Magirus waiting on GFI distribution decision

Magirus’ position as an authorised distributor for GFI in the Middle East could be in jeopardy after the security software developer admitted it is carrying out an assessment of its channel model in the region.

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By  Andrew Seymour Published  August 18, 2008

Magirus’ position as an authorised distributor for GFI in the Middle East could be in jeopardy after the security software developer admitted it is carrying out an assessment of its channel model in the region.

Speculation in the market suggests that storage specialist Magirus risks being sacrificed for a new partner or a structure that would see GFI’s other distributor ComputerLinks serve as its sole Middle East VAD.

Simon Azzopardi, VP EMEA emerging markets at GFI, denied the vendor had taken any decisions on the future of its distribution line-up, but revealed that it was weighing up its options.

At the present moment in time we have not terminated any distribution partner in the Middle East,” explained Azzopardi. “We are currently reviewing the distributor landscape in this region to ensure we are partnering with the best distributor which matches GFI in terms of mentality and go-to-market strategies.”

GFI recently met with Magirus Middle East management to discuss the direction of the relationship, but Vimal Kocher, general manager at Magirus Middle East, said he was not expecting any further communication until September. “There has not been any conclusion — we have discussed various aspects and they obviously have to come back to us with a way we can work together,” he said.

Regardless of the outcome, EMC and VMware-focused Magirus insists that it remains keen to strengthen its security portfolio with the addition of new brands. “We are already in discussions with a couple of vendors,” revealed Kocher.

GFI, meanwhile, maintains that the decision to review its distribution model in the region comes at a time when its business is posting strong growth. “Our revenue in the emerging markets is growing at a very fast pace, especially in the Middle East,” said Azzopardi. “More and more channel VARs and SIs are enjoying the benefits of high margins from GFI, which are easily earned through quick sales cycles for both our messaging and security products.”

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