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Age of "entitlement" over for Distribution Central

Brian Karlovsky | May 14, 2014
Netapp has signalled its intention to "review" how it goes to market and will meet with distributors other than its long-time partner Distribution Central.

Netapp has signalled its intention to "review" how it goes to market and will meet with distributors other than its long-time partner Distribution Central.

A Netapp statement said: 'following a review of NetApp's current and future business needs, the company was now looking to understand how distributors might best align with its plans in the Australian and New Zealand markets for its FY15.'

When asked what this meant, Netapp general manager, ANZ channels and enablement, Neville James told ARN:

"All it's saying is that we are going to the marketplace to see what ideas might add value to our business moving forward," he said.

"We have not made a decision to go dual. But we have had the same agreement for a very long time and because our business has grown we are interested in seeing what opportunities are out there."

James said the current business environment was changing very quickly, shaping how NetApp operates both locally and on a global scale.

"With this in mind, now is an important time to review how we go to market, especially as it relates to distribution," he said.

"Our existing channel partners can continue to expect the high level of service and support they have previously enjoyed from Distribution Central."

"We are looking forward to meeting with distributors and learning what innovative ideas they may have on how to jointly tackle the evolving IT landscape and continue NetApp's history of success in the local market."

'NetApp's existing distribution relationship with Distribution Central remains strong and continues to be an integral part of their channel strategy across ANZ,' the company's statement read.

Distribution Central managing director, Nick Verykios, said NetApp had been exemplary in its professional approach to this business expansion initiative. "We are approaching this process with a view of growth in our NetApp business," he said.

"We have no sense of entitlement whatsoever.

"What I know from doing this relatively successfully for over 20 years is we have to compete for every dollar, every day we are in business and to do this we have to make sure the value we provide is something our vendors and our customers just can't do without.

"That's where we will be investing our time, money and energy." Verykios said DC's relationship with NetApp was substantial and that the partnership had significantly benefited the current NetApp reseller channel in Australia, New Zealand and Singapore.

"Our desire to continue to invest in NetApp remains unaltered and we look forward to working with our vendor to explore new product and market opportunities while enhancing the current business at hand with our reseller partners," he said.

"That's what this process represents to us." He said DC had invested in home grown systems and procedures as well as support services that were acknowledged "the world over" as superior and world class.

 

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