Fujitsu launches UK distribution review
'There is an acknowledgement from every distributor I speak to that we have too many', says UK sales director Kevin Matthews
Fujitsu has launched a UK distribution review that could see up to two of the current five-strong line-up axed.
Arrow, Entatech, Exertis, Ingram and Tech Data will be assessed over the coming weeks as the hardware vendor seeks to determine whether or not it is over-distributed.
Fujitsu's UK sales director Kevin Matthews told CRN that the assessment - which is being overseen by newly recruited distribution sales manager Andy Hooper - will be completed by the end of June.
"We are in the process of looking at whether five, four or three is the right number," Matthews (pictured) said.
"We want to try to cover the market so the distributors aren't fighting over business and come up with a strategy that allows them to work a part of the market with us. Currently, there is an acknowledgement from every distributor I speak to that we have too many."
The distribution review accompanies a rejig of how Fujitsu manages its UK reseller partners, Matthews said.
The firm wants to be more "intimate" with its top 25 enterprise-focused resellers and the 125 "breadth" resellers and e-tailers that sit below that. But distribution will now play a more proactive role in managing the rest of the market.
"The two things go hand in hand," Matthews explained. "Distributors will only do that if they are sure the investment they make will result in the business. We weren't seeing enough of them jointly covering the market with us, and that's why we're doing the distribution review."
Matthews has responsibility for both the channel and Fujitsu's end-user sales team, which he admitted had until recently prioritised direct engagements with Fujitsu Services over selling alongside resellers.
But now all end-user reps are paid irrespective of where the business comes from, Matthews said.
"We had an end-user sales team that was typically working back into Fujitsu Services," he said. "But my strategy is that in order for us to achieve our objectives I have to realign a lot of that resource to working with and through the channel. My background and heritage is [the channel] and I know if I get that right, it works."
Fujitsu's partnerships with top-tier enterprise VARs such as CAE and CDW are gathering steam, Matthews said, adding that CDW has opted to build its new archive-as-a-service offering on Fujtisu's Eternus storage hardware.
Education, healthcare and mid-market are key focus areas where Fujitsu intends to differentiate itself, alongside security services, Matthews said.
"Security is right up there as a hot topic in the market and if you look at our assets, we have a strong asset in security services," he said. "I can offer partners something that perhaps the traditional hardware vendors can't offer."
Matthews added: "The challenge I have is that people know Fujitsu, but do they really know Fujitsu? People are pleasantly surprised when I go in and say actually we have an end-to-end technology stack, which we make and design ourselves and that we have a German manufacturing plant. They say they never knew we did that, so by getting intimate with a smaller group of partners, I can make sure they are really aware of what we do and can drive preference to us when they speak to customers."
Matthews said that Hooper - who joined Fujitsu from Hammer a month ago - is the right man to lead the distribution review.
"Andy has 16 years' experience in distribution and he knows that anything we do with distribution has to be simple," Matthews said. "If there is any ambiguity in terms of rebates and programmes, it just doesn't work. The benefit of bringing in that amount of experience is that he gets it, and coming from Hammer, which is a niche distributor, will bring a new perspective."
Dave Stevinson, managing director of Entatech, said: "Over the last year Entatech UK has invested heavily in Fujitsu enterprise solutions. We feel the new 'challenger' strategy envisioned by Kevin and Andy echoes both our own 2016 go-to-market messaging and ability to execute."