Exabyte and Sealcorp part ways

Storage hardware vendor Exabyte has "streamlined" its distribution channel, cutting reinvented distributor Sealcorp out of the equation thus ending a two-year association that appears to have yielded little for both parties.

Chris Spring, Australian managing director for Brocker Technology Group - Sealcorp's parent company - said there is little pain from the separation. He said there would be a couple of similar announcements about other severed distribution agreements as Sealcorp consolidates its focus on the SMB market.

"It's not the last one you will hear about," Spring said. "We have been talking to Exabyte about this for a few months. Storage area network (SAN) technology is for big business. It is an enterprise-class technology and we want to focus on the SMB market."

With 1World (also now under the Brocker umbrella) focusing on communications and Sealcorp on SMB, Spring said there was no direct need for a continued relationship with Exabyte.

Richard Giddey, Exabyte's Australian sales manager, said in a statement there would not be another distributor brought on-board to replace Sealcorp. "Sealcorp has been a very good supporter of Exabyte but it became clear we are taking our businesses in different directions," Giddey said.

Sealcorp will still be distributing some Exabyte storage hardware, which is rebadged as IBM product and targeted at the SMB markets it is now focusing on, Spring said.

The Exabyte business was "not worth very much money" according to Spring. He placed its value at "about $1.5 million per year". "That's nothing in this business," he said.

Spring alluded to some "big announcements" coming up in the next "four to five weeks" which he said will make its new direction and strategy much clearer.

"Niche will be very niche. There has been an enormous amount of consolidation taking place in the industry of late. We have completed all our assessments of how those changes affect our relationships and the good news is we are keeping most of them, but most will be in a changed format."

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