Datacom bolsters WA firepower

Datacom Systems WA has announced it is "integrating" Western Australia reseller Red 11.

A "parting of ways" has led to a decision to close the doors of Western Australian reseller Red 11, according to Datacom WA managing director Basil Lenzo.

As a result, Red 11's sales director Mark Smith and customer experience team member Mallory Lofthouse have taken up roles with Datacom WA.

It marks another score for Datacom, which last year acquired failed provider XciteLogic.

"It's basically just an opportunity at the right time for two directors who decided to part ways," Lenzo said, who commented that Red 11 was still "very profitable".

"They came to a point where the industry is transforming at such a rate they didn't really want to continue to invest in their existing business – which was predominantly third-party product sales – into a more services related business.

"We just took an opportunity to bring over a couple of great people who are highly respected in the industry to be part of our business and hopefully they bring across relationships with them."

Red 11's Mark Smith was unavailable at the time of publication, but a representative of the firm commented: "Despite a profitable FY, Red11 have closed the doors to take advantage of fresh opportunities that Datacom Systems WA will provide.

"The winning combination of Red11's prior innovation in processes teamed with Datacom's multiple lines of business will provide perfect synergy for all of our clients."

Lenzo said the arrangement was not an acquisition or merger.

"We're just hoping that portfolio of solutions and services we have, they can take out to their existing relationships. And then sell them to clients."

Red 11 was established in 2006.