ACCPAC sacks distributor, appoints 1World
- 24 March, 1999 13:05
A failure to meet sales targets and match international growth has seen accounting vendor ACCPAC International (AI) dump sole distributor MicroChannel for Sealcorp subsidiary 1World.
ACCPAC International business partner account manager Kim Olson said: "1World's strength in market segment distribution and its ability to assist our business partners increase sales in the local marketplace was the main reason for awarding this distributorship".
Furthermore, the ability to leverage 1World's technologies through parent company Sealcorp and subsidiaries will enable ACCPAC to offer channel partners opportunities the vendor hasn't been able to do in the past, especially in e-business and ISDN, Olson added.
Olson claims the structure of 1World and Sealcorp will facilitate the meeting of sales targets which, although increased over two years by MicroChannel, haven't previously been met.
ACCPAC has given 1World 12 months in which to match the minimum market share expectations set by the US of 35-38 per cent, claims Chris Spring, Sealcorp Australia's general manager. Helping "current partners grow their business" in the next 12 to 18 months will do this - before any decision to add more partners to the current 53 is made, he said.
MicroChannel managing director Harach Lucas said that despite the two companies coming to a "very mutual decision", some dealers have expressed unease with the new appointment.
Lucas claims that while MicroChannel has suffered a temporary setback, having been primarily an "ACCPAC house", it would be business as usual and respects the vendor's decision to part after a "long and prosperous relationship".
Spring claims there were three issues which concerned ACCPAC's operations in Australia which 1World's appointment will address. These include the low market share of ACCPAC software in Australia compared to other countries, an attractive synergy in the ability to service the UK, New Zealand and Australian markets through the one distribution model, and the changing business focus of ACCPAC's new technologies, like developments in SQL, and the high degree of IT skills required as a result, to support larger and more complex systems.
Lucas claims, as accounting software specialists, MicroChannel had the expertise required in the market and questions 1World's ability to offer the same. "I'm not sure how they can say they have the experience," he said.
Addressing this concern, Spring claims 1World is recruiting eight people with over 30 years combined ACCPAC experience from Australia and overseas and says the majority of channel partners have been very receptive.
Spring attributes this expression of support to the new level of expertise Sealcorp can offer resellers regarding new technologies in Windows and SQL products, where dealers have been "frustrated" in the past at not having the skills at hand.