Ericsson reduces DBO initiatives

Hnadset maker brings unit back into the fold

Ericsson is folding back its data backbone and optical (DBO) networks channel initiatives after they failed to add incremental sales, according to industry watchers. The move is expected to lead to redundancies.

The Scandinavian giant is integrating DBO channel initiatives into existing indirect strategies within its Enterprise division because it has not added extra sales within the existing customer base.

According to sources familiar with the company, this latest development will lead to a total of about 30 UK redundancies.

Frederic Boone, director of marketing at Ericsson Enterprise, said: "From this month Ericsson Enterprise is going to run the DBO product line and make it available to its channel."

The company said the move would apply globally and would be open to all existing as well as new partners.

Current partners of the Enterprise business will now receive support to sell both routers and remote access products within the division's portfolio.

Manny Pinon, sales and marketing director at Ericsson distributor Norwood Adam, said: "The DBO channel was brought in to bring incremental business from a data perspective, and this did not seem to pan out. Ericsson already has an established channel in the Enterprise and Wireline units and is in effect bringing the products back home."

Yuri Pasea, managing director at Enterprise distribution partner FutureLink, said: "We are looking for any products that enhance our offering. Many of the components in the DBO range require reseller training, which we are very interested in doing."

The DBO unit was formed in 2000 after the acquisition of ACC in 1998 and has been attempting to add incremental sales.