Aruba revamps distribution model

Wireless LAN vendor Aruba Networks is slashing its distribution line-up and introducing a more 'transparent' rebate system in response to complaints that its UK channel strategy was "out of control"

Jess Thompson-Hughes: The wireless market is booming and Aruba's channel is out of control.

According to insiders, React Technologies will be the only direct-buying partner to survive the cull, while the vendor is also believed to be enlisting cabling distributor Mayflex.

Aruba currently works through React, Computerlinks, Noxs, Manilma and several hybrid reseller-distributors.

At the same time, the vendor is cleaning up its rebate system to head off widespread concern that authorised resellers were being beaten to deals by unauthorised rivals.

Resellers will now have access to a fixed, sliding scale of discounts, depending on whether they qualify as Platinum, Gold or Silver partners.

Harry Theochari, UK channel manager at Aruba, said: "We are taking on board what partners have told us and are in the middle of implementing it now.

"We are rationalising our distribution structure. There will also be a transparent discount structure so there will be no secret deals going on behind closed doors."

Jess Thompson-Hughes, managing director at React, said: "The wireless market is booming and because of that Aruba's channel has become a bit out of control. The only way to continue that level of growth is by getting a firm grip on the channel and working with a select group of distributors and resellers."

Manny Pinon, managing director at Manilma, only found out last week. "I'm extremely disappointed and question the commercial value of the move," he said. "We are Aruba's fastest-growing [UK] partner. React started by selling direct and has continued to operate using a hybrid model."

Aruba urged to police its channel
>> www.channelweb.co.uk/2190732