Tech Data Azlan is buying certain assets of Communication Distribution Group AB (CDG), the distributor in the virtualization market in Sweden and the Netherlands. Under the terms of the agreement, both parties expect the acquisition will be completed by the end of March. CDG has developed a good business with Citrix, supported by a focused set of services.

 

It is part of a continuing plan by Tech Data Azlan to develop the services side around virtualisation and the data centre. Jens Ericsson, country manager Sweden, CDG Europe says: “This is exactly what CDG Europe needs to take the business to the next level. Our experience in this market, combined with a financially strong and leading distributor, will bring excellent opportunities to continue to develop the best value add distributor in the region. The combined operations will be in a better position to deliver long-term benefits to our customers and suppliers.” 

 

Simon England, Azlan's European Managing Director, tells IT Europa: "For us this is an enabler. There is a lot happening, and the big picture is that this allows us to develop in difficult market conditions. It is a significant advance that will allow Azlan to do things together with other technologies." 

 

He points to studies from VMware on the way virtualisation has the effect of pulling in other technologies in the sale, including not just storage and servers, but considerable amounts of networking. Azlan is partnering with VMware and Cisco in a big way, and supporting their joint plans. It does give Azlan a big share of the European virtualisation market. 

 

There are still some question marks over the future of the remaining bits of CDG, whose management is thought to have decided not to pursue a pan-European strategy, but to spin off or sell the viable parts.