Distributors LAN Systems and IT Wholesale are set to reap the rewards of NEC Business Solutions’ latest moves to embrace the channel model. The vendor has signed nationwide distribution deals for its storage and server lines.
The arrangement with LAN Systems is the first time NEC has taken its storage line through distribution in Australia, and the vendor’s move towards the channel is set to continue. NEC will soon announce it has signed IT Wholesale to distribute its server line nationwide.
The signing with IT Wholesale is separate to the agreement struck in June which gave the distributor access to NEC Computer’s desktops, notebooks and PDAs, NEC Business Solutions national manager, data solutions Rodney Nirens, said.
NEC Business Solutions is a subsidiary of NEC Australia, while NEC Computers reports to NEC in Europe.
NEC had been looking to take the distribution route for some time, Nirin said. The bolstering of its sales force by adding channel partners was necessary for growth.
LAN Systems hopes its new distribution arrangement with NEC Business Solutions will round out its storage business to the tune of $10m in the first year, according to managing director Nick Verykios.
Under the deal, LAN Systems will distribute NEC’s full range of SAN, NAS and tape storage products. These include the Express 5800 Blade Server and Fault Tolerant Server solution, and both IP and Fibre Channel infrastructure products.
NEC previously sold its storage line through direct partners and its own direct sales force, Nirins said. But LAN Systems, with its background in networking infrastructure, would fill some knowledge and service gaps for the vendor.
The direct sales force would continue to work in tandem with LAN Systems, offering flexibility to end users in how they chose to buy, Nirins said.
NEC has hired a business development manager, Ajay Sahi, who is based at LAN System’s Sydney office.
While LAN’s networking business had been consulting on storage for several years, the signing of NEC was the distributor’s “first full product move” into that space, Verykios said.
“Storage now is so part of the network DNA, it’s just a network extension,” he said.