Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Storage

    EMC Shares the Wealth

    Written by

    Jacqueline Emigh
    Published January 22, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Sometimes, it pays handsomely to partner. Just ask EMCs sales force. Under a new incentive program, EMC soon will give its salespeople financial perks when they ink customer contracts that include third-party systems integrators. The storage giant unveiled the program during a recent internal sales meeting, according to sources within EMC.

      The move opens the door for solutions providers to more easily target the storage market. Thats good news because storage sales are expected to grow faster than overall IT spending this year.

      Despite earnings warnings from dozens of high-tech companies, EMC hopes to avoid the IT spending slowdown. Executive chairman and CEO Mike Ruettgers recently reiterated that EMC will meet its projected revenue goal of $12 billion for fiscal year 2000. Actual results will be announced on Jan. 23.

      Ruettgers knows EMC will need partners to maintain its growth, because the company doesnt have enough integration experts of its own. “Im not aware of any company outside the technology belt today that has the ability to do integration,” says Ruettgers.

      Still, EMC isnt abandoning its direct sales and consulting organizations, which are considered the biggest in the storage business. “Were strengthening both sides,” says Tom Heiser, EMCs VP of global channels and service providers.

      Heiser declines to confirm or deny EMCs new partner-centric sales incentives. But he notes that EMC already works with Accenture (formerly Andersen Consulting), CTS, EDS, Razorfish, Sapient and Stack Computer, among others. In fact, EMC started working with integrators about five years ago, according to Heiser.

      Last April, EMC augmented the overall effort with the Proven Program, which is designed to give integrators training and certification in EMC products.

      Going forward, EMC is particularly interested in teaming with regional integration powers, vertical-market specialists and consulting firms that target customer relationship management, says Heiser.

      EMCs partner push looks promising, but the company still trails IBM on the indirect sales front. Partners generate roughly 45 percent of IBMs storage revenue. At EMC, that figure, according to Heiser, is approaching 40 percent and has been rising annually.

      In addition to servicing customers, partners often lead storage vendors to customers, rather than the other way around. CTS, for example, has generated strong storage sales for EMC, Hewlett-Packard, IBM and Sun Microsystems. Similarly, systems integrator Champion recently delivered a major customer—Dalet Digital Media Systems—to IBMs storage table. Champion is IBMs top integration partner in the storage market. Storage solutions generate roughly 60 percent of Champions $110 million in annual revenue.

      Still, storage isnt easy money. “[It] isnt for the faint of heart,” says Champion CEO Chris Pyle. “You have to invest a lot of money in hiring people who can implement a storage solution, and who can do the kind of whiteboard presentation that makes an implementation understandable to clients.”

      Meanwhile, storage vendors are pushing beyond integrators on the partner front. Other critical allies include service providers, software developers and OEMs. EMC, for instance, has a dedicated sales force that directs business to xSPs, like storage service providers, ASPs and ISPs. A new compensation program, similar to the systems integrator program, is already up and running for the xSPs, says Heiser.

      EMC also has been teaming with those “infostructure” partners for about five years. Allies in that area include Broadwing, Comdisco, Exodus Communications, Loudcloud, NaviSite and PSINet, to name a few.

      With competitors close by, EMC will depend heavily on its partners to drive 2001 revenue growth.

      Jacqueline Emigh
      Jacqueline Emigh

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×