American storage vendor StorCase Technology Inc. aims to expand its market influence in Canada via an outsourcing agreement with Keating Technologies Inc.
The agreement, announced Tuesday, will see Markham, Ont.-based marketing firm Keating working with StorCase’s Canadian channel partners through reseller programs, spiffing and co-advertising.
StorCase, which manufactures plug-and-play, fixed and removable storage enclosures, currently works with Tech Data, Ingram Micro, Sky Data and Open Storage Solutions in Canada.
By pursuing a more aggressive marketing strategy in Canada, StorCase aims to double its Canadian business within the next 18 months, said Deborah Hartson, director of sales and marketing. “We have a sales rep here that did go out to Canada on a quarterly basis, but that’s just not enough. We need in-country services and support, hence we brought Keating on,” she said.
StorCase has been planning a Canadian move for more than a year, added Hartson. Hiring independent contractors was considered, as was opening a sales office in Canada, but that would have meant recruiting staff and adding more management to the California office, she said. “We have really no reason to do that as long as Keating is doing what they promised to do, and I have no doubt that they’ll do that.”
Diminishing returns from the storage market also factored into the Canadian expansion decision, said Hartson. StorCase is growing about 10 per cent year over year, but that’s down from previous growth of 25 to 35 per cent.
“They’ve upped the ante and got us involved to help cover off Canada,” said Peter Ross, marketing manager for Keating. The company hasn’t made its marketing proposal to StorCase yet, but Ross said partner programs have often worked the best for its high-tech clients, which include Gateway Business and Palm Canada Inc.
Hartson said the government sector accounts for 30 per cent of its American business, and the company is looking to duplicate its presence in that market in Canada. StorCase also plans to pursue corporate back offices and entertainment, primarily the video and editing market.