BT partners fearful of mid-market domination

BT’s top-level partners are concerned the carrier’s mid-market acquisition spree will leave them out in the cold.
As predicted by CRN BT has snapped up Cisco Gold partner Lynx Technology for a reported £22m. This follows its purchase of product specialist Basilica in August and is its fifth reseller acquisition since 2005.
Lynx and Basilica boast a combined turnover of around £130m, making BT one of the largest forces in the mid-market.
A BT representative confirmed that both companies will sit within BT Retail, but refused to say whether or not they would be combined to form a separate mid-market division.
Tom Kelly, UK managing director of BT Gold partner Logicalis, said: “With Basilica and Lynx, BT is trying to develop an IT solutions partner that addresses the mid-market, which mimics what we have done over the past two years.
“By putting the acquisitions into its Retail division, BT is increasingly competing with partners such as us, 2e2 and Azzurri.”
The head of another BT Gold partner, who wished to remain anonymous, said: “BT is increasing its focus on direct business and abandoning the channel. This acquisition is further evidence of that.”
Channel sources say BT’s midmarket push has strong backing from key vendors, such as HP and Cisco.
John Donovan, managing director of the UK and Ireland channel at Cisco, said: “This is the fourth acquisition BT has made of a Cisco partner in the past two years; it is part of BT’s strategy as it evolves into an IT services organisation. Cisco is working very closely with BT to help drive this marketplace.”
The BT representative added: “The convergence of voice and data is blurring the distinction between traditional networks and today’s IT world. SME customers are recognising this shift and are seeking suppliers with the ability to provide simple propositions that help their businesses grow and save costs.”
BT makes call for IT market