EMC adjusts partner strategy to stress specialization, SMEs

Tuesday, February 22, 2011

US storage solutions supplier EMC (NYSE: EMC) will tinker its Latin America partner strategy across the board this year, encouraging higher-tier partners to specialize on specific product sets, while also expanding ranks to target more SME prospects, company executives told BNamericas.

The company's channel manager for Argentina, Gustavo Ostapiuk, said the areas of specialization will revolve around traditional storage solutions, high-end products, archiving and also back-up and recovery, the latter of which includes deduplication.

"We expect partners to be able to provide solution implementation services, and not just resell the product," he said.

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Elsewhere, EMC is taking steps to lower entrance barriers for prospective partners, according to the company's Latin America channel manager, Loreto Serrano. The storage giant is specifically looking for new partners across the entire region to help drive its new line of low- and mid-end products.

"The strategy will depend country by country," she said. "For example, today in Brazil we are looking to expand in various states beyond São Paulo, Rio de Janeiro and a few other cities where we have had a strong presence. In Mexico, we're looking to expand our coverage beyond Mexico City and also in Monterrey and Guadalajara."

EMC will also rely on partners to provide product bundles consisting of more integrated solutions, as well as to tap regional cloud computing business opportunities.

Latin America accounts for 4% of EMC's global revenues and recorded 34% year-on-year growth in the fourth quarter of 2010, according to previous BNamericas reports. Latin America is also EMC's fastest growing global region, and is expected to retain the top spot through 2011.

Partner companies are expected to haul in 50% of the company's regional revenues this year, Serrano added.

Globally, EMC saw net profits increase 75% last year, reaching US$1.9bn. Overall revenues during the same period grew 21% to US$17bn.