More choice for computer resellers and a tougher fight against Dell is the rationale behind Hewlett-Packard naming a second distributor.
HP has appointed Exeed New Zealand to compete with Tech Pacific -- the sole player since December when Renaissance stopped distributing HP, Compaq, Microsoft and Toshiba products.
Former HP New Zealand staffer Andrew Bain has set up the company in partnership with Australian distributor Exeed Global. The firm aims to sell $12 million to $15 million of products in New Zealand in its first year.
Bain says his firm will sell only HP products, including the Compaq products it unexpectedly gained from the merger. Using a “build to order” order process operating through HP in Singapore, he hopes to help HP compete more effectively with Dell.
Bain, whose firm will operate from May 27 out of Auckland and Christchurch, says Exeed will offer a “greater focus and ability” with HP offerings not available through Tech Pacific. HP New Zealand and Tech Pacific agree.
HP commercial channels manager Justin Tye says HP operates a two-distributor model in this country to offer choice in credit, price and supply. Exeed, he says, will provide “depth” to the market, particularly with a focus on Unix and networking products, whereas Tech Pacific provides a broad reach “geographically and through the reach of products it sells”.
Tech Pacific chief Tony Butler branded it "sensible" that HP has appointed a specialist distributor, saying the New Zealand market is not big enough for two firms fighting over exactly the same turf.
“The prices are as competitive as they are likely to get. However, the value proposition is not just price. It also depends on the support [resellers] require. It’s important they can choose which option they want,” Butler says.