XIOtech Takes Wraps Off New Channel Program

The network storage vendor, a Seagate subsidiary based here, gets between 35 percent and 40 percent of its revenue via the channel, but the company hopes to increase that to 80 percent by the end of next year, said Dick Blaschke, executive vice president of marketing and sales at XIOtech.

The new channel program, introduced on Monday, has three partner designations based on annual revenue requirements: Level one partners must commit to $1 million in XIOtech sales, level two partners to $2 million and level three partners to $4 million, Blaschke said. Discounts, market development funds and rebates are tied to the revenue commitments, he said.

In addition, XIOtech is introducing a bonus for registered opportunities, said Shannon Mahaffey, vice president of worldwide channel sales at the vendor. "If we [at XIOtech are not working on an opportunity now, solution providers can get a 2 percent, 4 percent or 6 percent bonus by registering it," Mahaffey said. "In the past, we had registration, but it was not tied to compensation. Also new this time, when you register an opportunity, you get XIOtech's customer-facing support."

Blaschke said XIOtech now has 50 to 55 U.S. solution providers, down from a high of about 150 partners. "When managing those partners, it was a lose-lose proposition. We couldn't support them properly. They weren't happy," he said. "The key is feet on the street. I'd rather have 10 companies with 1,000 feet each than 100 companies with 15 feet each."

XIOtech currently offers two-tier distribution in Canada via Bell Micro, said Blaschke. That model may be adopted in the future to serve smaller U.S. channel partners, he added.