Storage networking and Web caching vendor Network Appliance has acquired its long-time channel partner Australian ProVision Technology in a bid to ramp up sales in local markets.
Michael Bosch, managing director of Network Appliance Australia, explained that the acquisition would result in the establishment of ProVision as a subsidiary company.
Bosch told ARN that Network Appliance's storage networking and Web caching offerings are experiencing an Internet-driven increase in demand, and that local expansion aimed at servicing this growth.
"Web caching is hot in Australia. Our major area of growth was the telco and ISP space, and this will continue to be the hottest market for us. But we are also seeing tremendous growth in the mining industry as well as in finance and banking. Our major challenge is servicing this growth," Bosch said.
Initially the vendor had planned to expand its local branch, however problems associated with establishing the appropriate infrastructure forced them to look for alternatives.
"Acquiring ProVision simply made sense. It had the staff and the infrastructure and a fantastic track record when it came to our products. Our offerings represented about 90 per cent of its sales, so the transition from channel partner to subsidiary will not be too difficult," Bosch commented.
The takeover will not result in any staff cutbacks Bosch said, although a reshuffle will see managerial and technical staff undergo title changes.
Network Appliance's regional branch will move into ProVision's Sydney offices and extra staff will be integrated into the new subsidiary.
The deal came after a four-year relationship between the companies which saw ProVision win clients such as National Australia Bank, Cable & Wireless Optus and Telstra.
Bosch described the acquisition as friendly and explained that it had been a fairly seamless process due to ProVision's expertise in Network Appliance's offerings.
"Our biggest issue is keeping ahead of the potential growth. The main concern is finding the staff to service this growth. Originally, our plan with ProVision Technology was a lot less aggressive, however once we started doing the sums we realised that it made sense to acquire the company," Bosch commented.
Bosch denies the takeover will concern the channel community, confirming that it is not a predatory move and that Network Appliance is not planning any further acquisitions at this stage.
"The channel is still very important to us, and we are always on the lookout for new channel partners with the right skills and contacts in appropriate verticals," he said.