Sun to appoint a second volume distributor

Sun to appoint a second volume distributor

itX general manager says it will be business as usual despite the introduction of a competitor

Sun will appoint a second Australian distributor in a bid to drive sales of its volume products.

The decision follows a three-month review into its distribution agreements and could represent the first major change to Sun’s local line-up in 10 years. Under the new arrangement itX will continue to be the only distributor carrying Sun’s full product portfolio locally. A second distributor will then be appointed specifically for the volume range including Sun’s AMD and Intel-based servers, as well as a couple of affiliate storage products.

itX general manager, Greg Newham, was unperturbed by the announcement and pointed out that volume sales represented less than 10 per cent of its total Sun business. Sun appointed itX as a distributor in 1998.

“It’s a small part of the business but Sun has been pushing into that space for several years. We always knew this would happen at some point,” he said. “Sun has had other distributors in the past – they have ACA Pacific doing storage products – but we’re still doing the vast majority of the business.

“Sun wants to grow its share of that volume market, which is fine by us – the more people are talking about it, the bigger the market opportunity to grow.”

Newham said it had not been told who Sun’s new volume distributor would be but expected an announcement in the next few weeks.

“It doesn’t matter who they appoint – we are just getting on with the business,” he said. “We’ve got a long track record and history with Sun and this doesn’t change anything.”

The announcement comes just weeks after another of itX's major vendor partners, Oracle, brought on Ingram Micro as a second Australian distributor.

Sun partner sales manager, Sam Srinivasan, was unavailable at the time of press, but issued a statement emphasising Sun’s growth in the x86 server segment.

“A second distributor is needed to ensure it meets the needs of its customers,” he said in the statement.

Sun has distribution agreements with Express Data in New Zealand, as well as Ingram Micro in several Asian countries.

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