3Com reviews distribution model

In an interview with CRN, Grant Howe, country manager at 3Com Australia said the networking vendor was currently undergoing a review of its distribution model in the A/NZ region.

“There was no one specific reason behind the split. During a review of distribution model we saw that 3Com and Westcon were heading in two different directions – over the next three-five years,” said Grant.

There were no hard feelings from Westcon. According to Wendy O’ Keeffe, managing director of Westcon Group in A/NZ, Westcon Group enjoyed a long-term relationship with 3Com in Australia.

"As we continue to refine our local and global strategy, it is important that we align our portfolio around key vendors that are both synergistic with our core competencies and deliver consistent growth and profitability for Westcon Group and our channel partners. We wish 3Com all the very best for the future,” she said.

According to Howe, Westcon will still distribute 3Com products until the 1 September. Then the vendor’s networking products will be distributed through Ingram Micro Australia, Ingram Micro New Zealand and Renaissance (a New Zealand-based distributor).

“There won’t be any changes to our channel model – 3Com still operates on an indirect sales model,” he said. “We are looking to grow our enterprise customers and investing in a direct touch sales program.”

Howe claimed the vendor will however be making some announcements to its business partner community over the coming weeks. “We will be making announcements from a distribution perspective.”

“We are looking at evaluating our distribution model and we are looking at all other distribution models. There are many types of distributors and we are looking to find the one that meets the needs of our partners,” he said.

Howe told CRN that the vendor was also talking to Ingram about what [the evaluation] means and that will also be a part of the review that 3Com has just done with Westcon. “It’s all about the model we use – whether it’s through multiple or single distributors,” he said.

[“These changes] are specific to Australia and New Zealand and it’s a way of ensuing the business go to market strategy is current. It’s generally good business practise to constantly review the business model,” said Howe.