Data General in Bid to Lift Indirect Sales

The predominantly direct sales vendor has taken the decision to shift its low-end AV equipment only through the channel

Data General (DG) has started to segment its products after deciding its low-end AV boxes will only be available through the channel.

Traditionally, DG has relied heavily on sales from its direct operation, although over the past two years the company has begun selling through Vars. DG generates about 30 per cent of its business through the channel, but wants this to rise to 50 per cent.

Jeremy Crook, DG UK managing director, said that while the direct operation would grow, the company was ploughing more investment into its indirect channel. ?We want to grow the business by 25 per cent,? he said. ?Last year in the UK we grew by 140 per cent. As far as the channel goes, we want to grow by 75 per cent and we grew 80 per cent last year.?

DG has recognised there could be conflict between its direct and indirect operations, and as a result has decided to sell its AV 1600 and AV 2600 only through the channel. Kevin Tumulty, DG UK alliance manager, said while the direct sales operation can sell the boxes to existing customers, they will be supplied at list price. DG?s direct sales team is restricted to selling to customers that spend more than #200,000.

But Crook said: ?If there is any conflict, then I want to know about it.?

DG also stated that it was able to invest in Vars? businesses by acting as a venture capitalist. Crook said DG was a cash-rich company that could pump money into an existing business.

Tumulty vowed that DG would invest more in its channel sales to increase its indirect sales. He has recently taken over as strategic alliance manager, after eight years at the company. He was previously alliances manager, responsible for DG?s relationship with Oracle, Microsoft and SAP.