Berca Hardayaperkasa

The HDS (Hitachi Data Systems) of yesteryear and what we see today is very different. Before, the company was very focused on storage for the enterprise and customers needs in that area. Today, the company has shifted to modular storage and besides the enterprise, is also very focused on meeting SMB needs. “For a year now, our strategy has zoomed in on SOSS (Services Oriented Storage Solutions). This means that we have different solutions to meet different levels of services amongst the different types of customers,” explains Ravi Rajendran, vice president & GM, ASEAN, Hitachi Data Systems Pte Ltd. We cover basically everything in storage encompassing storage infrastructure solutions, storage management software and storage consulting services such as SAN, NAS, active archiving, back-up, virtual tape libraries (VTL) and so on. The key word for us in all this though, is services,” he continues. Another strength of HDS, notes Rajendran, is the company’s strong virtualization engine which can plug in all sorts of applications and meet different storage requirements. “It allows us to offer tiered storage that is simplified. In this way, we also enable data mobility and search capabilities for example. All this is vital in today’s environment where we are facing data explosion and where unstructured data such as files is especially growing at an exponential rate,” he elaborates.
 
HDS has also traditionally always had a very big focus on its channel strategy. For example, their partner program known as the TrueNorth Channel Program, has been instrumental in increasing partner profitability as well as driving HDS’ revenue since its launch in 2004. The program is also being constantly refreshed to make sure it is always able to completely engage and enable partners. Right now, the focus is on improving ways of rewarding partners  or loyalty and performance, therefore back-end rebates, coops and bonus rewards have been added. Just recently, the company also announced the launch of the enhanced Hitachi rueNorth Channel Partner program, with added recognition, benefits and incentives. The enhanced program now provides the tools and financial rewards that better adapt to the specific focus and needs of each individual partner organization. The key enhancements include richer financial rewards, flexible reward dates, a simple payout formula, a business plan requirement and greater partner differentiation with four partner levels (Platinum, Gold, Silver and Bronze).
 
“In HDS, especially in ASEAN,  our channel strategy plays a key hole in our growth and success. In fact, the function that has expanded the most is our channels, especially focused channels, and we’ve continued to grow here,” notes Rajendran. “For example, from the business standpoint of FYQ308, we have grown our ASEAN business by 45% year-on-year. In addition, we have grown our channel business by more than 55% in the same period year-on-year.” The increased focus and resources pumped into the channel have reaped rewards for both partners as well as HDS itself, with more coverage extended and even more opportunities brimming.
 
There are also strong signs that HDS’ partner model is maturing in the ASEAN region. For example, the company announced its first Platinum reseller who hails from Indonesia, this year. In addition, the company held its very first ASEAN Partner Summit on November 21st 2008 in Penang. Themed ‘Winning Together – Transforming Partnership Value’, the Summit saw 30 HDS ASEAN partners, mainly comprising the CXO level, attending. “This Summit is another milestone for us and extremely crucial for our growth with our partners in the region. It gave us a strategic platform and way of messaging to partners for the next 12 months. It enabled us to announce our enhanced True-North Channel Program and its focus, strategy and benefits to all our ASEAN partners. We were also able to exchange the best practices in our ever-changing industry. All this is significant for us as well as our partners in the region because until now, our messaging and channel campaigns were always on a country -level. Another first for us is our ASEAN channel awards ceremony which reflects our commitment and at the same time, is also a great morale booster,”says Michael Lyons, channel director, ASEAN. Four Hitachi True North Partners were awarded for their stellar performance over the past year. The winners for each category were:
 
ASEAN Partner of the Year Award:
PT BERCA HARDAYAPERKASA
This award recognizes the consistent delivery of targets, implementation and high levels of customer satisfaction.
 
Best Technical Win:
SOFTSOURCE
SOLUTIONS PTE LTD
Recognized for outstanding implementation.
 
Rising Star Award:
PT Pansystem Sistem Informasindo (Pansisfo)
Best new Partner in terms of meeting targets, solutions certification and business focus.
 
Distributor of the Year Award:
Business Network Alliance Sdn Bhd
Recognized for meeting targets, creating opportunities in the market and being a Value Added distributor to Channel partners. Rajendran adds that the Summit was also vital to ensure that their partners are aligned with DS’ strategies and vision. “One of our main reasons for holding the Summit was to enable partners to focus on strategic approaches and initiatives. We also wanted to emphasize that consistent performance is a key target of ours. The Partner Summit enabled our partners to better understand our strategy and arms them so we can drive the strategy together,” he notes. So what makes a partner attractive to HDS? The answer, says Lyons, is simple. Channel partner who have a strong solutions focus; a focus on horizontal solutions (i.e. an end-to-end approach) and a vertical focus are exactly what HDS wants. “Partners must be able to do incremental business and be able to provide depth,” expands Lyons. HDS’s partner ecosystem is made up mainly of SIs, tier 2 resellers and alliances (with the focus on building joint solutions).
 
Every country in ASEAN outside Singapore employs a 100% indirect model. Rajendran explains that Singapore has a big indirect mix but there are some larger MNC customers who still want to be managed and supported directly by HDS itself. Every country in the region though has a channel team and each team has identified where their growth is, both business and channel-wise. A key area that the channel teams are focusing on is ensuring that they have the right partners in place and then zooming in on enablement, especially when it comes to services. “We want to enable our partners so that they can also provide implementation and post-sales services. This is why our partners have to be more solution centric rather than just storage focused. Once you are services oriented, it keeps the customers coming back,” states Rajendran. That HDS is very stable when it comes to its partners in the region is very obvious and emphasized by the fact that they have many partners who have been with them for 10 years, and even one for 15. HDS is right now looking at increasing its number of partners on the Platinum side. The end objective is to get 1 Platinum partner per country/territory in ASEAN, and in Singapore, maybe even 2. Storage infrastructure system integration-type partners are also very attractive to HDS and the company wants to see more partners in this value chain. “It’s this very area that creates stickiness for the channels,” explains Lyons. Both HDS’ Gold and Platinum  channel categories are very exclusive and selective. “Partners here are very passionately linked to our HDS solutions and the brand. They can definitely make money with what they do here and we want to share our growth engine and see them do well,” Rajendran stresses. Both Rajendran and Lyons are proud of the traction HDS has gained with its partners in the ASEAN region over the last fiscal year. Over the next year, their mission for the region’s channels is to ensure that their partners are truly solutions and services enabled. To this end, they know that they already have the right mix of channels in place. “We just have to work hard on enabling all our partners but we are all set to continue leading in the storage industry. It’s both an exciting as well as scary place to be in as there are great opportunities ahead, As we transform our partnership value, we all win together,” concludes Rajendran.
 
This article originally appeared in the November 2008 issue of Asian Channels on page 12-13.

 

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