ShoreTel expands NZ distribution network
Vendor signs deal with Express DataBy Lee Davis, Auckland | Friday, 17 February 2012
ShoreTel is opening up its distribution channels in New Zealand meaning iDivo will no longer be the sole distributor of the unified communication range of products. The company has just signed a distribution agreement with Express Data in Australia and New Zealand.
George Atrash, ShoreTel’s Asia-Pacific vice president says that "while Express Data is not ‘active’ with ShoreTel for the NZ market today, our plan is to start working on on-boarding new channels with Express Data in the future, meaning iDivio would no longer be sole distributor.
“We are working to strengthen and build with some key longer-standing channel partners who have really helped solidify ShoreTel as a major competitor in the NZ market. Further to this, focus is being placed on a handful of newer partners that will assist in broadening our reach into different market segments,” he adds.
According to Atrash, “iDivio have been on-board with ShoreTel for approximately two years and is currently handling 100 percent of all ShoreTel distribution in NZ”. “The recent addition on Express Data in Australia will soon see us work to expand this relationship into NZ, focussing on building with a different breed of channel partner – one with a rich data background as opposed to voice.”
The APAC VP says market awareness is key for the company. “The unique value proposition ShoreTel has to offer with regards to the simplicity and low total cost of ownership of our solution sets, means that in two out of three opportunities where we get a seat at the table, we manage to win the business. Our growth will come from ensuring our message is heard loud and clear, that there is another choice and the benefits from implementing ShoreTel are huge on all levels. Strengthening and diversifying our channel is key in order to touch all vertical markets, along with some focussed core marketing initiatives,” he says.
The VP believes that the two tier distribution model will give the company the ability to work with channel partners to “evangelise ShoreTel’s differentiating market advantage”. “Logistics and distribution is a specialised game; and, while there are many distributors, true value added distributors can make the world of difference to a vendor and its partners.”
ShoreTel recently bought the hosted service provider M5 in the US. The company announced the signing of a definitive agreement to acquire unified communications vendor M5 Networks this month.
Peter Blackmore, president and CEO of ShoreTel said in a press release that “the addition of M5 is an excellent opportunity for ShoreTel to rapidly enter the high-growth hosted UC market”. “M5's premier technology platform, focus on customer satisfaction and simplicity make it an excellent fit both strategically and culturally. This not only provides a strong cloud-based service offering for ShoreTel's customers but also benefits us with a recurring revenue stream that will give us greater predictability in our future revenues,” he added.
ShoreTel recorded global revenues of US$58 million for Q2, a 22 percent year-on-year growth. ShoreTel's non-US business, which includes the AOAC region, recorded revenues of US$7.2 million.
As of December 31, 2011, the company had $115.9 million in cash, cash equivalents and short-term investments. The company generated over $6.1 million in cash from operations during the quarter.
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