Networking distribution company Com Tech is set to significantly expand its operations this week, with the expected announcement of the formation of at least three separate divisions.
While Com Tech officials had not responded to ARN's enquiries at time of press, industry sources suggest the new-look Com Tech will include both a traditional networking-focused distribution arm alongside a systems integration business. Further reports suggest that Com Tech will also create a general distribution business of a similar nature to Tech Pacific, with Compaq and Microsoft already believed to have expressed interest.
The possible creation of a systems integration business is causing ripples within the integration marketplace, where fears exist that Com Tech will become a direct competitor as well as supplier. However, lack of details from Com Tech means all such concern is still speculative. A further unconfirmed report says Com Tech recently hired two members of Digital's Network Services division in Queensland to support the systems integration business. Com Tech is also believed to have leased extra land at Alexandria.
Networking giant Cisco is also believed to be involved with the new arrangement through the possible systems integration arm, but not in distribution. Com Tech has been a long-time supplier of equipment from Bay Networks, and it is difficult to see how Com Tech might otherwise carry both product sets. Bay recently sold out of its stake in Com Tech. The impetus for the changes is believed to have come from Dimension Data, the South African IT giant that purchased 45 per cent of Com Tech in August.