CA shifts 500 accounts in channel sales drive
Software vendor moves closer to completing a 50/50 direct to indirect split
Computer Associates (CA) is moving 500 of its directly serviced UK accounts over to the channel, as part of its global plans to drive more sales through resellers.
Earlier this year CA announced plans to drive more profit through its partners in 2006 by expanding its indirect model (CRN, 9 January).
The vendor claimed this latest an-nouncement will bring it closer to its eventual aim of a 50/50 direct to indirect split.
Terry O’Loughlin, UK channel sales manager at CA, told CRN that it will continue to service 250 named accounts directly. However, this is down from 1,600 last year.
“This is the second phase of the transformation. We hope to operate half of our business through resellers by 2009. We expect exponential growth, because channel partners provide both products and services, and have embedded relationships into end-user accounts,” she said.
O’Loughlin added that CA may also increase VAR numbers in response to its indirect sales shift.
“It’s quite likely that we will look to grow our partner base in the UK to handle this increase in channel-based sales,” she said.
James Byrne, managing director of CA VAR jCom, said the shift is good news for resellers and that he is not worried by the potential increase in the number of CA partners.
“As an enterprise solution provider, it’s a very positive announcement and will definitely lead to more channel opportunities. I think it has happened because CA has seen where other vendors are going, and CA wants to increase its channel sales percentage similarly. The partner increase is a good thing because it’s such a large market,” he said.
Steve Reynolds, managing director of Civica Services, which last week won a Microsoft desktop environment and software licensing management contract from the London Borough of Lambeth worth £1.1m, said: “I’m very pleased. CA has been very clear with us about its plans to work more with the channel. CA obviously sees the channel as a good way to expand its business. I’m not that worried about the reseller expansion.”