NZ disties may escape Veritas cull

NZ disties may escape Veritas cull

VERITAS says the New Zealand channel should not view the reduction of its Australia distributors from four to two as a sign of what is about to happen here.

Last week, ARN reported that the storage software vendor has culled Tech Pacific and ACA — the original distributor — from its Australian herd and kept Ingram Micro and Express Data.

The vendor expects to make a decision on the status of Tech Pacific, Express Data and Datastor in New Zealand by next Monday.

But newly-appointed managing director Bruce Lakin says local resellers should not read too much into the Australian channel review. Despite New Zealand being smaller, its market has a handful of top tier resellers and a proliferation of small and middle-size customers.

“In numeric terms, you’d say that [having the same or less distributors in New Zealand] would be correct. But at the moment, all options are open.”

This includes no change or going from three to two distributors.

“When we started to talk through with the partners on both sides of the Tasman, it was apparent there were differences. You should not take the decision in Australia as an indication of what will happen in Australia.”

Veritas started its New Zealand channel review around mid-March when it asked in writing for Tech Pacific and Express Data to explain their businesses. Datastor did not receive a letter because the company had been reappointed as a distributor less than a month prior.

Lakin has since met all three players and some resellers here.

He says he used his New Zealand visit to discuss ways Veritas and its partners need work to meet this year’s Australia and New Zealand sales target — which is 30% higher than last year.

“One of the topics was the software licensing model …which is quite complicated,” Lakin says. This is because Veritas products run on mixed-brand hardware and software platforms.

Other focal points for 2004 are tier-two reseller sales and technical support levels in the channel.

Last month, Veritas announced a 12% reduction in the price of all of its products.

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