Veritas signs ED, plays down price war concerns

Veritas signs ED, plays down price war concerns

Storage heavyweight Veritas yesterday announced it has appointed Express Data to the fold as its fourth distributor in Australia.

But while the news is good for Express Data, the other distributors are effectively on notice as the company seeks to maximise the value it can extract from the channel.

New national distribution manager Nick Blozan admitted yesterday that four distributors may be too many and will evaluate each company over the next quarter to establish which three best demonstrate the ability to grow the market.

Agate, Tech Pacific and long-term partner ACA Pacific are the company's other distributors, with Tech Pacific recently promoted from sub-distributor to direct distributor status.

The distributors have expressed concern that a price war may erupt from the decision to appoint Express Data, but Blozan explained that each company will be evaluated by its ability to grow the market as a whole, rather than steal competitive market share.

"To be candid, we were very open with the distributors and told them they were in a dogfight for our business," he said.

Veritas is currently riding a wave of success on the Nasdaq, fuelled by healthy sales of its Unix and NT-based enterprise storage systems.

Blozan admitted the company had been concerned about ACA Pacific's performance but is satisfied with its technical skills. When asked about Agate, he said: "The question is, will they really step up? It's very much up to them to deliver what's expected."

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