DIRECT MODEL DIVIDES CHANNELVendors assess whether a direct transactional and logistics arrangement with retailers for PC hardware will lead to stronger growth, even though it could hurt IT distributors

PC vendors are exploring the

possibility of engaging directly with large retail accounts in the Middle East — but the move threatens to harm relationships with distributors who fear it will cost them business.

Several vendors have confirmed they

are currently assessing their logistics and sales engagement models as the battle for market share in the retail channel intensifies.

Elena Danici, retail sales and marketing manager at HP PSG Middle East, stressed that the preferred mode of engagement for

many retailers would continue to be through distribution, but said there were cases where a direct relationship might make sense.

“I would say that we are cautiously investigating this option,” she said. “I think that everybody in the market today is checking what would be the best and most efficient way — time and cost-wise — of getting the products [to the market]. All options are on the table for all players,” she added.

Toshiba is one vendor that is looking to drive direct engagements with select retailers. Binu Thomas, head of sales at

Toshiba Gulf, confirmed it intends to have 10 “named accounts” in the region by year-end.

Talk of vendors going direct, however, is a worry for disties, which fear losing sales.

“This could have a very serious and detrimental impact on our business,” said one distributor. “You need to remember that we have put a certain amount of investment in when it comes to people and infrastructure and this would leave us completely ill-prepared as far as that investment was concerned.”

IT re-exporters in the UAE are being warned

to be careful who they deal with following

a spate of incidents involving African fraudsters

posing as legitimate European channel companies.

According to ITDistri, a provider of EMEA-wide

distribution directories, the fraudsters have been

attempting to carry out their scam in a number of

European countries and the UAE after originally

targeting German IT suppliers. It said the rogue

buyers typically pose as European IT

FRAUDSTERS TARGET UAE

Channel companies warned of threat

>>

>>

- - - > (4)

AL SUWAIDI IN HP VENTUREUAE reseller joins forces with vendor to launch region’s first ‘Print Station’

HP Middle East has teamed up with Al Suwaidi Computer to launch the first HP ‘Print Station’ in the UAE. Al Suwaidi, which will operate the store, has converted its former showroom close to the Dubai International Financial Centre (DIFC) into the Print Station and will offer customers a one-stop printing shop for businesses. The outlet is primarily targeted at micro businesses and SMBs.

HP already has about 50 print stations in nine countries across the globe, of which 45 stations are spread across EMEA. “We have already rolled out three Print Stations in the Middle East with our local partners in their respective countries, namely Espace Bueno in Lebanon, CompuME in Egypt and NAF in Jordan,” said Amin Mortazavi, general

>>

- - - > (7)

The nomination deadline

for the 6th annual ACN

ArabTech Awards has been set

for Thursday 9th September, so

make sure you get working on

your entry as there are plenty

of categories to interest vendors

and channel players.

ACN is a sister publication of

Channel Middle East, focusing

on CIO and enterprise IT issues

across the Middle East region.

More than 300 leading

technology professionals from

the region will be attending the

ACN Awards to recognise the

outstanding work that has been

carried out in the enterprise

market over the past 12 months.

There are 19 awards in total,

including five ‘Vendor of the

Year’ categories for the following

fields: software, hardware,

networking, security and cloud.

Channel categories include

‘Systems Integrator of the Year’

and ‘Service Provide of the Year’.

The nomination process is

incredibly easy. Simply visit the

official awards website (listed

below) where you can download

a nomination form and access

the entry criteria. Get cracking

now so you meet the deadline!

www.itp.net/acn-awards

::ENTER THE ACN AWARDS

DATA LIST// HEADLINE NEWS FROM THE MIDDLE EAST IT CHANNEL

(1)

_www.itp.net_

Turn to page 20 for a special report on vendors going direct.

_www.itp.net_

25_BACK IN BUSINESS Viewsonic’s Junaid Gul talks regional expansion and reseller engagement26_BROCADE BOOSTAmanda Giddins outlines how latest programme changes will aid partners

47_SUPPLY ISSUES EASINGDatatec insists that product lead times are starting to improve47_ALLIED TELESIS MOVES INSwitch vendor hires ex-Aptec networking chief to run business

53_SUPER SALESWe pack our bags and head to work with a member of the channel community to find out what a typical day on the job entails. This month: Anshum Anand, Kobian Gulf

49_WELL-CONNECTEDLatest Promate hub with 10 USB ports now available in the market49_CONSERVING ENERGYAOC says US$179 LED monitor delivers massive power savings49_BLADE RUNNERHP launches P4800 BladeSystem SAN delivering 63TB of storage49_GAMING ON THE GOLG’s latest quad-core notebook model features high-end 3D content

CHANNEL MIDDLE EAST_AUGUST 2010

GET TO KNOW(56)MARKET EVENTS(54)

Update your calendar

FACT FILE(45)

EMEA PC market almost back to its

old self after buoyant second quarter

Syed Hammad AhmedGigaset Communications

Talk that PC vendors will bypass distribution to serve power retail accounts directly is poised to change the regional channel landscape.

(16)DIRECT ATTACK

04_Former Cisco boss joins SAP

04_Avnet gains Foxconn contract

07_Iraqi sales on the way up

07_D-Link announces channel offer

09_Redington Value launches portal

09_Security signing for Empa Saudi

11_ISIT sees sales shift to Abu Dhabi

11_Aptec and GSME get active

11_GCT builds Edimax channel

13_Netgear launches KSA initiative

13_Viewsonic rewards distributors

13_CompuMe hires brand specialist

FRONTLINE // CONTENTS// INSIDE THIS ISSUE

>>

>>{}

.........

Six of the region’s top printer providers shine the spotlight on a big-hitting printer model that will make the channel money.

(28)PACKING PUNCH

The trade of counterfeit products has always been a problem for the Middle East IT channel, but vendors are hitting back.

(34)SEARCH AND SEIZE

Netbook sales are soaring, but there are still question marks over how sustainable the ultra-small form factor business actually is.

(40)NET VALUE

INSIDE INFORMATION>] PRODUCTS[]

(115)

BUSINESS INSIGHToo

(15)

EXPERT’S VIEW(51)

Manjeet Singh says ROI reigns supreme in solution sales>>

EDITOR’S NOTES(14)

Why resellers need to follow the marketing trail>>

CASH FLOW SUCCESS(20)

Guy Whitcroft gives his 10 tips for managing cash flow>>

DAY IN THE LIFE=

FRONT LINE

// CHANNEL MIDDLE EAST_AUGUST 2010_www.itp.net_

(4)

>> >] = {"|"} */ [] [o] oo {} ......... -->\

SAP is poised to reinforce its regional

management set-up in the next month by bringing former Cisco Gulf boss Samer Alkharrat on board.

Alkharrat recently left the networking vendor after more than 15 years at the company. He served as managing director for the Gulf and Pakistan, overseeing the expansion of Cisco’s operations to in excess of 350 people.

Alkharrat will join up with the enterprise software company to begin his new assignment during the first week of August.

At this stage it is not clear what his precise role at the Germany-based outfit

will be. Talk in the channel suggests he will manage SAP’s Gulf business, but it is also possible that he could take a MENA-wide role. That is likely to depend on whether SAP is planning any changes to its senior management structure in the region.

Currently its Middle East and North Africa managing director is Sergio Maccotta, who has been in charge of affairs since SAP bought back SAP Arabia’s exclusive regional licence more than two and a half years ago.

SAP declined to provide details of the arrangement, except to issue a statement through its PR firm that read: “SAP is continually

hiring top talent as we expand our operations across the region. SAP adheres to a policy of announcing new hires only when they are onboard.”

Alkharrat has a comprehensive understanding of the Middle East market from his time at Cisco.

During his tenure as managing director of the Gulf, he also chaired Cisco’s Real Estate board, which is responsible for driving the development of the networking vendor’s real estate solutions business at a worldwide level.

F oxconn has expanded its existing European distribution

agreement with Avnet Technology Solutions to include the Middle East and North Africa.

The move means Avnet is now authorised to distribute Foxconn’s AMD-based motherboards to its customers throughout the region.

Foxconn offers a range of motherboards based on AMD chipsets, including the A7GM-S 2.O and A74ML-K models.

Avnet serves the MENA region from its Dubai HQ, where it has built up a broad customer base of system developers and OEMs.

Its local operations are headed Jamal Qaffaf, who is supported by Chris Green, Farooq Khawaja and Omar Fakhri, who recently joined the company from DTK.

In a separate move last month, Avnet named Graeme Watt (below) as its EMEA president. Watt was formerly president of worldwide distribution for storage distributor Bell Micro, which Avnet recently acquired for US$252m.

“I am committed to helping this team, as well as our customers and suppliers, take advantage of all the new opportunities available to both organisations,” stated Watt.

Watt was also once president of Tech Data EMEA at a time when the broadline distribution company still had operations in the Middle East.

Former Cisco chief Samer Alkharrat is set to join SAP MENA

FORMER CISCO GULF BOSS TAKES ON SAP CHALLENGEAlkharrat to join software vendor after bringing down the curtain on career with networking ace

distributors and then approach genuine resellers by e-mail or fax to set up an account enabling them to buy products.

Once they receive delivery of their order, they request 30-day payment terms and then go to ground. Sometimes they will pay for the first order to make their intentions seem genuine and then pull off their scam after successfully taking shipment of a second order.

“Once the products are delivered, the buyer disappears and sells the products on the grey or black market,” said ITDistri’s Alain Godet, who estimated the total value of the fraud was as much as US$1.2m so far.

Godet claimed the fraudsters were mainly from the Ivory Coast

and Mali, but posed as French channel companies. In order to deceive their victims they have been registering domain names almost identical to those used by legitimate distributors, as well as creating similar websites.

Some have even placed orders using the names of real employees working for the companies they were impersonating.

It is not clear how many UAE resellers have been approached by the fraudsters or if any have lost money as a result of the scam. Given the UAE’s status as a major regional re-export hub, however, it is likely that the fraudsters may feel the market represents easy pickings for them.

Shailendra Rughwani, president of the Dubai Computer Group

(DCG), said he was not aware of any members that had been taken in by this particular scam, adding that the dealer channel was used to heading off such threats.

“There are a lot of these companies based in Europe — usually in the UK — who send e-mails wanting to buy against delivery or pay online with a credit card, but we are aware of that and we never entertain these people,” he commented. “That said, there is always the possibility that an opportunist dealer might have lost money to this and if that is the case we will sit down with them.”

ITDistri’s Godet urged resellers to be extra vigilant when receiving enquiries from foreign firms and to assess the authenticity of any buyer before despatching goods.

< - - - (1) AVNET GAINS FOXCONN CONTRACT Agreement for AMD-based models extended to MENA

The new Satellite A660 powered byan Intel® Core™ i7 Processor

that delivers the ultimate in smart performance

FRONT LINE(7)


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N etworking vendor D-Link

has launched a special

promotion targeting sales staff

working for retail partners and

resellers in the Middle East.

The promotion, which is

designed to encourage the

sale of D-Link’s energy-saving

Ethernet switch series, will run

until the end of September.

Sales staff will receive a

monetary reward based on the

quantity of products they sell

over the next three months.

Partners must register on

D-Link’s channel portal to be

eligible for the promotion.

D-Link has been selling

its Ethernet switch series in

the MEA region for the past

two years, but is now actively

pushing sales of what it calls

its ‘green product’ series.

Harrison Albert, regional

sales director at D-Link,

said: “This promotion helps

us to address two of our

main objectives, the first

one being the enhancement

of the perception of our

environmentally-friendly line of

products, and the second one

being the betterment of our

relationship with partners to

raise their motivation through

the help of an appropriate

reward programme.”

::D-LINK LAUNCHES CHANNEL OFFER

manager for the imaging and printing group at HP Middle East. “We plan to roll out additional stores in the UAE within the next year, and in the region our next Print Station will most probably be in Kuwait,” he revealed.

Mortazavi says HP plans to open a chain of Print Stations along with Al Suwaidi in the UAE, although he didn’t specify how many. He did say, however, that it is likely to include a presence in shopping malls to cater to smaller companies which traditionally go to the consumer space to fulfill their IT requirements.

According to HP, the UAE’s print market is forecast to be worth US$330m within the next two years, which would represent a growth of 9% on 2009 numbers.

Jaimi Cyrus, director of channel sales and programmes for HP EMEA, says the Print Station will offer one-stop-shop services for high-value print and design jobs for SMEs.

“The SMB sector constitutes about 85% of businesses in the UAE, and with the government’s support in boosting this sector, we see a huge potential to address the printing services market here,” she said. “Also, considering the printing service needs for businesses in the UAE, it will be the first 24-hour Print Station in the world.”

