|Nexsan CEO Philip Black|
Getting acquired by Imation has been a boon to Nexsan and its channel, said Mike Curran, vice president of sales at Open Storage Solutions, a Brampton, Ontario-based solution provider and one of Nexsan's original channel partners.
"Any time a company is acquired, processes may change, but that's simple mechanics," Curran said. "The advantage of the financial backing from Imation far outweighed any mechanical changes."
With the acquisition of Nexsan, Imation got a battle-hardened product line, a strong sales team, a global storage industry presence, and a commitment to a 100 percent channel model, said Ian Williams, president of Imation's Tiered Storage and Security Solutions (TSS) business unit.
"We could have built it on our own, but it would have taken three to four years," he said in a NexStep conference keynote.
TSS including its Nexsan business accounts for nearly 45 percent of Imation's revenue, Williams said. In the near future, it will likely account for more than half of its total revenue, he said.
Philip Black, CEO of Nexsan, said that prior to the acquisition the company had good products and a good channel, but it was unable to scale.
"We were profitable. ... But we needed more investment," he said in his NexStep keynote address. "Imation brought us the ability to invest."
For 2014, that investment will mean significant increase in Nexsan's head count, including new regional sales managers and systems engineers, as well as its inside sales team to help solution providers close more deals, Black said.
Imation also is investing in enhancing the Nexsan channel program, Black said. Nexsan is introducing Channel Assist, which Black said will provide more help from senior regional sales managers on bigger deals without taking account control away from solution providers.
Nexsan also is introducing features to not only halt falling prices, but to actually increase average invoice price for partners, he said.
Mike Cirrincione, vice president of Americas Channels, also introduced a new two-part spif for channel partners at the conference. The spif includes a payment of $1,000 just for quoting a new customer, as well as an additional $3,000 if that customer is closed, Cirrincione said.
Imation has done a good job of connecting partners with customers over the year, Cirrincione said. He cited a survey commissioned by the company which found that 98 percent of customers are satisfied with their resellers. "[They] have to be satisfied since we only sell through you guys," he said.
NEXT: Adding Performance, Features To Grow Partners' Nexsan Business