Public-sector sales have boosted the fortunes of Damovo as the pan-European systems integrator predicts a substantial improvement in UK sales for its past financial year.
The former direct-sales arm of Ericsson Enterprise said the public sector now contributes over half of its business.
Paul Renucci, managing director Damovo UK, said the firm's UK results for 2003/04, expected to be published in the summer, will show "a substantial turnaround".
Last year the firm made 50 redundancies in the UK and is also believed to have made another 50 late last month in Scotland.
However, things have been looking up for the firm as it recently won a deal to provide a £3m Cisco-based voice, video and data converged network at Aston University in Birmingham.
"The higher-education arena is competitive and the university wanted a network that would differentiate it and attract students," Renucci said.
Aston University put out a tender and eight Cisco Gold partners competed for the contract.
Renucci said the public sector offers good business but warned that those interested must make early contact.
"You must get in early if you are going to sell profitably to the public sector. Resellers must understand the organisation's needs so they can differentiate," he said.
Renucci said the channel can use its expertise to package products to offer value for money.
"Areas that are often overlooked are security and management, which can make the difference," he added.
Shaun Frohlich, chairman at VAR Teksys, said the education sector is growing and has become a focus for the corporate reseller.
"Over the last three years this sector has tripled in size for us," he said. "It is a good business area with big barriers to entry, as suppliers need a lot of accreditations.
"But this is good because once you have jumped through the necessary hoops it gives you greater incentive to invest in it."
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