Monday Morning Impact – July 25
Avnet Replaces Hamada; Names Interim CEO
Avnet, Inc. announced that William J. Amelio, a member of the company’s board of directors, has been named as interim Chief Executive Officer of the company, effective immediately. Amelio replaces Rick Hamada, who is stepping down from his position at the company and on the Board of Directors. Reasons behind the change in leadership were not amplified in the company statement.
Amelio brings more than 35 years of management and industry experience to his new role having served in senior positions at global publicly traded companies, and has spent most of his career managing global technology enterprises.
Amelio served as president, CEO and a director of CHC Group Ltd., an international oil-field services company, from 2010 to 2015. From 2005 to 2009, he served as president and chief executive officer of Lenovo, and was previously a regional senior vice president and president, Asia-Pacific and Japan for Dell Inc.
The company has also revised its guidance for the quarter ended July 2, 2016. Sales are currently expected to be in the range of $6.15 billion to $6.25 billion, which is near the midpoint of the company’s previous sales guidance of $6.25 billion. However, adjusted diluted earnings per share is expected to be in the range of $0.80 to $0.86 compared to the previous guidance of $0.95 to $1.05. This shortfall was impacted primarily by an ERP implementation in the Americas region of the Electronics Marketing operating group. Sales for the region are expected to be approximately $100 million less than the prior outlook and the region also incurred higher costs in order to maintain customer deliveries. Some of the higher costs incurred are expected to continue and will likely impact the first fiscal quarter ended October 1, 2016.
Channel Impact®
Hamada has been a fixture at Avnet for many years. His departure likely represents the beginning of significant change.
Dell Appoints New Global Channel Chief
As Dell moves toward the completion of its acquisition of EMC, Dell Technologies has named John Byrne as the Global Channel leader for the future combined company.
Byrne has been at Dell for one year and was most recently Global Vice President of Sales Strategy, Planning & Channels, where he focused on optimizing the company’s go-to-market strategy, which also included overall ownership of the channel business, including channel strategy and enablement, management of relationships with global systems integrators and distributors, and responsibility for the sales planning process.
Prior to joining Dell, Byrne’s 25-year career includes executive positions at Advanced Micro Devices (AMD) such as SVP & GM of their Client and Graphics Business Unit, Chief Sales Officer leading the global Sales and Marketing teams. At AMD he also managed the company’s channel and sales team, leading its partner program throughout his tenure. Earlier in his career he founded and sold two channel companies based in Europe.
Dell and EMC will continue to maintain separate deal registration and partner programs for 2016. An integrated program is expected to be rolled out next year.
Channel Impact®
Dell claims that 45% of its revenue comes through indirect sales. Promoting a channel veteran to this executive position seems consistent with that statistic.
Extreme Networks Updates Partner Program
Extreme Networks announced enhancements to its Extreme Partner Network program to offer new incentives and to promote ease-of use. Enhancements include rewards for solution-selling, new customer acquisition and wireless specialization rebates in addition to deal registration programs and training.
The company is increasing rebates for wireless sales, including a potential 50 percent rebate increase for qualifying Wireless Specialized Partners selling Extreme wireless products. Extreme has also adjusted its MDF accrual model and has announced improvements in deal registration, offering the ability to receive fixed upfront discounts for new Extreme-approved customer deal registrations, increased price protection and providing a new tool to increase partner transaction visibility. Additionally, eligible channel partners now have access to the new accounts rebate promotion, which applies for Extreme-approved net new customer closed deal registrations.
Eligibility for the solutions rebate program is now available for gold level partners, in addition to prior eligibility offered to Extreme’s platinum and diamond level channel partners. Gold and other qualified partner levels are also now able to apply for strategic EDF funds. A new service maintenance growth rebate is now available for new as well as renewed maintenance agreements for qualified partners.
Channel Impact®
Partner programs must consistently be updated to reflect shifts in partner expectations and market dynamics.
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