Tech Data has become the latest distributor to be given its marching orders by Seagate Technology in a rationalisation exercise that has the number of EMEA partners almost halved in the past six months.
The disk drive giant has got rid of around 15 distributors across the region including pan-regional Avnet Technology Solutions and a bunch of country specific players in the Middle East and mainland Europe.
Talking to MicroScope, Mark Whitby, EMEA boss at Seagate,said it needed to make changes to reflect the size and shape of a recessionary market.
“Basically we have been reviewing our channel for the past six months,” he said, “there were a number of catalysts for this, not least of all the significant reduction in the overall market.”
Demand for disk drives integrated by national PC builders had also dropped and Seagate decided that “too many partners scrabbling around over too little business” was not a healthy or sustainable eco system.
“We decided in the current climate and going forward to work with fewer partners across the region and allow partners that continue with us to have a more attractive franchise, make a reasonable margin and invest in the business,” he said.
In western Europe, Seagate continues to partner Ingram Micro, Bell Microproducts and Actebis and in the UK it also works with Hammer and retail focused partners CMS Peripherals and Micro P.
Whitby was unable to talk specifically about the distributors it canned but said the actions taken would be concluded by year-end.
Volumes of business in the market did not support Seagate’s channel structure said one partner, who said the reductions in distributors would allow it to invest.
Tech Data and Avnet refused to comment.