LAN Systems and firewall security vendor, WatchGuard, have pulled the plug on their distribution relationship.
WatchGuard sales director, Sven Radavics, said it was a mutual decision that had been easy for both sides to reach. The two companies had worked together for about four years.
"There were a number of factors, but it basically comes down to our businesses diverging," he said. "We have different requirements but are parting as friends."
Radavics said the vendor would continue to work with remaining distributors, Firewall Systems and WhiteGold.
LAN Systems general manager, Wendy O'Keeffe, said it had been in discussions with WatchGuard about the suitability of working with three local distributors for some time.
"The reality is that the market isn't big enough to sustain three distributors," she said. "We have had a great working relationship but there's not enough money to justify continuing the business. We have to make sure we are focused on the areas that present the biggest returns for us."
O'Keeffe said WatchGuard had not been a significant part of LAN's security sales. While its security practice was growing annually by more than 30 per cent, its core vendors were Check Point and McAfee.
Two distributors was a more appropriate model for the Australian market, Radavics said.
"You'll notice there has also been a rationalisation of distribution channels with other vendors in our space," he said.
The decision to separate was made locally, Radavics said. WatchGuard parted ways with LAN's US parent, ComStor, more than two years ago.
WatchGuard's distribution change coincides with news that the vendor has been acquired by US private investment firm, Francisco Partners. The cash deal is worth $US151 million.