NETWORKS
SMC Networks Clarifies Business Segments, Market Focuses by Spinning off SMB/Enterprise Sales Division to Become Edgecore Networks
The Spinoff of the Business Solution Group of SMC Networks and Rebranding of the Solutions for the SMB and Enterprise Markets Addresses the Growing Issue of Brand Confusion Caused by the Growth and Success of SMC in Both the SOHO Networking and SMB/e Networking Solutions Businesses
SMC Networks today announced that it is spinning off its highly-successful Business Solution Group (BSG) which focuses on delivering high quality solutions to the SMB and enterprise markets. The new company, Edgecore Networks, Inc., will continue to focus on the SMB/E markets under the new brand name, but will still be a subsidiary of Accton Technology. The spin off and name change, which is the first in the company's 33-year history, will be officially launched at Interop 2009 and reflects a desire of the company to rebuild its brand legacy in the reseller channel while providing a strategy designed to deliver a clearer message to the channel regarding the company's business segments and market focuses.
SMC Networks, which has achieved worldwide growth of 40 percent year-over-year and has recorded 10 percent growth in 2009 despite a very difficult economical climate, reached this decision as the company dealt with issues of brand confusion created by the company's successful Service Provider Group, which provides networking solutions to consumers via service providers, and the Business Solution Group, which delivers high-performance switching solutions to companies in the growing SMB/e, Hospitality, and HPC markets.
"A valuable lesson that we learned seven years ago, when our brand was growing in various markets, was not to confuse our customers and partners," explained Keith Alexis, VP of Sales for SMC (BSG) and General Manager of the new Edgecore Networks. "This decision was completely driven with the needs of our channel, our technology partners and installed corporate user base in mind where focus dictates simplicity in our brand strategy."
Though new to North America, SMC's Edgecore brand was launched four years ago in the BRIC countries (Brazil, Russia, India, and China), Africa and parts of Asia to enable the company to understand the developing markets and test their ability to sell and support higher-end networking solutions including Metro Ethernet, Wi-Max, Performance Switching and Edge Switching. While Edgecore Networks will not ship Wi-Max into the US market, they will launch a new enterprise wireless solution in Q2 2010. To ensure customer satisfaction, the company has made substantial investments including the purchase of a new software house dedicated to ensuring that the software platforms incorporated into Edgecore's solutions are both capable and innovative. In addition, a Network Management Software company was purchased which provides Edgecore with a full suite of management tools that offers channel partners more installation options and decreased costs, while creating greater opportunities for add-on sales, services and increased margins.
"The decision to spin off the BSG from SMC Networks and continue our channel presence as Edgecore Networks was not taken lightly given the strong brand recognition and reputation that we have established over the past 33 years," stated Alexis. According to Alexis, as the market evolved and SMC continued its aggressive level of growth, the company found itself being asked by its channel partners to clarify their branding positions. "One day we're part of the fastest supercomputer in the world and the next we're releasing a new consumer router. This made it difficult for partners to position us, but more importantly for the SMB and large corporate end users to understand us." The results of a recent survey of resellers by CRN found that SMC was ranked as one of the top 10 'Most Strategic Networking Vendors' putting them ahead of some very popular brands. Alexis believes that the name change will create more focus to enable Edgecore to improve its rankings in years to come.
"By bringing the now-proven name and product portfolio of Edgecore to North America and combining it with SMC Networks' BSG Division and its existing line of business-class networking solutions, we're able to effectively create a marketing and brand strategy designed to enable even more accelerated growth for both business groups and their partners, provide a broader line of value-packed high-performance network infrastructure and management solutions to our SMB/e and vertical segments, and provide a channel program that delivers a powerful combination of products, services and support that will enable our reseller partners to be even more profitable," stated Alexis. Edgecore will also continue a dual-brand strategy with SMC for the next 3 years to allow customers time to get use to its new product lines.
Alexis explained that growth of over 40 percent last year combined with the aggressive expansion of 2009 should make 2010 a banner year for Edgecore. "We're going back to the basics. We've already made commitments to our distribution partners, reengaged with channel events like XChange, Interop and others, and will launch our new reseller program in Q4 2009. SMC won the ARC Reseller Award in 1998 primarily for being the best and easiest partner to deal with. We weren't the biggest then and we're still not today, but the legacy continues to stay true and resonates with our partners, both then and now."
