HGST reviews Middle East distribution strategy

Hard disk drive vendor likely to appoint additional partners

Tags: Hitachi Global Storage TechnologiesUnited Arab Emirates
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HGST reviews Middle East distribution strategy HGST’s aspirations to increase the proportion of channel sales it does has led the company to consider expanding its distribution line-up, says David Grant.
By  Andrew Seymour Published  June 9, 2010

Hitachi Global Storage Technologies (HGST) is carrying out a review of its regional distribution model that looks set to result in the appointment of additional partners.

In the Middle East the hard drive vendor currently sells its products through Almasa, Asbis, Avnet and Trinity. They could be joined by more names if HGST's "aggressive plans" for distribution come to fruition.  

David Grant, HGST's channel manager for Eastern Europe and the Middle East, says the company is now prepared to divert from the conservative approach it has traditionally taken to its distribution strategy.

"We have tended to talk to our existing distributors and try and grow the business with them, but we have got really aggressive plans for distribution in EMEA this year," he explained. "And the Middle East is key to the success of that, so we are looking at distribution. Nothing has been finalised yet, but we are looking to add."

Grant stresses that the motivation for expanding the line-up is not to create extra competition among existing partners, but to account for the fact that the company now has a sizable external hard drive business to supplement bulk sales.  

Last year Hitachi purchased Fabrik - the maker of Simpletech storage devices - giving it access to a large external hard drive business.  

"We do a lot of work with the global OEMs, so our share of business is maybe 80% from OEMs and 20% distribution," said Grant. "We feel this mix isn't right so we need to grow [the distribution part] by 20% to 30% over a period of time. It is a challenge to do that with the existing distributors that we have, which is why we need to review the distribution strategy."

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