HP and Al Suwaidi believe the Print Station will offer benefits to three main audiences: individuals who don’t have a printer at home and are looking for convenience and quality; professionals who require

specific solutions for their specialised applications; and businesses that need high volume print-outs and are looking for cost effectiveness and quality.

Shibu Das, general manager at Al Suwaidi Computer, commented: “This is a unique customer oriented initiative, bringing more convenience, high quality and cost effectiveness to every single audience and we are happy to be a part of that.”

The IT market in Iraq is set to grow at a rate of around 13%

this year, reinforcing suggestions from regional channel companies that the country is becoming a more viable place to do business.

New data from market intelligence firm Springboard Research puts the anticipated value of Iraqi IT sales at US$63.2m in 2010, up from US$55.7m last year.

Unsurprisingly for a market still considered to be in its nascent stages, hardware sales are likely to account for the overwhelming portion of IT spend. Springboard predicts hardware will represent

62% of IT sales in Iraq this year, followed by services (22%) and software (16%).

The company attributes the growth to the “relative stability” being felt in the market, as well as a rebound in oil prices since the onset of the financial crisis.

“ICT use in Iraq has increased moderately in some areas and more substantially in others,” stated James Erickson, research manager for the Middle East and Africa at Springboard. “In the latter case, this is due to increased private investment and initiatives undertaken by international organisations to

introduce the Iraqi population to new technologies,” he added.

Government efforts to improve internet infrastructure are leading to increased web adoption, according to Springboard, which notes that internet cafes are regarded as the most popular means to use computers and access the web.

It predicts that once broadband is widely available and affordable, the growth of the PC and internet-based businesses in Iraq will outpace the growth rate of the wireless phone industry.

Furthermore, it says that various ICT infrastructure projects are underway to further develop fibre optic and wireless network cables throughout the country, which should ensure increased access to advanced communications.

IRAQI SALES ON THE WAY UP Spending on ICT hardware leads the way as research suggests local market will be worth US$63m this year

< - - - (1)

Jaimi Cyrus says there is a huge opportunity to address the printing services space in the UAE

FRONT LINE(9)


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Redington’s value division has launched

an online portal that will allow resellers to keep tabs on the latest offers from its vendors and access a range of useful sales tools.

The company believes the portal — christened ‘Partner Connect’ — will serve as a platform for “integrated vendor information”, including promotions, training and sales resources.

Partner Connect is open to all employees working for reseller organisations in the MENA region who have previously transacted with Redington’s value unit.

By registering on the programme, partners can look forward to receiving personalised information related to special offers, as well as cross-selling and up-selling opportunities. It will also serve as a vehicle

for resellers to seek support in developing quotations for end-user customers.

“The Partner Connect Programme was conceived out of our goal to establish a close-knit ecosystem of partners and vendors across the MENA region,” explained Ramkumar Balakrishnan, boss of Redington’s value arm.

Meanwhile, Redington has also pledged to assist resellers with structuring commercial terms for deals containing special credit needs, as the channel battles to overcome severe financing challenges.

Writing in the company’s quarterly newsletter, Raj Shankar, CEO of Redington Gulf, said the distie would seek to understand resellers’ credit requirements.

“The value added division at Redington Gulf over the

past year has worked on various scenarios to help structure commercial terms with partners. There has also been an increasing use of financial instruments such as Letters of Credit,” wrote Shankar.

“Moving forward, our teams across the region would be looking to engage more closely with partners, not only for sales/technical enablement, but also assist in structuring commercial terms for deals with special credit needs,” he added.

REDINGTON VALUE LAUNCHES ONLINE PORTAL, GETS FLEXIBLE WITH CHANNEL CREDIT TERMSDistributor’s value added arm unveils innovative partner programme to provide VARs with project and technical support, while CEO vows to help partners overcome credit challenges

Raj Shankar says Redington will help VARs structure terms for deals that contain special credit needs

Dubai-based IT wholesaler Fire Bird Distribution has struck

an agreement with expansive display vendor AOC to address a handful of CIS markets.

Fire Bird operates out of Jebel Ali but is a specialist at serving the CIS markets.

Since its formation seven years ago it has partnered with several IT and consumer electronics brands to target markets such as Kazakhstan and Uzbekistan.

The company also has stocking points throughout the CIS countries, which will help it support AOC’s business.

“We are very pleased to partner with AOC, a prestigious global brand which has carved out a leading position in such a short time across the globe,” said Fire Bird’s boss, Kurban Seitnepesov.

From AOC’s point of view, the deal builds on the channel development that it has carried

out in the Middle East during the past year. Its products are now distributed through companies such as Asbis and Compunics, as well as I&M in Egypt.

Fire Bird will carry Taiwan-based AOC’s complete range of display products in six markets: Azerbaijan, Uzbekistan, Kazakhstan, Turkmenistan, Tajikistan and Kyrgyzstan.

“With the appointment of Fire Bird we are confident that we will be able to tap the huge potential that the CIS Central Asia’s vast and complex market offers,” commented Brian Liu, VP sales for MEA and CIS at AOC.

NEW VENDOR FOR FIREBIRDJebel Ali distributor hired for its expertise in the CIS region as display manufacturer looks to expand sales

IT distributor Empa has

added security vendor

ESET to its portfolio in Saudi

Arabia. Empa will promote the

company’s NOD32 and Smart

Security software products

to both the consumer and

commercial channels.

Empa has recently

established a ‘value’ division in

KSA and says the appointment

of ESET fits with its plans to

bring new vendors on board.

“Empa has an extensive

portfolio of products in the

components, PC, notebook,

networking, storage and power

supply segments. The only

missing part was a security

solution, where ESET will be

our first vendor to start with,”

said Naeem Hamami, country

manager for KSA at Empa.

Hamami says Empa will

support ESET locally and offer

it access to the company’s

in-country customer base.

“We plan to promote ESET

in the corporate, SME and

retail segments through our

existing dealer channels in

KSA, by appointing selected

corporate resellers and through

our well-established retail arm

that will be responsible for

promoting product through

power retailers,” said Hamami.

::SECURITY SIGNING FOR EMPA SAUDI

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The CEO of Dubai-based systems integrator ISIT

has confirmed what many have long suspected — that Abu Dhabi has profited heavily from the drop in Dubai IT sales during the past two years.

“The major impact we have had was in Dubai, but it was actually compensated by business from Abu Dhabi and Saudi Arabia,” said Mahesh Vaidya, the boss of ISIT, which has just launched a new ‘Virtual Network Shield’ security service in the Middle East.

“2009 was a tough year for most of us. Even though we had capacity growth of 30% or more, the revenue growth was not much across the Middle East. Luckily for ISIT, we had revenue growth of more than 100%. In 2010, if you compare the Middle East growth with

worldwide numbers, I think we are quite well off — we are looking at something north of 50% growth when it comes to capacity and maybe more than 20% growth when it comes to revenue in 2010,” he said.

He is quick to add, however, that the business forecast for Dubai continues to improve, although not enough to stem the tide of business flowing southward in the UAE.

“If you look at this year, I wouldn’t say too much would shift because in Dubai we see a huge improvement happening now. Towards the end of last year it was a bit dull, but now we are seeing a big improvement in the Dubai market,” he commented.

Vaidya also reveals that much of his current storage business comes from

purchase decisions that were made a while ago — but which enterprises only now have the budget to actually execute.

He said: “Last year people tried to delay their storage purchases. Most of the deals which we are getting now were in the pipeline since last year. You can delay purchases for some time, but unfortunately storage is something which keeps growing and eventually you’ll have to buy it.”

ISIT SAYS REDUCTION IN DUBAI BUSINESS COMPENSATED BY ABU DHABI AND KSA SPIKEStorage integrator reveals that a tough 2009 saw a substantial portion of its sales move to non-Dubai markets, but suggests there are now signs that key projects are coming back

MaheshVaidya believes that market health is starting to improve

Distributors Aptec and Golden Systems Middle East (GSME)

have both strengthened their security software offerings by striking separate deals over the course of the past month.

Aptec signed an exclusive distribution agreement with Germany-based Applied Security (APSEC), while GSME inked a contract with BitDefender.

Aptec’s deal sees it gain the rights to market APSEC’s products

in MENA, Turkey and Pakistan. The company believes its new vendor partner’s security solutions will carry weight in the SMB and enterprise markets, as it claims it can offer prices that make it a compelling proposition compared to other competitors.

“In the current market conditions where the CIO and the IT manager are trying to extract the maximum value for money, APSEC is an ideal fit,” said

Govind Haridas, business unit manager at Aptec Distribution.

“This is testified by the various enterprise banks and government institutions in the Middle East region that have adopted and implemented APSEC solutions successfully,” he added.

GSME, meanwhile, insists anti-malware software vendor BitDefender has a place in its line-up that already includes Kaspersky. “We are confident that with a brand like BitDefender we are providing our channel partners with the best security solutions and performance available,” said COO, Ehsan Hashemi.

APTEC AND GSME GET ACTIVEIT distributors move to enhance their security offerings for channel partners with addition of new vendor brands

G enius Computer

Technology (GCT) has

begun selling networking

products from Edimax into the

Egyptian market via a sub-

distribution agreement with

local outfit Partner Electronics.

GCT, which is best known for

carrying the Genius range of IT

peripherals, has been working

with Edimax in the Gulf for

the last two years and felt the

time was right to expand the

relationship to Egypt.

Jihad Youssef, general

manager of GCT (below),

insists the deal with Partner

Electronics will allow the

Edimax products to reach a

broad network of local resellers:

“We have been focusing on

this market for a long time and

with Partner Electronics we

will be able to penetrate the

market and establish Edimax

as one of the leading brands

in networking products. GCT

will be increasing the pace of

the activities and enlarge the

market share with the support

of Partner Electronics.”

Taiwan-based Edimax, which

generates sales of US$100m

a year, makes a wide range of

networking products, including

wireless solutions, print servers

and Ethernet switches.

::GCT BUILDS EDIMAX CHANNEL IN EGYPT

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FRONT LINE(13)


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Networking and storage vendor Netgear has

begun rolling out the first phase of a new channel initiative that it hopes will help its business to take off in Saudi Arabia.

The company says the initiative will be undertaken by a dedicated team and will offer partners various tools, services, rewards and discounts. This includes sales engineer support, leads from its customer support centre, sales incentives, and special pricing for government and education customers.

Resellers will be awarded rebates for achieving quarterly targets and gain access to a web portal where they can make use of marketing materials.

Netgear plans to supplement the programme with local seminars that are

designed to update system integrators and resellers on the latest developments.

“Our partnership with systems integrators and resellers continues to play a pivotal role in our goal to help SMBs maximise the latest advancements in information technology to boost their productivity, efficiency and security, and this is why we invest significantly towards ensuring that our partners are fully equipped to address the customers’ requirements,” said Khaled Alosman, technical manager for Netgear Middle East.

“On the other hand, our focus towards the Saudi market is driven by the Kingdom’s sizeable investment in IT and constant leading position in the Gulf’s technology race, and we are confident that

the new channel initiative as well as the new products we have just unveiled in the country will be in high demand among SMBs in this opportunity-laden market,” he added.

The announcement of the partner initiative is timed to coincide with the launch of new networking, security and storage solutions, including the ReadyNAS 4200 and Quad WAN Gigabit SSL VPN Firewall. Netgear hopes to grow KSA sales by 10% this year.

NETGEAR BEGINS FIRST PHASE OF PARTNER INITIATIVE TO BOOST CHANNEL SALES IN KSA Networking hardware vendor overhauls channel offering and reveals partners will receive rebates for achieving quarterly targets as it looks to improve its fortunes in Saudi market

Resellers that join Netgear’s new partner programme will receive access to sales tools and support

Display vendor Viewsonic has started paying distributors

for meeting quarterly targets and increased the rebate amounts on offer to resellers as part of new measures to improve the performance of channel partners.

The move to give distributors added incentive to drive sales-in behaviour has been introduced by the company’s regional sales chief Junaid Gul, who joined the company at the end of last year.

According to Gul, distributors have typically survived on a combination of transactional margins and a 1% marketing development fund (MDF) payment until now. “This is the first time they are getting paid on targets and it is an incentive for them to do more,” he revealed.

Although he didn’t break out target thresholds, he said distributors would now receive a fixed percentage on the sales

they make for hitting a pre-agreed target and a further amount if they exceeded it.

Gul, who previously worked as regional services channel manager at Lenovo, admits the company also has plenty of work to do to improve its level of engagement with the reseller channel, but he remains confident that recent tweaks to its Finch Club partner programme will have an impact.

