Telecoms distributor Caltell Communications is being dismantled by parent company, Xpert Group, which will now make its VAR business the focal point of the company.
Xpert cited changes in the telecoms market as the reason behind the decision. "Caltell represented less than five per cent - £1.5m - of the Group's revenues. We want to slowly withdraw from the distribution business," said Martin Balaam, chief executive of Xpert.
Balaam dismissed the idea of selling firm, citing the value of its staff to the Group's VAR business.
"We would have to invest significantly in Caltell to grow it from a niche distributor," he said. "The thing that changed the most was the technology became more plug and play."
Caltell was one of only two distributors in Europe with Avaya's Diamond accreditation but split with the vendor two weeks ago. Last year it parted company with Mitel. Xpert still resells products from both vendors.
"Xpert remains a large partner for us," said Richard Pitt, Avaya's SMB channel development manager. "Two or three years ago Caltell was doing a decent job and could charge a premium, but the market has moved on."
Paul Rennuci, managing director of Damovo UK, said: "There's no money in distribution now. It's a real bloodbath."
Xpert bought call centre integrator Genesis Telecoms last year, and owns Xpert Technology, a Hewlett-Packard VAR, and Xpert Systems, a storage networking and voice specialist. Xpert Systems and Genesis will now become one entity, Xpert Communications.
Balaam refused to comment on rumours that Rob Coyne, former UK head of 3Com, who left the vendor recently is joining the Group.
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