Samsung picks Tekdata for UK networks

Tekdata has landed an exclusive deal with Samsung to distribute the vendor's networking products, marking both companies' entry into the UK market.

The distributor will operate a franchise for Samsung's entire range of networking products.

Tony Jenkins, Tekdata's northern area sales manager, said customer demand had prompted the distributor to recruit a networking vendor. He said Tekdata was aiming to build a name for Samsung Networking, but admitted it was dealing with an unknown brand.

'It is a risk, but it is also a risk not to take the plunge,' he said.

Although he could not confirm how long the franchise would remain exclusive to Tekdata, Jenkins said the deal was secured on the basis of the distributor's record.

'Our forte is taking an unknown brand and turning it into a market leader. Samsung is not a 3Com or Bay Networks, but our philosophy is to take on the best products with the least competition,' he added.

Dataquest analyst Sandy Cals Summers was surprised by Samsung's decision.

'Networking products attract higher margins than other products Samsung makes, so maybe it's a way of boosting its revenue,' she said. 'But margins are falling and network products are traded almost like consumer goods.'

Samsung was unavailable for comment.