Comstor tempts resellers with credit offer

Comstor raises the stakes in the Cisco distribution market by rolling out a "micro credit" programme to entice new reseller accounts.

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By  Andrew Seymour Published  September 18, 2007

Comstor has raised the stakes in the Cisco distribution market by rolling out a "micro credit" programme designed to entice new reseller accounts.

The company, which was named Cisco's third authorised distributor in the Gulf late last year, insists the initiative will make it easier for dealers to sell the networking giant's products.

According to Comstor, the new programme offers resellers access to "near immediate credit financing", allowing them to begin reselling Cisco's SMB solutions in conjunction with Comstor the same day that they sign up as a partner of the distributor.

Comstor has developed the programme without the assistance of a third party credit provider and will therefore take on any risk itself.

The scheme has already kicked off in the UAE, with Comstor - a subsidiary of South African networking group Datatec - predicting that it can entice at least 100 new resellers during the pilot phase of the project.

"This initiative reaffirms our commitment to Cisco and to our SMB channels," declared Steve Lockie, managing director at Comstor Middle East. "We want to make it as easy as possible for resellers to understand the Cisco and Comstor opportunity, get aligned, get trained and get trading. Our ‘Recruit, Train and Enable' focus defines our commitment to the SMB market and the micro-credit initiative extends the reach of our approach by showing that Comstor really is living our ‘easy to do business with' goal," he said.

The scheme is being backed by Cisco, which believes the reseller community needs access to channel development programmes in a bid to exploit the vast opportunities offered by the SMB market.

"Comstor's OneX programmes, aimed at growing reseller awareness and profitable growth from security and unified communications solutions, together with their commitment to the SMB market, provides resellers with a true distribution partner which is enabling a deeper penetration into this expanding and demanding market," said Claire Jones, SMB manager at Cisco UAE and Gulf.

3951 days ago
Steve Lockie

I think Rajendra has a raises good points but we must also consider the macro-economics facing the region and the distribution channel. Lending and rates will be affected by the US markets and without effectively managed credit facilities we will constrain growth through the channel. Distribution and our vendors need to sponsor, invest and support the survival and growth of new VARs in this region, especially in adavanced technology where Comstor and Online play and where the largest growth opportunities exist. A carefully thought out credit policy is key and we believe that we have this, time will tell with this pilot and I for one hope we are right!

3957 days ago
Rajendra Pejavar

I would like to say, welcome back Steve to this market... Steve was the head of the TechData operations in the Middle East from 1999 to 2005, and I was the credit manager during his regime. That time also, I recall, Steve had mooted this idea to which I was opposed. My stand then and now is the same - unless you have a way to secure your funds, micro credit or macro credit is not going to work in this market, especially when you are working on thin margins, even if you have credit insurance cover! Any cover comes at a cost, so when you are working on thin margins, you are burdened with the additional cost of covering your debt! However, I wish Steve good luck in his new initiative.

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