Dicker Data turns Cisco channel towards HPE NZ

Dicker Data has been appointed as distributor for Hewlett Packard Enterprise (HPE) in New Zealand, tasked with turning Cisco partners towards a rival product portfolio.

In response to missing out on the lucrative Cisco portfolio in August, Reseller News can exclusively reveal that the distributor will commence distribution of Aruba, data centre networking and Nimble Storage ranges, effective immediately.

Dicker Data also previously distributed Nimble Storage in New Zealand, prior to the vendor's acquisition by HPE in March 2017.

Representing a significant boost for the local business, Dicker Data has acted on plans to “respond aggressively” following the loss of Cisco only three months ago.

As a result, Dicker Data now joins Exeed and Ingram Micro as HPE distributors across the country but at this stage, only the two incumbents carry the full portfolio in New Zealand.

“It’s very pleasing to be announcing our first access to the HPE portfolio in New Zealand,” Dicker Data chairman and CEO David Dicker told Reseller News.

“We’ve been their leading distributor in Australia for many years and we’ve already transplanted the systems, processes and knowledge powering our Australian success into our New Zealand operation.

“This expertise coupled with our extensive mid-market and enterprise partner base underpins a strong foundation for success.”

Coupled with a strong ecosystem of Cisco-centric partners, Reseller News understands that Dicker Data has established a dedicated Infrastructure Business Unit to support the HPE deal in New Zealand.

Led by business unit manager Joshua Burtenshaw, the new division is comprised of individuals who bring over 40 years of combined Kiwi channel experience.

This, coupled with the distributor’s 19 years of networking distribution knowledge and expertise, presents a “strong opportunity” for incremental growth, particularly across mid-market and small business sectors.

“Our team is looking forward to closely collaborating with the New Zealand HPE team to deliver on their expectations and establish what I believe will be one of the key relationships in our New Zealand growth strategy,” Dicker added.

Looking ahead, Dicker Data will focus on introducing its networking partners - predominantly of Cisco origin - to the HPE brand and products during its first 90 days as a distributor.

Through initiatives such as training, enablement and competitive positioning, Dicker said the team will “proactively engage” partners, helping the channel better understand the benefits of HPE products.

In addition, Dicker Data will also be offering pre-sales support, configuration services and project management capabilities to partners to ensure the company is supporting its partners throughout the entire sales process up to delivery.

“The enterprise market is core to our success in New Zealand,” Dicker Data New Zealand general manager of enterprise Lisa Tierney added.

“We are committed to delivering on the needs of our customers in the enterprise segment and our new partnership with Hewlett Packard Enterprise further reaffirms our position as a market leading distributor.

“We have robust plans in place to continue growing our business here in New Zealand and I’m looking forward to driving the success of the HPE portfolio in partnership with Joshua.”

Despite never holding the HPE portfolio in New Zealand, Dicker Data has strong credentials in Australia, evident through its honouring as Aruba Top Distributor of the Year during FY16, only four months after being appointed as a distributor across the Tasman.

In 2017, the Australian business was also awarded the Aruba Top Distributor of the Year South Pacific FY17 accolade, in recognition of delivering consistent growth across the HPE portfolio.

“Hewlett Packard Enterprise NZ are pleased to confirm a new partnership with Dicker Data NZ,” HPE NZ managing director Colin Henderson added.

“The ever-evolving marketplace requires an ongoing focus on executing the new HPE strategy and provides the opportunity for our channel partners to leverage growth opportunities across key segments.”

Tough competition

Despite a strong track record of success in Australia however, Dicker Data - without the wider portfolio - will face tough competition for market share in a HPE channel already well served by Exeed and Ingram Micro.

"Exeed was surprised by HPE’s decision to appoint a third Aruba distributor when the industry trend appears to be leaning towards distribution consolidation for small IT economies like New Zealand," Exeed managing director Justin Tye told Reseller News. "That said, we wish Dicker Data well with their appointment."

Such dominance by both Exeed and Ingram Micro also contributed to Sektor terminating its partnership with Aruba in August, despite being appointed following a much-publicised distribution review in February 2016.

As reported exclusively by Reseller News, top performing Exeed and Ingram Micro regained positions within the market, alongside Sektor, with Dicker Data missing out on the portfolio at the time.

Fast forward 18 months and the distributor finally has its coveted vendor however, a vendor which has sat atop of its target list in New Zealand since acquiring Express Data in 2014.

“We don’t have HP here and that isn’t great given HP is our biggest customer in Australia,” said Dicker, when speaking to Reseller News during the official rebranding of Dicker Data in New Zealand in May 2015.

“We should have HP in New Zealand but we don’t and that’s the politics of the whole thing. We’ll have to work on that and it’s a long process.

“In Australia it took us nearly 15 years to secure HP printers so it is a difficult and length process. I’ve been in the business for 37 years so I can be patient. Obviously we want to do it as quick as we can but it is difficult to take it away from the other guy.”

While HP isn’t on the agenda locally, the distributor now has a foot firmly in the door of HPE in New Zealand.