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Computer Dealer News, August 5, 2005 , Vol. 21 No. 11
SKYDATA Serves Up Solutions Lab
 Value-added storage distributor celebrates a decade in a tough business
8/25/2005 12:19:24 PM
by Paolo Del Nibletto
Skydata Corp. has been a value added storage networking distributor for ten years.
As the Mississauga , Ont., company celebrates the anniversary, founders Howard Goldberg and Ray Reel are trying to take the business to a new level. A much higher level, Goldberg admits — one that will involve more expertise on its part.
In that regard, the company is building two solutions labs. One, which is about to be finished, will be in Calgary , while the flagship lab, at a cost of $1 million, is already operational in its home base.
The 600 square-foot raised floor lab consists of EMC Clariion machines with Fibre Channel and a NAS gateway.
The solutions lab works in a couple of ways: Skydata invites partners to use it to increase competencies, while it can also be used as a classroom. VAR customers can also use it to present proof of concepts and do test drives.
“The (deal) closure rate is 80 per cent when we get a customer into the lab,” Goldberg said.
The company can demonstrate information lifecycle management, backup to disk, storage and server consolidation, and archiving concepts at the lab.
Paid off already
Skydata has already seen a complete return on investment from the Mississauga facility, said Goldberg.
The key to getting the most out of the lab is end user training, he said. Skydata insists on training before any concept or solution hits the servers.
Goldberg said it is important that its VARs know all of the benefits and features of the facility before walking in the door.
Also, customers often come back for upgrades, which means more money for VARs, he added.
The lab's main function is to simulate server environments with loads, data sets and server testing.
Host environments in Windows, Netware, Linux, Solaris, HP-UX, AX100 and even AIX are all possible.
Different strategy
The solutions lab is a far cry from when Goldberg and Reel started in the very unforgiving IT distribution business.
Both men knew that to compete with Ingram Micro and Tech Data they needed to be different.
“If we were to compete with broadline distributors they would have squashed us,” Goldberg said.
Over the past decade, Goldberg and Reel have seen the distribution landscape shift dramatically from pick, pack and ship to adding value and back.
“Our value is to be different. We realize we have to be different,” Goldberg said.
To that end the company focused on mid-range and enterprise storage.
Now, however, it is eyeing the small- to mid-size mass storage market. Goldberg believes this market is opening up, so plans to release solutions for it this month.
Most value-added distributors maintain up to 20 vendor partnerships on their line cards. But Sky-
data has taken its partnerships down to just a few: EMC, Sony, QLogic, Adic, Brocade, Emulex and Quantum.
EMC, Goldberg said, is the company's star partnership.
Historically a direct sales company, EMC is trying to open up its channel business. The company has an exclusive Canadian arrangement with Skydata.
Goldberg also said the company has the rights to distribute EMC's Legato line and he is working on its hot VMWare software as well.
“We want to reward expertise and not be spread too thin against many vendors,” he said.
Skydata has done more than that. EMC Canada's indirect sales four years ago were zero. Today, with Skydata on board, 60 per cent of EMC Canada's revenue comes from channel sales.
It even uses Skydata's solutions lab for its quarterly boot camps.
Expertise
Over the past ten years, Goldberg and Reel have learned that partners do not just sell storage.
So Skydata tries to fill in the gaps with technical and sales help to partners and become an extension to the VAR team.
The staff has expertise in Microsoft and Oracle products for example.
The company currently has nine technical staffers and 18 in the sales department.
According to Goldberg, Skydata staff can help a VAR implement a complex ERP solution with storage infrastructure to support it.
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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