NetIQ in channel drive

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Security and systems management software provider NetIQ is formalising its channel model, recruiting more resellers and compensating direct sales staff for engaging channel partners, as it looks to double its business over the next 12 months.

The company is also appointing another distributor to grow its Marshal enterprise content security products, which it acquired from Marshal Software in December 2002. Marshal is currently distributed through Websecure in Australia and Tech Pacific in New Zealand.

The company wants to recruit existing Microsoft Gold partners to sell ad-ons around its MOM (Microsoft Operations Manager) system management software, which it sold to Microsoft for $250 million over three years ago, said David Taylor, NetIQ's newly-appointed regional director for Australia and New Zealand.

Since the sale to Microsoft, NetIQ had developed ad-ons for other non-Microsoft platforms such as Linux, Citrix and SAP. 'We want to empower Microsoft Gold partners to sell our technology,' he said.

Taylor admitted that in the past the company had been seen to be competing with channel partners. 'I don't think there was a real strategy in place. The [channel] strategy in the past has been an us or them approach,' he said.

On the security management side, the company is also looking to work with more system integrators. NetIQ itself is a Gold-certified Microsoft security partner and would tap Microsoft's SI base to engage with more partners, Taylor said.

Currently, the company does around 70 percent of its business here direct with the remaining 30 percent through channels. Taylor said he wants to reverse those percentages over the next 12 months.

Under its direct sales model, NetIQ works at the 'high end of town', Taylor said.

The company grew its sales revenue in Australia and New Zealand by 30 percent in its second quarter ending December 2003, compared to the corresponding quarter in 2002, said Taylor. In the past 18 months, its security management and systems management businesses [by sales revenue] grew 102 percent and 34 percent respectively, he said.

Over the next year, NetIQ plans to spend 'a couple of hundred thousand' dollars on channel development activities, doubling its business in Australia and New Zealand to $20 million in annual sales revenue over the next 12 months. 'We will also look to partners to provide implementation and consulting services,' Taylor said.

The company recently did a customer audit finding that some customers had implementation issues with its products, said Taylor.
'We'll be engaging channels and companies like [integrator] Data #3 to improve implementation issues,' he said.

 

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