VExpress spins out Telstra distribution business into Exltech

Telecommunications distributor VExpress has spun out its Telstra business to form a new company with the goal of converting mobile solutions resellers into managed services providers.

Exltech specialises in cloud, mobility, NBN and voice products from Telstra, including AWS and Microsoft cloud services. The distributor has 23 staff, who transferred over from VExpress' Telstra Complex Solutions business, which sells commercial-grade network solutions.

The new company is led by Ben Smith, who was previously general manager for Telstra Complex Solutions at VExpress. He told CRN that the distributor hopes to transform its existing partners mobile partners into more end-to-end ICT and managed services partners with a wider range of Telstra products, in line with Telstra's own strategy.

“Exltech is excited to offer our partners genuine support through our depth of knowledge of Telstra’s products and systems. Exltech will provide product training, marketing, project management, architectural design and development, as well as relationship management to empower our partners to build a robust ICT strategy for the future," Smith said.

"Exltech is in a unique position to support our partners to align with Telstra’s transformation strategy; telco to techco. This is a very exciting time within the ICT industry.”

Smith said that Exltech already has 120 active Telstra partners from VExpress but has already begun signing up new partners since launching on 1 September.

Telstra's IT services business is one of the largest units inside the telecommunications and technology giant. In particular, the cloud business grew 50 percent in the 2017 financial year, raking in $374 million for the telco. Telstra's $3 billion network applications and services business, which includes cloud, was the only one of the telco's business segments to grow that year.

VExpress was named Telstra distribution partner of the year in 2013, 2015 and 2016, and was one of the founding partners in the Telsta Complex Solutions business. The distributor still offers products from a range of communications vendors such as Alcatel-Lucent, Avaya and Blue Jeans.

Exltech sits within a network of five technology companies spearheaded by founder Michael Harte. The group includes mobility software vendor Northbridge Secure, UC systems integrator VoIP and duress emergency phone system company VoIPForce, along with VExpress and Exltech.

Telstra's partner program is overseen by head of specialist partner channel Charlotte Schraa, whose division is responsible for Telstra's distribution partners, which also include ARIA Technologies, Dicker Data and TBS Distribution.