Networking vendor SMC Networks Inc. announced today that it is spinning off its Business Solution Group to create a new company, Edgecore Networks Inc.
The Business Solution Group, now Edgecore, is focused on the SMB and enterprise markets and will now be a standalone company operating as a subsidiary of Accton Technology. The company said the move is reflective of SMC’s desire to rebuild its 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.
It was felt by the company that there was brand confusion in the market between SMC’s Service Provider Group, focused on networking solutions for consumers via service providers, and the Business Solution Group, focused on high-performance switching solutions for the SMB and enterprise 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,” said Keith Alexis, vice-president 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.”
The Edgecore brand, while new to North America, was launched by SMC four years ago in the BRIC countries (Brazil, Russia, India and China), Africa and parts of Asia four years ago around the development of higher-end networking solutions such as Metro Ethernet, Wi-Max, Performance Switching and Edge Switching. While Edgecore won’t ship Wi-Max into the North American market, the company said it will launch a new enterprise wireless solution in Q2 2010.
To support Edgecore Networks, SMC has purchased a new software house dedicated to ensuring that the software platforms incorporated into Edgecore’s solutions are both capable and innovative, as well as a network management software company that 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, according to the vendor.
“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. “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.”
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.