Feeds

3PAR adds offices serving five Apac countries

Nice, but how much does it help?

High performance access to file storage

3PAR has added five Far Eastern countries to its sales geography in one month, and is gaining customers in Norway and South Africa.

This month 3PAR has opened up operations in India, China, Australia, New Zealand and Korea. These all have local sales offices except New Zealand, which is covered by the Sydney office. There was already an office in Japan. Vaughan Woods is the regional director for the Asia Pacific 3PAR region and is based in Singapore. Tim Pitcher is responsible for international sales and the Asia-Pacific expansion would be down to these two people.

3PAR has also announced that it's partnering with Purity, a systems integrator in Norway, and a number of deals are in the pipeline.

So 3PAR is now able to gain customers in Norway in the EMEA region and in five Asia-Pacific countries, when practically speaking it couldn't do so before. If each country sells 10 systems a year that gives 3PAR 60 extra system sales a year. The company has been suffering from increased competition while costs in research and development (R&D), sales and marketing have gone up. Revenues in the last quarter of 2009 were $50.1m, compared to $48.16m in the same period in 2008. Support revenues increased while product revenues decreased due to lowered prices intended to win new customers.

Over the same period sales and marketing costs went up around $1.5m while R&D costs increased by around $0.82m. These factors turned a $507,000 profit in the last quarter of 2008 into a $474,000 loss in the last 2009 quarter. It looks like 3PAR has decided that international sales expansion is the way to get more sales revenue when the competition - such as EMC - is squeezing prices in new customer deals.

Another 60 system sales a year should provide a healthy fillip to sales revenue, but as we don't know the average deal size we can't work out how much they'll help. 3PAR has bookings targets for its sales execs and these are understood to be $850,000 to $900,000 a quarter - say $3.4m a year. Assume one notional sales exec per country above and 3PAR could gain an extra $20.4m annual sales revenue if every one does the business. Adding that revenue, say $5m a quarter, would restore the company to profit and to growth. New customers take time to travel through the sales funnel and we could look to a revenue boost from these new sales countries in the second half of this year.®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
USA opposes 'Schengen cloud' Eurocentric routing plan
All routes should transit America, apparently
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.