10 Gigabit Ethernet Startup Turns Toward Channel

Tracy Crowe, director of market development for Cupertino, Calif.-based Neterion, said the new partner program marks an all out offensive to increase channel sales from a company that has up until now garnered 99 percent of its sales through OEM alliances.

Neterion's channel strategy is no sales to end users, only to channel partners and OEMs, said Crowe.

Neterion, which makes a full line of Xframe 10 Gbit Ethernet adapters, is targeting the top 500 VARs in the country as potential partners, said Crowe. He said the company is looking for VARs that have $1 million in annual sales with extensive networking expertise and a strong presence in midsize to large businesses.

Among the features of the Neterion channel program are an extensive lead program, starter kits, dedicated technical support, a partner web site with customizable sales and marketing tools and co-op funds, said Crowe. He said the company also is planning to offer a deal registration program.

Doug Cole, a partner for LH Computer Services, a 15-year-old Coral Springs, Fla., storage integrator, praised Neterion's cutting edge 10 Gbit product and its strong channel commitment.

Cole said he sees an explosion of 10Gbit Ethernet sales this year and expects to drive significant sales this year from the Neterion partnership.

"I see a fair amount of our clients if not all of them wanting to go the 10 Gbit Ethernet route by the end of the year," Cole said. "This is a hot product coming out at the right time. There is a lot of interest in iSCSI right now. We are coming in at the right time as a partner and are excited about the opportunity."

Most customers, Cole said, will see an eight times increase in performance for a minimal investment. "This is pretty significant ROI," he said. "The ability to go to 10Gbit Ethernet really makes for a good robust solution far below the price of a Fibre channel SAN. This is a perfect marriage for someone doing iSCSI solutions."

Cole said the move to 10 Gbit Ethernet does not require a major capital outlay for clients since many network switches already have 10 Gbit Ethernet support. Furthermore, he said, not all servers need to be upgraded to get the 10Gbit backbone performance boost.

Cole said he expects to drive double digit margins with the Neterion product line with short sales cycles.

"Clients are going to want to try this," he said. "This is a performance upgrade. It's basically a faster controller. The question for customers is what's your question. This is eight times faster."

Neterion's VAR Start kit, available to registered partners, includes two Xframe adapters [not for resale] and a storage iSCSI Start kit that includes a single connection license to iSCSI Target Software valued at $300.