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Netscape's future in Australia still unclear

Netscape's future in Australia still unclear

Netscape has still not officially announced the fate of its local operations, but it yesterday confirmed the "way in which its products and services are sold in Australia would be adjusted".

Certainly, the sudden demise of the company's Hong Kong office appears to confirm claims by sources quoted on ARN Daily yesterday that the Australian operations are also soon to be wound up and the local business instead managed out of Singapore.

Catherine Xu, Netscape's director of marketing for Asia-Pacific, earlier this week told ARN's sister publication, ComputerWorld Hong Kong, that Netscape is revamping its channel strategy in certain markets around the world in order to grow the business and increase profitability.

"The Hong Kong office closed down, and the reason for the restructuring in Asia-Pacific is really trying to see which sales model is functioning well right now and how we can cut costs," Xu said. "Because our company strategy going forward is looking to increase our profit margins, cutting down costs is just as important as increasing revenue."

A statement issued by Australian Netscape officials yesterday said: "details of the company's new structure are unavailable at this time".

However, it did concede that "the size, structure and way in which products and services are sold in Australia would be adjusted following a change of the business model in various territories around the world."

Ominously, it also went on to say: "however, Netscape's Worldwide Professional Services division, responsible for application design and implementation consulting will remain in Australia and all major corporate and government clients and business partners will continue to receive support from Netscape.

"Further information regarding the business model for Netscape's business in Australia will be released in the near future.


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