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Network Hardware Resale eyes Tokyo, China for expansion

Zafar Anjum | March 25, 2013
Is opening an office in Tokyo in a month or two, says the company’s CEO Mike Sheldon.

Mike Sheldon

Mike Sheldon, CEO-president of Network Hardware Resale (NHR)

"We are opening an office in Tokyo in a month or two," Mike Sheldon, CEO-president of Network Hardware Resale (NHR) told MIS Asia on Friday (22 March) in his company's Singapore office.

NHR is a network equipment reseller (e.g., Cisco, Juniper, Extreme, Foundry) and lifecycle solutions (e.g., NetSure) provider and is a global industry leader with corporate headquarters in the US, the Netherlands and Singapore. It has 25,000 clients worldwide and more than 400 employees. This unlisted company had US$240 million in revenues last year.

"Not unlike many Western companies, Singapore was supposed to be our Asian office," he said. "Tokyo will be our first hub in Northern Asia and I would expect China to come sometime after that. That is as far as expanding in Asia is concerned. We have big plans here in Asia and in the world in general."

The company's Tokyo expansion is coming because the Japanese customers like to deal locally and they already have 100 depots in Japan, he explained. Also, the market in Japan is sizeable as Cisco has more than 10 years of an install base.

Growth in Asia

Jason Ogden

Jason Ogden, NHR's AP regional director

According to Jason Ogden, NHR's AP regional director, the company currently employs 75 people in Asia. It started operations in Asia in 2007 with four people in a very small office. At that time, they already had a customer base which they served from the US and Europe.

"We came to Asia to be near to the customer base and immediately doubled the revenue that first year in a very short time," said Ogden. Today, they have a 20,000 sq ft facility in Singapore. "I came in 2010 to head Asia and we have doubled the team since then. Our revenues from 2011 to 2012 is grown more than 50 percent."

"Singapore and Hong Kong are two of our strongest markets," said Sheldon. "We can offer everything here that we can offer in the US or Europe. We have depots, we have technicians on the ground, and we have partnerships with companies in each of these countries, so we can deliver engineers to the site within four hours as well. There is no import export issue in Hong Kong, for example. Same is true of Singapore."

"China does have some import export issues, (and is) not as clean and similar," he said. "India would be similar. It is just that customs is harder, tariffs are higher but we believe China is a great market to actually approach from the inside. So we think the maintenance business first of all can be done all from within China. There is enough equipment in China and even if it takes 10 weeks, we can get enough spares in (China) to run our maintenance business within China. I think the free trade business will take a little longer. It is obviously the biggest market."

 

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