How long have you been with Symantec?
Craig Scroggie (CS): I was part of the Veritas acquisition four-and-a-half years ago. For the last two-and-a-half years I've been running the vertical sales business for Asia-Pacific and Japan, which included our telecommunication and financial services units. It was an extraordinary learning opportunity, because of the diversity and complexity of the cultures and markets.
The other lesson I learnt is that economics don't work the same way in Asia as compared to here. We are such a mature market and have similar dynamics to the US and European economies, as well as cost of labour. So we have been looking at ways to standardise and automate software. One of the value propositions for us and our channel is helping customers understand how they can reduce their operational costs by automating processes. Asset management is a great one emerging on the Altiris side of our business, for example. But how about backup complexity? Reducing the size of that infrastructure and putting that money into savings or those people into revenue-generating roles are really the only things customers are interested in.
Along that line is reducing costs associated with compliance or governance, because those issues don't generate revenue. It's about helping customers measure, monitor and manage requirements. Changes to privacy legislation are also coming, which will mean organisations have even more regulation to deal with.
Do you have a software vendor background?
CS: I ran sales for Veritas for a couple of years before we were acquired. Before that I ran sales for the storage and security businesses at CA. Prior to that I was responsible for the channel at EMC back at the time when they acquired Data General. My role was to set up the channel program and I learnt a lot about building a channel in an enterprise business. I was also the sales and marketing manager for Fujitsu for telecommunications and technology, which was a purely distribution business.
You mentioned governance and compliance are key business drivers. Was that the case five years ago?
Steve Martin (SM): No, it wasn't. We've just completed our annual survey of 320 small businesses around Australia. The number one reason for backing up data was compliance and legislation [22 up to 27 per cent this year]. So SMBs are significantly seeing a need to address their compliance and legislative needs, because they're realising that the data they have in their business is not just their's, but also confidential information about clients and suppliers. We were pleased to see that focus on compliance in the SMB space - in enterprise it's been a large driver for the last few years.
CS: Governance and compliance are two different topics, but share a general theme. Most of the big organisations today, including government, see trust as an issue. A predominant concern is that data loss will damage their reputation, brand and stock price, and customer confidence. There's a host of issues customers are concerned about today relating to measuring and managing data loss. Questions they are asking include: Who is taking info outside the organisation? How much is going out? Is data leakage accidental or deliberate? Is it going out on USB sticks, iPods, by email? And exactly what data is leaving the organisation? Most organisations are doing something about it now. The interesting part is that they don't necessarily want to lock information down because they don't want to inhibit or stifle the business' ability to innovate and grow.
So a lot of what we're seeing revolves around knowledge is power and taking action if and when it is required. It will be interesting to see how that then relates to compliance requirements. Everybody knows it's coming and waiting is not an option now. The Office of the Privacy Commissioner and Senator [Stephen] Conroy are both talking about legislative requirements, Internet content filtering, disclosure laws and the like. That legislation concept and having the ability to measure, monitor and report is driving our message.
How does this message affect your channel?
CS: Almost all of our business goes through channel today, except for a small number of legacy agreements with large customers that are still maintained. But even that business has created opportunity for the channel to feed off those contracts because there's so much breadth and depth to them.
Enabling partners to provide services around our products is very important and we're starting to make investments in those areas. Because resources are hard for customers to get in a mature market, there are again huge opportunities for the channel. So we have programs to support development of partners - not just on the licensing side or in enterprise but also in the mid-market and SMB, right through to enabling services, consulting and architecture.
SM: The channel continues to go through an evolution process as it takes on early adoption technologies. Over time, those technologies become more mainstream and often tend to transition from large consulting and services revenue to product and supply. We are seeing the channel get excited around what we are doing in the compliance space because partners see that as a new opportunity to provide some leadership to customers. Virtualisation is another area, and we're seeing a big growth trend around archiving and information retention and recovery. Partners are playing that trusted advisor role by talking to customers about issues that aren't necessarily technology related, but that are solved by technology.