He says the rebate aspect of the programme “was not lucrative enough” for resellers initially, but Viewsonic has now doubled the top target bracket to 2% of sales.Read the full interview on page 25.

VIEWSONIC REWARDS DISTIESLCD display and projector vendor modifies local channel rebate policy to compensate partners for their sales efforts

C ompuMe & i2 has hired

Satvik to serve as its

‘market intelligence solutions

provider’ as it sets about

reinforcing its brand name in

the market following a recent

management buy-out.

The company has branded

itself a ‘digital IT solution

enabler’ following the MBO,

and stressed that it plans

to only focus on retail

activities despite i2’s previous

distribution background.

The contract with Satvik will

run for three years, allowing

CompuMe & i2 to call on the

firm’s expertise to strengthen

its market status and position

its retail offering.

“We are looking for a real

partner to assist us in regaining

our leading market position

and in reintroducing the brand

building on our history and

long experience in the region,”

said Dikran Tchablakian, the

owner of CompuMe.

KS Vasudevan, boss at

Satvik (below), said: “Our

proven market intelligence and

customer intelligence solutions

are developed on high-end

statistical analytics and this

will facilitate i2 in efficient

and faster fact-based decision

making processes.”

::COMPUME HIRES BRAND SPECIALIST

EDITOR’S NOTES

// CHANNEL MIDDLE EAST_AUGUST 2010

(14)

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In last month’s issue of Channel Middle

East we explored how good a job the Middle East IT channel does of marketing.What quickly became clear from looking into that subject was that there are two different aspects to it. If you’re talking about the ability of resellers to market the vendor brands they represent then the verdict tends to be pretty positive. But if you’re referring to how well resellers market their own brand and their own services to customers then it is not so clear-cut.One of the major ironies of the channel business is that while resellers are the masters of promoting third party brands, they often fail to pay enough attention to the importance of creating a focused marketing model for their own organisations.Fujitsu’s product chief Chandan Mehta suggests that just 30% of resellers give proper consideration to their own marketing strategy or follow a detailed marketing plan. Judging by some resellers’ websites I have visited, that estimation might not be far wrong!Of all the criteria out there, a website might sound like a dubious thing on which to

base an assumption, but in this online age — when the first step any prospective customer will take to learn more about a company is to access its web page — it is the most basic marketing tool at any company’s disposal. Unfortunately that still seems to be lost on plenty of channel organisations.

Painful consequencesThe market is, of course, full of many transactional resellers which don’t really need to worry about their brand visibility quite so much because the price and availability of their products does the talking for them. For everybody else though, dismissing marketing as an unnecessary device can have painful consequences.The good news for the Middle East channel is that the resources available to them are more comprehensive than ever before. Pick any A-brand vendor from any market segment and the chances are they will possess a bank of materials that resellers can access to drive awareness of their own brands, not just the brand of the vendor.The biggest problem for most resellers is that they are constrained by budgets, which is why

these resources — which can include anything from being given the opportunity to be referenced on case studies to logo inclusion on e-mail shots — have to be exploited.It is not unreasonable to say vendors don’t always do a great job of articulating the sort of collateral that is sitting there waiting to be used. That said though, the channel can have no complaints that it is starved of support.

Dynamic approachWhat does remain clear is that there are wildly different attitudes towards how resellers can make marketing work for them. Make no mistake about it, there are many VARs out there which are adopting a very dynamic approach to marketing, and the visibility of their brand in the market place is better for it. These companies understand the need to build their marketing position around the wider corporate strategies of their organisations, rather than viewing it as an autonomous and sporadic function.Given the cut-throat nature of the business, it’s something that channel firms which have so far given marketing a wide berth might want to start thinking seriously about too.

The resources and collateral now available to the channel means Middle East resellers shouldn’t have any excuses when it comes to getting their marketing messages right.

FOLLOWING THE MARKETING TRAIL

>>Seagate hopes the decision to slash distribution numbers will improve profitability for its remaining wholesale partners in the region.

Vendors that don’t recognise the changing capacity of the market risk being saddled with an over-stocked channel, which corrodes the value of the franchise for distributors.

//by Andrew Seymour

DIRECT ATTACKGrowing talk that PC vendors plan to bypass distribution to serve power retailers directly is poised to change the Middle East channel landscape as we know it.

Earlier this year, HP risked the wrath of its Saudi distribution partners by beginning a direct relationship for PC hardware sales with power retailer

Extra, the second largest consumer IT supplier in KSA. Noises being made elsewhere in the market suggest it is only a matter of time before others follow suit.

Notebook specialist Toshiba, for instance, is planning to work directly with key retail accounts in the region and, like HP, intends to initially start with Saudi Arabia. Other major brands in the region, such as Acer, are watching developments carefully as they assess the merits of an approach that promises certain advantages, but which ultimately threatens to leave channel opinion divided.

Toshiba’s head of sales for the Gulf region, Binu Thomas, believes moves by vendors to engage in direct relationships with power retailers is quickly becoming a “trend” that is only going to gain momentum.

Although he declines to reveal which retailers Toshiba is currently negotiating with, he admits the company aims to begin transacting directly with select retail partners before the year is out.

“We’ll basically have 10 named accounts in the region and we will manage them directly,” he confirms. “Right now they are managed semi-directly and the fulfilment happens through the distributors, but at a future stage we will go directly with the power retailers.”

Those words will no doubt strike fear into the hearts of distributors that generate a significant chunk of their business from selling to the retail channel.

As one UAE-based distributor lamented: “Distributors spend a lot of time and effort building relationships with these retail outlets and providing support to bring the business up to speed. If a vendor comes along and takes that business direct, it is very difficult to make up what you have lost.”

It’s not just the reduction in revenue that threatens to hit distributors where it hurts — they also face the prospect of being left with a higher cost structure than the market opportunity now affords them if investments they have already made internally to manage a specific retailer are no longer warranted.

What’s more, buying power is also at risk of being negatively impacted because if a distributor purchases large quantities of products to sell into the market on the strength of a particular retailer’s orders, its ability to buy and stock becomes compromised if the vendor then takes that account direct.

Saudi distributor AIM has had to cut down its laptop orders since HP started working directly with Extra to avoid over-stocking.

“Extra was an important customer because it bought 70% to 80% of HP’s notebooks from us,” says Suhail Al Tawil, business manager at AIM. “After going directly we requested the vendor to reduce our quota, and they did that.”

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REMOVING THE MIDDLEMANSo after years of selling through the distribution channel, why are vendors toying with the idea of going it alone in the Middle East? For the most part, it seems they simply feel they can achieve stronger results by removing the middleman and doing it themselves.

Reflecting on HP’s decision to work directly with Extra, the boss of one regional distributor said: “One of the points worrying HP was that they felt their brand ought to be doing much better in the retail space. Their perspective was that retail was where they were losing market share and since distributors carry multiple brands, perhaps they were not giving the right kind of focus to HP.”

That said, there are strong suggestions from the market that the arrangement was actually driven more from Extra’s end, having witnessed the lead that arch rival Jarir Bookstore has built up from dealing directly with PC vendors over the years.

Elena Danici, retail sales and marketing manager for HP Middle East’s Personal Systems Group, points out that the deal with Extra is purely about logistics and fulfilment, as it already provides direct account management for key retailers.

She confirms HP is in discussions with other retailers about the feasibility of a direct relationship, but says the outcome of those talks depends on a variety of issues.

of being the Saudi market’s primary IT supplier long before the likes of Carrefour, HyperPanda and Geant came on the scene.

The Riyadh-listed outfit controls anywhere between 20% and 25% of the KSA PC market, according to local estimates, with some channel players claiming it sells as many as 350,000 notebooks a year — around a thousand units a day.

“Jarir is the one that has probably made everybody believe that if you manage the retailers directly there is a big business opportunity that is possible,” notes one rival.

TRANSACTIONAL CHALLENGESIf direct buying relationships between vendors and retailers do increase then one question that remains unanswered is where it all leaves distributors that are heavily focused on retail.

Thomas insists that despite Toshiba’s aspirations of handling power retailers directly, it has no intention of freezing distributors out of the picture, but he does foresee it relying on them to address other parts of the indirect business instead. “They

“For some retailers it makes sense to work indirectly via distributors, while for others it makes sense to work directly with a vendor due to their volumes or what chain they belong to. In my opinion, the most optimal model is actually to have a hybrid of these two depending on orders, offers, seasonality factors and so on.”

Over at Acer, meanwhile, Middle East and Pakistan country manager, Jacob Varghese, agrees there is some logic to the argument that distributors might not be able to offer vendors the focus they crave.

“A distributor today cannot have 10 brands and say that it is going to service all 10 brands for the retailer. There are question marks over that, which is probably one of the reasons why you are finding certain vendors are going directly to the retailer,” he says.

Varghese insists Acer’s channel policy is one of “total indirect channel management”, although it does have a direct engagement with Jarir in Saudi Arabia. “We are looking at some other options also, but the distribution interest is always going to be kept intact and we would definitely be encouraging the distributors to service it unless there were some challenges with that,” he says.

Jarir has a central role to play in this whole debate because until recently it was the only IT retailer in the region that enjoyed direct relationships with certain vendors — a product

Jarir is the one that has made everybody believe

that if you manage the retailers directly there is a big business opportunity

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//CHANNEL MIDDLE EAST_AUGUST 2010BY ANDREW SEYMOUR

have the channel breadth,” says Thomas. “We don’t want to diminish their role but we do want to develop more tier-two partners.”

If you look to more developed markets then the scenario that Thomas alludes to is certainly prevalent, with vendor strategies driving distribution partners to serve the second and third tiers instead.

Perhaps in future we will begin to see more models like the one Nokia employs in the Middle East, where Axiom supplies tier-two and tier-three customers as well as its own retail stores, while the larger retailers buy through Emirates Computers.

JARIR, EXTRA…WHO NEXT?There are those, however, who are adamant that attempts by some vendors to serve power retailers directly will be short-lived, simply because it will be difficult to manage from a transactional perspective. Aside from Sony’s VAIO business, which is handled exclusively by Sony Gulf, few vendors have experience of a completely direct relationship with retailers.

“What these vendors do not realise is that there is something called economy of scale,” says one distributor. “There are certain things that a distributor can do with its local presence and local support which practically-speaking would be very difficult for a vendor to do. The direct model worked in the case of Jarir, but few people understand and acknowledge that Jarir has around 25 outlets in KSA alone.”

One only has to cast a glance towards Europe or the US, where the likes of DSGi, Wal-Mart, Best Buy and even Carrefour have had direct relationships for years, to wonder if wider adoption of the model here is inevitable.

What is certain for the moment, however, is that the concept of vendors managing Middle East computer retailers directly is heavily restricted to particular product lines and particular retail accounts.

HP, for instance, still pushes all its printers and supplies through distribution, and there is no sign of that changing.

There is also a limit to the number of retailers capable of delivering the sort of consistent volumes which would justify direct logistics management. The likes of Sharaf DG and Jacky’s stand out in the UAE, although perhaps the most obvious one outside of Saudi Arabia is Alghanim in Kuwait, which is said to control more than 70% of its market.

These constraints, however, are unlikely to be of much consolation to distributors who fear their biggest-spending customers could be prised away from them. “This is a development which can only be detrimental to the larger interests of the eco-system,” moaned the boss of one large computer distributor.

If the nature of channel relationships in the retail distribution space wasn’t already fragile enough, it is going to be severely tested in the months ahead as vendors continue to examine their go-to-market strategies in detail.

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A senior source at one leading IT retailer in the Middle East, which has been approached by PC vendors to go direct on numerous occasions, explains why it is an offer it has always declined.

“There are several reasons why we have never agreed to work directly with a vendor. Firstly, most vendors have two or three distributors, which means there are never really any supply shortages. If you take a vendor like HP, then you often see one or two distributors doing well for a couple of quarters, then they’ll get stuck, and somebody else does well. So it tends to be pretty cyclical from a distribution point of view and as a retailer you can benefit from that because there are times when these guys are desperate to sell. You get to take advantage of dealing with multiple distributors by leveraging off each other’s pricing and putting them up against each other. Distributors actually offer a lot of other services as well and they tend to be multi-brand, so from a procurement point of view it is actually fairly

easy for us because we deal with one point of contact and everything is sorted out in one go, whether it’s logistics, finance or something else. Additionally, if we were to buy direct from the vendor, we would have to commit to forecasts and talk about a sell-in well before a sell-out. Over here we have the advantage in that we are buying locally, so if we are doing a promotion and it does well we can always get more stock. And if the promotion doesn’t do well then we can usually send the stocks back to the distributor or not collect the entire quantity, which wouldn’t be the case with a direct relationship. The final thing is that by working with the vendor directly, you could end up in a situation where you are competing with a distributor carrying that brand. As you will never have stocks of everything you need, you are quickly going to find yourself needing to buy from them and then it is a case of whether they see you as a competitor or a customer. It is for these reasons that the idea of working directly with a vendor is something we have never been comfortable with.”

