Novell plans to optimise channel

Looks to get most from European distribution strategy with specialised partners

Networking vendor Novell has revealed bullish plans to take on more specialised distributors in the future and play to its channel's strengths.

At its Brainshare conference in Utah last week, Johan Rosius, European director of market sales at the company, said Novell is looking to optimise its distribution strategy across Europe.

The firm said it intends to measure the value it gets from partners more effectively.

Distributors will now make margin based on the amount of business and value they bring to Novell, he explained.

"At present all distributors get the same discount rate, which is no longer cost-effective. My plan is to introduce a new distribution strategy that works on partners' strengths in different products," Rosius said.

The vendor also announced plans to give away its Small Business Suite Starter Pack to partners. Rosius added that sales through the firm's European channel have increased by 15 per cent over the past year.

He said Novell had removed technical and consulting barriers by increasing access to its methodologies, providing rebates to Vars involved in complex deals and offering free support and training.

Jack Messman, chief executive of Novell, said: "Novell was built on the back of the channel and we want to support partners better than we have in the past."

Eddy Alejos, technical director at UK reseller Dynax, agreed. He said Novell had displayed an arrogant attitude towards its channel in the past.

"We were a staunch ally of Novell's, but it didn't do everything it could to help us," he said.

"We were active at one point with the small-business edition of NetWare, but found the package's functionality was eclipsed by [other vendors]."

But, he added, if Novell gives software away free it might attract more Vars and encourage end-user sales.