'We undertake comprehensive channel capacity planning.'

As director-business development, Anil Menon is responsible for developing Citrix's sales strategy for India and other South Asian countries. Armed with a BTech and an MBA, he brings a varied and rich experience in sales, product, channel and business management to the table. A founding member of the Forum of ASP's in India (FASPIN), he is closely associated with various industry initiatives. Anil speaks to DQCI on Citrix channel strategies:

How has the slowdown affected Citrix?

On the contrary, the slowdown holds opportunity for us. This is the time when our value proposition gets strengthened as most organizations stop or limit their spending on hardware. It is also the time when organizations look for better costs of ownership for their entire asset purchases.

Logically, this is the time to buy and deploy applications that put your back-end processes and systems in place. And this is where Citrix fits in. We provide applications on the thinnest protocol, the Independent Computing Architecture

(ICA).

Both MetaFrameXP and Nfuse use very little resources. These applications allow legacy systems to come together with the latest applications. So much so that Office 2000 can be run on a 486 machine using our applications. The ICA protocol has today become the de-facto standard for server-based computing and mobile communications.

This is a time for us to really grow and capture new markets, because our technology fits right when the markets are down. And we have also assured our US-based investors of achieving our targeted

growth.

What is the exact opportunity, then, which you are looking at?

More than developing new markets, our priority will be to ensure that our customers have the back-end processes of their business clean. As a consequence of the slowdown, there is not too much money in the market. And the little that is available needs to be leveraged to the best possible advantage.

We are helping companies to push their business productivity up. The technology space is no doubt looking at a trough. The main problem as of now is that of an industrial slowdown.

There is certain stagnation in that sector, but this pause in movement should not be a cause to create panic within the industry. The first step to a revival should be to get the industrial production back on the rails.

Where does the channel feature in your entire business plan?

For us the channel is the 'center of our universe'. We don't undertake any direct selling. And neither are any of our sales calls direct. We are a 100 percent channel-driven and channel-revenue company.

The company plans to drive its channel business by following a two-tier channel model. We work with two national distributors, Tech Pacific and

Datapro.

The second tier is the Citrix Solutions Network or CSN. We have more than 50 CSN partners across the country today, a number that we will move up to 100 by December 2001.

They are essentially systems integrators, who sell and support the application. For purposes of stocking and business development, the distributor is the key player.

We are also looking at market expansion through acquisitions provided the acquired company offers us the right strengths and reach.

How do you differentiate yourself within the channel?

Our policy of working closely with the channel is one based on precise and robust planning. We undertake a very comprehensive and complete Channel Capacity Planning exercise.

Herein the partners are categorized as A, B and C type partners on the basis of the partner and market potential. They are assigned internal targets after trend and variance analysis is undertaken.

The partner-specific detail is then communicated to the partners after every quarter. We ensure complete transparency in passing this information to our partners.

The Channel Activation Program or CAP helps partners adopt a basket approach, wherein Citrix deals with channel partners with varied skill sets and capabilities. After due identification, the partners undergo a comprehensive product training program, which equips them to fit Citrix solutions and create new demand.

The program follows a three-layered model as part of which partners are trained on aspects like need for Citrix, hands-on technology training and a certification through

NIIT.

We also certify our partners' sales force as Citrix Certified Sales Professional (CCSP) and Citrix Certified Administrator (CCA) for the technical staff. As part of Channel Activation Program (CAP), Citrix has already trained more than 300 channel workforce members across the four metros.

The channel often complains of inadequate margins. How do you look at this aspect of the relationship?

We undertake a CSN Review Process at the end of every quarter to especially look at the price point at which the sale is happening. Appropriate measures are taken if there emerges an alarming situation.

We ensure that the reseller does not stock. And all our channel activities ensure that there is no conflict. We as principals are no where involved in the sale and this is to ensure that the channel margins are not under threat.

In the server computing business, competition is on the decline so there is not much cause for concern, as margins will remain protected.

Do you foresee the Internet as a threat to the channel, especially the software channel?

While the Internet may definitely be a threat to box movers, there lies immense opportunity in it for those who add value. Anyone who adds value will do well. In a nutshell, it will take the pretenders out of the markets.

How do you ensure that the channel partners are adequately trained?

We address all the training needs of our partners under the CAP. They first undergo a comprehensive product training program. As part of our tie-up, NIIT, the third party service providers have been designated the Citrix Authorized learning Center or CALC.

The sales aspects are covered under CCSP certification and the CCA is valid for a product category like the

MetaFrame. We have developed case studies for the training and use the role play method.

The role play has made learning effective. And the application of these learnings have cut down sales cycle time by one-fourth.

To aid the selling process, we have also developed a cost-of-ownership calculator for partners to use.

What can the channel look forward to in the coming months?

The channel can look forward to additional releases of the product in the coming months. Our acquisition of Sequoia, a large integrated portal company for US $184 million will lead to a new product.

We are presently in the process of integrating their technologies with Citrix. This product will start shipping in India soon, though we have not frozen a date as yet.

MOHIT CHHABRA in New Delhi