RETAIL CHIEF: WHY THE DIRECT MODEL DOESN’T MAKE SENSE


10 TIPS FOR10 TIPS FOR MANAGING YOURMANAGING YOUR CA$H FLOWCA$H FLOW

It’s said that cash flow problems cause more businesses to fail than anything else, which is a sobering thought when you consider the sorts of challenges that IT channel companies are facing to get their money in the current climate. Guy Whitcroft, principal consultant at CapitalSteps and an expert on regional channel issues, ran a cash flow management workshop at the Digital Consumer Channel event in the UAE earlier this year. Here are his top 10 tips for keeping on top of cash flow.

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Quite simply, cash fl ow forecasting remains the single most important business intelligence tool for any channel company as it forms the platform on which all other decisions are made. Analyse the payment history of your customers and factor that into your forecasting. Look at which customers are regular payers, which ones are slow players and which ones will accelerate payments based on incentives. “Never be optimistic on a cash fl ow forecast because that way you are going to make promises about payments [that you owe to your suppliers],” advises Guy Whitcroft. “It could be embarrassing if you miss a payment to a supplier or ask for a discount to pay upfront and then fi nd you don’t have the cash to do it because your cash forecast was so wrong. Make sure your cash fl ow forecast is accurate. That way you predict where the problems are and you can be proactive by trying to get cash in early.”

Understanding how product sales cycles work can mean the difference between staying afl oat and getting dragged under. Evaluate sales data on a weekly basis – not monthly – and pay attention to shipping cycles. If you are a distributor then establish the duration between placing an order and getting the stocks into your warehouse – and then build that into your forecast. “What a lot of people do is get lazy,” says Whitcroft. “They take averages and build buffers onto each average, and it is the buffers that often kill you. You end up with far too much inventory because you have built in a week’s buffer on the order cycle, a week’s buffer on the shipping cycle and a week’s buffer on the clearance cycle. That can cost you dearly because if you then try and dump excess inventory in a hurry it becomes expensive.”

ACCURATE FORECASTING HOLDS THE KEY

d t l l k

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//CHANNEL MIDDLE EAST_AUGUST 2010 _www.itp.net_ BY ANDREW SEYMOUR

Vendors naturally want you to sell as much of their product as possible, but it is also in their interests that you are profi table. Have a relationship with them that is open and honest so that they understand the issues you face in your market. “Their fi rst loyalty is to their own bottom line, but their bottom line will be severely impacted if you are not making a profi t because you are not going to be able to pay and you are not going to enjoy the business,” says Whitcroft. “If you can develop a strong multi-level relationship where you understand their business processes, order cycles and product lifecycles — and you foster a strong working relationship at all levels of your organisation with all levels of their organisation — you are going to maximise the opportunities and minimise the problems.”

Good price management is all about market intelligence. You need to know what your competition is doing and what deals are going on in the market because customers will negotiate. That is not to say you always have to be the cheapest though. Sometimes there is a good reason for a particular deal taking place, such as a company clearing excess inventory in a hurry to bring in cash. “At that point you have to make a rational decision as to whether you want to match the deal or let them take the deal and the hit, waiting until you have the inventory a week later when they will probably have run out at the normal price,’ says Whitcroft. “Those are things you need to understand and they are all down to market intelligence. There is no substitute for having your people in contact with the street and understanding what’s going on.”

The fi rst thing most companies attempt to do to solve a cash fl ow problem is boost sales. Bundle deals, special incentives or just straight price reductions are all methods that can be used to bring in cash quickly if the demand is there. But you need to exercise caution, warns Whitcroft, because success boils down to understanding the trade-offs you are making: “Your cash fl ow crisis may be so bad that you have to lose a lot of money to turn it into cash and then hope you can make the profi ts back later to stay in business. But you have really got to drill down and ask yourself, ‘what can I afford to lose, how much can I afford to drop the price to get the cash, and what are the problems if I don’t get the cash in?’”

Delays in the business cycle are inevitable. You get delays in the order cycle if the customer demand is there but your supplier hasn’t got stock or a shipment is re-routed unexpectedly. You get delays in sales because you don’t have the stock to sell to customers. And until you have made the sales you can’t get the cash in so you get a delay in collections. All of these factors impact cash fl ow, but that doesn’t mean they should be used as an excuse. “You need to understand those factors and where the delays can occur, and you need to have contingency plans for them,” argues Whitcroft. “Unfortunately a lot of people are very reactive and only tend to look at short-term fi xes. But in reality you need to be proactive within your business plan and cater for different scenarios.”

BUILD BRIDGES WITH YOUR VENDORS

KEEP TABS ON MARKET DYNAMICS

BEWARE THE DANGERS OF SLASHING PRICES

UNDERSTAND WHERE DELAYS CAN OCCUR

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If you are struggling to get cash in from customers then see if you can extend payments to your own suppliers or get a short-term loan from the bank. Just make sure it is carefully managed though because repeated delays or a failure to make any payments at all will very quickly destroy your company’s credibility. Whitcroft insists it is far better to be transparent with stakeholders and come clean about your cash fl ow challenges. “Be honest and work with your suppliers because it is in their interests that you stay in business,” he says. “What is more likely to break the relationship is you being dishonest about when and what you can pay. Far too often here I have seen people muddying the waters by not wanting to admit they have a cash fl ow problem, and that just causes breaks in relationships.”

One area that many companies fail to consider when they face a cash fl ow issue is accelerating collections for sales already made. Whitcroft says fi rms shouldn’t be afraid of upsetting customers if there is not a valid reason why payments are delayed. “Go and get your money because that is money you are owed!” he says. “You then have to ask yourself if that customer is somebody you want to continue doing business with because if they don’t have a good reason for delaying payment then they shouldn’t be doing it.” He suggests it can also be worthwhile to get senior executives from your organisation involved as well. “If you have got a creditors clerk talking to a debtors clerk, they are dealing from opposite ends of the pack in so much as one is paid to delay payments and the other is paid to accelerate them,” says Whitcroft. “Sometimes what you need to do is get the senior executives of your business talking to the senior executives of your creditors.”

Have people at all levels in all departments of your business tied to incentives that reward the right behaviour. Don’t just pay sales people for revenue, make sure you are paying them on the profi tability of your business and the payment terms they are realising. Make sure product managers are being paid on inventory levels and credit controllers on keeping DSO down. Even consider things like paying your drivers for on-time deliveries because if that makes your customers happy then they will be more inclined to pay you. “You should be paying for performance from the receptionist to credit control to product managers to sales - all the way up the line,” says Whitcroft. “Remember that turnover is ego, profi t is real, but cash fl ow is king.”

If there are hold-ups in payments then you need to get the reasons for delay off the table as quickly as possible. Whitcroft says a common problem in the Middle East is that sales are done on an invoice basis rather than a statement basis (such as 30 days from invoice paid weekly) and this often means companies don’t begin chasing their money until the payment is due. That, however, is when the customer excuses usually start. He advises credit controllers to get in touch with customers at least two weeks before due date to build in time for any queries. Alternatively, incorporate cash discounts into your pricing structure cash to encourage prompt payment. “You have to make that discount more attractive than what your customer would get from the bank, but if you look at the opportunity cost of accelerating your cash-to-cash cycle then you should more than make up for it. You should try to push for a good percentage of your business to be on either very short payment terms or cash,” suggests Whitcroft.

HONESTY IS THE BEST POLICY

GET THE MONEY YOU ARE OWED

MAKE STAFF AWARE THAT CASH FLOW IS KING

ADDRESS THE EXCUSES BEFORE THEY ARISE

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INSIDE INFORMATION//EXPERTS IN THEIR OWN WORDS

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CHANNEL MIDDLE EAST: You joined ViewSonic from Lenovo six months ago. What are the major priorities for you at the moment?JUNAID GUL: We have historically been branded only as an LCD vendor, but there is currently a major focus on diversification into other products as well, such as projectors and digital signage. Now, when I say that, ViewSonic has been selling projectors for the last 15 years, it’s just that the focus was never there. CME: So what are you doing differently now?JG: We are hiring new partners — audio-visual distributors — focused on projectors in the UAE. We are in talks with Almoe right now. We are working on huge tenders in Saudi Arabia with them and we are in the process of signing them up as our distributor for audio-visual products. CME: How much of your business comes from display products?JG: Right now, about 90% comes from LCDs and we want to change that to 60% — so 60% from LCDs and 40% from projectors and digital signage. We want to grow those further because the margin on the LCD business is very low and getting slimmer every day. CME: What time frame have you set yourself for achieving that?JG: By mid of next year. The way I look at it is that we have to have the right partners, which I want to complete by the end of this year. You have to get the new partners on board and let them settle down, which takes a quarter. CME: So channel restructuring is a key thing for you right now then...

JG: Yes, 90% of my time is spent doing that right now. Having the right channel is the key focus to getting the right kind of reach in the market. We are hiring new partners in Egypt because we see this as a very focused market. We have signed Better Business as a partner and it will be selling our complete range, and obviously focusing a lot on projectors and digital signage. Nothing was happening in Saudi Arabia so we are now focusing on that market because it is one area where a lot of growth is taking place. I am in Saudi Arabia every 15 days and we will be hiring a couple of people there too. They will operate from home initially and then we will set up an office later on — maybe next year. We will hire two sales guys there to serve the market. CME: Did you have partners in Egypt and Saudi Arabia previously? JG: We had Metra in Egypt and in Saudi Arabia, but we are looking to add two more distributors in Saudi for our LCD and projector business.CME: Has the relationship with Metra ended then?JG: Both the agreements with Metra are still there, but we are looking to expand because we are not covering the market as per its potential. Metra also has other brands as well. It does a lot of Samsung in Egypt and a lot of BenQ and LG in KSA. We need to have more partners rather than share our business.CME: You mentioned you are looking to sign two more distributors in KSA. Have you identified candidates?JG: I have. I am looking at BDL and Asbis, and I am in talks with

Redington as well, but it will most probably be either BDL or Asbis. With Asbis the best part is that they don’t have anybody other than AOC, so they have the capacity to carry another monitor brand. BDL does LG and Samsung. We want to finalise it this quarter because we want somebody there who can start working with us immediately.CME: What are the main demands distributors have of you as a vendor?JG: Credit terms, price protection and some kind of confidence level that if they get stuck with stock we will help them.CME: There has been some personnel change at Viewsonic Middle East in the past year. Who are the people leading your channel business in the UAE now?JG: We had two people join us two and a half months back. One is Rizwan Ulhaq, our corporate sales manager, who came from CAD Emirates, and the other is Lalit Chainani, our reseller manager who takes care of the resellers in Khalid Bin Waleed Street. He came from Bluebell Computers. They both have 10-plus years’ experience in the IT market so they know the business. CME: Viewsonic also has a netbook and notebook portfolio. Any plans to introduce those products here?JG: In this region I am focusing on projectors, digital signage and monitors. We have a lot of other products, such as TVs and eBooks, but I don’t want to introduce everything at the same time here. My top priority would be to bring the notebooks and netbooks here, but I want to stabilise the channel first.

EX-LENOVO HEAD GIVES VIEWSONIC

NEW LEASE OF LIFE After the departure

of regional manager Aaron Fright in June last year, ViewSonic

has not had too much to say for itself in the Middle East market.

But with former Lenovo channel manager

Junaid Gul now settled into the hotseat it’s a case of ‘all systems go’ again. Regional

expansion, new staff and negotiations with distributors all figure highly on his plans.

