Tegile CEO Pledges Increased Channel Investments After Acquisition By Western Digital, Partners Cheer Strategy – Page: 1

Solution providers that partner with flash storage vendor Tegile Systems won’t face disruption following the acquisition of the company by Western Digital, with the main point being that Tegile will gain additional resources to invest into its channel program, Tegile CEO Rohit Kshetrapal told CRN in an interview.

Western Digital does not currently provide the sorts of performance-oriented flash storage offerings that Tegile specializes in, meaning there will be “no confusion” resulting from the integration of the companies, Kshetrapal said.

[Related: Western Digital Ups Its Flash Storage Game With Deal To Acquire Tegile]

Meanwhile, Western Digital—a storage components manufacturer that saw $19.1 billion in revenue for its fiscal 2017, which ended June 30—will bring additional resources to Tegile, he said.

“From a channel perspective, [the acquisition] allows us to significantly invest in the channel that we already have,” Kshetrapal said.

The company will now “expand into the channel much more than we’ve ever been able to do” with its line of products, which include all-flash and hybrid-flash storage offerings, he said.

Tegile has about 500 partners currently and is looking to add to its partner ranks, Kshetrapal said. The company is “very welcoming to other channel partners that are disgruntled with the choices that the marketplace is giving them,” he said.

Along with helping to ensure high margins for partners, the investments from Western Digital will enable incentives such as increases in market development funds and trial units for partners, Kshetrapal said.

Importantly, nearly all of Tegile’s 300 staff members—including in its sales and marketing organization—are expected to remain on board after the acquisition by Western Digital, which is expected to close during the week of Sept. 4.

Partners praised the expected continuity and investments at Tegile following the acquisition.

“If they keep a lot of the same leadership and sales team in place, that’s what really makes a difference,” said Mark Galyardt, president of XIOSS, an Atlanta-based partner of Tegile. “If it just seems business as usual, but they now have more resources behind them, I would say that is positive always.”

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