Computacenter lauds double C&W triumph

Corporate reseller celebrates Allnet acquisition and a lucrative master services contract

Computacenter scored a double victory last week with its acquisition of Allnet, the UK integrator division of Cable & Wireless, and a lucrative master services agreement with the carrier.

As revealed by CRN last week, the acquisition, for an undisclosed sum, will see Allnet run as a separate unit within Computacenter’s Technology Solutions division (CRN Online, 4 April). Computacenter will also become a preferred supplier of LAN services to Cable & Wireless.

Speaking to CRN, Mike Norris, chief executive of Computacenter, said: “Allnet really fits with what we are trying to achieve with our services business. This is a nice deal for Computacenter. Unlike some players, we are not trying to change our business model completely: we want to be both a services and product business.”

Allnet emerged in 2002 after six Cable & Wireless VARs merged to form one giant integrator. The firm specialises in network infrastructure, security, structured cabling and voice. It has vendors such as Cisco, Juniper, Avaya and Check Point on its books. With immediate effect, the firm will be branded ‘Allnet by Computacenter’.

“The main thing for us is the cross-selling opportunities in the corporate space,” Norris added. “Everything Allnet does, Computacenter did, but in a smaller way.”

Norris said the acquisition would also strengthen Computacenter’s position with Cisco in the UK.

Cable & Wireless was unable to comment due to being in a quiet period.

Steve Brazier, chief executive of analyst firm Canalys, said: “This is definitely the right strategy for Computacenter. It has stayed centred around the desktop, server and storage market complaining about crumbling margins, but there have been many adjacent industries that have huge growth potential and high margins. I don’t understand why it didn’t do it four years ago, but I wouldn’t be surprised to see other competitors contemplating similar moves.”

Darragh Richardson, head of marketing at rival services player Telindus, said: “I’d be surprised if the attraction wasn’t based around existing contracts and getting more skills on board.”