DG directs Vars away from strife

The vendor has shifted responsibility for small accounts away fromits direct salesforce to its Vars

Data General (DG) has stopped its direct salesforce selling to small accounts to avoid channel conflict, and has introduced resellers to Channel Connections, DG's Var information system.

The mixed channel policy vendor also recruited former Digital specialist reseller Channel One last week, along with healthcare Var Peak Systems and office automation systems reseller Hytec.

The mid-range hardware company is relying on resellers to help it recover from financial hardship caused by the move from its proprietary DG-UX operating system to a more open OS strategy.

In the spring, PC Dealer revealed that DG signed an exclusive distributor, Information Support Limited (PC Dealer, 24 April). Jerry Crook, UK and Ireland general manager at DG, said the move to pass small accounts to resellers will help DG add to its business through its wholesaler.

'There has been a slow start as it is a new distribution channel. But we've made a slight change in telesales so we don't compete with Vars.

We've stopped dealing with end-user small accounts and they will be passed to resellers.'

Crook hopes to double the amount of business DG pushes through the reseller channel in the next year after an 80 per cent increase in its financial 1996 to 30 September.

DG has fulfilled a promise to keep resellers better informed with Channel Connections, according to Crook. 'It is an Internet-based site already working in the US. It uses a secure Internet server with a Pin so Vars can get information early.'

The system will be regularly updated on worldwide and country sites and is free. 'It has proposal information, pricing and presentation material that is not usually available. It is part of the resourcing we have promised the reseller channel,' said Crook.