Feeds

Vanishing OEM robs Quantum of black ink

'There's a bunch of people who need to improve'

Gartner critical capabilities for enterprise endpoint backup

Why Dxi sales fell short

Gacek bluntly explained the reasons why DXi sales lagged: "We had plenty of opportunities to meet and exceed our DXi revenue plan. We just didn't get the deals closed by quarter end. We still are not getting uniform and consistent results from our team or our channel partners."

There was a DXi6000 product-positioning issue as well: "I believe the introduction of DXi 2.0 software on the 6500 while the 6700 remained on a previous generation software for several months, made it more complicated for our channel partners and our own sales team to drive the intended level of sales velocity. With today's announcement of our new DXi6701 and 02 appliances, which includes the DXi 2.0 software, this is obviously no longer an issue."

A compounding issue was increased competition: "We saw a much more aggressive competition in Q1 and our [overall] win rate was reduced to approximately 45 per cent [from 55 per cent]. However, with today's launch of the DXi6701 and 02, we believe we have a disruptive solution that will get us into significantly more opportunities, enable us to increase our win rate and overall revenue."

StorNext stumbled

Gacek also fingered StorNext sales: "The other main driver of the revenue shortfall was StorNext. Q1 was the first time in five quarters where we didn't grow StorNext either sequentially or on a year-over-year basis. While this fact has our attention, we do not think this is a start of a trend that will continue."

"There's a bunch of people who are doing very well and there's a bunch of people who need to improve."

"Most of the shortfall was in sales and into installed base as we still added a significant number of new customers. Q1 also did not include any revenue contribution from our new StorNext partnerships or the new StorNext appliance products."

Tape was a bright spot: "We also continued the trend of new customer acquisition, adding approximately 120 new mid-range Enterprise tape customers. We believe tape is far from dead." Indeed, and there is the recent OEM deal with HP for Quantum's Scalar i6000 library that encourages this view.

Coach Gacek says the team will pull back

Gacek drilled down deeper in answer to a question on the call: "I think the first issue ... is uniformity of execution... We have some channel partners and we have some salespeople who absolutely are doing great. And we have channel partners whose business have grown 400 per cent, 500 per cent year-over-year. We have salespeople who are way over their quota. So the number 1 issue that I would say, is we don't have uniform performance yet."

He said there were a number of factors that had contributed to this, including stronger competition in some accounts, some inadequately trained partners and salespeople that "lacking opportunities".

Gacek summed it up like this: "There's a whole bunch of tactical things... And it isn't just any one thing. There's a bunch of people who are doing very well and there's a bunch of people who need to improve, and we're trying to drive execution across all of that. I'll say this is a growth business and we're going to grow, but we have to start playing better to grow."

Gacek is determined to make up the missing revenue: "Q1 put us $6.5 million behind for the year, but we intend to make it up and achieve our growth objectives for fiscal 2012... Q1 put us behind, but we are driving to make it up for the year. We are not stepping back internally from our annual goals."

He added this: "As everybody knows on the call, this is a growth year for us. We expect everything to grow, but we expect the bulk of the growth to be driven by DXi and then StorNext. So to answer your question, yes, we think we're going to grow this quarter."

Ted Stinson has a job to do. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
A beheading in EMC's ViPR lair? Software's big cheese to advise CEO
Changes amid rivalry in the storage snake pit
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.