INSIDE INFORMATION//EXPERTS IN THEIR OWN WORDS


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CHANNEL MIDDLE EAST: You have added technology specialisations to the APN programme. How is that going to benefit the channel?AMANDA GIDDINS: What this really means is that we can differentiate our partners even further based on their technology competencies, but also the skills or areas they are looking to develop. It adds a lot more value into the programme because we will recognise partners whether they are strong from the fibre channel SAN side – we are calling that partnership virtualised fabrics – or on the networking infrastructure side or more recently on the application delivery side. CME: So there are three specialisations in total then?AG: Yes. I do see that expanding, but for the time being we are focusing on the three, and this plays really well into Brocade’s strategy where we target the campus networks for enterprise LANs, into the data centre for virtualisation and converged architecture, and then into application delivery with our layer four to layer seven portfolio. CME: So why have you decided to launch these specialisations at this particular time?AG: Firstly, because we want to recognise the competencies of our existing partners, but also to aid those partners which are looking to get into the converged architecture. It allows them to take specific accreditations and certifications and they will get additional benefits on the back of that as well — so additional discounts, rebates and margin opportunities. One of the

key things is that our go-to-market is very selective. We are not going out to recruit hundreds of partners, it is about working with the partners that are committed to Brocade. But we are putting a lot on the table to make them profitable around selling our portfolio. CME: Can any partner benefit from access to the specialisations?AG: We are making this very selective. It is for those partners that are already committed to us on the Elite and Premier level of our Alliance Partner Network.CME: How many partners are likely to achieve the specialisations?AG: As we introduce the programme over the next couple of months we will be looking for a very small number of partners that fall into these specialisations. Within the UAE, where we have a number of partners, we would probably choose two or three for each of the specialisations. No more than that.CME: When you talk about converged architecture opportunities, is Brocade’s channel offering just about selling product sets? AG: No, it is not just about selling product, it is more about the services and support that the partner can offer through to the end-user. We will recognise those partners, not just for their own pre-sales and technical skills, but also the support services that they can add to their own portfolio on the back of selling our products as well. Unlike some vendors, we are very much reliant on the partners delivering services and support in-country to the customer. We will offer the back-line support

to the partner but we enable them to make a business out of selling product, support and services.CME: You joined the company with a remit to build the channel business. How much investment is Brocade making in the channel?AG: The investment going into channel is huge overall in Brocade. We are currently recruiting another 80 sales people across EMEA and particularly in the UAE and the Gulf area — and Saudi Arabia as well — we are adding larger teams, so there is a lot of recruitment going on at the moment in this region. Traditionally, a large amount of the Foundry business was done in the Middle East on the IP side. We have got some excellent customer wins and reference sites in government, universities and service providers out here and we see a huge opportunity to develop further in the Gulf region.CME: How far away would you say your Middle East channel structure is from being complete?AG: There is still quite a bit of work to be done, but we have evolved it. First of all we introduced a two-tier channel strategy, which neither Brocade or Foundry had previously. I see that evolving much more as well, working very closely with our distributor Mindware. The other area that we are now investing in is working with larger systems integrators because they have the traditional server and storage business. Where they see the opportunity now is the convergence of the technology with networking infrastructure and they are the partners we are investing in heavily.

BROCADE SPRUCES UP APN CHANNEL

PROGRAMME Brocade has just

added new technology specialisations to

its Alliance Partner Network (APN)

Programme in what it claims represents a major boost for its

channel business. Channel Middle

East spoke with the company’s EMEA channel director,

Amanda Giddins, to find out what it all means for

Middle East partners.

PRINTERS WITH PUNCHAnalysts are forecasting that the Middle East printing market will see growth again this year as the industry begins to recover. With that in mind, we pinned down six of the region’s top printing hardware providers and asked them to shine the spotlight on a big-hitting printer model that will make the channel money.


PRINTER MODEL: Photosmart Wireless e-All-in-One printerWORD ON MARGIN: ‘Printing flexibility offers differentiator to competing products’

TARGET MARKETOur new range of ePrint printers, including the HP Photosmart Wireless e-All-in-One, Premium e-All-in-One, Plus e-All-in-One and the Premium Fax e-All-in-One, is targeted at all customers, since this range of printers incorporates new technology that will benefit users across all markets.

INFO TO INCLUDE IN SALES PITCHWith the new HP ePrint range, users have an incredible degree of flexibility to print from the web, their mobile phone and even remotely when away on business, for instance. This is a big point of difference when compared to competing products here in the UAE. Consumers have the freedom to access content and print without a PC. This can be achieved through HP ePrint

from any mobile device or by touching a variety of customisable apps and printing options on the printer’s intuitive HP TouchSmart screen. Every HP ePrint printer has a unique simple e-mail address that allows the sender to deliver a print the same way they would send an e-mail message. Users are able to store documents or files in the cloud and print direct when needed.

ESSENTIAL SALES SKILLSKnowledge of HP printers and ePrint technology would help to sell the products. A customer may require further explanation of the benefits of ePrint. HP resellers enjoy high levels of product training, support and online resources so that they are knowledgeable in all features and benefits relating to the product range.

AMIN MORTAZAVI, GENERAL MANAGER IPG MIDDLE EAST, HP

PRINTER MODEL: C510dn desktop colour printer

WORD ON MARGIN:‘Partners are always well-compensatedand well-trained’

TARGET MARKETIt’s targeted at people who are looking for an affordable desktop colour printer that is fast enough to share with a team and tough enough to take on heavy workloads. It’s perfect for SMBs since this versatile, compact printer comes with a range of advanced productivity features including double-sided printing and built-in networking, plus a full three-year warranty at no extra cost.

INFO TO INCLUDE IN SALES PITCHThe fact that the C510dn includes a unique set of software designed to help users get the most from their product and investment. These advanced utilities come as standard in the box and deliver increased printing power and management control. Also, the Template Manager allows users to create a wide range of specialist

documents including business cards, CD labels and a whole range of office stationary. The Print Control and Colour Access Policy Manager software generates detailed reports for assigning costs to individuals and work groups as well as manages access permission and volume limits by user, PC, file type and more.

ESSENTIAL SALES SKILLSResellers need to be able to communicate the features of the C510dn accurately and focus on the fact that it meets consumers’ needs since this machine practically sells itself if it’s aimed at the right target. It offers users true versatility because of its high-definition toner that produces vibrant, saturated colour with a stylish glossy finish and an ability to print a huge range of high quality single and double-sided documents.

JOHN ROSS, GENERAL MANAGER, OKI PRINTING SOLUTIONS

_www.itp.net_ (29)


PRINTER MODEL: iPF8300 large format printerWORD ON MARGIN: ‘Profitability is attractive and channel support is flexible’

TARGET MARKETThis product is targeted towards the high-end photographic or fine-art customer. It is also exceptional for proofing so anyone that wants the best quality available should look at what the iPF8300 can offer. It adds to an already extensive range of CAD, production and general use products that Canon can offer to LFP users.

INFO TO INCLUDE IN SALES PITCHThe biggest part of our new product is the print quality. However, there are also improvements in the handling and software aspect. One example is our Adobe Photoshop plug-in. With this tool, and the new LUCIA EX ink system, Canon is the only vendor that allows for 12-bit printing. In other words, the iPF8300 can handle over 40

times more colour tones, simultaneously, than any other brand. The iPF8300 also offers a ‘Hot Swap’ feature for the ink tanks. This means that if the machine runs out of a particular colour, the iPF8300 can continue printing. You can remove the old cartridge and replace it with a new one and there will be no pause from the machine. This is especially useful in busy environments.

ESSENTIAL SALES SKILLSCanon offers full product training for the imagePROGRAF models and for the third party suppliers that we work with. All we ask is our resellers show commitment, enthusiasm and hard work. If they possess these qualities, then we can create a partnership that generates profitable sales.

VISHAL GOHEL, LFP PRODUCT MANAGER B2B, CANON

PRINTER MODEL: WorkCentre 7120 colour laser MFP

WORD ON MARGIN: ‘Strong opportunity for incremental profit and superior value proposition’

TARGET MARKETThe Xerox WorkCentre 7120 is an entry-level A3 colour multifunction device. It is an ideal product for all customers, from SMBs to enterprises, and for all vertical sectors. The colour multifunction printer can let you print high-impact colour documents for presentations or budget charts. The product is targeted at a growing market space and offers low capital acquisition costs coupled with excellent total cost

of ownership (TCO) opportunities.

INFO TO INCLUDE IN SALES PITCHFeatures are varied and run from the standard imaging and printing to more process integration, cost management and device handling. The value in enrolling in the Xerox Engage Partner Programme is that resellers gain access to a suite of tools through our PartnerNet Portal. This includes a

proposal generator allowing resellers to build and customise documents to focus on customer requirements and a ‘Why Xerox?’ tool allowing sales people to build their Xerox pitch. The WorkCentre 7120 uses Xerox’s emulsion aggregate high gloss (EA-HG) toner, not the usual laser toner that you can find at the nearest store.

ESSENTIAL SALES SKILLSThe skills required are no more complicated than when selling any other IT equipment or software offering. The important thing in working with Xerox is access to our online training tools and also the face-to-face training, such as the Xerox Academy. This is a comprehensive programme to ensure that skills reside in the partners to sell independently, but assuring those partners receive constant support where required.

DAN SMITH, GM, INTEGRATED MARKETING MEA, XEROX

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PRINTER MODEL: B-510DN business colour ink jet printer

WORD ON MARGIN: ‘Healthy, two-digit margins depending on after-salessupport services offered’

TARGET MARKETThis printer is the right product for all those who need high-quality printing at a lower cost than laser. It is a heavy duty printer featuring simplex and duplex printing with network connectivity as standard. The black cartridge can produce 80,000 pages, making it highly cost-efficient.

INFO TO INCLUDE IN SALES PITCHFirst of all, we have to mention that this product is a green product - it has a lower power consumption than laser printers. In addition, the B-510DN has a lower number of supplies and will give users a very low cost per page. Users can print on glossy or photo papers with high quality results, not forgetting the fast printing speed of up to 37 pages per minute.

ESSENTIAL SALES SKILLSResellers need to know the competitive advantage of this printer and what output it can produce to be able to sell it. Resellers should target customers with high print volumes and also those looking for a green product. We recently launched a special programme for resellers whereby they will get rebates and other incentives from selling any Epson product, not just the B-510DN. Resellers interested in enjoying the benefits of this programme can just fill in an application form and become a Bronze, Silver, Gold or Platinum partner depending on their quarterly purchases. In addition to the upfront margins, all our channel partners enjoy good rebates directly from Epson at the end of each quarter.

KHALIL EL-DALU, GENERAL MANAGER MIDDLE EAST, EPSON

PRINTER MODEL: MultiXpress CLX-8385ND MFP

WORD ON MARGIN: ‘Reasonable margins and continuous sales of consumables, maintenance kits and after-sales services’

TARGET MARKETSamsung has revamped all entry line-ups with a new product range loaded with superb features that will ease the life of the consumers. The CLX-8385ND printer is targeted at SMB enterprise customers. It is a compact MFP, which combines high productivity with great efficiency to replace multiple desktop printers and MFPs.

INFO TO INCLUDE IN SALES PITCHThe three key points that resellers should focus on in their sales pitch are the CLX-8385ND’s performance, user-friendliness and environmentally-friendly features. The MultiXpress CLX-8385ND printer is the fastest colour laser A4 MFP in its class. Along with its impressive speed performance, it provides a robust and efficient copying solution. This printer’s duty

cycle of up to 100,000 pages per month means it is ideal for those that need to copy and print higher volumes. The CLX-8385ND is fully loaded with wonderful solutions, such as built-in job accounting and print management, absolutely free of cost. The cost saving and productiveness of these solutions are the basic needs of any mid-sized or enterprise organisation, which is a great sales tool for any salesman.

ESSENTIAL SALES SKILLS The features and specifications of this product are easily understandable by the salesman as well as his customer. The only skill required by the reseller is a basic knowledge of the printing and copying industry, so that it can easily feel the difference in user-friendliness and added value features of our product compared to competitors’.

MEHDI HEIDARI, BUSINESS HEAD PRINTERS, SAMSUNG GULF


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SEARCH AND SEIZEThe trading of fake products has always been a problem for the Middle East IT channel, particularly as counterfeiters use more sophisticated techniques to make their imitations seem like the real thing. But vendors are doing their best to fight back and they are enlisting the help of the channel in their crusade.

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Fake branded goods tend to bring out the mercenary in people. Bargain hunters will turn a blind eye to a product’s dubious origins if the price is right. And

dealers sometimes see counterfeit items as the easiest way to overcome hefty duties on genuine imports or basic lack of availability of the hottest new kit. No wonder then that the most conservative estimate values the global counterfeit goods market at US$750 billion.

Counterfeit brands are a global challenge for vendors and despite the mountain they face in attempting to stem the flow — and its impact on revenues, not to mention customer experience — there is now a huge international effort to combat the problem.

In the Middle East, essentially a microcosm of the world counterfeit market, the challenge is acute. Throughout the region, demand for cheaper electronics and consumables — particularly ink cartridges and toner — is so intense that vendors are having to look very closely at the integrity of their supply chain to minimise infiltration by fake offerings.

Some customers are also rebelling against the prevailing trend. In one recent case, the suspicious purchaser of a Sony PlayStation lodged a complaint with the police against a Dubai retailer, which eventually exposed the systematic trading of fake PlayStations, memory cards and controllers — often, according to one salesperson, with the complicity of customers themselves — and led

to prosecution.Cases like this suggest a shift

in attitude in the region, which is pushing up the rate of counterfeit seizures, to vendors’delight.

