Symantec Steals Distributor Deals

Symantec aims to boost its profit margin by allowing its largest customers to skip the distribution channel.

Symantec plans to drop distributors from its largest partner transactions and send the business through its largest resellers, Platinum Partners.

Symantec expects dropping distributors from the engagements will improve its margin, company executives told Wall Street analysts in a session on the channel changes, according to a transcript of the meeting obtained by eWEEK's Channel Insider.

"We'll move from a two-tier distribution model to a one-tier for our largest partners," Enrique Salem, Symantec's chief operating officer, told Wall Street analysts. "So if you're a platinum partner, you'll have the opportunity to buy direct from Symantec-because if the distribution channel is not adding value there's no reason to keep them in that part of the equation."

Symantec is offering its biggest customers the option to cut out partners and deal directly with Symantec.

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