I think BUD has stopped focusing on Ohm resellers because the model isn’t working.
BUD has struggled with closing its own (direct) sales. So imagine the challenge for resellers.
As a tier-1 distributor, Dicker Data (DDR) has thousands of resellers in their Australian network. They turnover a $1b annually. And I doubt BUD has sold 100 units through the DDR channel. Why? Ohm has a long sales cycle and the reseller margin (after DDR take their slice) won’t be that great. The target market for Ohm is immature e.g. many businesses still focusing on trials. During the sales cycle, I suspect the process would consume significant resources to successfully engage withe the customer and deal with all the barriers.
It’s a good move for BUD to turn their attenion to the B2C market via LIFX. When it comes to IoT adoption, the B2B segment has proven to be tough. However, consumers are hungry for connected gagets.
BUD Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
