Extreme Networks (NASDAQ:EXTR) has revealed the reasons behind its new scaled back distribution set-up in Europe.
The networking vendor implemented what it describes as a “global distribution rationalisation process” since its acquisition of Enterasys in 2013. In the UK Extreme underwent a distribution review that saw the firm initially settle on four disties: Big Technology, Westcon, Mayflex and Arrow ECS.
Now however, only Westcon remains in place, alongside new UK partner, Avnet.
“It doesn’t make sense to be over-distributed in any particular market,” says Kai Gutzeit, regional director, Western EMEA at Extreme Networks. “It has to be worthwhile, conducting meaningful business for both us and the distributor.”
After a long-term partnership in the DACH region (Germany, Austria and Switzerland), Extreme Networks recently extended its contract with Avnet to include the UK, Belgium and the Netherlands.
“We’ve terminated certain relationships across the geographies and expanded the relationship with Avnet, which is a long standing and one,” says Gutzeit. “Avnet’s competencies are already built up – it’s something the UK can leverage and benefit from.”
While he says there has been no paring down of its partner numbers, Gutzeit maintains that even with the new expanded agreement with Avnet, Extreme will be choosy when it comes to who it partnering.
“The sheer numbers we’ve seen in the past does not warrant success,” he explains. “We’re keen to invest in strategic partnerships. We’re looking for mutually-strategic relationships that must make sense,” he comments.
Channel activity
Extreme relaunched its channel programme, the Extreme Partner Network (EPN), in five months ago to include a new rebate programme that expands beyond product sales to include solution-based selling and service renewals. Last week it added a new wireless specialisation to the programme.
Earlier this month it named Cisco sales exec Gordon Mackintosh its new senior director of its worldwide partner programme.
More recently it announced the appointment of former Huawei and Cisco exec John Morrison to the position of vice president, EMEA sales and services. Based at the company’s UK headquarters in Reading, John will assume responsibility for overseeing EMEA sales, services and strategy.
“John joins the Extreme Networks team at a really exciting time,” comments Bob Gault, EVP of worldwide sales, services and channels at Extreme. “John will be instrumental in delivering our redefined strategy – moving the sales function from product-oriented to solution-based.”
