Tears shed as Danon plans his departure
Outgoing BT Retail chief wanted bigger slice of broadband market
The shock resignation last month of Pierre Danon, chief executive of BT Retail, is unlikely to have an immediate effect on resellers buying from BT Indirect Channels (BTIC).
Distributors and staff at BTIC were surprised and disappointed by Danon's departure. He will leave the company for his new job as chief operating officer at system integrator Capgemini in the new year.
Mike Cansfield, principal consultant at analyst Ovum, said: "The real issue for Pierre has been that his peers at BT and the chief executive [Ben Verwaayen] want to keep the divisional structure of the firm." He expressed regret at the "open, charismatic and likeable" Danon's departure.
"The real issue for BT is that it has to be successful at the retail level. At the moment its share of the broadband market is 24 per cent. Pierre wanted to be more competitive in this area," Cansfield said.
BTIC has said it will offer up-front commission on broadband sales.
John Carter, managing director of distributor DMSL, said: "Pierre has been at BT for more than four years, commuting from France. I'm sad that he's going, and I hope they get a good replacement for him.
"The changes that he and Jon Lane [managing director of Indirect Channels at BT] started are already being made at BTIC. Jon has done what should have been done ages ago."
Senior staff at BT Retail were informed of Danon's resignation only a few hours before the information was made public.
"He's an excellent person," Lane said. "Pierre has done lots at BT and has been extremely supportive of BTIC. However, it sounds like his new job will be fantastic."
Analyst Ovum has said that Danon is likely to have his work cut out at Capgemini.
Cansfield and Ovum chief analyst claimed Capgemini has "hugely underperformed" since buying Ernst & Young four years ago. They also heaped praise on Danon.
"Pierre Danon said that BTIC is a route to market. It has been neglected by BT in the past. SMEs want to buy locally from fellow SMEs, and that is BTIC's strength," Cansfield said.
"Our impression is that BT is going to invest more in the reseller channel."