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in environments where demand exists and where dealers don’t feel the threat of the consequences if they supply counterfeit goods.

The relatively high price of printer consumables is one major driver. Another is the customer’s genuine inability to spot a fake. In both cases, says Panjabi, the solution lies in education — of sales staff and customers — and in building relationships with trusted suppliers. But there are other issues that are more difficult for the channel to counter.

“The Middle East region, particularly the UAE, is also a re-export hub and demand for counterfeit doesn’t only restrict itself to demand in the local market but more so to demand that is there from countries or regions that the UAE re-exports to, such as Africa, Iran and the CIS,” says Panjabi.

“If in these markets the demand exists, the supply will go on and many times be routed through ports like those in the UAE. From a supply point of view, if there is no fear or there is a lack of stringent controls on entry points into the country, counterfeit will thrive. While the major ports may be subject to scrutiny, there are many other points of entry where goods are likely to flow in more porously.

“Even if a company is blacklisted, it doesn’t stop an individual entrepreneur as all they have to do is register another trade licence and it is business as usual. If we have found a supplier selling us anything that’s not genuine,

Europe and Africa is due to the increased vigilance of authorities in the region who are stepping up their crackdown on counterfeit supplies,” says Amin Mortazavi, general manager of HP’s Middle East Imaging and Printing Group.

“Firstly, the results are down to important work done by HP Middle East, which includes its anti-counterfeit awareness campaign, working together with the UAE authorities to highlight the issue of counterfeiting and to create awareness about this important topic. Secondly, the results are due to an increased emphasis placed by the UAE authorities to employ superior methods and manpower in the fight against it.”

Mohammed Ali Addarrat, general manager for the Middle East at Lexmark (main picture), believes that by raising awareness of counterfeiting, vendors will be able to get on top of the problem, especially if government authorities in the region continue to put stronger enforcement policies in place.

“We are trying to interact more with the end-users directly rather than relying on mass communications,” he explains. “Where we are still finding problems is in areas where we don’t have a physical channel presence on a regular basis, but then that is to be expected.”

Ashish Panjabi, chief operating officer at one of Dubai’s biggest retailers, Jacky’s Electronics, says counterfeit products flourish

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_www.itp.net_ (35)

//CHANNEL MIDDLE EAST_AUGUST 2010BY PIERS FORD

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we’ve immediately blacklisted them and if need be, informed other retailers of the same, so they’re also aware. It’s a matter of conscience. As partners for the Dubai Services Excellence Scheme, we’ve got a mandate to only supply genuine products — which is what we do.”

Taxation is another important influencer, according to Jussi Hinkkanen, head of government affairs at Nokia Middle East and Africa, which faces the constant challenge of counterfeit mobile phones.

“In some countries, high taxation on imported products is one of the reasons for the proliferation of counterfeit products entering the market, certainly in terms of mobile phones,” says Hinkkanen.

“Also, there is a general increase in the availability of fake goods which makes them easier to come by, and the Middle East is geographically well positioned between the source of many counterfeit products and one of the biggest trading hubs in Dubai. This makes the distribution network for counterfeit syndicates very effective in the region.”

The scale of the problem is reflected in the resources required to monitor counterfeiting throughout the sales cycle. Hinkkanen explains that this is an ongoing task. China is

the main source of fake mobiles, so close collaboration with the Chinese authorities is an important element of Nokia’s strategy.

“In destination countries, Nokia is also working with local authorities and customs

officials to more effectively manage the flow of these goods,” he says. “In some instances, this involves the training of the customs officers to more effectively recognise counterfeit goods. At the point of sale, Nokia also cooperates with

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As the market leader in the printing and consumables space, HP has more to lose than anybody when it comes to rogue manufacturers illegally producing cartridges and toners that infringe its intellectual property rights.It is no surprise then that the vendor continues to mount an aggressive campaign designed to highlight the issue of counterfeiting and educate customers on the pitfalls of using fake products.According to data recently shared by HP, the Middle East accounted for 95% of all seizures of counterfeit HP printer consumables in the EMEA region between November 2008 and the end of January this year. Between February and April 2010, meanwhile, some 295,642 counterfeit consumables were seized in the UAE alone, compared to 630,756 from November 2008 to the end of January this year. Amin Mortazavi, general manager for HP Middle East’s imaging and printing group (IPG) insists that better enforcement of anti-counterfeiting policies by government entities in the region has played a major part in achieving higher rates of detection and more seizures

of fake kit. “We are enjoying a positive resonance, not only from the customer and partner side, but also because this is a topic that is getting increased attention from governments in the region,” he said.HP’s ongoing bid to raise awareness of the risk of counterfeit goods focuses on issues such as the poor quality and value of counterfeits, possible damage to equipment caused by fakes, low environmental standards of production and the possibility that profits from counterfeits benefit organised crime.When it comes to counterfeit goods permeating the channel, Mortazavi insists most of the difficulties that HP faces are with companies that it is not in an official relationship with. In contrast, authorised partners are keen to demonstrate that they only carry the genuine article. “We frequently exercise something that we call a channel partner anti-counterfeit audit,” he said. “Sometimes our partners even request this so that they have written proof from HP that there was no counterfeit found in their stock. They can then advertise that to customers.”

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HP CRACKS DOWN ON INK CARTRIDGE ROGUES


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local authorities who conduct many raids to confiscate fake goods and, in some instances, prosecute offenders.”

Many other vendors take Nokia’s rigorous approach, although understandably, not all of them want to share the details. For some,

educating the customer about the perils of buying sub-standard consumables is key.

“Counterfeiting is an illegal act and we want to protect our brand, but also our partners and most importantly our customers,” says HP’s Mortazavi. “Customers rely on the quality of HP printers and print-outs and we don’t want them to be disappointed.”

Ranjit Gurkar, general manager at Brother Gulf, admits that counterfeiting techniques have become so sophisticated that it can be hard for a casual buyer to detect the difference.

“This is why we are also investing in educating customers on why using counterfeit toners, drums and ink cartridges is a bad deal for them despite the lower price,” he said. “We tell them how counterfeit toners contain inexpensive amorphous resins instead of crystalline resins and thereby are unable to print at resolutions above 300 x 300 dpi — much lower than the 1200 x 1200 dpi resolution their device was designed for.”

While vendors say that they are incorporating increasingly sophisticated anti-counterfeiting features in their products as well as running trenchant marketing campaigns on the perils of buying fake goods, channel partners are clearly best positioned to keep a close eye on the market and expose

counterfeit sources. Which means they must stay whiter than white themselves. Vendors are reluctant to offer specific examples but insist that they will take action against dealers who are found to be trading in counterfeit goods, and will always work closely with the local authorities to identify culprits while recognising the efforts of partners in stamping out fakes.

Nokia plans to establish a programme that will reward distributors and retailers who only trade in genuine products. Canon has a two-pronged approach: educating its second-tier channel and consumers on how to identify fakes and the negative effects of using counterfeits; and enforcing its policy by conducting investigations on suspicious dealers and taking legal action.

“We encourage our partners and the channel in general to report any counterfeiters or suspicious dealers that they may come across,” says Sidney Pereira, inkjet product manager B2C at Canon Middle East. “We all know that counterfeit cartridges that are made of sub-standard material have a damaging effect on machines — and this affects the reputation of the dealers, partner and brand, which is not healthy for any of us in the long run.”

Lexmark also urges the channel to play its part in helping manufacturers combat piracy by passing on any tips they have about counterfeiting in the market.

“We work very closely with our channel — both resellers and distributors — to be able to gather counterfeit products,” says Mohammed Ali Addarrat. “And if resellers come across any counterfeits then we actually encourage them to buy samples or give us as much information about the sourcing of those products so that we can take action based on those leads.”

Dan Smith, general manager for integrated marketing at Xerox in the Middle East, says vendors must work closely with distributors to educate them on the complete cycle of counterfeit production: the origin and supply chain, how fakes are being distributed, where they are being distributed and the pricing strategy behind them.

He also urges suspicious wholesalers, dealers and consumers to submit questionable printing goods to the Imaging Supplies Coalition for authentication. “All products are vulnerable,” says Smith. “Wherever money has been spent to create a product or offering, someone will be prepared to capitalise on that investment. Every vendor must be vigilant.”

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• Packaging can be an important clue. It might look authentic at a glance, but check the bar codes and numeric codes. Know your warranties, and check that any reference on the packaging is accurate.

• Make sure that the brand name is correct. It is not uncommon to find Noka or Nokla masquerading as Nokia on counterfeit packaging, for example.

• Know the technological parameters of the genuine product, especially at the higher end of the market where there is increased incidence of counterfeits. Many fake goods devices are actually feature-rich and may even include aspects not included in the real product.

•If a vendor uses a hologram on the packaging, look at it closely. Canon, for example, has devised a colour-changing feature, as well as a viewer through which you can check authenticity.

• Check accessories. Sometimes these make easy targets and can be swapped for fakes.

HOW TO SPOT COUNTERFEIT GOODS


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NET VALUEThe netbook market is largely responsible for driving much of the growth that the mobile PC sector has seen during the recession, but there are still question marks over how sustainable the ultra-small form factor business actually is. Channel Middle East invited a selection of the sector’s leading names to talk shop.

We spoke to the following netbook channel experts: Peter Oganesean, PSG product manager at HP Middle East; Mark Prosser, product marketing manager at Acer; Alan Chu, regional VP MEA at MSI; Madhav Narayan, general manager of IT at Samsung Gulf; and George Su, regional director MEA & Turkey at Asus (main picture).

what they need, a very specific budget in mind and often a very specific timeframe in which to purchase. So if your products are not positioned at that sweet price point it is very difficult to appeal to those buyers.

PETER OGANESEAN: HP values and prioritises customer experience beyond pricing. We research and develop products

Netbooks are renowned for being attractively priced. How important is pricing to your sales strategy?

GEORGE SU: Pricing is important in this product segment because this is a solution that often fits between a fully-fledged notebook and a mobility or desktop replacement. End-users usually have a very clear understanding of


that the consumer will want to invest in. Added value features are appreciated by the customer and people merit the experience, look, feel and quality of a product over price. Although pricing is an important factor, because we are a business after all, HP strives to offer a balance of affordability, functionality and premium customer experience. We offer three basic products to cover the range of price points

has already won Germany’s high-profile iF product design award for its unique design. The Wind U160 is less than one-inch thick and weighs just 1kg.

MADHAV NARAYAN: With the netbook segment being very price sensitive, margins are limited in comparison to notebooks. However, as the segment has a 26% share, the volumes are huge and the absolute margin for the channel is very interesting.

Given the low margins associated with PC hardware, how can the channel make money from selling your netbooks?

MADHAV NARAYAN: Samsung has a strong relationship with the channel and we plan to maintain the relationship by continuing to make the latest technologies within the PC industry available to them. Our new branch of netbooks has seen a large demand due to its small, portable design. As mentioned earlier, the channel relies on volume margins rather than transactional margins. Also, the channel margins on our notebooks are high and this compensates for any losses on netbooks.

MARK PROSSER: Product mix is key. Our netbook product development follows the Acer guidelines of customer segmentation. Every customer is different and we make a range of

within the netbook category in order to bring value and accessibility to customers.

MADHAV NARAYAN: As the netbook segment is very price-sensitive, pricing is one of the key strategic approaches when it comes to netbook models. Samsung provides consumers and businesses with a more affordable, value-for-money range. Samsung also offers a comprehensive netbook line-up with innovative designs and advanced technology. These netbooks are designed specifically for mobility and are sold at a competitive price as they contain all the necessary features for data access.

What incentives do you offer the channel to sell your netbooks?

MARK PROSSER: Acer is a channel-only organisation and therefore support for our channels on all our products is what has helped drive Acer to become the number one mobility vendor in EMEA. We have channel programmes in place that offer incentives on all our products. Updated point of sale, rebate programmes and ongoing training are just some of the incentives offered to the channel.

ALAN CHU: Incentives vary from country to country, however we communicate the unique features that differentiate our award-winning solutions. For example, the MSI Wind U160

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netbook products that cater to the entire market available. New colours, designs and patterns are assisting in up-sell opportunities for our channels. The 11.6-inch Ferrari One 200 is a premium netbook that offers the customer a stylish performer with additional margins for the channel.

PETER OGANESEAN: Customers look for outstanding performance, but what they appreciate even more is the experience a product can offer them. We offer an experience that extends beyond the hardware components that comprise a notebook or netbook system. Price truly becomes secondary to customer experience, and profitability will quickly change if profit becomes the priority. HP cares about customer experience and offers products with the right features, the right look and the right function.

How can the channel prevent netbooks from cannibalising sales of higher margin laptop models?

