LSI Logic Rolls Out Tiered Partner Program

The Milpitas, Calif.-based designer and manufacturer of storage network solutions and semiconductors previously focused on direct sales, but two acquisitions in the past few years gradually led executives to see the importance of indirect sales channels, said Joe Leader, senior director of channel marketing and business development at LSI Logic.

"We turned the indirect sales channel from a hobby at LSI Logic to an important part of our business," Leader said.

The company got its initial channel business with the September 2001 acquisition of Norcross, Ga.-based American Megatrends' RAID technology, Leader said. LSI Logic became more deeply entwined with the channel with another acquisition one year later of IBM's Mylex business unit, which produces storage adapters.

As a result of those acquisitions, the company ended up with a database of several thousand customers for both products, including solution providers and, in Mylex's case, even end users that had somehow been designated as solution providers, Leader said.

The new tiered program is aimed at identifying solution providers that want to work with LSI Logic, Leader said. "Mylex allowed everyone down to the end user to register [in its database]," he said. "We're actually looking to increase the number of true channel partners who are looking to expand with LSI Logic."

The program has three levels: registered, certified and premier, with registered being entry level and premier the highest level of partnership, Leader said.

Solution providers that sign up at the registered level gain access to support from LSI Logic's national sales team of 64 reps and five sales managers, as well as first notification of detailed technical training. They also get access to evaluation units, toolkits, technical and sales training, and monthly Webinar events, Leader said.

At the certified level, solution providers must agree to a quarterly revenue target of $25,000, and in exchange are qualified to receive sales leads from the vendor, Leader said.

At the premier level, which requires a revenue goal of $50,000 per quarter, solution providers get a listing on the LSI Logic Web site and qualify for joint sales calls with the vendor's sales reps, Leader said. They also get priority technical support, including direct access to LSI Logic field engineers, and get briefings under non-disclosure agreement on upcoming product news at the same level as OEM customers, he said.

Leader said LSI Logic hopes to have between 500 and 1,000 active registered partners, 100 to 200 certified partners, and 10 to 30 premier partners by the end of the year.