Feeds

Seagate to mount global two-pronged channel assault

Will keep Maxtor brand

Secure remote control for conventional and virtual desktops

Seagate will maintain the Maxtor brand in the channel as well as in retail, the HDD vendor has said.

It will use the Maxtor brand to attack to cheap end of the market, where it claimed the other manufacturers are deliberately losing money to gain market share.

Seagate's VP of segment marketing Marc Jourlait said: "Rather than just the Seagate big guns, we have a different set of Maxtor weapons to go into battle against the likes old Samsung, Western Digital and Hitachi."

Seagate acquired Maxtor for around $2bn in a deal that went through in May. Seagate quickly announced it would continue to sell Maxtor retail products such as external hard drives. The fate of Maxtor's volume business and its channel partners was left open.

Following the deal, top brass "had a hunch there might be a dual brand play in the channel", Jourlait said.

After getting the analysts in, Seagate has decided to position Maxtor at the low end of its business; smaller capacities, shorter warranties and, crucially, cheaper. Maxtor will be the vanguard of Seagate's plan to dominate burgeoning markets in China, India, Russia, and Latin America.

The analogy used by Seagate execs for the unusual play is the HP acquisition and subsequent successful use of the Compaq brand. The Maxtor brand will get new products, with its first notebook range.

Because Maxtor no longer exists as a company, resellers will have to negotiate fresh contracts with Seagate. The firm said yesterday there was a little overlap between Maxtor's old disties and its own and it would be looking to maintain relationships.

Jourlait said the cull of 6,000 jobs following the buy-up is more or less complete. Seagate is now working to make Maxtor's factories more efficient by shipping in their own practices, which rely more heavily on robots. ®

Internet Security Threat Report 2014

More from The Register

next story
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Intel offers ingenious piece of 10TB 3D NAND chippery
The race for next generation flash capacity now on
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.