Cabletron reorganises Spectrum, local operators escape impact

Organisational changes ahead for Cabletron's stand-alone business unit, Spectrum, will have little impact on the day-to-day operations of Cabletron Australia, officials have claimed.

Despite a new name for the unit, as well as new partnerships, Spectrum, Cabletron's flagship network management product, will continue to be sold through its parent company, Cabletron Systems, Katrinka McCallum, general manager for Spectrum, said.

"We will sell through our biggest channel partner, Cabletron Systems. They are going to be our feet on the street and our sales and marketing engines around the world," McCallum said.

"Cabletron here in Australia has relationships with various resellers and will continue to offer the products through the reseller channel . . . I won't be recreating a sales force over here," she said.

According to McCallum, it is expected Cabletron will launch the Spectrum unit's new name by the middle of September. Following that, the subsidiary will begin forging new partnerships and alliances.

"We are trying to create at least some identity for the business unit itself, and that way we can also offer on top of Spectrum some applications that extend Spectrum and take it to the next generation," McCallum said.

By creating a new brand, McCallum said, Cabletron is "unleashing the value" of Spectrum (the product) to Wall Street analysts and the investment community.

"[It will also] allow Spectrum to strike relationships with hardware companies that we can continue to manage in a multivendor environment.

We want to have autonomy from the parent company, but at the same time leverage the parent company," she said.

Whilst not setting any revenue targets for the new entity, McCallum said her team is targeting revenue growth of 50 per cent year on year for the coming year.

According to McCallum, the division has reported quarter on quarter growth of 20 per cent for the last three successive quarters.

"Our target is to be number one in the network management space. We are a leading player there today. But [with] 26 per cent [market share], there's still 74 per cent out there that I need to gobble up, so there's a lot of room to improve our market share," she said.

Ian Fewtrell, Cabletron Australia managing director, said Spectrum will continue to be a key part of the organisation. "Our business is built around Spectrum," he said.

Fewtrell also hinted at several key contracts soon to be announced by the company.

Meanwhile, Cabletron CEO and chairman Piyush Patel has clarified statements he made recently concerning the performance of Cabletron Australia.

Patel said earlier the company was "not getting enough revenues" from its Australian operations, despite yearly revenues of $US20 million to $30 million.

Patel said last week, however, that his "Australian operations have shown a major turnaround in the last 12 months. "It should be clearly understood that our Australian operation is highly successful, but as always we would like more and can always do better," Patel said. b

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