EMC contemplates bifurcation of business model

In a bid to reach out to small and medium enterprises, information management and storage solutions and services vendor, EMC Corporation, is contemplating bifurcating its business model. It plans to departmentalize its business into enterprise or corporate and commercial/SMB segments that will help the vendor to effectively target the two distinct business areas. 



While commercial/SMB sales would be carried out purely by channel partners, the former business (enterprise) would be driven mainly through mix and match of direct as well as channel sales. The new business model will come into force in the later part of this calendar year. 



EMC is also planning to introduce its Insignia range of SMB products in the APAC region. The vendor had been selling Insignia in America and other European market earlier. Before launching Insignia in the Indian market, the vendor will incorporate few significant variations into it keeping in mind the segmented markets of APAC. 



Of late, EMC has stared laying an augmented emphasis on the SMB market though it is traditionally been known to service the enterprise sector. Elaborating on its efforts of synergistically aligning its SMB strategy, Ron Goh, VP- Commercial and Channel Sales, EMC APAC/Japan said, “We are considering bringing in this strategic change into our business model keeping into account the rising importance of the SMB segment in India. Through our amplified go-to-market approach in various target verticals, we intend to widen our share wallet in SMB space.” 



EMC will shortly sign up more partners who will focus on verticals like automobiles, healthcare, manufacturing, finance and government. The vendor will select partners who have strong focus on these sectors and who could sell value to the customer. Goh informed, “EMC has a balanced portfolio wherein we have solutions for end to end IT requirements of the customers. We would prefer partners who have specific domain knowledge and who can understand customers specific IT requirements.”



However, Goh advocated the importance of value selling over box pushing for partners, as the latter holds little room for profitability. He advised partners to concentrate on selling services to the customers that would fetch them good margins.