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Rochester, N.H. -- Eight distributors have been named by Cabletron Systems Inc. for its retooled channel program.
The networking products manufacturer, based here, said its Synergy Plus Partner Program will be the core of its channel strategy and will now include customized promotions, dedicated field sales and support, and marketing and business development funds for resellers.
As recently as a year ago, Cabletron did 90 percent of its business direct to large resellers, but that figure has decreased to 60 percent since the purchase of the Digital Networks Products Group in February, which included two-tier partnerships.
Cabletron, based here, increased its distributor partners to eight with the Digital acquisition. Products are available through Tech Data Corp., Avnet Inc., Pioneer-Standard Electronics Inc., Wyle Electronics, Pinacor Inc., Ingram Micro Inc., Anixter Inc. and Azlan Group PLC.
Don Lyons, Pinacor group vice president of product management, said existing channel relationships with Digital should make a Cabletron partnership easy.
"Time will tell how successful they are. It looks to us like a pretty comprehensive program. They want supply in the channel and they have plans to do the pull advertising, as well as push to encourage distributors to have the product. And rebates will get resellers' attention."
Cabletron is targeting the midsize market, customers that had been previously untapped by the company, according to Giulio Gianturco, president of Digital Network Products Group.
"A year ago, we were so focused on the 90 percent that it was hard to focus on the 10," said Gianturco. "Now the channel is embedded into every facet of our business."
Avnet also is Cabletron's first electronic-commerce partner, said Gianturco, with plans for an online configurator to help resellers determine the Cabletron portion on a networking solution, as well as price quotes.
"We're planning to expand that. Our other partners are asking for that. And eventually it will include multivendor
solutions," he said.
Hardware partners include Compaq Computer Corp., NCR Corp. and Wang Laboratories Inc. Cabletron is hoping to add IBM Corp. in the near future.
The Synergy Plus Partner Program includes three partner levels: Solutions Provider, Platinum Plus and Platinum, each depending on the level of sales and service the reseller provides.
The program is now worldwide, said Gianturco, in contrast to old programs that were separated into North America and Europe.
Gianturco said Cabletron is not necessarily looking to increase the percentage of channel sales as much as it is the overall dollar amount. "We're not trying to reach a predetermined ratio. If we reach 120 percent of our revenue and profit goals and the percentage is still 40 percent, I'm OK with that," he said.
Copyright r 1998 CMP Media Inc.
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