ALAN CHU: MSI offers a complete range of notebooks to customers, not only netbooks. We provides marketing materials and training programmes in order to assist channel partners with more tools and knowledge when helping customers to make the best choice.

Currently, netbooks are quite popular as they are

convenient and light compared to laptops.

GEORGE SU: There are always overlapping areas, however if you look at the overall picture then you will see that the size of the

notebook market is

growing. In MEA and Turkey, statistics show that we have the highest growth rate among all the big regions — more than 20%. Notebooks are the main driving force and netbooks contribute a lot to that, so overall the IT industry is benefitting from the growth of the two categories together. The cannibalisation exists, but it is a very small portion. What has happened is that the market segment has expanded to include a part that the previous notebook solution was not able to address.

MARK PROSSER: A netbook is a secondary device. Acer pushed this positioning when we launched the Aspire One and we still push this today with ongoing training for all our channels. Our training also includes customer segmentation by form factor, technology and pricing. Netbooks have now been in the market long enough for the market to understand what they offer. We did not see cannibilasation when netbooks were introduced, and we are not seeing this now. We continue to work with our channel to understand the customer requirements and ensure we have a range of netbooks for the netbook customers and a range of notebooks for the notebook customers.

Recent research shows that Apple’s iPad is already grabbing share

from the netbook category. Does this mean the netbook boom could be coming to an end?

ALAN CHU: The iPad is indeed handy, but while it features a completely different operating system the argument is whether it can really replace the netbook. Microsoft applications are still significantly dominating the market, and consumers will continue to demand the most convenient, full-functioned portable computers with them.

GEORGE SU: There will always be a new device that satisfies some sort of customer demand or needs. The iPad, or similar tablet solutions, fulfil some part of the unsatisfied demand from the past, such as the touch-screen functionality. Many vendors tried that in the past, but the timing or the technology was maybe not mature enough. The iPad has matched the timing with other good points so this could be a very successful story in a short time. It definitely satisfies some of the points that previous devices couldn’t, but at the same time it can’t replace or satisfy some of the fundamental requirements of a netbook.

MADHAV NARAYAN: We believe there will always be a market demand for netbook PCs. With high compatibility with the Windows operating system, and a plug-and-play interface compatible with various external devices, sales of netbooks will continue to thrive. Demand for mini-notebooks is being by driven by their small size, light weight, ease of use, basic but sufficient PC functionality and low cost. The netbook boom is just beginning.

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ACER BEARS DOWN ON HP IN EMEA Number two vendor almost draws level with market leader

The PC market in Europe, Middle East and Africa continued to return to better health during the second quarter, recording solid

growth of 21% year-on-year with close to 24 million PCs shipped across the region.

Despite fears of a slowdown, the PC market delivered a robust performance, even exceeding expectations overall across both commercial and consumer segments. In the Middle East and Africa specifically, the market saw strong double-digit growth led by continued demand for mobile PCs.

“Growth in the Middle East and Africa performed in line with forecasts of 16.4%, with the African continent outperforming the Middle East by reporting annual growth of 34%,” said Stefania Lorenz, systems and infrastructure solutions research director at IDC.

The overall EMEA PC market benefitted from a gradual uptake in the business space as companies started to re-engage on refresh cycles in Western Europe, while also picking up across the CEE region. Although spending will remain cautious, IDC believes that better-than-expected commercial PC market growth is an encouraging sign and says accelerating demand will continue to support the market during the second half of the year.

On the consumer side, meanwhile, demand remained strong, driven by mainstream notebook renewals and increasing uptake of all-in-one PCs.

The market also profited from a more balanced product mix, with increasing share of mainstream notebooks versus mini-notebooks, as well as higher priced all-in-ones in the desktop market, which contributed to increasing average selling prices and supported stronger revenue growth.

“The first half of the year confirmed a strong recovery in the EMEA PC market, and while global economic conditions will remain challenging, the outlook for 2H10 remains positive, and will be driven by the continued rebound in business and consumer renewals,” said Karine Paoli, associate VP for EMEA systems and infrastructure solutions at IDC.

The biggest winner during the quarter was Asus. It almost doubled unit shipments and now sits just one percentage point behind third-placed Dell in the EMEA rankings. HP grew sales 16% but the fact that it wasn’t able to keep up with the market average meant that it lost market share. It now has a lead of just 0.3% over Acer, which boosted volumes 20.5%.

.........

SOURCE: IDC

SOURCE: IDC

ASUS UPSTAGES RIVAL PC VENDORSTaiwanese manufacturer almost doubles shipments during Q2

BACK IN BUSINESSEMEA PC market showing signs of old self

_EMEA PC SECTOR BY VENDOR SHIPMENT GROWTH DURING Q2 2010

_EMEA PC MARKET SHARE BY VENDOR SHIPMENTS DURING Q2 2010

Dell 10%

Toshiba 6%

Acer 20%

Asus 8%

HP 20%

Others 36%

HP Dell Asus Toshiba Others Acer

+16%+10%

+17%

+93%

+24%+21%

(47)BUSINESS INSIGHT


>> >] = {"|"} */ [] [o] oo {} ......... -->\

// INDUSTRY-WIDE NEWS

Westcon’s parent company Datatec has

said that supply constraints which impacted its business last year have been alleviated amid a general upturn in trading conditions.

The networking services group, which has interests in corporate resell and IT consulting, as well as distribution, said “supply constraints, existing at the previous financial year-end, have eased and product lead times are improving.”

Westcon makes the bulk of its revenues from Cisco, although it also carries brands such as APC, Avaya and Trend Micro.

In what also raises hopes that the market in general is beginning to stabilise, Datatec said that extended credit terms from suppliers the year before had been reduced to normal levels,

resulting in a consumption of working capital.

Separately, it added that Westcon was looking at earnings-enhancing re-financing activities by taking advantage of vendor-supplier prompt pay arrangements. These activities will reduce Westcon’s net cash position over time, it said.

Datatec revealed the developments in its latest interim management statement for the four months to the end of June, which also stated that revenues and operating profits had shown a stronger performance than the same period the year before.

Westcon’s Emerging Markets business, which covers MEA and India, continued to trade well with an “improved performance” compared with a year ago.

“We are delighted to report that the improvement in trading and profitability reported at our recent full-year results has continued in all of the group’s divisions,” said Jens Montanana, CEO at Datatec. “We remain cautiously optimistic for the year, in line with our previously published forecasts.”

Earlier this year, Datatec forecast revenues of between US$4.1 billion and US$4.4 billion for the year ending February 2011.

WESTCON OWNER SAYS CONSTRAINTS IN PRODUCT SUPPLY ARE STARTING TO EASE South Africa-based Datatec insists that product lead times are improving as it tells market that performance during the past four months has improved on last year

Datatec’s Jens Montanana says the firm remains optimistic that it will meet its financial targets this year

The accessories division of 20:20 Mobile has added

Anywhere Speaker to its stable and will distribute the vendor’s kit to channel customers in the UAE and other Middle East markets.

20:20 Mobile has exclusive Middle East rights for the vendor’s line-up, which includes its flagship ‘WOWee One’ audio device.

The product is already available in the UAE market, where it is sold through a number of retailers

including Jackys, Emax, E4U and Abu Dhabi Co-operative Society.

20:20 Mobile claims its accessories division grew 17% last year, which it says was “well above normal market rates”. Its portfolio includes speakers, cases, battery packs and screen protectors.

“20:20 Mobile has continued to grow year-on-year and our accessories division remains at the forefront of the industry,” stated Trevor Price, managing director of

the distributor. “We are constantly exploring new technologies and innovative ideas and as such we look forward to working alongside WOWee One,” he added.

UK-based 20:20 Mobile Group says it has been serving the UAE for more than five years and has long-term partnerships with brands such as Etisalat, Blackberry, LG, Samsung and Sonim. It claims to have three offices in the UAE, including two warehouses.

The firm calls itself Europe’s “leading” mobile handset distributor. It employs more than 1,300 staff and claims to have resources in 14 countries.

20:20 MOBILE EYES UAEHandset wholesaler targets growth in the accessories sector after signing distribution contract with audio device vendor

N etworking equipment

maker Allied Telesis has

confirmed the appointment of

Sabbahuddin Khan as its first

regional manager for the Middle

East and Pakistan region.

Khan — who is well-known

to the channel from his time

spent running distributor Aptec’s

networking division — will

spearhead the vendor’s efforts to

expand its brand in the region

and build a channel network.

Khan admits one of his

first tasks will be to size the

market correctly and develop an

appropriate strategy.

“We have not been an

aggressive marketing company

in the past. Slowly but

surely, people will realise the

advantages of selling and using

Allied Telesis products. My goal

is to position the company as a

vendor of choice by creating a

set of highly-trained partners,

great services and support

model, an attractive distribution

lay-out and a consultative selling

approach,” he said.

In addition to managing

the business, Khan’s role will

involve establishing a network of

partners to deliver Allied Telesis’

range of switches, routers and

network management kit.

::ALLIED TELESIS ON A MISSION

PRODUCTS// MARGIN-MAKING OPPORTUNITIES

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>> >] = {"|"} */ [] [o] oo {} ......... -->\

CONSERVING ENERGYAOC says US$179 monitor delivers massive power savings

[] MONITORS

LG Electronics has unveiled its first quad-core processor notebook, the WIDEBOOK R590. The company claims that the device - available in the Middle East from this month - packs the performance of a high-end desktop PC into a mobile chassis and includes a 1.73GHz Intel Core i7 processor with a PM55 chipset. It also features a Nvidia GeForce GT230M graphics card with 1GB of dedicated DDR4 video memory, making it ideal for gamers on the move. “Notebooks are narrowing the performance gap to desktops thanks to improvements in mobility and performance. However, rendering high-end 3D content on a notebook has been challenging until now,” said HS Paik, boss of LGE Gulf.

_WEBSITE: www.lge.com.ae

[]N

OTE

BO

OK

S

If a stylish LED monitor with eco-friendly qualities is what you’re after then AOC claims it has the answer in the shape of the e2240Vw, which has just been launched in the Middle East through distributors Asbis, Compunics and Fire Bird. The monitor incorporates functions such as eSaver and eSensor, which deliver a 50% reduction in energy consumption compared to conventional panels, according to AOC. “The e2240Vw is the most celebrated monitor in its category and is powered to give the best results to its users,” said Suchit Kumar, regional deputy general manager at AOC. The e2240Vw is priced at US$179.

_WEBSITE: www.aoc.com

[] USB HUBS

GAMING ON THE GOLatest notebook model features high-end 3D content

Accessories vendor Promate’s latest family of high-performance USB hub products are now out in the market and offer a ‘plug-and-play’ experience that the company insists will make them a hit with customers. The proHub.7 and proHub.10 are ready for action as soon as they are connected to a PC, allowing users

to link to their camera, printer, mobile, scanner, mouse and external hard drive through multiple ports. According to Promate, the proHub can connect more than 100 devices at the same time by daisy chain. The proHub.10

(pictured) features 10 USB ports, including two 90-degree

rotatable ports for versatile USB application. WEBSITE: www.promate.net

WELL-CONNECTED Mobile Promate device offers up to 10 USB ports

BLADE RUNNERStorage gains aplenty with new HP system

[]BLADES

HP has launched its P4800 BladeSystem SAN, which provides scalable, shared storage for a converged server, storage and networking environment. The P4800, which delivers 63TB of storage capacity with four storage blades connected to 140 disk drives, is compatible with all leading virtualisation providers, including Microsoft and VMWare. It is designed to offer organisations greater productivity by distributing storage resources across multiple sites to ensure business continuity.

_WEBSITE: www.hp.com

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mobile, scanner, mouse and external hard drive through multiple ports. According to Promate, the proHub can connect more than 100devices at the same time by daisy chain. The proHub.10

(pictured) features 10 USB ports,including two 90-degree

rotatable ports for versatileUSB application.

WEBSITE: www.promate.net

_WEBSITE:www.hp.com

EXPERT’S VIEW(51)


>> >] = {"|"} */ [] [o] oo {} ......... -->\

//TOP TIPS FROM MASTERS OF THE CHANNEL

In solution sales, return on investment (ROI) still remains the king. When times are good, you have the luxury of doing things your own way and whatever you touch tends to turn to gold. Unfortunately, however, times can quickly change.

If you have heard any of the following lines in your sales meetings then you can be sure that the hangover from the good times is still not over:

- “They just won’t decide” - “They want more for less” - “They don’t have cash to pay” - “It’s not a priority for them”Like the Chinese say,

‘everything is an opportunity’ and we have a great opportunity on hand to be a little introspective. Why is it that some solution sales organisations enjoy steady growth, while others are subjected to the market volatility?

