Channel Represents 33% of Xiotech Total Revenues

Xiotech Corporation announced that its Xcel Channel Partner Program has delivered growth in recent months. Channel revenues, as a percentage of total company revenues, increased 33 percent year-over-year from 2008 to 2009 and the program attracted nine new Premier or Preferred-level partners in Q1 2010.

The expansion and success of the Xcel Channel Partner Program underscore the strong adoption of Xiotech’s game-changing Intelligent Storage Element (ISE) technology, which delivers the industry’s highest-performing and most reliable application-oriented data storage – ideal for server and desktop virtualization. ISE storage blades enable 100 percent usable storage capacity, while maintaining optimal performance as drives approach full utilization. Notably, due to efficiencies in ISE, Xiotech allows organizations to scale their storage infrastructures with unprecedented flexibility and cost effectiveness.

"Xiotech is on an aggressive growth track, thanks to the tremendous momentum around our patented ISE technology, significant traction in virtual operating environments and the strength of a broad, value-based partner community," said Brian Reagan, senior vice president of marketing and business development at Xiotech. "We’re committed to enabling our partners’ success, and we will continue to engage new partner organizations to help us drive revenues in 2010 and beyond, and further expand our international presence."

"Although 2009 was generally a tough year for the storage industry, Xiotech came through it better than many, helped by its channel program," said Mark Peters, senior analyst for Enterprise Strategy Group. "The company’s Intelligent Application Storage – based on its ISE technology – is not only gaining end-user ‘raving fans,’ but is also winning partner acceptance as they find they can use it to solve real data center issues and deliver real cost savings to their customers."

Xiotech has nearly 100 active partners in its Xcel Channel Partner Program, which is designed to involve partners in the Xiotech sales strategy so they can more effectively sell ISE technology. Xiotech’s territory management sales model provides partners with the local field support they need to ramp their business and win deals. The program also provides margin protection, joint marketing, lead generation and advanced technical training.

The Harding Group, based in Dallas, was Xiotech’s top-selling partner in 2009. They experienced year-over-year growth of 68 percent in storage revenues primarily because of Xiotech’s ISE technology and its integration with VMware, which delivers automated provisioning, performance and simplified storage management – three major concerns of clients as they move from physical to virtual platforms. The Harding Group drew upon its 13-year partnership with Xiotech to cultivate opportunities in the enterprise space, and Xiotech provided support and resources allowing clients to develop a deep understanding of the efficiency and performance of ISE.

"ISE technology has enabled us to design solutions for clients that allow them to focus on their business, instead of managing storage. By adding this value, Xiotech has provided us with a technology and a partnership that is a great tool for us," said Ron Verner, president and owner of The Harding Group. "In the tightening economy of 2009, it was a definite advantage for us to be able to rely on our relationship with Xiotech to grow our business."

The Xcel Channel Partner Program
Since its launch in March 2008, the Xcel Channel Partner Program has offered several new advantages to storage channel partners. Most significantly, the program provides minimum margin guarantees and clear rules of engagement to protect reseller margins in highly competitive bidding situations. Additionally, the program includes a substantial opportunity registration discount, which rewards and recognizes the reseller that initiates new opportunities.