Cisco dumps Kiwi distributor in SMB refocus

Cisco dumps Kiwi distributor in SMB refocus

Kiwi distributor Datamatic is the casualty following an overhaul of Cisco's distribution in New Zealand. Value-added distributor LAN1 has managed to hold on to its agency in the face of the appointments of Tech Pacific and Express Data, both of which sell Cisco in Australia.

"I'm not making changes because of poor performance," insists newly-appointed Cisco New Zealand manager Steve Coad. "It's just that it's a proven model in Australia so it makes sense to roll that out here."

Cisco's Australian managing director, Gary Jackson, confirmed that Datamatic didn't fit in with the networking plans for small to medium business (SMB) expansion in New Zealand.

"What we want to do in New Zealand, as in Australia, is improve our position in the SMB space," Jackson said.

"We met recently with Datamatic and laid out our plans for the New Zealand market. Based on the impression we gained from Datamatic, we felt that Express Data and Tech Pacific would be better suited to expand our SMB business.

"It wasn't a matter of Datamatic not performing but more a case of Express Data and Tech Pac being able to penetrate the SMB market space a little better," Jackson added.

"In New Zealand we have traditionally been more focused on the enterprise, however we have seen small business take off in New Zealand in a similar way to its expansion in Australia.

"In fact, we expect the SMB market in New Zealand to provide Cisco with about 25 per cent of that country's overall business within 18 months," Jackson predicted.

He said this revenue stream will come largely from incremental business gained in markets where Cisco hasn't been a prominent player on the past.

Express Data's New Zealand manager, Ian Jansen says the Cisco deal fits the company's goal of working with the top two vendors in each market it's in.

He says customers have been telling him he had too few product lines. "We don't want 50 lines but six to eight is too low."

It's also further evidence of globalisation and the move to have regional distribution, he added.

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