Cabletron split wins VAR approval

Cabletron VARs have reacted positively to the vendor's decision to divide itself into four separate companies.

Cabletron VARs have reacted positively to the vendor's decision to divide itself into four separate companies.

Nathan Marke, marketing director at Cabletron's biggest UK reseller Prime Business Solutions, said although there is concern that Cabletron, already a small company, will make customers even more reluctant to deal with it by splitting into four, the decision had to be made.

"Customers' biggest objection to buying Cabletron is concern over its commercial performance. By becoming four companies targeted at specific markets, they can react quickly to the needs of their customers, and I believe they will do very well," Marke said.

Mahmood Chaudhri, managing director of Cabletron reseller Datrix, agreed that what Cabletron needs most is for customers to see its shares perform well and create the perception that it is a strong, growing company.

"The problem is customers reading about how Cabletron is suffering. They need the positive coverage," he said.

The decision to focus on specific markets puts Cabletron in good shape, he added. "I will get a better response by going to each company when I want what they offer," he said.

The four new companies are Riverstone Networks, which will be focusing on the service provider market; Enterasys Networks, which will target Global 2000 enterprise clients; Global Network Technology Services, a network consulting company focusing on design, performance, management and security of networks for large enterprise and service provider customers; and Aprisma Management Technologies, formerly Spectrum Software, selling infrastructure management software to service providers and enterprise customers.

Piyush Patel, chief executive of Cabletron, said: "We believe that the business is capable of vastly accelerated growth in these key markets.

"Our action today has a single purpose, to give us the focus and agility to seize these market opportunities and to better serve our customers," he added.

Although the four companies will be considered subsidiaries of Cabletron, the vendor hopes to eventually make each company separate from Cabletron.