Computer Associates Introduces New Channel Strategy

"Over the years we've struggled with regard to the channel business and how that business conflicts with our direct sales organization," says Stephen Richards, executive vice president of sales at CA. "We always had a strong direct sales organization, [but whenever we've started to make some inroads with the channel, we've inevitably come into some sort of conflict that's driven us away from the channel model."

CA is adopting a new channel strategy that will essentially team members of its 5,000-person direct sales force with its channel executives in an effort to increase software sales through VARs. The strategy will employ a "channel neutral" approach that will compensate direct sales teams the same for a direct sale and a channel sale.

"We feel good about the new structure and the goals for the business," Richards says, adding that he feels this is the best model in the industry for combining direct sales force and channel efforts.

CA is kicking off the new channel model within its storage product line, which CA officials have recently identified as one of the highest growth areas for the company. Mark Milford, currently senior vice president and general manager of storage at CA, will handle the channel strategy for the storage business unit and work in conjunction with members of the internal sales team at CA, including Richards.

Milford calls the new strategy a "high-touch model" for the channel that combines internal sales teams that work with and support resellers.

"We're moving forward very aggressively with this model to spend more time with resellers, helping them sell our products and understand our technologies and, I believe, move more revenue from our competitors to CA," Milford says.

In addition, he says the BrightStor sales teams will use a channel preferred model.

"For this product line, the preference for selling this product is through the channel," Milford says. "I wouldn't say it's channel neutral, really. It's a little bit tilted in favor of the resellers."