Quantum has moved to bolster its channel commitment with a new distributor appointment in the rush to secure local market share.
Company officials told ARN yesterday it has appointed Melbourne distributor ACA Pacific to focus on the growing DLT Tape market.
ACA Pacific and its estimated 5000 resellers join Quantum's existing distributor, Digital Tape Solutions, to focus on what David Rawcliffe, Quantum Asia-Pacific's marketing director, hopes will broaden the company's reseller base.
"All we need is for each of them to sell one [DLT product] and we will be very, very happy," Rawcliffe said.
The storage company, however, faces ongoing struggles in the marketplace as profit margins in the bread and butter desktop hard drive market continue to shrink under competitive pressures.
Rawcliffe said reseller margins for desktop hard drives continue to hover around two or three points, which in part is driving the DLT push. The DLT market is reportedly growing at 25 per cent per annum.
"I think we have to continue to diversify," Rawcliffe said.
Quantum recently released its DLT 8000 tape drives, which are now available in Australia from $13,500 (inc tax).
Resellers can expect to make healthy DLT margins on the product, according to Quantum, which makes 40 points itself.
Meanwhile, the company is looking to appoint a local DLT specialist and is investing in DLT channel training. Rawcliffe conceded educating resellers about DLT technology remains one of the company's biggest challenges.
"It's difficult to get mindshare with resellers," he said.