Channel initiative provides Hitachi Data Systems customers with broader access to industry-leading business solutions.
21 July 1999 — Hitachi Data Systems today announced its new channel sales and support program. For the first time in the company's history, Hitachi Data Systems will sell solutions through a global, two-tiered technical distribution sales channel. In support of the program, the company has signed U.S. channel partnership agreements with Gates/Arrow DistributingSM, Tech Data Corp., and Wyle Systems. Similar partnerships will be announced later this year across the world. The company also kicked off its ChannelOne marketing program for value-added resellers (VARs).
"In line with our strategic blueprint announced in February, Hitachi Data Systems has invested in a strong channel organization," said Yoshihiro Koshimizu, Hitachi Data Systems' president and CEO. "This channel initiative provides customers with convenient access to open systems solutions while extending our reach into new markets. With a strong coalition of channel partners, we are positioned to complement our S/390® and OEM sales strategies and expand our capabilities in the high-end NT and midrange UNIX® space."
Creating the channel organization is one of the first steps Hitachi Data Systems is taking to meet the goals of its new corporate vision to grow its markets. The program also focuses on the rapidly growing Windows NT® space and Fortune 2500 companies. Hitachi Freedom Storage® 5800 systems and Hitachi VisionBase® 8880R PC servers are the first solutions offered through the two-tiered channel. SAN and other solution offerings will eventually be added to the mix. The company anticipates bringing channel-based revenue up to 70 percent of total revenue within three years.
Hitachi Data Systems' channel strategy also includes a comprehensive marketing program for VARs named ChannelOne. ChannelOne is designed to make it easier for VARs to conduct business with Hitachi Data Systems and its authorized distributors and for end users to do business with the channel. This program also provides access to resources to help VARs increase sales and customer satisfaction. Resources available include: marketing programs, a partner extranet, demo programs, evaluation units, sales and system engineering training, lead referral, and a dedicated account team.
Partners benefit from Hitachi Data Systems' ChannelOne program in several ways. First, they gain an enterprise vendor that offers data-center capabilities and relationships. Second, they obtain access to world-class, proven solutions, backed by the Hitachi, Ltd. brand name. The result is that they're better able to provide enterprise-class, end-to-end solutions — from the data center to the desktop.
According to Clark Straw, Hitachi Data Systems' Executive Vice President of Worldwide Sales, now is a good time to be entering the distribution channel since the company can base its strategy on the recent experiences and successes of others already in the business. For instance, Hitachi Data Systems will limit the number of distributors, enterprise VARs, and tiered VARs. This scenario allows for a more streamlined and manageable channel business and avoids the issues of excessive competition, diluted "soft" dollar programs, and overburdened supply chains.
Mike Long, President of Arrow North American Computer Products said, "As an organization that places a great deal of emphasis on the midrange and mission-critical systems arenas, we are pleased to team with Hitachi Data Systems as it makes its entrance into channel distribution. In this partnership, we do not simply want to add a highly technical sales force for their ChannelOne strategy, we more importantly want to provide our resellers with another premier set of high-end products such as the VisionBase servers and Freedom Storage products."
"With this program, Hitachi Data Systems has taken an important step in optimizing their supply chain efficiency," said Brooke Powers, vice president and general manager of systems product marketing for Tech Data Corp. "By closely partnering with a smaller number of distributors, Hitachi Data Systems can respond faster to business demands while enhancing its competitive edge. As a leading global distributor of technology products and a long-time partner of Hitachi PC, we believe we are well positioned to accelerate sales with Hitachi Data Systems' branch-office-to-desktop solution offerings."
"Hitachi Data Systems is a strong addition to the enterprise storage products Wyle Systems currently provides our customers," said Josh Napua, President of Wyle Systems. "As end-user storage requirements increase, our extensive reseller channel is in need of highly reliable storage products, which Wyle Systems knows that Hitachi Data Systems products and solutions can provide."
Gates/Arrow is a leading full-line technical distributor of computer systems, components, software, and value-added services to resellers in North America. With headquarters in Greenville, South Carolina, Gates/Arrow is a subsidiary of the Arrow North American Computer Products group, a division of Arrow Electronics, Inc. — the world's largest distributor of electronic components and computer products to industrial and commercial customers.
Tech Data (NASDAQ/NMS: TECD), founded in 1974, is a leading full-line distributor of technology products worldwide. The Fortune 500 company and its subsidiaries operate in over 30 countries, serving more than 100,000 resellers in the United States, Canada, the Caribbean, Latin America, Europe, and the Middle East. In addition to distributing more than 75,000 products from over 1,000 manufacturers and publishers, Tech Data provides extensive pre- and post-sale training, service, and support, as well as high- quality configuration and assembly services and a full range of electronic commerce solutions. The company generated sales of $11.5 billion in its most recent fiscal year, which ended Jan. 31, 1999.
Wyle Systems, a member of VEBA Electronics Inc., is a leading international distributor of computer systems and storage solutions and a provider of value-added services. Their knowledgeable sales representatives and system engineers provide custom solutions for any computing environment from a network of 35 U.S. sales locations. Focused on finding the best application solutions and value-added services for customers and business partners, Wyle Systems provides integration and management services for materials and complex inventory processes for VARs, system integrators, original equipment manufacturers, and end users. Wyle Systems' headquarters are located in Irvine, California.
Recognized as a leading provider of business solutions for the world's most IT-intensive corporations, Hitachi Data Systems offers professional services, multiplatform storage subsystems, and the industry's broadest line of high-performance servers. The company's extensive range of products and services, coupled with its business alliances with key industry leaders, enable it to transform IT into business agility for high-end and middle-market customers. Hitachi Data Systems is owned by Hitachi, Ltd. (NYSE:HIT) and has its headquarters in Santa Clara, California.
Contacts: PR
Lorraine Morgan, Hitachi Data Systems, (408) 970-7176
Vikki Herrera, The Weber Group, (650) 463-8693
Hitachi Data Systems is registered with the U.S. Patent and Trademark Office as a trademark and service mark of Hitachi, Ltd. Freedom Storage and VisionBase are trademarks of Hitachi Data Systems Corporation. Gates/Arrow Distributing is a service mark of Gates/Arrow Distributing. Windows NT is a trademark of Microsoft Corporation. S/390 is a registered trademark of IBM Corporation. UNIX is a registered trademark in the United States and other countries, licensed exclusively through X/Open Company Limited. All other brand or product names are or may be trademarks of, and are used to identify, products or services of their respective owners.
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