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Citrix Dumps All But One Distribution Partner in North America

Citrix Systems Inc. is causing some channel controversy with a decision to dump all North American distributors except for Ingram Micro Inc.

The move means Alternative Technology (owned by Arrow Electronics), Avnet and Tech Data are out of the North American Citrix distribution business on Aug. 30. Starting on that date, Citrix's 1,900 North American authorized Citrix Solution Advisors will rely solely on Ingram Micro for distribution of Citrix's XenApp, XenDesktop XenServer, NetScaler, Access Gateway, WANScaler and Provisioning Server.

Fort Lauderdale, Fla.-based Citrix, which had $1.4 billion in revenues in 2007, says the enhanced partnership with Ingram Micro won't affect relationships with distributors outside North America.

According to a statement from Craig Stilwell, the VP of Americas marketing and sales support for Citrix, concentrating efforts on one distribution partner will help the company drive partner recruitment and development, and provide better, more consistent programs for those partners.

It makes sense that Citrix could get a better commitment from a distribution giant like Ingram Micro with an exclusive agreement. But it's going to be a hassle for Citrix partners who've worked with the other distribution firms, and could be a negative for those Citrix resellers who used multiple distributors' promotions to good effect. This is a deal we'll have to keep an eye on.

Posted by Scott Bekker on July 29, 2008


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