Mitel ditches distribution partners

Vendor switches focus to resellers after terminating distribution partnerships

Written by Doug Woodburn

Mitel has revealed plans to supply and support all of its 80 UK resellers directly after dramatically ditching its five distributors.

The IP telephony vendor last week sent out notification of termination letters to Westcon, Crane, Nessco, Nimans and Rocom, and will now launch a channel recruitment drive off its own steam.

To handle the transition, Mitel intends to recruit 20 to 25 more staff to beef up its logistics, support, sales and education capabilities. It has also developed an online ordering facility as it looks to ‘disengage’ with its distributors over the next month.

Enda Kenneally, UK sales director at Mitel, said the vendor was not receiving sufficient ‘focus’ from its distribution partners.

“We will no longer be at the behest of multi-vendor relationships and will now be in control of our own destiny,” she said.

The U-turn comes as a double blow for Westcon, which recently announced its intent to acquire fellow Mitel distributor Crane. Guy Koster, vice-president technology solutions group at Westcon Group Europe, admitted the decision had come as a surprise, but said that Westcon would work with Mitel to ensure an “orderly transition for resellers”.

Simon Thompson, UK sales director for Westcon, added: “Distributors often offer a far greater level of customer service than a vendor can deliver. What other vendors of Mitel’s size are moving to a single-tier model?”

Mitel’s 20 top-level platinum partners already enjoy direct support from the vendor, but most still viewed the change in a positive light.

Richard Dendle, managing director of Britannic Technologies, said: “Distributors don’t add any value other than logistics, and if Mitel perceives that value isn’t relevant, then why pay the margin?”

Ty Gardner, sales and marketing director at Universal Office Automation , said: “Mitel needs to ensure that it can match distributors’ level of logistics.”

Westcon acquires Crane Telecommunications

  • Have your say
  • Send to a friend
  • Share
  • Print

See also:

reader comments

related articles

 

Siemens goes pure two tier

Vendor confident with distribution partners 11 Jul 2008

Mitel ransacks rivals for partner staff

Mitel Sales Academy will recruit and train experienced industry sales staff and place them at Mitel resellers 03 Oct 2008

Mitel offers creative finance deals

Mitel looks to enhance financing support for existing partners and selectively recruit disillusioned VARs from rivals 08 Jun 2009

latest news

Lenovo targets HP partner base

Vendor looks to expand reach and looks to rivals' channels to achieve its aims 03 Jul 2009

VMware rakes in 700 service provider partners

Virtualisation giant claims VSPP programme has gained significant traction in short space of time 03 Jul 2009

Compellent hits out at debate snub

Storage vendor writes open letter to prime minister in protest at being left out of £1bn stimulus debate 03 Jul 2009

poll

Feeling secure?

Feeling secure?

Is offering standalone security still a viable business model?

View poll results

boxing ring

CRN Fight Night 2009 bouts now LIVE!

It is time to relive the craziness that was CRN Fight Night 2009

Eddie Pacey and Nitin Joshi

In The Studio with CRN: Credit in the Channel

CRN Editor Sara Yirrell chats to two of the industry's credit stalwarts - Nitin Joshi and Eddie Pacey

events

East Sussex golf resort and spa

CRN Golf Challenge 2009

Join us for the premier golf event in the channel calendar

CRN Channel Conference 2009 logo

CRN Channel Conference 2009

A one-day conference dedicated to the needs of businesses in the UK technology channel

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

White papers

Search white papers

Top categories

Primary Navigation