ARN hit the phones last week to see what the reaction was from vendors, competing distributors, resellers and analysts"Ingram still needs to cement its place in the Australian market. It will be interesting to see how the ITG client base, which has loyalty to ITG, will react to Ingram and what kind of pressures it will place on the market."
- Colin Williamson, managing director, Comaxes Corporation (Sydney)"We will continue to focus on the customer base we have cultivated and believe we can maintain and build that business because we have very strong relationships with those customers. If we continue to service our customers' needs then we don't expect to lose any of them. At the end of the day, your strategic customers will stay loyal if you are doing the job well."
- Michael Touma, managing director, Dataflow Computer Services"For Ingram to enter the Australian market, it needed to acquire an organisation with solid experience at the commercial end of distribution and we can see ITG would fit well into that channel structure."
- Greg Trigger, national wholesale manager, computer channels organisation, Hewlett-Packard"It is the start of the mega mergers. It is good in that it gives resellers two lines of credit and these big distributors have the resources to rapidly set up better service and support for their customers but I am a bit conservative and worry about the shifting of the middle ground. It now appears to be a case of you are either big and large or you are small and niche."
- Bernie Esner, senior analyst, desktop systems, IDC"We have dealt with Ingram in the US and with ITG in Australia and we find them both to be reliable partners. By themselves they each have a good reputation. What we are looking for in a distributor is the ability to provide the products we need in a timely manner."
- Steven Bailey, managing director, Network Developments (Melbourne)"We are not really expecting any major negative effects. They (Ingram) will have a broader market base and better access to products which Australian computer users need or might need."
- Hazel McConnell, sales and accounts manager, AW Computing (Adelaide)"It all comes down to how they treat the channel. If they ignore it, it is not going to bring anything good to the industry. On the other hand, if they respect it and simply get a good foothold in Australia, that will benefit the whole industry."
- Allan Nutley, manager Computer Allied Services"It has been speculated for some time that giant distributors like Ingram would set up in Australia. We don't believe it will have much impact on our distribution business. Our distribution model is different in that we personally reach deep into local territories, and we proactively go out and sell."
- Jack Zhong, CEO, Todaytech Group
"Any distribution company worth its salt is under the microscope of global players. I think ITG is a quality distributor and it makes sense for them to do what they have done. I don't know how ITG will be affected by working within the negativity surrounding ER's recent culture in the region."
- Roger Bushell, managing director, CHA
"It will please the channel somewhat that there is increased competition but we will have to wait and see how it affects it in terms of lowering prices and margins. If they operate under the ERA name they will have to get a clear message to the channel that they are not just a components distributor anymore."
- David Hancock, research director, Inform Business Development