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Computer Associates announces broad new initiatives to maximise business opportunities for channel partners

Defines clear rules of engagement
Johannesburg, 03 May 1999

Computer Associates International, Inc. (CA) has announced broad new initiatives to help its global channel partners maximise business opportunities with CA solutions.

For the first time, CA`s authorised channel partners will exclusively handle sales and services of CA products and services at channel-specific accounts. A newly created channel sales organisation will work to extend the sales organisations of CA channel partners by identifying, cultivating and supporting the sales and service process. This will include marketing support, sales leads, cross-selling strategies and training. CA will direct sales opportunities to authorised partners based on existing relationships and/or technology and product expertise.

Designated "relationship managers" will help ensure that CA channel partners have the resources necessary to successfully match CA solutions with client needs and integrate those solutions into clients` existing computing environments. CA`s world-wide field support organisation will help develop partners` technical pre- and post-sales skills.

In addition, CA`s pre-existing channel sales organisation will continue to provide recruitment, training and sell-in to two-tier and one-tier partners, national reseller organisations and distributors, and mail order and Internet-based fulfilment organisations.

"These new initiatives underscore the major commitment CA is making to its channel partners," said Gayle Kemper, CA senior vice president and general manager of world-wide channel sales. "By directing resources and tools formerly reserved for direct sales, we believe we will have an even greater impact on the success of our partners."

The new initiatives are in response to requests from CA`s Reseller Council, a committee of senior executives of leading CA distributors, resellers, OEMs and systems integrators, to define clear rules of engagement. CA hopes to increase channel-derived revenue to 50 percent of its total revenue.

"We value our channel partners for the close relationships they have with clients, their keen understanding of CA products and technologies, and their demonstrated ability to generate sales for CA world-wide," said Kemper. "With these new initiatives, CA expects channel sales to increase--which is a win for us, a win for the channel and a win for CA clients who may prefer to work with a value-added supplier they are familiar with."

CA is also increasing the number of its sales divisions world-wide, with the senior sales executive in each region responsible for both direct and channel sales. This will allow for better local co-ordination and help ensure that organisations have the same high-quality sales professionals. Existing CA accounts will continue to be serviced primarily by CA`s direct sales force.

"With smaller territories under each sales division`s guidance, CA will be able to give each account more attention," said Mark Stabler, CA senior vice president of world-wide channel marketing. "This flatter organisational structure will be much more nimble and responsive to the needs of CA`s channel partners and clients."

CA`s Global Professional Services (GPS) will also play a key role in supporting channel partner initiatives. For accounts designated as direct, GPS will act as the primary contractor and will subcontract work to qualified CA channel partners as appropriate. For designated channel accounts, channel partners will be the primary contractors, but will be able to subcontract work to GPS--enabling partners to generate additional revenue and margins by leveraging CA`s own resources and expertise.

Widespread Channel Support "I`m very impressed by the speed with which CA has responded to the channel` s needs," said Rick Hamada, executive vice president of Avnet Computer, a leading solutions integrator based in Tempe, Ariz. "This initiative answers a lot of the questions we were asking at the Reseller Council just last month. CA`s new sales structure, combined with the immediacy of response, tells me that this is a company that is serious about its channel."

"CA`s technology leadership has already created significant market opportunities for us," said Andy Chudzik, sales director of Computacenter plc, the largest U.K. company specialising in distributed information technology and related services to large corporate and public sector organisations. "Now, through this new channel strategy, CA is complementing that technology leadership with the sales and marketing support we need to achieve our business goals."

"Ingram Micro applauds CA`s increased commitment to the channel," said Phillip D. Ellett, president, North America for Ingram Micro Inc., the largest world-wide distributor of computer technology products and services. "This broad-based approach, combined with expanded support from CA, provides Ingram Micro even more opportunity to help our customers penetrate the market. This is a win-win strategy for CA and the channel."

"This new initiative continues to reinforce CA`s channel commitment and strong partnership with two-tier distribution," said Jim Illson, president and COO of Merisel, Inc., a leader in the distribution of computer hardware and software products. "This is a great win-win situation for Merisel and our reseller partners."

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Computer Associates

Computer Associates International, Inc. (NYSE: CA), the world leader in mission-critical business computing, provides software, support and integration services in more than 100 countries around the world. CA has more than 13,000 employees and had revenue of $5.1 billion in calendar year 1998.

For more information about CA, please call 516-342-5224 or email info@cai.com. CA`s World Wide Web address is www.cai.com. All referenced product names are trademarks of their respective companies.

Editorial contacts

Anke Robottom
Computer Associates Africa
(011) 236 9128
anke.robottom@ca.com