Johnson Hsiung (Bluechip Infotech) and Munsoor Khan (DNA Connect)
As local distributors Bluechip Infotech and DNA Connect work towards integrating their respective businesses by the end of the year, the new combined group is looking to focus on new opportunities in the areas of cyber security, analytics and surveillance.
It was revealed earlier this month that Bluechip had struck a merger deal that would see it roll in fellow IT distributor DNA Connect, creating a new unified distribution powerhouse in the local market.
Bluechip Infotech was founded in 2000 and specialises in providing a range of products and services, including hardware, software licensing, managed service provider tools and monthly recurring services to channel partners focused on small- to medium-sized businesses (SMBs) to large value-added resellers (VAR) and MSPs.
DNA Connect, founded in 1993, provides a broad range of services for partners focused on midsize to enterprise customers, including lead generation, partner enablement and professional and training services.
The merger, which also incorporates DNA’s partner services and training arm Ingeniq, immediately delivers on the promise of a bigger, more diversified presence in the local market for the unified group. It also gives Bluechip the ability to push further into the enterprise space while giving DNA a broader footprint.
And while the new size and standing of the merged organisation doesn’t quite put it in the same league as the likes of Dicker Data or Ingram Micro, Bluechip managing director Johnson Hsiung and DNA Connect executive director Munsoor Khan expect it to influence how vendors view the distribution brands.
“Combined, the two entities are more visible in the whole IT space,” Hsiung told ARN. “Individually, some of the vendors who have looked at us might think we’ve been a bit small. But combined, once we have that visibility, it will be easier for us to get more vendors.”
Indeed, far from using its new scale to try and go for everything the big hard-hitting distributors cover, Hsiung suggests the combined entity will remain a niche player, albeit one with greater capabilities and capacity.
However, Hsiung is clear that cyber security, analytics and surveillance technology are three areas the group will focus on heavily in the coming months and years.
“Cyber security is definitely the focus, but we are also expanding into the surveillance and physical security area, an area in which DNA is also strong,” Hsiung said.
“Another area is data analytics, an offering area in which we have a few vendors, including Splunk.”
From Khan’s perspective, the experience of businesses over the past 12 months, many of which have been heavily impacted by COVID-19, has altered the focus areas of the distributors in the immediate future, and perhaps beyond.
“Things have changed, and the big initiatives now are not what they were 12 months ago,” Khan told ARN. “There’s the hybrid cloud and the security side of things; we are taking advantage of that, and we’re looking for vendors that can enhance our go-to-market.”
As Bluechip and DNA Connect, a Bluechip company — as it is now known — look ahead to new vendor agreements that they may have not been able to get across the line previously on an individual basis, the companies are also looking toward potential geographic expansion as a combined entity.
"More than one of our [DNA’s] vendors have asked us to consider New Zealand, on the strength of both companies to grow their business," Khan said. “Which is a very positive development.”
Moreover, there’s still room for the businesses to grow in Australia, with Hsiung suggesting the businesses will continue to expand their national presence.
Underpinning these anticipated expansion efforts is the expectation that the businesses will actively recruit more headcount over the coming months, despite the combined headcount presented by the merger.
“I plan to grow the overall staff numbers,” Hsiung said. “Overall, both sides are planning to grow the business, expanding to other territories.”
