Channel bound: Canon signs billion-dollar MFD deal with CSG

Canon has aggressively expanded its indirect A3 multi-function device (MFD) channel after signing up integrator CSG as a dealer in four states and the ACT. The move could be worth $1 billion over the life of the contract, according to Canon. 

Canon handed over 10,500 contracts to CSG and planned to move over services staff to help the integrator maintain the devices. The exact number of staff affected was not yet decided, and none have been notified. One Canon executive estimated it would be between 30 to 40 people.

While the decision to expand its indirect channel was made by Canon Australia, it falls in line with the vendor's global strategy.

"If you look everywhere in the Canon world, our model is indirect through distributors and dealers," said Craig Manson, senior general manager for Canon Oceania.

"In Australia we are predominantly direct, but we are aligning with the global strategy which has made us number one in the world. So this is a pretty aggressive market stance for us."

Canon has added other dealers this year to its 60-reseller strong channel, most of whom are in regional areas. BBC Digital signed on for Sydney and Melbourne, and PrintSync Business Solutions now covered Perth. 

Despite transferring services staff and signing up resellers, the vendor would not be cutting back on its direct sales force, which is comprised of master agents and sub-agents that sell Canon exclusively.

"We intend to keep going" with direct sales, Manson said. He added that the goal was to increase market share. "It's an open distribution strategy. We don't have massive market share so there's plenty of room in the market for everybody," said Manson.

Canon occupied third place by market share in MFDs behind Fuji-Xerox and Ricoh. 

Canon was not looking to sign more dealers at this stage, said Manson. 

"This deal [with CSG] is big enough that we are going to focus on that and we have no real plans for increasing our dealers at this point."

The deal was also a major move into selling print devices for CSG. Until now it had only sold MFDs in two states, Queensland and the Northern Territory, exclusively for Fuji-Xerox.

The deal  has given CSG a national reach as a dealer in Sydney, Melbourne, Canberra, Adelaide and Perth.

Queensland and Northern Territory were excluded from the deal because of CSG's arrangement with Fuji-Xerox.