In the fallout from Mitsui's exit from the market, i.t.connXions (ITX) will distribute the full range of Sun hardware from July 1.
General manager and divisional chief executive Laurie Sellers, said the hardware would "effectively double the size of our business". Sellers has also secured at least nine Mitsui staff, including former marketing and sales manager Simon Johnson. Sellers met with John Durbin shortly after the Mitsui announcement was made, and made plans to work with Durbin to "look after" Mitsui's staff.
In January, ITX won the national rights for SunSoft, and this announcement now places the distributor in pole position to cash in on the lucrative non-Wintel platform. Sellers said the hardware would be "worth around $60 million this year at list price" to ITX.
The company is also the master distributor for Digital. The sell-through opportunity for resellers hasn't been lost on Sellers, who said ITX stocks are "complementary products that the Sun platform pulls through".
With a product range that includes Oracle, Netscape, 3Com, APC and of course SunSoft, there's a fair chance of building on sales. While Mitsui was a Sun Services centre, Sellers said Sun Services would provide the services itself for the immediate future.
Sellers said ITX also plans to introduce an independent services arm to the company as a "hedge against eroding margins". He said it was important to become a "different sort of distributor" to survive in the market.
The new unit would include contract services, support, training and professional services. The training section is already off the ground.
"We will offer our resellers some services they can on-sell and use in developing their own businesses," Sellers said. He said ITX would "do it in a way that's not in conflict with the channel". Sellers said many of the services would be "productised" for off-the-shelf sales.
Resellers need a value-add to get business, he said. "Once the sale is made, there's the potential for pull-through business." Under this extended services model of distribution, Sellers says ITX will sell complete products that need a lot more push to market, but provide higher margins.
Topping off an already busy month, ITX moved to larger premises in the Kodak building at North Ryde this week. The phone numbers will change but the current numbers will be forwarded for several months.i.t.connXionsPhone: (02) 9415 0550Fax: (02) 9417 8870