Datastor NSW is looking to inject a little competition in the market after it signed a distribution agreement that will see the specialist storage distributor offer Qualstar libraries across the State. But not everyone shares its vision, least of all is rival distributor AustStor, which has blasted the vendor's decision to appoint a second distributor.
Through a recent distribution agreement between its parent company Datastor in New Zealand and Qualstar, Datastor NSW will now offer a full range of the vendor's products in NSW. It's an agreement Datastor NSW's managing director, Bob Chambers, is excited by.
Chambers is optimistic about the take up of the Qualstar range and has already started receiving orders for the robotic tape libraries. Meanwhile AustStor's managing director, Lachlan Macdonald, is livid at Qualstar's decision, claiming the market will not support two distributors and fears an all-out price war.
"I believe it is not [big enough]. It's an example of a big American company which has completely misread the market," Macdonald reacted to announcement. "There will be a price war."
But Chambers stands behind the vendor believing Qualstar is in the business of protecting reseller margins with the vendor's lead registration system. Qualstar's program effectively ensures a better margin for the first distributor to register a specific project, with subsequent distributors having to purchase at a significantly higher price point.
"This creates a bit of competition in the market to get the leads in and get them qualified first," said Chambers.
Datastor NSW is a relative newcomer to the Australian market, establishing an office last July. The company's structure, according to Chambers, allows the distributor to react quickly to a changing market and provide additional services such as direct-to-customer lead generation, which is farmed back to its resellers.