Video conferencing distributor takes control

Video conferencing distributor takes control

Xceed Solutions takes 75 per cent stake in Aethra SpA's Asia-Pacific operations.

ICT distributor, Xceed Solutions, has taken control of the Asia-Pacific operations of video conferencing vendor, Aethra SpA, as part of a major restructuring.

Under the new deal the Italy-based vendor will retain a 25 per cent share in the regional joint venture. Xceed will hold the remaining 75 per cent.

The newly formed entity will be named Aethra Asia-Pacific and hold exclusive distribution rights for Aethra products in the region for 10 years, after which the contract will be reviewed.

Xceed CEO, Keith Ondarchie, said the company’s biggest hurdle was gaining brand recognition in the growing video conferencing market.

“Branding is our biggest challenge,” he said. “Within two years we’ll have a very strong brand out there. Currently, the market share is about 6 per cent of the total market whereas in Europe it’s 15 per cent. It’s all about localisation and branding.”

Ondarchie was keen to emphasise Aethra’s commitment to partners, and claimed the entity would never sell direct. He also said prices would be either maintained or reduced, but current resellers would need to show a similar level of commitment.

“We will change the resellers in other regions and in some cases, apart from the telco companies, we will reduce the number of resellers,” he said. “I want those organisations that value this and if I can get them just to sell our product it would be good.”

Ondarchie said although there was a tier system in place, it was very flexible and had no set fees or commitments. Relationships were developed on an ad hoc basis.

“I have country managers in each country and they have staff that work closely with the resellers and this is all about reseller development. We will not formalise the program for at least 18 months because this is all about getting out brand out there.”

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