergoing a radical change to adopt a heavy emphasis on services and e-commerce solutions.

"What used to be seen as a reseller is steadily becoming a services provider," he said.

A key example of this shift is the announcement last week of PowerLAN's 20 per cent interest in an Internet gambling operation with Cinimagic Limited, the Admirals Casino Group and the Waterhouse Group.

Ganis reports PowerLAN is contributing a team of application development technicians who will work free of charge to Pacific Interactive as part of the gambling application development.

The joint venture is intending to offer Australians a range of betting opportunities, from casino games to overseas sporting events such as baseball, while tapping into the Internet gambling market, potentially worth $7 billion, he said.

The gambling licence is held by Admirals Casino Group.

According to Ganis, the venture represents one of PowerLAN's first steps to becoming a "fee for service"-based business working in the e-business arena.

One of the key business drivers, he reports, is the changing nature of the company's customer base.

The company must cater for increasingly diversified opportunities in the SME and large corporate sectors, he said.

"In the market there is a belief that core business cannot be the provision of boxes."

The new merged company now offers a mix of training courses, a full suite of network vendor equipment solutions and operates as one of Compaq's largest resellers. PowerLAN also maintains key partnerships with HP and IBM.

But despite the lower margins associated with reselling vendor equipment, Ganis said PowerLAN will never move entirely away from its reseller operations.

"I don't ever see us moving away from moving boxes," he said.

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