Distribution Central is planning to launch a unified communications division in a bid to expand its business into complementary areas.
Eighteen months after adopting its Distribution Central model and corporate identity, marketing director, Nick Verykios, said the company was now confident of the success of its go-to market strategy and looking towards future growth.
Annual revenue has lifted from $20 million to $54 million since the business restructure and is expected to exceed $110 million in the next financial year.
“We are working on putting in the missing link in our business, which is voice, right now,” Verykios told ARN. “We’re currently talking with vendors and getting the right people on-board to do that properly. It’ll be a unified comms division.”
In the last 18 months, Distribution Central has launched its networking distribution arm, NetWorld Systems, as well as storage equivalent, SAN Systems, to sit alongside its Firewall Systems security business. It also picked up shares in training provider, Red Education.
At the end of October the company will officially launch its Annuity Systems division.
Distribution Central has also established a presence in most Australian states and kicked off operations in New Zealand. Verykios flagged its ability to provide access to specialist reps from each of its technology divisions as a key differentiator and proof that the model was popular with resellers and vendors.
“Where it is working is the dual engineering and sales model that is our go-to-market. This allows the smaller resellers to become more significant to a customer in terms of technology, but also makes sure that when the networking guys within a reseller organisation are talking to our networking guys, they are actually networking guys,” Verykios said. “The interaction resellers have with our reps completely correlates to the amount of business they do in the businesses we represent with our different units.”
While expanding its distribution business was a major focus, there are are also plans to on-sell some of its configuration systems and software intellectual property to distributors on the global stage.
“A lot of our vendors want to take our systems to other parts of the world, so we’re looking at whether to buy and create those relationships ourselves or sell-on our systems separately,” Verykios said. “This is bigger than anything we’ve ever done before in terms of significance. But we’re ready for it.”
With market conditions as tough as they have ever been, Verykios said it was important to have a strong expansion strategy in place in order to continue growing.
“We are building a services business and our own intellectual property we can sell on to other distributors around the world. We have to build that stuff so that we can be cycle-proof,” he said.
“Since we launched Distribution Central, we have signed Riverbed in the networking space, NetApp in the storage space, and we went from $20 million to $54 million in a year. I think that shows we have credibility and that our models are working.
“If the model didn’t work, you wouldn’t get a NetApp getting rid of its channel and appointing us, nor Riverbed or F5. All of them, our biggest vendors, have us exclusive.”