While it's not such a hard task when you start with a total staff of three, network components supplier Cosmic has tripled its staff in one day with the appointment of six new sales reps.
Cosmic has found an interesting niche in the Australian marketplace: offering networking gear such as cables, memory and GBIC components, which are manufactured by Cisco's manufacturing partners at up to half the cost of Cisco-branded gear.
After becoming incorporated in March, Danny Rees, director of the Australian operation, became one of the few people in the channel hiring staff. Rees said he handpicked six new reps who all have experience in either working with Cisco product or at least working in the networking space.
Rees brought in around $750,000 in stock within weeks of opening the business and said resellers are beginning to warm up to the prices he can offer.
Despite the success of Cosmic's practice in the UK and US, Rees said it will be a while before the networking channel takes on the "white-box" mentality of the PC and server markets. But he does expect a few competitors to begin operations in Australia in the near future.
He does not believe there is enough non-branded product being sold yet to warrant vendors like Cisco dropping their prices. "I don't think Cisco will ever drop its prices," he said. "They've got so much market share. They'd lose billions if they tried to compete with little guys like us."