Legato pins hopes on reseller scheme

Storage vendor launches tiered programme

Storage software vendor Legato is set to release a new tiered channel programme to its partners following an admission that it has had a history of channel and financial problems.

Nick van Wyk, area vice president for northern Europe, explained that the firm had some difficulties two years ago when it was investigated by the US Securities and Exchange Commission about irregularities in how its earnings were stated.

Discrepancies of about $7m were found in its fourth-quarter 1999 turnover. But van Wyk said that the firm has new management and hopes that by the third quarter this year, with the help of its new scheme, it will have experienced "rebirth and regrowth".

The vendor will release its channel programme by the end of July and is looking to double the number of its resellers.

The new scheme will have three tiers: Authorised partner, Enterprise Solution partner and Premier Enterprise Solutions partner.

Each level will require certain commitments from resellers, in return for special pricing, marketing funds, training and support, according to Darren Gross, channel sales manager for northern Europe.

"We are giving our resellers six ways to make money: margin on the product, support services, upgrades, consulting, implementation, and training for end-users," he said.

Paul Milner, group product manager at Legato partner Ideal Enterprise Solutions, indicated that the vendor's new management had invigorated the company.

"It is trying to broaden who it sells its products to. The new programme will allow resellers to invest a bit more in Legato, and open the door to more customers," he said.