SGI to connect with channel through new program

Silicon Graphics announced that it will aggressively expand its global channel distribution strategy and indirect sales model. This announcement includes the launch of the new Channel Connection program, a robust sales, marketing and technical support program that will enable channel partners to build mutually successful business opportunities in the rapidly growing low- to mid-range high performance computing
(HPC) market.

This program redefines and delivers the tools, the campaigns and the capability to provide partners with the means to go to market easily and successfully. Under this new program, all types of SGI Channel partner associates — value added resellers (VARs), system integrators (SIs), original equipment manufacturers (OEMs), licensees, and independent software vendors (ISVs) are consolidated under a single global umbrella, guided by one global strategy. 

Key features of SGI Channel Connection include: Channel Connection Academy- It focuses on training partners with industry and technical specialization for a deeper understanding of customers' needs. Market Advantage: It delivers sales and marketing tools, including Market Development Funds (MDF), to enable partners' success. Service Advantage: It focuses on helping partners drive their own successful services business, without competition from SGI. Opportunity Registration: It enables a clear engagement model with no channel conflict or competition.

To achieve this, SGI has developed a global program to better support the channel and reorganized the SGI field organization to support a limited number of named accounts. Non-named accounts are identified as channel-only business. 

"The mid-range of the High Performance Technical Computing market is growing dramatically. During 2004, it grew over 47% and is expected to do well again this year. Additionally, we expect indirect server sales will increase in significance in the market as vendors work to expand their reach through more aggressive channel strategies," said Earl Joseph, VP, High Performance Technical Systems at IDC. "These two trends coupled with SGI's new channel strategy positions the company to take advantage of these growth factors." 

“SGI's future growth is dependent upon success in the channel and are committed to building mutually profitable businesses with our channel partners,” said Bob Bishop, Chairman and CEO, SGI. SGI's new global channel distribution strategy addresses three key areas for fueling company and partner growth in target markets of government and defense, sciences, manufacturing, energy, and media, as well as driving opportunities in new markets. 

They are: 1. Channel Connection-a specialized channel organization that opens technical and creative market opportunities to channel partners who offer vertical solutions for specific industry needs. 2. Independent Software Vendors (ISVs)- SGI partners with the top application software vendors in its target markets to highlight SGI's key differentiation. 3. New Markets- SGI's goal is to drive new innovations into new vertical markets via the original equipment manufacturer (OEM) channel. 

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