EMC's New Juggling Act With The Channel

EMC, the once direct-only supplier of high-end storage systems, is increasingly relying on the channel to sell and support its solutions, a trend that is certain to increase after it acquires Iomega.

It wasn't that long ago that EMC couldn't spell "channel program." Now it finds itself building out a channel that's not only comprised of high-end enterprise VARs, but with Iomega and other acquired products is focusing on the need to have a retail and small-business channel as well.

	ROBERT FALETRA
Can be reached via e-mail at rfaletra@everythingchannel.com.

The Hopkinton, Mass., storage giant is certain to become a more important vendor to more solution providers as Iomega's channel gets folded in. EMC already has other products suitable for the low end of the market.

What EMC traditionally lacked in channel expertise it has acquired along with the companies it has picked up over the past few years. But running a high-end value-added channel is much different than dealing with the nuances of the retail channel. So while the company will gain more channel expertise with Iomega, there are some obstacles ahead.

New areas of channel conflict are always a challenge with a wide product line such as EMC has now. EMC is going to have to work hard to position product in the channel and make its channel aware of the complete offering and where it sees the product set making inroads.

EMC, which remains one of the most aggressive and successful storage vendors in the world, is going to be fighting both the high-end storage suppliers it has traditionally fought as well as those that sell to the midsize- and small-business markets with product built and targeted for the different segments.

Most, if not all of its competitors, are in one or two of those markets but not all three.

To make this juggling act succeed, EMC is going to have to build out a channel and a marketing structure that is focused on particular markets. Each of these markets and channel partners has different needs and objectives, and a single blended channel structure just won't work.

EMC is also not exactly a household name in the mid- to lower-tier channel and, while it may simply continue to use its acquired brands in the retail channel, in the small-business channel solution providers are going to have to understand what the product set is and what its capabilities are.

When you sit back and think about it, not much more than five years ago EMC was a non-player in the channel. Now it is shaping up to be one of the most pervasive players in everything from the high-end value-added channel to the complex but less-service-oriented retail market.

Do you think emc can build out these channels?
Make something happen. E-mail Everything Channel CEO Robert Faletra at rfaletra@everythingchannel.com.