CMS looks for partners in vertical market shift
Distributor realigns operations and looks for vendors to help move closer to specific new markets
Storage distributor CMS Peripherals is realigning its operations to move closer to specific vertical markets and is looking at signing new vendors to help it achieve its aim.
Astley Gayle, newly appointed product marketing manager at CMS Peripherals, said the realignment will be centred on three new elements: digital consumer, digital office and digital enterprise.
He added that the move will be a “fundamental market shift” for the company. “There is not a do-nothing option for us. We can’t continue as we are. We have to adapt and change, move forward and add more value, as opposed to simply being in fulfilment,” he said.
CMS has also identified the public sector as a potential growth opportunity for storage sales.
Astley claimed the growth is partly driven by the implications of data compliance regulations in the sector. “Over the years our strategy has become reactive and demand-driven. It has served us well, but now we have to change. We need to become much more proactive and driven by market intelligence,” he said.
The distributor already partners with several established vendors, including Hewlett-Packard, Computer Associates and Tandberg Data. CMS has identified several new vendors, including two in Silicon Valley and one in Israel, in the storage infrastructure and appliances sector.
Mark Blowers, senior analyst at the Butler Group, said vertical specialisation allows a business to narrow its focus down to its core strengths.
“This is the trend in the IT and storage markets. Many storage distributors are looking to add expertise in a select number of areas, rather than distribute across the board,” he said.