A possible answer lies in the way they manage the sales cycle. A lot of channel partners have developed bad habits over the last few years and they look for

These are tough times for IT providers, but they needn’t be if you focus on providing customers with a clear and measurable return on their technology expenditure. Manjeet Singh, managing director at Microsoft specialist Columbus IT Middle East, argues the case for keeping ROI at the heart of your sales pitch.

ROI REIGNS SUPREME IN THE REGIONAL SOLUTIONS DOMAIN

a short-cut in the sales cycle. We see these partners in the market constantly because these are the companies complaining about the poor market conditions.

On the other hand, the ones that have stuck to the basics and can show and prove a return on investment to their clients are never short of business.

Five tips for successGoing back to basics and spending quality time working the ROI is a sure-fire way of winning business in today’s market. It goes without saying that clients won’t follow the ‘me too’ approach anymore. If the investment is significant, the decision-maker will sign only when the returns are clearly defined.

ROI can actually be very simple and versatile. Here are my five easy steps for ROI dummies:

1. Get to the pain areas of your prospect and get their agreement on the issues.

2. Translate everything into numbers. This could mean the

cost of duplicated effort, the cost of delayed decisions, the cost of stock outs or the cost of doubtful debt, for example.

3. Address the pain with the new process, tools, automation or best practice and quantify the customer benefits.

4. Get the right audience and talk ROI numbers. There might be ROI calculators built by your principals that you can use. If not, develop a simple macro version yourself.

5. Finally, pick your order (and hopefully the cheque!).

Results business The bad habits of not doing the numbers will die hard, but there is no harm in giving it a try. The results might just astonish you and it is certainly going to differentiate you from many of your competitors.

There is a well-known saying that a picture is worth a thousand words. In the IT solutions business, an ROI number is worth a 100-page proposal.

Manjeet Singh says success in the solutions space is all about managing the sales cycle

OFFICIAL SHOW CATALOGUE 17-24 OCTOBER 2009

ORGANISED BY GOLD SPONSORVENUE TELECOMMUNICATIONS PARTNER PLATINUM SPONSOR

www.gitexshopperdubai.com

OFFICIAL SHOW CATALOGUE18 - 22 October 2009

Dubai International Convention and Exhibition CentreDubai, United Arab Emirates

POWER UP YOUR BUSINESS

www.gitex.com

ORGANISED BY

DAY IN THE LIFE// INSIDE THE CHANNEL WORKPLACE

(53)


>> >] = {"|"} */ [] [o] oo {} ......... -->\

Name: Anshum AnandCompany: Kobian Gulf Job title: Business Development ManagerYears in the role: 1Years at the company: 1Previous companies: LondonAcademy of Professional Training Ltd

> How would you summarise your role?

My prime responsibility is to supervise the growth of the retail business and build energised sales channels while creating new revenues from widening product lines. The job includes the strengthening and expansion of our

retail distribution

network through power retailers, supermarkets, hypermarkets, IT retailers and channels dealing with a portfolio of IT accessories, laptop bags and other trading products. The job also demands that I keep a close check on competitors’ market practices and therefore develop action plans to counter challenges, which helps to define and control the objectives of the sales team.

> What’s the first thing you do when you get in the office each day?

I start by going through the checklist of ‘follow-ups’ to refresh the memory. I then take a long look at my task list, which keeps me on my toes for the whole day.

> What does a typical day entail for you?

There is no such thing as a typical day and that’s what I love about it. If I were to let every turn or every drop define me, I’d never enjoy the ride. I like doing a lot of things. Some days are awful and some are great. You must strive to achieve a balance - a balance inside yourself, that is. You can hardly predict which days will be which.

> What qualities do you need to do your job?

There are a number of skills and qualities which are

most important for me to be successful: inspiring a shared vision, good communication, integrity, enthusiasm, empathy, competence, and an ability to delegate tasks. You also need to be cool under pressure and possess team-building and problem-solving skills.

> What’s your favourite part of the job?

l love when I get to use my ‘super powers’. Observational skills really impress people; remembering a name or interest, knowing what customers need before they speak up and reading minds. Making people happy makes me happy.

> What is the hardest part of your job?

I love my job, but the hardest part of it is letting go. I am a perfectionist. Give me 24 hours to work on a cake and I would spend every last second ensuring it was flawless. Sometimes my colleagues may not share the same sentiment and I’m pretty sure that at times they think I’m crazy.

> What criteria do you measure your performance on?

If you can’t measure a goal then don’t set that goal. Performance must be measured on an objective basis. You can’t just go on gut feel. Feedback needs to be objective, specific and accurate - something you’ve seen, read or heard.

> What’s been your most memorable moment in your current role?

One of the most memorable moments was when our company got listed as the first IT product supplier for Spinneys Supermarket.

> Where do you see yourself in five years?

In terms of my future career path, I’m confident that if I do my work with excellence, opportunities will inevitably open up for me. It’s always been that way in my career, and I’m confident I’ll have similar opportunities here.

> What do you get up to during your lunch hour?

I go for a quick dosa or idli sambhar, or sometimes chola.

retail distribution> What does a typday entail for you

There is no such thing aday and that’s what I lovIf I were to let every turndrop define me, I’d nevethe ride. I like doing a loSome days are awful angreat. You must strive tobalance - a balance insithat is. You can hardly pwhich days will be which

> What qualities dneed to do your jo

There are a numbeand qualities whic

SUPER SALESIn this new section of Channel Middle East, we pack our bags and head to work with a member of the channel community to find out what a typical day on the job entails.

Would you like your channel job to be

featured in our ‘Day in the Life’ section?

If so, e-mail: [email protected]

// CHANNEL MIDDLE EAST_AUGUST 2010

_www.itp.net_

NEXT MONTH// INSIDE THE NEXT ISSUE

Published by and Copyright © 2010 ITP Technology Publishing, a division of ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.

Channel Middle East is audited by BPA Worldwide.Average Qualified Circulation 7,567 (6 month audit Jul to Dec 2008).

Registered at Dubai Media City, PO Box 500024, Dubai, UAETel: +971 4 210 8000; Fax: +971 4 210 8080; Web: www.itp.comOffices in Dubai and London

ITP Technology Publishing CEO Walid AkawiManaging Director Neil DaviesManaging Director Karam AwadGeneral Manager Peter ConmyPublisher Natasha Pendleton

EDITORIAL

Senior Group Editor Mark SuttonTel: +971 4 210 8225 e-mail: [email protected] Editor, Channel titles, ACN, NME, Comms MEA Andrew SeymourTel: +971 4 210 8320 e-mail: [email protected]

ADVERTISING

Advertising Manager Kausar SyedTel: +971 4 2108 361 e-mail: [email protected]

STUDIO

Group Art Editor Daniel PrescottSenior Designer Michel Al Asmar

PHOTOGRAPHY

Director of Photography Sevag Davidian

PRODUCTION & DISTRIBUTION

Group Production Manager Kyle SmithDeputy Production Manager Ali FahmiProduction Co-ordinator Basel Al Kassem Managing Picture Editor Patrick LittlejohnImage Retoucher Emmalyn RobblesDistribution Manager Karima Ashwell

CIRCULATION

Head of Circulation and Database Gaurav Gulati

MARKETING

Head of Marketing Martin ChambersEvent Manager Preeta Panicker

ITP DIGITAL

Assistant Editor Vineetha MenonGroup Sales Manager Ahmad BashourTel: +971 4 210 8549 e-mail [email protected] Sales Manager ITP.net Nathalie AklTel: +971 4 210 8520 e-mail [email protected] Development Manager Mohammed AffanContent Manager Asad AziziWeb Advertising Manager Meghna JalnawallaCreative Director Craig Willers

ITP GROUP

Chairman Andrew NeilManaging Director Robert SerafinFinance Director Toby Jay Spencer-DaviesBoard of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin

Circulation Customer ServiceTel: +971 4 286 8559

Printed by Atlas Printing Press Controlled Distribution by Blue Truck Subscribe online at www.itp.com/subscriptions

The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

(54)

UAE 29th-30th September 2010

IT Leaders MENA Summit

The IT Leaders MENA Summit is labelled by its

organiser as the premier gathering for CIOs and

business leaders throughout the MENA region.

The summit is designed for senior executives who

want to understand how technology can transform

their business, with the two-day agenda offering

attendees the chance to engage in discussion.

UAE 17th-21st October 2010

GITEX Technology Week

This year’s edition of GITEX will again serve as a

platform for manufacturers, distributors and IT

companies to build partnerships and showcase

the latest solutions driving the market. This year’s

event, which is likely to pull in more than 3,000

exhibitors, will have a more celebratory feel than

usual as GITEX is marking its 30th anniversary.

SCREEN GRABBusiness is hotting up in the desktop display business as the leading panel makers look to grow their market share.

UP IN THE CLOUDSCloud computing is the topic on everybody’s lips, but what sort of opportunities does it offer the Middle East channel?

BUILDING OUT A PARTNER BASEA number of emerging IT vendors are fighting hard to increase their channel presence in the Middle East and Africa. We evaluate the channel strategies they have in place and ask what they have to offer resellers in the region.

COMING UPMONTH OF SEPTEMBER

Q3-Q4 2010EVENTS

MOST READ NEWS STORIES:

MOST READ CME STORIES:

1 Middle East firms face ‘persistent’ security threats2 iPad driving adoption of con-sumer tech in enterprises3 India unveils US$35 laptop

1 PC vendors target Middle East power retailers directly2 Redington gets flexible with channel credit terms3 Viewsonic pays distributors for hitting sales targets

The online home of

EDITOR’S CHOICES

NEWS

NEWS

IBM IN MAJOR TECH UPDATE

TELL-TALE SIGNS OF FRAUDSTERS

New system integrates mainframe with Power7 and System x servers

Con men posing as French channel firms attempt to trick UAE dealers

COMMENT & OPINION

ANALYSIS OF THE BIG REGIONAL ICT ISSUES

CHANNEL Do retailers need distribution? SECURITY Are corporates asking the right questions?BUSINESS Cloud computing has regional implicationsNETWORKS Trouble brewing for cloud-based storage providers

GET TO KNOW//CHANNEL CHAMPIONS UNCOVERED


(56)

>> >] = {"|"} */ [] [o] oo {} ......... -->\

Syed Hammad Ahmed, Regional Sales Manager, Gigaset Communications

Gigaset Communications (formerly Siemens Home & Office Communication) is a

company that straddles both the IT and telecoms segments. Leading its charge in MEA is

Syed Hammad Ahmed.

> What is the biggest mistake you have ever made since working in the IT market?

I think that it is all about learning and planning. Keep a close watch on the environment and the competition, and one will avoid making mistakes.

> What product or technology should the channel watch out for this year?

There is hardly a field which has not been affected by the dramatic change in technology. A number of phone manufacturers are trying their hand at introducing new models to the market every year. All these gadgets are equipped with unique features. The world’s smallest Gigaset device, the new Siemens Gigaset SL400A cordless phone, is equipped with ECO DECT, Bluetooth and mini-USB connection, illuminated display, 5-way navigation key and hands-free function.

> Which company, other than your own, do you most admire?

Nokia in telecoms and LG and Samsung in consumer electronics for their customer insight, decision making and their ability to adapt quickly to market conditions.

> If you could improve one thing about the channel business, what would it be?

As markets are increasingly becoming globalised and customers consolidate, effective key account and retail management is becoming more crucial to remain competitive and further expand the business. Somehow I feel that there is lot of improvement required in how scientifically we manage our accounts. The strategic development of existing customer relationships offers huge potential for companies in the Middle East region.

> What is the biggest challenge facing the Middle East channel?

The telecoms channel is a dynamic and diverse channel, so the biggest challenge for the market is to be resilient when you consider the recessionary issues and global changes that are happening. At the same time, there is a challenge to upscale the customers and provide quality service.

> What’s your career history in the industry to date?

I started my career with Philips in Pakistan as a management trainee and worked my way up to become the regional sales manager for the AV and small appliances business. I then moved to the Middle East to join LG Electronics as sales and product manager for AV in the lower Gulf. Since 2008 I have been associated with Gigaset, looking after the retail and operator channel business for the Middle East and developing the export business in Africa for Gigaset cordless and VoIP products.

> What is your proudest career moment to date?

With Phillips I got the sales manager of the year award for three consecutive years and at LG Electronics I received the sales target achievement award in 2007. With Siemens Gigaset I have been instrumental in developing new key markets and received the Work Passion Award this year.

> What sort of interests do you have outside of work?

Travelling - I enjoy it! Apart from that, reading books, playing table tennis, and camping and hiking are some of the activities that I regularly do.

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