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Home > News > People-Business
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Seagate Ends Distribution Tieup With Esys

By ChannelTimes Staff
Mumbai, Nov 8, 2006

Seagate has terminated the Distribution Agreements between it and eSys Technologies Pte Ltd. The Indian entity, Esys Information Technologies, however, remains unaffected by the development as Seagate business is not a part of its product portfolio.

During the current quarter, Seagate had requested an intrusive audit of Esys' documents. Esys said it has declined access to a wide-ranging series of requests, citing in particular its commitment to the confidentiality of data relating to its customers and other vendors.

"There have been protracted negotiations starting 2nd October 2006, during which time Seagate has repeatedly refused to provide shipments of their products as required under the Agreements. Despite this, and as a sign of good faith, Esys has continued to pay Seagate for invoices raised, bringing down outstandings from $103 Mln to $50 Mln, a fact acknowledged by Seagate as well. Esys has a long history of meeting its commercial liabilities in full, and intends to continue this record," Esys said in a press release.

Esys refuted any allegations of irregularities in its compliance of the Agreements. Over the last six years, the release stated, Esys has been supportive of Seagate's and Maxtor's strategies, even at some cost to itself and its shareholders. "Unfortunately, the intrusive nature of the audit would not be justifiable to our worldwide business partners under normal business practices," the company said.

Esys is looking forward to an amicable solution to the current issue, which will benefit the channel.
What do you think of this development?

     
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Comments
                                         Sep 18, 2008 09:41 AM
                                         Report as offensive
yes, giving the best benefit
- vinod jain, system solution, indore
Reply  
                                         Oct 16, 2007 11:55 AM
                                         Report as offensive
THIS IS ON OF THE GROWING COMPANY.THE PRODUCTS ARE TOO GOOD.I NEED ONE MORE FAVOUR I LIKE TO WORK IN HP IN BPO NON VOICE PROCESS. I WANT KNOW WHAT TYPE OF ONLINE TEST THEY LL GIVE . CAN I GET THE MODULE PAPER
- PREETHI.S, REKHA AIR TRAVE, BANGALORE
Reply  
                                         Oct 09, 2007 09:45 AM
                                         Report as offensive
Please inform me Service Centre details for HP DIGICAM with out Warranty
- PAULI BABY, RASHI PHERIPHER, COCHIN
Reply  
                                         Dec 14, 2006 04:17 PM
                                         Report as offensive
Definetly its lossof segate.
- Vikash, Rajshree, Sasaram
Reply  
                                         Jun 16, 2007 07:29 PM
                                         Report as offensive
  i belong to your city but left good 30 yrs back,work for indian airlines & posted at dubai.how is it to be there now ?
    - anand pandey, indian airlines, dubai
 
                                         Jun 09, 2007 11:29 PM
                                         Report as offensive
Segate again parting away with e-sys now lastly it parted away with one company, dosnt it seems that joining and again departing will hamper and impact the services as well warratny issues as again some of the support and sales teams needs to be diversified and re-arrange the things as well the supply chain gets disturbed, well whatever cant be very much sure, be happy till services are good or else.........
- MANISH BAKSHI, BABAJI ENTEPRIS, Baroda
Reply  
                                         Nov 12, 2006 08:36 AM
                                         Report as offensive
Vikas knows exactly why he refused access to Seagate and Seagate CEO knows exactly why he denied distributership to Esys. No one can guess it right. Let's stop the excercise and not point fingers with inadequate information.
- Rahul, Vision Infotech, Texas
Reply  
                                         Mar 02, 2007 01:00 PM
                                         Report as offensive
  Rahul - you're the one who's logical and sensible. No one really knows what is going on except the people involved. Everything else is just speculation. The news that trickles down to us is only a tiny part of the real story. Just think - why would Seagate drop eSys if working with eSys was profitable? There's a lot that we don't know.
    - Anonymous, Anonymous, Singapore
 
                                         Dec 29, 2006 04:33 PM
                                         Report as offensive
esys has also doing manuplation in microsoft reporting. without sale they do reporting just to make money. same malpractice is also doing for intel,samsung and others. unethical company.let them close their office and windup their business
- saptami, xxxxxxxx, xxxxxxxxxx
Reply  
                                         Jan 23, 2007 01:29 AM
                                         Report as offensive
  Due to the use of unacceptable language, the comment has been removed by the moderator.
** Message edited by moderator **
    - partha, xxxxxxxxxx, xxxxxxxxxx
 
                                         Dec 06, 2006 01:47 PM
                                         Report as offensive
Seperated from Esys will definitely effect Seagate Market.
- MATHEW, XXXXXXX, XXXXXXX
Reply  
                                         Nov 09, 2006 09:04 PM
                                         Report as offensive
Western Digital can fulfil the gap now because he all range of products.. from 40gb to 500gb pata and sata
- R vora, Skyline systems, indore
Reply  
                                         Nov 10, 2006 11:50 AM
                                         Report as offensive
  What Western digital dost, they don't even have the SCSI / SAS Drives in their Product line, and you are talking about 40-500GB. Now a days every HDD Vendor carry that range. and No vendor can play only on Desktop range...so i think its a useless comment...coz market also demands Laptop drives, so i think now every vendor has to play a very strategically. So tough time for everybody. All the best to Seagate, Hitachi and Samsung.
    - Vicky, Vikrant compute, Bangalore
 
