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Memory vendor Viking Interworks informed its distributors last week that it was pulling out of the channel across Europe.
A division of global electronics manufacturer Sanmina-SCI, Viking InterWorks had distributor relationships in the UK with Ingram Micro, Zycko and Jeff Scowen Photographic.
David Galton-Fenzi, group sales director at Zycko, told CRN: “We have been a distributor of Viking’s for three or four years, but it hasn’t been a big part of our overall memory business. We received official notification last week that it no longer wanted to maintain the channel relationship because it is withdrawing from the channel across Europe. The reason stated was that it wanted to focus more on its OEM business.
“The memory market has become increasingly competitive and I believe the cost of maintaining channel partners just isn’t feasible for Viking anymore. There have been several new brands that have emerged in the market that have made it hard for Viking to compete.”
Bhavesh Patel, commercial director at Ingram, said: “We have been a Viking distributor for a good few years. We understand its decision because it wants to take a more direct approach and concentrate more on the OEM business.”
Ann Keefe, sales director for UK and Ireland at rival memory vendor Kingston Technology, said: “Viking hasn’t been particularly strong in the UK or across Europe in recent years, so it is not a surprise that it is pulling out of the channel. It does reinforce our message that VARs should choose a vendor that is committed to a long-term channel strategy.”
As CRN went to press, Viking’s US office told CRN that it “did not want to comment at this stage”
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