Cellnet focuses on IT in NZ

Cellnet plans to use the “kick up the bum” to create a more synergised business between Australian and New Zealand.

In an interview with CRN, Stephen Harrison said Cellnet NZ will be looking to leverage off the distributor’s business in Australia. He said the end of the Telecom NZ contract was a “kick up the bum” with the distributor aiming to create new synergies with existing Australian vendors to take them across the Tasman.

“We have invested significantly in our NZ business over the past two years. We’ll be looking to extend the existing relationships [with vendors] in Australia, into New Zealand,” he said.

According to Harrison the New Zealand IT market wasn’t as buoyant as the Australian market, but remained fairly steady, with some good margins still available. “We have been in NZ for ten years and it has always been a good market,” he said.

Harrison said Cellnet plans to ramp up its IBM business in a similar way to its IBM division in Australia. Recently, the distributor widened its NZ distribution portfolio with a volume licensing agreement which delivers ‘new’ bundled hardware and software packages to customers, with specific focus around storage, databases and unified communications.

“We have already got people on board for the IBM team and will grow it further down the track,” he said.

The distributor will also look at taking onboard Vodafone accessories, an opportunity not taken in the past because of Cellnet’s relationship with Telecom NZ.

“We now have access to the Vodafone channel in NZ and hopefully we will still do business with Telecom NZ,” he said.

“We are also looking at taking on board another notebook vendor and at least another print vendor and also looking at expanding our accessories portfolio to include IT products and other associated accessories,” he said. “We are in discussions with vendors for notebooks and printers and I hope to have discussions wrapped up in the next couple of months – so the products will be ready for the new financial year.”

Harrison said the new vendor products will help “sustain Cellnet’s profits in NZ” and it will give the distributor an A/NZ strategy, which combines the two countries and get it working cohesively.

“From what I hear our vendors have a similar idea or vision,” he said.

Recently John Dunbar resigned as GM of Cellnet NZ. In a statement to the ASX, Cellnet said with an alignment of the New Zealand and Australian business no replacement will be sought.

“With a good strong management team in place, we are well positioned to capitalise on market opportunities. We would like to thank John for his contribution over the last two years,” said Harrison.

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