IronPort strategy switch stuns its UK distributors
Vendor denies that recent Cisco acquisition is behind the decision, but partners remain unconvinced
IronPort has left its UK distributors reeling by switching to a single-tier model and notifying them of the change via an email.
The appliance vendor was acquired this year by Cisco (CRN Online, 5 January), and at the time was quick to reassure IronPort partners that it was ‘business as usual’ (CRN Online, 11 January). IronPort partnered with Sphinx and InTechnology (now DNS) in the UK.
Danny Driscoll, partner sales manager for UK and Ireland at IronPort, said: “About 12 months ago we set up a forward distribution depot in Holland. This gave us the ability to import products in Europe and handle the financing. This removed the necessity for local distributors in the UK.
“It is fair to say that our distributors haven’t seen this coming, but they appreciate why we made the move.”
Driscoll added that the move was unrelated to Cisco’s acquisition.
“Cisco has indicated that it will be business as usual for IronPort when the takeover is finalised,” he said.
However Mark Hatton, managing director of Sphinx, said: “Two weeks ago we were assured by IronPort that there would be no changes to its distribution strategy for the foreseeable future. Then the email arrived Wednesday morning saying that our contracts would end on Saturday. This has clearly been brought about by the Cisco acquisition. IronPort had to terminate contracts by 3 March or it would have had to work with us for another year. We have had no time to inform any of our partners.
“From a business perspective, this is not a big deal for us, but the manner in which IronPort has done this is the most disgraceful behaviour I have seen from 20 years in the industry.”
Steve Pearce, managing director of DNS, said: “Just when I think this industry can’t surprise me any more, a vendor does this kind of thing. It has caught us by surprise, but IronPort is not a huge chunk of our business in revenue terms.”