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looking for best of breed. This gives us a great opportunity when they test the equipment.”
David Galton-Fenzi:: “Because this industry in the central European block is
in a new environment - a new industry with more demands than were previ- ously required in these sorts of networks - they have gone out and looked at the technology to facilitate this. It is refreshing. And we have seen that they are more open to these approaches in the disruptive technologies.” “I don’t want to be too aggressive on this, but the broad-liners are deliver-
ing what everyone in the world is delivering. The demand is already there, and they are facilitating it. Zycko, however, is hopefully a different case in point, and has signed up a range of disruptive technologies and the reality it is having to deliver technical support – presales and marketing support – being in effect the extension of the vendor in those regions. In many cases these are new technologies and need to have that facility in place. The broadliners are not going to do that. There is a marked difference.” Mike Augustine: “To back this up in this region, we have to
make sure that we deliver the best and we are committed to working with Zycko to create a good strong channel base. But this is not easy to do in the early days of setting up, so you can’t. You have to be opportunity-driven. Find the customer first, then build the brand to a level. And then get the channel interested. It is chicken and egg – you have to get the first customer and fulfil him, then get a channel. And you can’t go for the first guy that comes along – it takes time to make sure you get the right person and bring them up. That is why we work very closely with Zycko. In this particular instance it was important to get the customer fulfilled as a priority in the market. But both we and Zycko look for a high value channel that is
Cloud will change distributors’ value added services...
Kristian Thyregod (pictured, next page) Vice President, Global Channel
Marketing & Global Distribution: “While the incident certainly could irk resellers, one would have to assess the actual case in point from two points- of-view - the customer and the vendor. The customer has got “live problems/ challenges” and needs resolution within set parameters - demands from the business, time-lines, budget etc. And the vendor has objectives and goals driven by revenue targets (by quarter), market share gains, reference sites etc. If the case is that no qualified VAR’s are in proximity of the prospect/cus- tomer - and the vendor has no means of engaging then what other provision-
needed in this business. And we will continue to do this.” But this “direct deal” was the best way to do this, he says.
IT Europa: Are you not being premature in appointing a distributor in an
area where you don’t have any resellers? Distributors are usually used to expand business that is already existing; you are using them to break into new territory.
Mike Augustine: “When you look at a company like Force10 and the foot-
print in Europe, we have a set of countries that we focus on, but we look to a partner like Zycko to help us. I think this is where the model in extension means we are reliant on the skills of some-one like Zycko, and I think the rela- tionship and the way we have gone forward is appropriate. We’ve been able to extend our footprint, address a customer base that is growing, and work effectively bringing on a very high-value channel and it has been effective for everything.” “The switching and routing market is not new and we are not
new players, but we have a higher value proposition that is harder to sell. It is much more difficult even in engaging appropriate chan- nels in that market. The best way to do it is to get your footprint there first, and start the chicken and egg.”
IT Europa: How did Zycko react to being asked to distribute a produce
where there were no resellers?
“A good question and core to the Zycko strategy. Obviously in return for
the value and investment we make we are not selling a commoditised product – in many ways it is one that is advancing. I find it exciting. I used to be a Cisco distributor and that was fun for a while, while it was growing. And it is about delivering the new technologies, really improving people’s experience and usability. And from that point of view this is exciting. And you make
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ing options exist? True - in actuality, none. However, the customer require- ments remain. At the end of the day - all parties in the value chain have to honour and satisfy the customer. The challenge in real life, however, is that the channel ecosystem normally
does not embrace the fact that a distributor deviates from the recognized execution of their business model - and, unfortunately, that may come back to haunt the distributor in the sense that channel partners could deselect that particular company. This is where the relationship in-between the distributor and the Vendor should be tested - obviously no vendor would want to see their
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30 APR 2010
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