Regret but little surprise at Nimans Avaya axe

Vendor was always likely to streamline UK distribution line-up after buying Nortel, say channel observers

Avaya channel players have regretfully accepted the inevitability of the vendor's decision to cut Nimans from its distribution line-up, with onlookers claiming the Nortel acquisition may have signalled the beginning of the end for the Mancunian firm.

Late last month, Avaya served Nimans with termination notice and the relationship will officially come to an end in Februrary. The Salford-based distributor was quick to stress that reseller support and product availability will not suffer for the remainder of the partnership.

Chairman Julian Niman admitted that Avaya's decision was "perhaps inevitable".

"After Avaya's acquisition of Nortel, it simply had too many UK distributors," he said. "We are not a pan-European distributor and this does not fit as well with Avaya's strategic direction."

Niman added that his firm will continue to boast a strong PBX portfolio, with franchises including Panasonic, Siemens, NEC, Samsung and Aastra.

Highly respected
Thomas Veit, Avaya's EMEA head of distribution, wished Nimans all the best, adding that the departing distributor is "highly respected in the industry and with its customers".

"The announcement forms part of our strategy to maintain our close partnerships and ensure we are able to provide our high levels of quality support and resources to our partners," he said

Nimans has worked with Avaya since 2004, initially distributing the vendor's SME-focused IP Office range. In 2008, it was handed access to Avaya's mid-market wares.

In 2009 it gained rights to Avaya's entire portfolio, shortly after it had bought fellow Avaya distributor Rocom in a £12.45m cash deal. In July of this year, Nimans announced it was taking stock of Avaya's data portfolio, which it came to own through its acquisition of Nortel.

The fallen Canadian vendor brought with it UK distribution partnerships with US big hitters Tech Data and Avnet. This summer, Avaya announced it was expanding its UK relationships with both Avnet Technology Solutions and TDAzlan to cover its entire portfolio.

Tony McNish, Avaya business manager at Avnet TS, said his firm's relationship with Avaya was going from strength to strength.

"Avnet is fast becoming the go-to distributor of choice for innovative Avaya partners," he said. "We are now recognised as a true converged distributor of Avaya-branded solutions across voice, data and unified communications applications, which is all supported by the technical expertise and security of an EMEA organisation."

Since the Nortel buyout, speculation has been rife that Avaya would sooner or later look to rationalise its UK distribution line-up.

The vendor's other distributors - Westcon and ScanSource Comm­unications Europe - were never likely to be fall guys. The former has long been by far Avaya's largest UK distributor by volume, while the latter is the UK-based subsidiary of the vendor's largest worldwide partner.

One industry source, who wished to remain anonymous, claimed that axing Nimans had been the path of least resistance for Avaya.

"It is much more difficult for a manufacturer to make [this kind of] decision about a contract with a global or a pan-European distributor if you work with them in multiple countries," said the source.

No surprise
Tony Parish, managing director of Platinum Partner G3 Telecom­munications, said his company has worked with Westcon for many years. Even the likes of Tech Data and Avnet will struggle to encroach on the New York-based distributor's UK dominance, he added.

"They will have to be pretty damn good, or Westcon will have to mess up," said Parish. "It is no surprise that Nimans has been left out as all the others are pan-European players."

Paul Brewer, technology solutions director at Datapoint, echoed this view.

"As a systems integrator, we want to work with a pan-European distributor," he said.

"The Nortel acquisition brought a whole new distribution channel on board. There is a finite amount of business to go around."

Ian French, strategic development director at TDAzlan, was also unsurprised by developments.

"A shake-up was inevitable," he said. "It is likely there are issues around coverage and size. Avaya is a very ambitious company that is looking to extend its footprint."

Other resellers expressed regret at Nimans' departure. Paul Blundell, managing director of iQual, said it was "a shame to lose a company that held UK stock".

Russell Lux, managing director of LuxTech, praised Nimans' level of service.

"Nimans is a great business and Julian is a great character of the industry," he added.