SMC Networks today announced that it is spinning off its highly-successful Business Solution Group (BSG) which focuses on delivering high quality solutions to the SMB and enterprise markets. The new company, Edgecore Networks, Inc., will continue to focus on the SMB/E markets under the new brand name, but will still be a subsidiary of Accton Technology. The spin off and name change, which is the first in the company's 33-year history, will be officially launched at Interop 2009 and reflects a desire of the company to rebuild its brand legacy in the reseller channel while providing a strategy designed to deliver a clearer message to the channel regarding the company's business segments and market focuses.
SMC Networks, which has achieved worldwide growth of 40 percent year-over-year and has recorded 10 percent growth in 2009 despite a very difficult economical climate, reached this decision as the company dealt with issues of brand confusion created by the company's successful Service Provider Group, which provides networking solutions to consumers via service providers, and the Business Solution Group, which delivers high-performance switching solutions to companies in the growing SMB/e, Hospitality, and HPC markets.
"A valuable lesson that we learned seven years ago, when our brand was growing in various markets, was not to confuse our customers and partners," explained Keith Alexis, VP of Sales for SMC (BSG) and General Manager of the new Edgecore Networks. "This decision was completely driven with the needs of our channel, our technology partners and installed corporate user base in mind where focus dictates simplicity in our brand strategy."
Though new to North America, SMC's Edgecore brand was launched four years ago in the BRIC countries (Brazil, Russia, India, and China), Africa and parts of Asia to enable the company to understand the developing markets and test their ability to sell and support higher-end networking solutions including Metro Ethernet, Wi-Max, Performance Switching and Edge Switching. While Edgecore Networks will not ship Wi-Max into the US market, they will launch a new enterprise wireless solution in Q2 2010. To ensure customer satisfaction, the company has made substantial investments including the purchase of a new software house dedicated to ensuring that the software platforms incorporated into Edgecore's solutions are both capable and innovative. In addition, a Network Management Software company was purchased which provides Edgecore with a full suite of management tools that offers channel partners more installation options and decreased costs, while creating greater opportunities for add-on sales, services and increased margins.
"The decision to spin off the BSG from SMC Networks and continue our channel presence as Edgecore Networks was not taken lightly given the strong brand recognition and reputation that we have established over the past 33 years," stated Alexis. According to Alexis, as the market evolved and SMC continued its aggressive level of growth, the company found itself being asked by its channel partners to clarify their branding positions. "One day we're part of the fastest supercomputer in the world and the next we're releasing a new consumer router. This made it difficult for partners to position us, but more importantly for the SMB and large corporate end users to understand us." The results of a recent survey of resellers by CRN found that SMC was ranked as one of the top 10 'Most Strategic Networking Vendors' putting them ahead of some very popular brands. Alexis believes that the name change will create more focus to enable Edgecore to improve its rankings in years to come.
"By bringing the now-proven name and product portfolio of Edgecore to North America and combining it with SMC Networks' BSG Division and its existing line of business-class networking solutions, we're able to effectively create a marketing and brand strategy designed to enable even more accelerated growth for both business groups and their partners, provide a broader line of value-packed high-performance network infrastructure and management solutions to our SMB/e and vertical segments, and provide a channel program that delivers a powerful combination of products, services and support that will enable our reseller partners to be even more profitable," stated Alexis. Edgecore will also continue a dual-brand strategy with SMC for the next 3 years to allow customers time to get use to its new product lines.
Alexis explained that growth of over 40 percent last year combined with the aggressive expansion of 2009 should make 2010 a banner year for Edgecore. "We're going back to the basics. We've already made commitments to our distribution partners, reengaged with channel events like XChange, Interop and others, and will launch our new reseller program in Q4 2009. SMC won the ARC Reseller Award in 1998 primarily for being the best and easiest partner to deal with. We weren't the biggest then and we're still not today, but the legacy continues to stay true and resonates with our partners, both then and now."