LAN1 has stopped stocking Trend Micro, triggering a review of the antivirus vendor’s distribution strategy in New Zealand.
The two parties agreed to an amicable separation after Lan1 realised distributing software licences did not fit its model.
It also found that it would cost too much to implement the processes needed to make software distribution work.
As a result, Trend Micro is planning its next move.
It still has Soft Solutions, which launched the brand here, as a distributor, but is exploring other options.
Graeme Burt, Sydney-based channel director for Australia and New Zealand, says at this stage the chances are just as likely that Soft Solutions will remain as a sole agent, as it is for a second distributor to be added.
“We cannot rule out any options at this point. We are evaluating what would be best for customers, resellers and the distribution market in general,” he says.
Liam Venter, general manager of Lan1, says although Trend Micro’s staff and pro-ducts are good, Lan1 is not set up for software licensing.
“We are not a software licensing company, but a networking products company,” says Venter.
“We have a small staff base and are highly automated. The administration resources needed for software distribution is huge. We would not have seen a return on investing to automate the systems for software distribution. It would have cost us between $30,000 and $50,000.”
Venter believes Trend Micro should stick with Soft Solutions as it has performed well for the company so far.
Burt says Trend Micro is pleased with the results of Soft Solutions’ work.
“We have a long-term relationship with them and it is working well for us,” he says.
Paul Leslie of Soft Solutions says he is confident the company will be retained.
He does, however, question the logic of Trend Micro having multiple distributors in a small market such as New Zealand.
“They need to look at the commitment a distributor can deliver. There is still a lot of work to be done to pull down Symantec and McAfee.”
Lan1 was added as Trend Micro’s second distributor in October 2003.
The current review should be complete by the end of June.