NetComm replaces Bluechip with Lan Systems

NetComm replaces Bluechip with Lan Systems

NetComm has appointed Lan Systems as its new value-added distributor after parting ways with Bluechip Infotech.

NetComm managing director, David Stewart, said the vendor had conducted a review of its distribution model and decided to drop one broad-based distributor in favour of a value-added supplier.

"Lan Systems was not a direct replacement for Bluechip," he said. "They are a value-added distributor, whereas Bluechip was more broad-based.

"We wanted to change the dynamic from time and place into adding more value."

NetComm's other broad-based distributors are Tech Pacific, TodayTech and IT Wholesale. Stewart said its decision to part ways with Bluechip was based on sales performance.

However, according to Bluechip managing director, Johnson Hsiung, it was the distributor who called off the partnership.

"Over the last year, we have been reviewing our business with NetComm and found that it wasn't significant," he said. "It was our decision to part ways with NetComm. We want to focus on just two vendors in the data communications area: D-Link and ZyXel."

Hsiung said both of these products had continued to perform better than the NetComm range.

As a result, it ceased its relationship with NetComm in December, he said.

While hesitant to provide any revenue forecasts for the new Lan Systems relationship, Stewart said he expected a significant increase in sales of its higher-end technology products.

"We are trying to provide the right channel to market," he said. "Some of our products will sell better with a more value-added distribution strategy."

Lan Systems general manager, Wendy O'Keeffe, said the new deal would allow it to grow its SME and SMB business.

"Today, our strength in networking is in the traditional enterprise," she said. "This new partnership will allow us to expand into a new part of the market."

To coincide with the new contract, Lan Systems would look to recruit additional resellers, O'Keeffe said.

"We will do general reseller activities, training and marketing," she said.

This will include the introduction of NetComm training days for its resellers from next month. The hands-on events will be held in Sydney, Melbourne and Brisbane, with plans for a session in Perth later this year.

O'Keeffe said sales of NetComm products were expected to be significant.

"I think NetComm have seen we have expertise in the networking area, and that we can help to increase their profile in the high-end space," she said.

Stewart said it also maintained several tier two suppliers to service the vertical markets. These included Alpine and BCN Technology.

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