Australian distribution strategy under review

Distribution Central's managing director Nick Verykios is confident the distie can "comfortably back itself" following news of a review of NetApp's distribution strategy in Australia and New Zealand.

NetApp has contacted six disties looking for input on its Australian distribution strategy as it considers whether to make changes.

Verykios has issued a statement about the review, which says "we have no sense of entitlement whatsoever" and will be continuing to invest in NetApp.

"Our desire to continue to invest in NetApp remains unaltered and we look forward to working with our vendor to explore new product and market opportunities while enhancing the current business at hand with our reseller partners," he said via the statement.

He called the review a "brand new opportunity to present our investment decisions and strategies to NetApp."

"We can comfortably back ourselves going forward, in light of any potential change to the distribution landscape."

Verykios described Distribution Central's relationship with NetApp as "substantial" and stated that it has "significantly benefited the current NetApp reseller channel in Australia, New Zealand and Singapore."

Verykios also said NetApp has been "exemplary in their professional approach to this business expansion initiative."

Distribution Central has been NetApp's sole distributor in Australia for several years, said NetApp's general manager of ANZ channels and enablement, Neville James. He said NetApp's relationship with Distribution Central remains strong and will continue to be an integral part of NetApp's ANZ channel strategy.

James said six distributors were contacted this week asking for input on NetApp's distribution strategy.

"Time has moved on a lot in the last few years in terms of our industry so we thought it was a good time to cast the net and see what ideas distributors have to make our business better," he said.

He said it was premature to say whether the vendor might take on another distributor.

"I don't want to prejudge the outcome in terms of whether we will take on another one or not," James told CRN.

He said it was one of NetApp's goals to do more business through the channel, something the vendor has been doing over the last four or five years.

Changing consumption models was one key driver for the review, James said. "Customers are always pushing the envelope in terms of how they want to consume IT, whether it's by the day, by the minute and by the hour. That's the sort of thing we, like other vendors, are working towards trying to satisfy."

James said the distributors contacted by NetApp have a month to respond. "It's not something we're rushing; we've got a pretty long-term view."