MOCA, GE Access Driving New Sun Business

MOCA's sales bottomed out in the second quarter of last year, but have consistently grown in sequential quarters since then. Executives are optimistic about Sun sales in 2003, but didn't offer any specific numbers. "MOCA believes the worst is over for the partner business," says Rich Severa, president of MOCA, a division of Arrow Electronics, adding that the dry trough for the Sun economy lasted quite awhile.

To fuel new growth, MOCA built several programs designed to help solution providers generate new business, take advantage of services opportunities and increase focus on the storage market. Getting the most focus, MOCA's Locked on Target program builds off Sun's Target Account Rebate Program (TARP), which gives Sun iForce partners a 10 percent cash rebate for penetrating non-Sun accounts. MOCA is adding value to Sun's target account list by supplying additional, customized and detailed account information.

So while Sun's target list might only include hundreds of account names, MOCA is adding industry and customer profile data; revenue information; install base; phone, e-mail and fax numbers; and an accurate assessment of the target's needs and goals. MOCA is also padding the list with strategic sales tactics that VARs need to penetrate the accounts. Acquiring the data will require a $100,00 investment from MOCA for the first six months of the program, but the distributor believes the information is crucial to its customers' success.

"MOCA is doing a wonderful job of helping customers turn over the proverbial rocks and uncover new opportunities," says Hank Johnson, vice president of infrastructure solutions at Dallas-based system integrator Stonebridge Technologies. "This Locked on Target program is all about business creation."

Johnson says that Stone Bridge has recognized the Sun services opportunity for years and is glad to see MOCA beefing up resources in that area. He sees professional services as "money on the ground" and another chance for MOCA to drive incremental value. Just this week, Johnson was in meetings to learn more about the enhanced storage program.

Under Locked on Target and TARP, iForce partners have to work with Sun field sales representatives to call on the accounts, but there is a 90-day noncompete clause to allow solution providers the chance to secure the accounts. "This is a great indication of Sun's integrity and credibility to work closely with partners," Severa says. And while Sun has focused heavily on the finance and telecom markets in the past, the vendor is using TARP to target potential accounts in other markets, such as life sciences and pharmaceuticals.

MOCA also recently launched a Sun Services business unit that helps solution providers reap the higher margins associated with new and renewal Sun maintenance agreements, professional services and education contracts. While MOCA has always had an emphasis on services, executives say, the new division represents a "stronger focus." The distributor named executive vice president Bill Page to head up the new services division.

Severa says that one of the company's strengths in the services division is its exclusive access to Sun's Web-based Enterprise Service Quoter (ESQ) tool. The tool gives MOCA direct electronic access to Sun's database, pricing and serial number information, saving the distributor time and money in obtaining the information. The former paper-intensive process required up to 43 percent more time to complete a service contract, MOCA says.

MOCA is also offering cash to help its solution providers obtain Sun's new reseller level called Strategic iForce Provider. Once VARs achieve the higher level of certification, they can receive an additional 2 percent rebate from Sun. MOCA will help VARs offset the cost of obtaining the new certification by $10,000 if they complete it within six months. If iForce providers reach the new level by March 31, MOCA will contribute another $3,000.

For customers that are Sun Storage Elite partners, MOCA has created the new Storage Elite Acceleration program to help them generate additional business. The program includes four segments: training and education, consulting and infrastructure, road shows and seminars, and customized marketing. Sun is seeing "significant growth" in its branded storage sales, and MOCA believes the program can help fuel that growth, Severa says.

All of MOCA's new programs are in response to what Severa is calling a Sun transition to more of a "solutions" company, with a greater focus on software and professional services. The programs are designed to help VARs take advantage of meaty opportunities that will help them grow. "For us, we ought not to be focused on the sizzle, but on the steak," Severa says.

At GE Access, executives say they've had a successful January and February, but add that a little uncertainty about Iraq and North Korea have created a slowdown overall. Nevertheless, the distributor was very positive at the conclusion of Sun's recruitment period last month -- the one time a year VARs can change Sun distributors.

"The mood going into this year is optimistic," says Scott Zahl, vice president of Sun business at GE Access. "There's a sense that the worst is behind us." The company is looking forward to a strong current quarter. The distributor is seeing "strong interest" from its customers in the PartnerFirst program and TARP.

GE Access is seeing Sun growth in the security and storage markets, including the CheckPoint LX50 security solution from Sun. The vendor's February introduction of new server products -- new additions to the low-to-mid tier storage market -- are also receiving significant attention.

To help VARs succeed, GE Access has cut down turnaround time on its Build to Order program from two weeks to 72 hours, and has even beefed up its online services resource library. The distributor has also increased its financing solutions for its customers. "The more robust financial programs you can put out there, the better positioned they will be for success," Zahl says.