EMC has appointed Ingram Micro as its second Australian distributor in an effort to extend its channel reach.
Ingram will sit alongside the storage vendor’s inaugural local distributor, Westcon Group, and has full access to EMC’s product portfolio. EMC general manager of commercial and channel sales, David Henderson, said it had experiencedtremendously successful relationship with Westcon, but felt the time was right to bring on a second, complementary player.
“If things [in the market] were the same, we would have continued with our solid one-distributor model,” he told ARN.
EMC’s recent acquisition of consumer and SMB storage vendor and Ingram partner, Iomega, was a major catalyst for the distributor rethink, he said. Driving virtualisation through a combined VMware and EMC infrastructure platform was another motivator.
“If we are not aligned with a distributor who distributes VMware, we have a problem,” Henderson said. “So those two elements got us thinking about change.
“We think there’s enough business for both organisations [Ingram and Westcon] to be profitable, which is why we’re making this announcement.”
Henderson flagged Ingram’s national coverage and reach into non-metro areas as a key consideration. He said EMC had canvassed the market for nine months before inking the Ingram deal.
“Ingram brings commitment to this relationship, and deep understanding, as well as technical pre-sales capability and coverage. We are not with Ingram for time and place,” Henderson said. “Ingram brings us technical competence for resellers outside of Sydney and Melbourne, which we have not been able to deliver in the last three years.”
Ingram Micro vice-president A/NZ, Jay Miley, said the new relationship expanded its solutions business and gave it better access to another major technology growth area. Ingram also distributes storage products from HP and IBM.
The EMC deal tied in to his broader plan of realigning Ingram staff and skills with higher growth markets, Miley said.
“This is about providing our resellers with choice – EMC is the leader in the storage market,” he said. “We see SAN and the broader storage space as a growth market and we want to be positioned in that market effectively.
“We have 6000 partners out there. I see us having a strong role in the SMB and mid-market area, but we also have relationships in the enterprise market, so we can cover the whole spectrum for EMC.”
Ingram will bring on four people in technical pre-sales, business development and business unit management to help drive the EMC business, Enterprise Technology Group general manager, David Lenz, said. Two staff start this week.
Westcon Group general manager, Wendy O'Keeffe, was disappointed by EMC's decision but said the two continued to maintain a strong relationship. The distributor will stick with its focus and market strategy and look to grow its storage business again this year, she said.
“We have both invested in establishing and building a solid, sustainable channel which now delivers a significant portion of EMC’s revenues," she said. "We have had a successful year with growth in excess of 60 per cent on the previous year. We were also privileged to be awarded their Asia-Pacific distribution award.
"Whilst we are disappointed that EMC have chosen Ingram to join their distribution network, we understand their need to expand into retail and the SMB market. Plus Ingram have a significant HP channel that EMC can leverage.
"Our intentions for our storage practice this year are to continue to provide our customers with the support they need to help them grow their market."