Story image

Extreme mid-sized enterprise push

01 Dec 11

The company, which has been in New Zealand for more than 12 years, is well known at the carrier and service provider level, and James Owens, Extreme Networks regional director for Australia and New Zealand, says while its resellers working in the mid-sized space ‘have done a very good job’, now is the time to expand even further.
The company has doubled its reseller base in New Zealand in the past year to 10, ranging from IBM and Ericsson to SMB specialists and specific point solution providers.
"We’re looking at certain verticals and how to address those. There are new potential partners emerging in the data centre components. Most resellers are doing that as an extension of their business at the moment, but as revenue grows we will see some specialists coming out, we’re talking hosting, managed services, and now cloud.”
The company has seen New Zealand revenue ‘at least double’ in the past year, Owens says. "And we’ve got very aggressive goals going forward. This is a very important territory for us.”
Owens attributes the growth to the country’s advanced adoption of data centres and our sustainability push. "For a number of years New Zealand has been a leader in sustainability. It’s a core part of the decision making process for many New Zealand businesses, and our products play to that.”
Owens says New Zealand tends to be ‘a very competitive market’ with a lot of customers purchasing based on total cost of ownership, as opposed to the initial purchase price. "We see that a lot more in New Zealand than in many other countries. There’s a real driver to lowering subsequent operating costs. In New Zealand it comes up in probably nine out of 10 [customer interactions], where in Australia it would be maybe five out of 10 times.”
Channel benefits
Owens says Extreme is consistently working to remove barriers for existing and future resellers, including reducing both hard and soft costs of bringing on new technology and providing free training.
He says the company is also providing higher margins in an effort to support its reseller channel to make their business more profitable. "The product sold should be profitable enough for the reseller. It should not have to be a carrier to alternative revenue. One per cent is not viable unless a reseller can have a raft of other services to attach to it,” Owens says.
"Most other vendors work on low or high single digits – 1% to maybe 10%. We’re trying to be very competitive at the customer front end, providing great pricing for them, while retaining at least double, or even treble, the margins seen elsewhere. If we can work around 20 points and win a deal we will. That’s the line in the sand that we try to work to. In networking that’s a figure which has not been talked about for a number of years and it’s rare in sizeable deals which resellers can work in.”

Opinion: Critical data centre operations is just like F1
Schneider's David Gentry believes critical data centre operations share many parallels to a formula 1 race car team.
MulteFire announces industrial IoT network specification
The specification aims to deliver robust wireless network capabilities for Industrial IoT and enterprises.
Google Cloud, Palo Alto Networks extend partnership
Google Cloud and Palo Alto Networks have extended their partnership to include more security features and customer support for all major public clouds.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill. 
Schneider Electric's bets for the 2019 data centre industry
From IT and telco merging to the renaissance of liquid cooling, here are the company's top predictions for the year ahead.
China to usurp Europe in becoming AI research world leader
A new study has found China is outpacing Europe and the US in terms of AI research output and growth.
Google says ‘circular economy’ needed for data centres
Google's Sustainability Officer believes major changes are critical in data centres to emulate the cyclical life of nature.
52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.