Tplc sees services revenue triple

Distributor hits back at critics

Following a year filled with speculation of a possible sale, distributor tplc has hit back at critics by announcing that it has tripled its services revenue.

The Sun channel development partner (CDP), which last year confirmed that there were several parties interested in its potential sale (CRN, 23 September), said it achieved the growth by setting up a dedicated services sales team to focus on helping resellers to support their own service offerings.

"We have seen the growth because the business is definitely there to be had," said Deborah Lees, marketing manager at tplc.

"We have an installed base of reseller partners looking to enhance support contracts rather than upgrade systems, and services mean a higher margin."

The distributor has a four-pronged services approach: engineering services, professional services, training and recycling, said Eric Murphy, services sales at tplc.

He added that the firm is confident about the success of recycling services in 2003, especially with the UK implementation of the European Union WEEE IT recycling directive next year (CRN, 6 May).

"We already have a lot of VARs selling recycling services because it's a good margin opportunity and gives customers a chance to get value back from redeployed kit," Murphy said.

Simon Welch, group marketing manager at rival Sun CDP Clarity, said that his firm is also in good shape for 2003.

"Clarity is not looking to compete with its resellers, which provide services to customers as their own added value. We are focusing on developing an ongoing revenue stream for vendors and reseller partners," he explained.

"This year may see the survival of the fittest and we are confident, following - in relative terms - a successful 2002, that we are in good shape for 2003."