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Distribution Central's on a roll heading into 2015

Allan Swann | Feb. 3, 2015
Founder Scott Frew says the business is finally now in the black

Cloud-based renewals management software,, has been on a roll picking up several key clients which has seen it go into the black for the first time since its launch in 2009.

Originally developed internally at Distribution Central in 2009 as a software system to assist the distributor with automating its renewals, it has since been spun out and run as a separate entity once its potential across the entire channel was realised, president and CEO, Scott Frew, told ARN.

"After a significant amount of investment over a long period of time, is now in the black I'm happy to say. The last three months of the last quarter? Every one of them has been in the black. And we're going to go black this month too," he said.

"Best of all, a lot of that money is coming out of the USA. I expect another enterprise class customer onboard in the next couple of months out of the US."

He estimates that he is now spending 65 per cent of his time on, and 35 per cent on Distribution Central, which is now mostly run by co-founder and managing director, Nick Verykios. It appears to be finally paying off. has picked up some key clients locally, including VMware and other majors he isn't allowed to name yet, estimating that today manages over $7.5bn in assets across various companies in the IT channel internationally.

"Last year was all about shrinkwrapping and consolidating our code base. This year is more about engaging the Cloud guys who need to manage and license all the service providers across a bigger reseller base," he said.

"Some more modules coming down the pipe, but this year will be more about output. It will supply more information to resellers about where their business is at, and their recurring revenue streams."

Part of the problem for a lot of resellers in the marketplace, as the industry moves to more subscription and service models, is investment in their own structures and organisations, Frew believes.

"I do think there's a general lack of investment internally from resellers. They get their ERP system up, they get their CRM system up, and then they just go sell stuff. That's it.

"None of them have systems in place to ensure a renewals business -- that's where iasset steps in. Telstra, Optus, all the service providers are good at this because they come from a background of monthly billing. That's their go to market. But the smaller resellers are too used to the big chunky deals, with the big chunky commission cheques and they're always just looking for the next field of diamonds, instead of thinking long term.


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