DataCore expolits LeftHand uncertianty

Virtualisation player DataCore has lined up a programme to wooLeftHand Networks’ resellers with software discounts and rebates in a bid to unsettlethe rival’s channel following the proposed acquisition by Hewlett-Packard. Last week HP confirmed it had agreed to buy LeftHand for$360m in cash, exten



Virtualisation player DataCore has lined up a programme to wooLeftHand Networks’ resellers with software discounts and rebates in a bid to unsettlethe rival’s channel following the proposed acquisition by Hewlett-Packard.

 

Last week HP confirmed it had agreed to buy LeftHand for$360m in cash, extending its reach into the iSCSI SAN market and the range ofprice points offered to customers.


The “Step Up to DataCore” scheme will try to convert anyreseller potentially disillusioned by HP’s move - another system vendor buyingan iSCSI appliance manufacturer – by offering yet-to-be-stated aggressiveterms.

 

“HP is a terrific company,” said James Price, DataCoreSoftware vice president of product and channel marketing, “however manyLeftHand resellers, like our own partners, differentiate themselves from thecompetition by tailoring their solutions to the specific needs and budgets oftheir customers.”

 

“Freedom from hardware tie-ins is critical to deliveringthese solutions,” Price added. The firm said its software can plug into anyLeftHand appliance and businesses could shift to its technology with no extrahardware buy-in.

 

But money talks in the channel and to alter resellers’behaviour, DataCore said it will “aid VARs impacted” by the pending HPacquisition through discounted software and extra margin rebates as long asthey register customer accounts.

 

Some would say this is sweet justice as sources said LeftHandtried to disrupt EqualLogic’s channel following its acquisition by Dell – thefirst iSCSI appliance manufacturer to be acquired by a large systems house.

 

One LeftHand reseller that asked to remain anonymous saidthe channel had generally responded quite well to HP’s bid and “customers likeLeftHand’s architecture, now it will have the backing of a global brand”.

 

Rather than unsettling LeftHand, the acquisition by HP willgive the technology more credibility said Joe Fagan, group product marketingmanager at CMS Peripherals, one of the vendor’s UK distribution partners.

 

“It gives credibility to the LeftHand Network valueproposition and should increase pull through from users and make the salescycle easier [for resellers]” he told Microscope.

 

The acquisition by HP is due to complete in January 2009 andthe integration is expected to take a further twelve months.


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