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New SGI Channel Program Enables Channel Partners to Build Businesses on Untapped Opportunities

Posted on: Monday, 27 June 2005, 12:00 CDT

Silicon Graphics (NYSE: SGI) has announced its plans to aggressively expand its global channel distribution strategy and indirect sales model, with the launch of the new SGI 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.

According to the recent HPC Server Forecast 2005-2009 by the renowned analyst firm IDC, the worldwide high-performance technical server units is forecasted to grow at an estimated 10.8 per cent. "The mid-range of the High Performance Technical Computing market is growing rapidly. During 2004 the sector grew over 47 per cent and this growth is expected to continue. In addition, IDC expects indirect server sales to increase in significance in the market, as vendors work to expand their reach through more aggressive channel strategies," said Earl Joseph, Vice President of 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."

Gilbert Soufan, General Manager, SGI, Middle East and North Africa, said: "The commoditization of high performance computers has pushed most manufacturers to offer their channel partners the same type of product. There was no room for innovation or differentiation. SGI is the only manufacturer who still provides channel partners with differentiated computing solutions. As this industry segment continues to grow, SGI's new channel-centric strategy, scalable product line and channel program, firmly position the company to increase revenue generated through indirect channels."

SGI's new global channel distribution strategy addresses three key areas for fueling company and partner growth in SGI's target markets of government and defense, sciences, manufacturing, energy, and media, as well as driving opportunities in new markets. These areas include SGI Channel Connection, Independent Software Vendors and new markets.

SGI Channel Connection is a specialized channel organization that opens technical and creative market opportunities to channel partners who offer vertical solutions for specific industry needs. SGI is creating fresh indirect sales opportunities with new program components enabling SGI to expand its reach into current and new markets.

"Further, SGI partners with top Independent Software Vendors (ISVs) in its target markets to highlight SGI's key differentiation. Our goal is to drive new innovations into new vertical markets via the original equipment manufacturer (OEM) channel," added Soufan.

SGI's Channel Connection 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), OEMs, licensees, and ISVs are consolidated under a single global umbrella, guided by one strategy. To achieve this, SGI has developed a global program to better support the channel and has reorganized the SGI field organization to support a limited number of named accounts. Non- named accounts are identified as channel-only business.

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

SGI's primary focus is in the scientific, creative and engineering markets, and it is within those areas where the open systems Linux environment of SGI Altix high-performance computing servers and Silicon Graphics Prism visualization systems, along with SGI InfiniteStorage solutions, offer the greatest value to end- users. SGI NUMAflex(TM) architecture, coupled with SGI's highly differentiated shared memory capability, running in a true 64-bit Linux environment on Intel Itanium 2 processors simply provide incredibly high-performance compute and visualization solutions that no other company can offer.

"SGI will also be announcing new low-end Channel-friendly products and quick-ship configurations in the coming months to focus on low-to-mid-range, departmental server, storage and visualization needs. Customers can truly "Expand on Demand" with SGI solutions, whether the compute power need is 2 processors or more than 10,000 processors and can grow as the customers' needs change," concluded Soufan.

2005 Al Bawaba (www.albawaba.com)

Source: Al Bawaba

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