Distributor GNR Technology has signed up Chinese networking vendor Tenda, warning that the firm is "out to eat TP-Link's lunch".
Founded in 1999, Tenda had previously made no real attempt to conquer the UK market, but has now set up an office of five staff to wrest market share from the dominant networking vendor, according to GNR boss Dave Stevinson.
Stevinson told CRN that Tenda's UK entrance is part of a trend that has seen Chinese vendors enter the market and cause harm to the incumbents.
"Tenda are a serious player from a manufacturing perspective and they've now woken up and have ambitions to employ a dedicated UK team," he said.
"When you get a powerful Chinese manufacturer with an ambitious UK team and the right distribution line-up behind them, they can generally take a large market share.
"If you look at the networking market over the last couple of years, there are gaps in the market and spaces to operate in. We've seen the growth of TP-Link and now Tenda have the opportunity to try to do something similar."
GNR is already a distributor of networking giant D-Link, but Stevinson said that Tenda will likely operate in the tier below, thereby positioning itself squarely against TP-Link.
Tenda is another example of ODMs repositioning themselves to take on the vendors for which they have previously manufactured, much like Super Micro has done in the server market.
"I would say that D-Link is probably a tier above Tenda," Stevinson said.
"Tenda and TP-Link would be the head-to-head competitors. In the past we were a very big TP-Link distributor, under Entatech, so there is potential to cannibalise some of the TP-Link sales. That's probably the primary lunch they'll be looking to eat.
"I would imagine they've historically made for the brands that are now struggling. You'll find in any IT product that in the past there was a lot of value-add in it, but now more of the core technology goes into a single chip. The products become simpler to manufacture and more mature, so less and less value is added in by the software."
CRN pulls out the key information from Microsoft's Q4, which took the vendor above $100bn for the year
Investment will include an AI research centre in London
John Coulston outlines Rackspace's plans to partner with the channel in the UK
Chris Bunch of Microsoft partner Cloudreach gives his take on this year's Inspire conference