MGE strikes MSO deal

UPS vendor MGE has bolstered its route-to-market in Saudi Arabia with the appointment of MSO as an in-country distribution partner. Rahul Sikka, distribution manager Middle East, Africa and South CIS at MGE, reckons that the latest addition to the vendor’s channel ranks will open up business opportunities with a significant number of new resellers.

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By  Stuart Wilson Published  December 12, 2005

UPS vendor MGE has bolstered its route-to-market in Saudi Arabia with the appointment of MSO as an in-country distribution partner. Rahul Sikka, distribution manager Middle East, Africa and South CIS at MGE, reckons that the latest addition to the vendor’s channel ranks will open up business opportunities with a significant number of new resellers. “We now have the agreement in place with MSO,” said Sikka. “They have already placed a stock order and will be operational as an MGE distributor in early 2006. This is the first distributor with a real channel focus that we have had in Saudi Arabia. We continue to work with Jeraisy as well. Jeraisy has been with us for many years and continues to focus on project-based opportunities in the Kingdom.” “We also hope to put in place a dedicated MGE channel manager for Saudi Arabia. This person will probably work as a funded head because we do not have a dedicated office in the Kingdom, but will be totally focused on developing MGE’s channel-to-market,” he added. Sikka claims that MGE sales climbed 35% in his region year-on-year for the fiscal year ending September 2005 and remains confident that significant opportunities for continued sales growth exist, despite the competitive nature of the UPS market. Strong growth in the South CIS and East Africa helped drive sales growth. “Competition is very intense and there are markets where we have not been as strong as we would like,” continued Sikka. “This is changing and we have new channel announcements planned for the UAE that involves signing up distributors. I would love to see the faces of my competitors when these deals are announced because they have had a tactical advantage over MGE in terms of channel awareness and visibility. That is set to change.” To back up its channel expansion plans, MGE is also poised to unveil a special incentive programme for its reseller partners. The scheme, which Sikka claims will ‘excite’ the channel, is scheduled to run from January through until March 2006.

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