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Computer Dealer News, August 5, 2005 , Vol. 21 No. 11
Focused Distributors: Strive to Customize
In the face of competition from international giants, a few small distributors try to survive by carving out market niches
8/25/2005 12:50:02 PM
by Vawn Himmelsbach
Being everything to everyone doesn't always pay off. The distribution market is already saturated and many product lines are over-distributed.
During tough times in the IT industry, how do smaller players stay in business and differentiate themselves from broadline distributors?
For them, successis a matter of focus on product sets, on service and on specialization.
Storage specialist
Skydata Corp. has narrowed down its focus to one key area, but one that is sufficiently complex that it's able to add value that broadline distributors can't. The distributor specializes in networked storage and works with VARs to provide a virtual storage practice for their customers.
“I don't consider Ingram a competitor, we don't do battle with distributors like that,” says Howard Goldberg, CEO of the Mississauga , Ont., firm. “We do battle with IBM, with HP.”
While he says there's a place in the market for broadline distributors, Skydata's value proposition is entirely different.
“How can you maintain expertise around a thousand different vendors?” he asks. “You just can't do it, so it becomes an entirely different message to the marketplace.”
Skydata distributes product from seven vendors: EMC for primary storage, Quantum, ADIC and Sony for tape automation, and Emulex, QLogic and Brocade for fibre channel and networked storage.
“The idea is to focus on the category, then focus on specific vendors,” says Goldberg. “[That way] we get a tremendous amount of expertise.” And because it's so specialized, it can provide both technical and sales expertise.
“A VAR can take a look at his own storage practice and where he has gaps, we can fill them,” he says.
“We have a technical complement of nine individuals [and] we are the only distributor in the world for EMC that is authorized to render services.”
Demand generation
Its model includes end-user demand generation through telemarketing and trade shows.
Making Storage Simple, for example, is designed to generate leads and includes a direct marketing campaign, online advertising, print advertising, as well as analysis, tracking and lead distribution.
Skydata also has demonstration labs in Toronto and Calgary for VAR and customer training.
“There is a constant temptation to take on additional vendors and additional product sets,” says Goldberg, “but we're extremely selective.”
About SKYDATA Corporation:
SKYDATA is a leading distributor of data storage solutions, delivered
through a network of value-added resellers and system integrators.
We are distinguished by the market-leading brands and products we
represent (EMC, Legato, ADIC, Quantum, Sony and others), and our
deep expertise in designing and implementing network storage solutions.
Unlike traditional distributors, SKYDATA provides added value and
resources to our channel partners by providing a 'virtual storage
practice' to ensure customers receive the most advanced, effective
end-to-end data storage solutions.
EMC and CLARiiON are registered trademarks and EMC Proven is a trademark
of EMC Corporation. All other trademarks used herein are the property
of their respective owners.
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