Cisco throws its weight behind global resellers

Cisco has claimed its global distribution deal with Westcon marks a new era of cross-border business and has hinted similar deals with Tech Data and Ingram Micro could also be tied up soon.

The three distribution giants enjoy global distributor status with Cisco, but Westcon has now become the only one to benefit from a contract with standardised terms and conditions throughout the world.

Dave O’Callaghan, Cisco’s vice president of distribution, worldwide channels said: “Over the past few years we have noticed an increased need for truly global VARs.
“Most manufacturers have individual contracts in each country and those contracts are inhibitors to global business.”

O’Callaghan revealed Cisco is in discussions with Ingram Micro and Tech Data with a view to establishing such an agreement with them, but was quick to praise Westcon’s “aggressive” approach.

“We have 20,000 stock keeping units, with inventory in many countries,” he said. “Westcon can be a truly global inventory management company, matching demand in the US with supply in South America.”

Westcon chief executive Dean Douglas told CRN that the scope given to Westcon by the new deal would allow it to take away resellers’ headaches when forging global revenue streams.

“This can help VARs focus on selling and addressing their end user requirements as opposed to worrying about how they manage logistics,” he said.

Nick Grossman, business development director of VAR 2e2, said contracts with multi-nationals often required his firm to deploy kit in foreign climes. But he added: “It would take a brave organisation to enter a new market right now. It is a hard world just keeping your existing business in optimum shape.”

Greg Carlow, managing director of VAR Repton, added: “A couple of years ago we took 0.04 per cent of the UK finance spend. We could get 100 times bigger and not even leave the City, let alone open a German office.”