Lenovo simplifying channel mechanics to encourage enterprise growth

From the start of April Lenovo is simplifying the way it works with the channel to encourage more partners to take its server products

This article can also be found in the Premium Editorial Download: MicroScope: MicroScope: February 2015

Lenovo is readying changes to its partner programme that will kick in at the start of its new financial year in April as it looks to increase growth through resellers on the enterprise side of the business.

With the x86 server acquisition from IBM finally closed and the channel team that came across now integrated into the Lenovo structure, resulting in an enlarged team that is now more than 45 people, there is a need for some changes to the way the channel operates.

From the start of April the vendor is simplifying its channel approach making sure that each reseller that has an account manager is able to talk to that single person about the vendor's entire portfolio.

The idea is not only to reduce the complexity that can result from numerous conversations but also to make it easier for those former IBM partners that want to dip their toes into the PCs waters to do so and vice versa from existing Lenovo resellers.

Darren Phelps, channel director at Lenovo UK and Ireland, said that it was looking to widen the products that the IBM partners had taken to market but also had the door very much open to bring on board fresh channel talent that wanted to sell its server range.

"We are strong in the enterprise, public sector is growing, SME and the mid-market. We are going to broaden out the number of resellers we trade with," he said.

Lenovo put out Q3 numbers earlier this week that revealed its traditional PC business had been solid and mobile had delivered strong growth and revealed that enterprise was now responsible for 9% of total revenues.

Phelps said that the only way was up for enterprise and it would be a busy year as it looked to grow its market share via resellers and increase the revenues from its server and storage portfolio.

Some of Lenovo's rivals have tried to exploit the uncertainty in the market that was exacerbated by the prolonged x86 division acquisition and although he did not want to comment directly on the competition Phelps was bullish about its prospects in the market.

"The way to answer it is that they will see us be active and grow in the market," he added "We are in a position now where we have to attack. We are hearing the right things from our channel partners and seeing the right things."

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