IBM irks NZ distributors with Electronic Resources deal

IBM irks NZ distributors with Electronic Resources deal

IBM has upset its PC distributors in New Zealand with the appointment of Electronic Resources New Zealand as a third agent. ERNZ landed the deal thanks to its connection with global distributor, Ingram Micro.

Callum Eade, IBM brands and channel manager for Wellington-based distributor Melco New Zealand, was disappointed with the decision.

"We believe the market is already well-catered for. Dividing the available business will clearly reduce profit, affecting the ability to service the existing market," he claimed.

"It's difficult to see where they (ERNZ) will add value in the New Zealand market, given ERNZ's minimal interest in this dealer channel currently."

Auckland-based IBM distributor Tech Pacific was not happy either.

Managing director Tony Butler said it means there are effectively four distributors because IBM itself sells directly. He said it may crowd the market. However, Butler added that the appointment is based on a worldwide decision and Tech Pacific will just have to live with it.

ERNZ managing director Des Dass said he was sure there would be enough room for another IBM distributor in the market. ERNZ will distribute the IBM commercial desktop range, ThinkPads, NetFinity servers, as well as Options by IBM. The appointment took effect on July 1 and ERNZ will be able supply late in the month, he said.

IBM personal systems group New Zealand manager Dean Hughes described the new appointment as an opportunity to offer local resellers as much freedom of choice and flexibility as possible when buying IBM PC equipment.

"IBM has a global channel and customer coverage model. The appointment builds on our already strong relationship with the Ingram Micro group of companies worldwide, and gives us the opportunity to leverage the strength of this partnership in New Zealand."

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