Big Profits On Tiny Hardware

Quantum Corp.'s Snap Server team is preparing a major channel push that includes two stunning twists: The effort will offer resellers 20 percent margins and won't involve any retail chains or online merchants.

The strategy, to be unveiled this fall, centers around the Snap Server, a thin server that Quantum acquired when it purchased Meridian Data Inc. earlier this year. Snap Server, also known as a network attached storage device, is gaining popularity as a low-cost, easy-to-install file server.

Quantum hopes to grow Snap Server's reseller ranks from roughly 100 partners to 2,000 resellers by the end of next year. The channel program will guarantee resellers 20 percent margins. Partners who sell 15 servers in a 90-day period also will receive a free evaluation unit, according to Erich Flynn, director of worldwide marketing for Quantum's Snap division.

As part of the effort, Quantum will sell the Snap Server family through only Tech Data, Ingram Micro and several high-tech catalogs. Quantum will no longer sell the thin server through retailers like CompUSA, nor will it pursue deals with online merchants like Buy.com and Onsale Inc., according to Maury Domengeaux, VP of marketing for Quantum's Snap division.

Quantum disclosed the channel strategy during an on-site visit with Sm@rt Reseller. The Snap Server channel effort is expected to kick off this fall, but Quantum declined to discuss exact dates for the initiative.