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HPE drops three distributors in Kiwi rationalisation

12 Feb 16

After a drawn out RFI process, Hewlett Packard Enterprises has announced its new distribution line-up, with long time HP distributors Exeed and Ingram Micro retaining their Kiwi distribution status, alongside Sektor.

Sektor’s distribution range will be limited to Aruba and HPE Networking products only.

The rationalisation sees Distribution Central, Westcon and Connector Systems – acquired last week by Ingram Micro – cut from the list of Kiwi distributors.

All three had joined the HPE distribution list as a result of the vendor’s acquisition of Aruba.

A spokesperson for HPE last night told ChannelLife the rationalisation was undertaken because Hewlett Packard Enterprise 'was created to be a more nimble customer and partner-centric company'.

"Following the acquisition of Aruba, we conducted a review of the distribution framework in Australia and New Zealand, and have identified distributors that will provide products for the combined Enterprise Group solutions," the spokesperson told ChannelLife.

"The dedicated leadership team across South Pacific will continue to advance HPE's long-standing commitment to the channel and help partners accelerate growth through delivering comprehensive technology solutions to meet today's customer demand."

The rationalisation was welcomed by some in the industry, who noted that being one of many distributors made for a less profitable business, particularly given the complexity of HPE sales.

In Australia, the rationalisation has seen five distributors continue in their role with HPE: Dicker Data, Distribution Central, Ingram Micro, Lynx and Sektor, which again will be Aruba and HPE Networking only.

In something of a surprise move Synnex has been ousted, along with Avnet. Westcon, which was a legacy Aruba distributor and did not have an HP contract as such, also no longer features in the HPE/Aruba line up.

All of the distributors were asked to re-tender for their positions, with submissions to the closed tender due on January 18. Last Friday, Hewlett Packard Enterprise South Pacific notified the distributors that no decision had been reached.

The rationalisation did not include HPE's software business unit.

The new distribution deals start 01 May.

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