NETWORKING vendor Allied Telesyn has dropped distributor Express Data.
The split comes after Allied Telesyn decided to focus its attention on Renaissance Brands and Connector Systems, as the two distributors were generating the majority of the company’s business and were not stocking rival brands.
According to Allied Telesyn general manager Paul Batchelor, the company decided to rationalise its distributor base, as it wanted to sharpen its channel in New Zealand.
“It’s the classic arrowhead approach to sales. Allied Telesyn is looking for a sharper, more defined route to market which should encourage greater commitment, focus and enthusiasm from our distributors and provide better service to our customers,” says Batchelor, adding the local market is too small to support three distributors.
“With three distributors the only differentiation they have is on price, but with two the differentiation is service, and that is what we are looking for.”
Batchelor says the separation with Express Data, which distributed Allied Telesyn for around eight years, was amicable.
“They were a small player for us and we were a small player for them.”
Express Data’s Paul Plester says the company was more focused on its two main networking brands, Cisco and Nortel.
“Allied Telesyn wanted us to sell its high end range against Cisco and Nortel, and we were not prepared to do that. We always led with those two and it would have been difficult to position Allied Telesyn against them,” says Plester.
Renaissance Brands, which pitches itself as an exclusive distributor for a range of brands, is pleased with Allied Telesyn’s move, according to general manager Mark Dasent, who says the company has been campaigning for it for some time.
“This allows us more space and freedom to do some end-user direct marketing on the brand. It was not viable for us to put this level of resources into the brand before,” he says.
“Allied Telesyn is the only networking vendor Renaissance now represents and we will focus on the brand in the same way we have been on our security products.”
Dasent says Renaissance is heavily involved in a series of training workshops Allied Telesyn is hosting to prepare schools for the Ministry of Education’s new network standards for schools.