Xylan has finally quashed industry speculation regarding its channel plans in Australia, appointing LAN Systems as its first official distributor here.
When ARN interviewed Xylan managing director David Keane earlier this year, he said that the company was looking to expand beyond its traditional VAR model and market what it believes are fully fledged end to end networking solutions.
LAN Systems is to be the only distributor for Xylan in Australia, according to Keane, with the agreement expected to be worth over $10 million for the first year.
Scott Frew, managing director of LAN systems said: "We hope to realise a significant boost to our current revenues."
A number of important synergies exist between the two companies, according to the two MDs. Both Xylan and LAN Systems are growing rapidly with Frew claiming that his company has grown by a factor of six in the last six months.
"This is a clear recognition that distribution has a very important role to play in getting products to market," he said.
Coincidentally, LAN Systems currently distributes for Cisco as well as 3Com. LAN Systems marketing manager John Penn, however, denied this situation would give rise to any serious conflicts of interest between these three rivalsAccording to Xylan officials, the agreement will better enable the company to compete against the likes of Cisco and 3Com, particularly in the layer 3 switching area.