Seagate is to close the Dubai office that Maxtor had set up, following the US$1.9 billion purchase of its rival hard drive vendor last year.
The closure is part of changes to Seagate’s channel structure that the hard disk drive (HDD) vendor’s Middle East management team has outlined following the acquisition.
Despite the loss of the Dubai office, Seagate said it still had a strong presence in the region with a team of staff working throughout the Middle East.
“We have kept on some Maxtor employees and have taken decisions regarding offices,” explained Gulfem Cakmakci, senior channel sales manager, Seagate Eastern Europe, Middle East and Africa.
“The Dubai office is closing down. At Seagate we believe that it is more important to invest in people rather than physical offices and we have a team of people working across the region meeting all our partners on a regular basis,” she added.
A total of six distributors will now sell the entire portfolio of Seagate and Maxtor branded products in the Middle East.
Cakmakci said Asbis, eSys, FDC, Logicom, Mindware and Tech Data would be distributing Seagate and Maxtor products throughout the region, MAS would distribute in Egypt, ESAP in Saudi Arabia, Almasa would sell Maxtor lines only, while both Delta and Jarir will operate as retail distributors.
“We have also worked hard behind the scenes on the brand positioning for the Maxtor and Seagate product lines that we now carry. Seagate is positioned as a premium brand with leading edge technologies.
For Maxtor, there will be more of an emphasis on pursuing the volume market.”
“We will have a dual-brand strategy for the channel where Maxtor is more of a mainstream, entry-level volume product. For this sector of the market, where there is an emphasis on volume deals, it is important to make sure that we have enough channel coverage,” she explained.
“Almasa is a very strong player in the volume space and that is why we decided it was best for them to focus purely on Maxtor,” Cakmakci continued.
She said in terms of the credit lines that distributors previously held separately for Maxtor and Seagate, Seagate’s finance department was currently working with partners on this point.