BT stores up competition row
Telco's move into managed storage services may undermine existing partnerships
BT is launching a managed storage service with EMC that could compete with the channel partners of both vendors.
In partnership with EMC and Dell, BT's services arm - BT Ignite - will offer managed storage services under the brand name BT Data Storage, as an on- or off-site solution.
EMC and Dell will supply the high- and low-end kit respectively, and BT will host and sell the service direct to end-users.
BT said it expected the new division to deliver about £190m a year in new revenue to the BT Group by the end of 2004/5.
Some BT partners have complained that this contradicts messages given by other divisions of BT, such as BT Indirect, which suggested that BT would help them move up the value chain to offer data services.
BT has launched a portfolio of services to support BT Data Storage that is unavailable to the channel, strengthening claims that BT is not prepared to offer its channel partners access to high-margin sales opportunities.
"How can we move up the value chain when BT has got there ahead of us?" complained one managed-service provider who wished to remain anonymous. BT uses the channel to get the low-end business it can't reach itself. The most lucrative business it does direct.
Kevin O'Shea, head of product development at BT Ignite, dismissed the idea that BT was cherry-picking the high-value business.
It is more complex than that, he said. "Yes, resellers can move up the value chain, but this is a new market for us and we need to bed down. There are always teething problems in a new market, and before we offer it to the channel we should work out the support, service, collateral and marketing issues," he said. P>The question is, does BT's record of delivering services such as Digital Subscriber Line (DSL) inspire the levels of faith needed to persuade customers to allow their data to be managed off site, he asked.
"The brand values of BT are trust and loyalty," O'Shea insisted.