BEA Systems sees channel sales soar

BEA Systems sees channel sales soar

BEA Systems recorded a 50 per cent jump in the contribution of its channel to overall sales last quarter, compared with figures for Q2, 2003.

According to new figures from the applications vendor, revenue influenced or sourced by its partners grew to more than 45 per cent in Q2, 2004, up from 30 per cent over the same quarter a year ago, BEA Systems A/NZ managing director, Laurence Cole, said.

He attributed the jump in indirect sales to a concerted effort at growing BEA's channel base.

"We're currently seeing huge growth which has been driven by our alliances and partner programs we have been working on for the past couple of years," Cole said.

"BEA has always had strong alliances with ISVs but, locally, it's an issue we have focused on in the last three years."

The company operates an hybrid model using both a direct sales troop targeting top 200 Australian accounts, as well as an indirect partner network of about 10 global and 40 local combined ISVs and SIs.

"Just about every single engagement these days has a channel partner either influencing or sourcing the deal in some way or form: whether it's through a particular application or through systems integration and project management," Cole said.

While he expected the channel to play an ever increasing role in the company's future expansion, Cole said the majority of current growth had come out of local partners focusing on the mid-tier sector.

"The mid-tier market is acquiring smaller scale applications such as CRM, supply chain and point of sale systems," he said.

"There has also been an enormous investment in infrastructure over the years and now there is a real need for the rationalisation."

After a rough couple of years, a return in demand for BEA's products had also helped fuel sales, Cole said.

"Over the last 12 to 18 months we have been seeing capital expenditure come back across all verticals and segments in the market, and that is generating a lot of growth for us," he said.

To further spur this growth the vendor had recently appointed three senior account executives across Australia and New Zealand to develop sales, grow channel opportunities and further develop its partner relationships, Cole said.

BEA would also look to health and pharmaceutical, government, legal, accounting, manufacturing and transportation for further business development opportunities, he said.

"The telecommunications sector has always been very strong for BEA and virtually all the telcos in Australia have some of our products in their infrastructure currently," Cole said.

"We've also seen a lot of growth in the last year within the financial services sector, particularly with the rationalisation around infrastructure, which is an absolute sweet spot for us."

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