Bax IT sets out expansion plans

Bax IT sets out expansion plans

Bax IT is embarking on an aggressive growth campaign, announcing plans to bump up staff numbers and recruit a broader base of resellers to extend its geographic coverage.

The initiatives coincide with the sale of the networking distributor to business development manager, Matthew Mann, who recently purchased the business from Michael Bailey.

According to Mann, Bailey had decided to invest more time in other business interests outside of IT distribution. Financial terms were not disclosed. All six Bax IT staff had been retained.

Mann said he planned to establish the company as a specialist IP distributor.

It had already dropped eight of its vendors in favour of honing in on six core partnersrs who were focused on IP networking solutions.

He refused to disclose details of those who had been dropped, with the exception of recent recruit, Data Protection Services.

"We will focus on VPNs, firewalls and VoIP gateways," he said. "Those eight vendors we got rid of were not in these areas. We want to have more of a targeted approach."

Alongside names such as Internet Sheriff, CyberGuard and Quintum, the distributor was also now carrying PBX replacement products from recently launched local start-up, Voice Logic. Its flagship Asterisk IPBX hardware was targeted at SMBs with 5-30 users.

Voice Logic also provided resellers with the ability to offer customers call minutes over SIP, Mann said.

"Resellers will get an ongoing commission for the minutes based on call usage, while Voice Logic looks after the billing," he said. "Our partners can also make margin on the hardware and installation services for these phone systems."

Bax IT was also looking to branch out of its Sydney headquarters by establishing new sales offices in Brisbane and Melbourne.

Mann said he planned to have at least one staff member installed in both locations by the end of January, with a second account manager in Melbourne by March. The distributor also maintains an office in Adelaide.

"Our problem has always been that there aren't enough sales people. We also need more staff in Sydney," he said.

Bax IT also needed more national integration partners to deliver solutions based on its range of products, Mann said.

He highlighted those working in the traditional IT space, rather than existing PBX resellers, as key targets.

Bax would provide training and support, along with end-user financing via third-party broker partner, Altitude Finance.

"Our solutions are server-based, making it easier for IT resellers to bundle it with their other offerings," he said.

Mann said he was confident the expansion plans could treble annual revenues to $10 million during the next 12 months.

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