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Cabletron aims for "zero impact"

Cabletron aims for "zero impact"

"Zero impact" for the local channel is predicted, following Cabletron's announcement in the US that it plans to split itself into four independent companies.

Ian Ramsay, country manager at value-added distributor Avnet/Hall-Mark, the sole distributor for Cabletron in Australia, believes it is a good move. However, Ramsay did caution that following North American models in Australia "often leaves you with very small groups of people.

"I think it's a good move and is

going to focus their energy into two or three very strong growth areas," Ramsay commented.

Ramsay said in the North American model, one of the divisions was a professional services group. He clarified this comment by saying that in Australia this was a technical support group, which was an extension of the reseller's technical resources, and was not in competition with them.

Ramsay believes the other three divisions will be beneficial for resellers because they provide more sales staff to create business for the channel. "It's a very good model," Ramsay said.

Ian Fewtrell, managing director of Cabletron Australia and New Zealand, said that locally the networking vendor has already been operating under the new structure with key focus areas the service provider, enterprise, professional services and network management markets.

"Zero impact" is the expectation for customers and Cabletron's local distribution and reseller channel will continue to operate as normal, he said. "[The change] is all about unleashing shareholder value.

"We've been operating in this form for some time - a name change may be the only difference," Fewtrell added.

It is unlikely Cabletron will operate as four separate companies in this marketplace, but Fewtrell said there is a strong possibility the organisation will change its name. Details are still being confirmed, but Fewtrell suggested Enterasys Networks may be the new name.

The four new companies, which Cabletron plans to make public within the next 12 months, will be Riverstone Networks, Enterasys Networks, Global Network Technology Services (GNTS), and Aprisma Management Technologies.

Fewtrell would neither confirm nor deny the transformation was made to increase the company's chances of being acquired, but said: "That's what an IPO is all about. [Cabletron] may well become part of another company every company on the stock market is up for sale."


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