EMC searches for value in distribution

EMC searches for value in distribution

EMC is about to appoint a distributor as it looks to grow its share of the small business market.

While the storage vendor wouldn’t be drawn on which players were in the running, its channel manager, David Henderson, ruled out broad- based giants Tech Pacific and Ingram Micro by confirming discussions had only been held with three value-added distributors. The appointment is expected to be announced before the end of the month.

Recently, EMC has released a raft of new products, helped by company takeovers, as it looks to mirror its enterprise success in the SMB space.

EMC Australia splits its sales teams into enterprise high-end and commercial mid-range categories.

The commercial team deals exclusively with the channel and 65-70 per cent of total company revenue in Australia/New Zealand is through the channel.

“We have aggressively pursued signing-up partners to the Velocity Program,” Asia-Pacific vice-president of partners and alliances, Gary Jackson, said.

Launched a year ago, the program offers certification, training and revenue building initiatives.

Jackson claimed it had led EMC to double its Australian channel to about 30 partners.

EMC now makes half of its global revenues from software and services, following the recent purchase of back-up company Legato and data management company Documentum.

This meant more scope for partners to build services around the purchase of a storage box, Jackson said.

However, to help its push into the mid-market, EMC needed a distributor to add to its systems integrator partners dealing with top-end customers.

Jackson said EMC would start generating leads for partners, including employing telemarketers. Online technical support, product information and customised quotes were also promised.

“I am very confident these changes will make us easier to do business with,” Jackson said.

“It is not just a matter of having great products. Partners have to find it easy to get inform-­ation and feel they can get additional incentives for registering a deal.”

In the shift downmarket, he said Clariion should soon generate 35 per cent of company revenues. This range currently accounted for 16 per cent.

Market analysts at IDC noted EMC was changing its selling strategy, particularly by developing a channel and taking a more solutions orientated approach.

“This will mean that the relationship with the channel becomes much more sophisticated,” IDC software analyst, Megan Dahlgren, said.

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