                                         Nov 22, 2006 05:08 PM
                                         Report as offensive
  As i thik you are there in Computer market from past 5-10 years but do you think that WD can replace Segat market share either it is SATA or PATA
    - Atul, xxxxxxx, xxxxxxx
 
                                         Nov 22, 2006 05:03 PM
                                         Report as offensive
This shows that eSys was doing some illegal work like billing for indian ans slaes in other country. This is not only with Seaget that this thing happen if any Vendor from the eSYs portfolio want to audit they never allow them too. for example apple all billing done by the name of any indian partner but sold out in singapor only
- Atul, xxxxxxx, Delhi
Reply  
                                         Nov 20, 2006 07:33 PM
                                         Report as offensive
Audit compliances are not unheard of in any business. And often, divulging sales figures are vulnerable to strategy too. Well everybody will have their own justification for the termination of e-sys distribution by seagate. As Seagate admitted in their press release e-sys is committal to their commercial liabilities and let us hope that will take them to a long way in the industry. ......
- Raj Nair, Market watch, Dubai
Reply  
                                         Nov 13, 2006 11:07 AM
                                         Report as offensive
ESYS also manuplating reporting of Microsoft,Samsung, Intel and all products they have to qualify the scheme and get incentive. Most unethical company.Setting fire at their own warehouse and claimin from insurance........ill earned money
- PARTHA, XXXXXXX, XXXXXXXXXX
Reply  
                                         Nov 16, 2006 04:22 PM
                                         Report as offensive
  I think you were there only earlier...you only used such kind of brain & tried to convince higher managment but you couldnt... That's why you can write it so confidently...poor think of urs so poor word from you....
    - XXXXX, XXXXX, XXXXX
 
                                         Nov 16, 2006 10:52 AM
                                         Report as offensive
all i can say is scsi is on the way out smart technicians dont use it and just wait till vista you will all want a samsung drive and WD dont fail anywhere near as often as seagate or maxtor so i think seagate will lose out big time to samsung when vista comes out to make it worse they just lost 7% of the chanel world wide and that isnt anywhere near as much as what esys lost people buy from esys regardless due to service mainly warranty service so i think seagate is more worse off than esys because of this
- xxxxx, xxxxx, xxxxx
Reply  
                                         Nov 09, 2006 01:58 PM
                                         Report as offensive
PEOPLE TALKING ABOUT SAMSUNG BECOMING NO 1 IN NEAR FUTURE AND BEST ALTERNATIVE FOR SEAGATE DONT REALISE THAT STOARGE TECHNOLOGY HAS GONE SEA CHANGES.SAMSUNG DOESNT HAVE TECHNOLOGY NOR HAVE THE INCLINATION TO DO SO.
- AMAR, SHIVSHAKTI, MUMBAI
Reply  
                                         Nov 09, 2006 05:30 PM
                                         Report as offensive
  i heard Microsoft Vista operating system is going to be launched in dcember. Vista OS relies on hybrid HDD with flash memory. only samsung seems to have developed that technology which will give it tremendous technology advantage in near future. infact, microsoft worked only with samsung for developing this new technogy. so all better watch out.
    - kaushal, S/W engineer, delhi
 
                                         Nov 10, 2006 11:39 AM
                                         Report as offensive
  Mr. Kaushal, are u a software person or a Samsung Technical person, that ur so confident about Samsung & Microsoft technological tie up......
    - Anonymous, Anonymous, Anonymous
 
                                         Nov 15, 2006 04:08 PM
                                         Report as offensive
  it is all over the news and in almost all IT related websites...visit microsoft website and c/net, tomshardware etc...
    - kaushal, s/w engineer, --
 
                                         Nov 15, 2006 07:18 AM
                                         Report as offensive
Since ESys provide credit terms to the channel, no one shld villify them except Seagate if and only if ESys does not fulfill its obligations. Just a separation betwn 2 companies
- Rajoo Guide, Componix Techno, Singapore
Reply  
                                         Nov 13, 2006 06:55 PM
                                         Report as offensive
Neoteric is trying thro V5 for distribution and so is cyberstar. What will happen to Hitachi?
- Mohan J, Bhimji Tech, delhi
Reply  
                                         Nov 10, 2006 10:30 AM
                                         Report as offensive
Vikas, the esys CEo has been playing same tricks with other companies earlier including karma distrubtion etc so this was bound to happen. he never had a clean record. He played same tricks with VIA technologies in future companies with transperency and clean audits will survive e-governance, corporate social responsibilty, business ethics will judge the comapny not sales
- sourit, MCG, new Delhi
Reply  
                                         Nov 10, 2006 01:56 PM
                                         Report as offensive
  Hi, I dont think any business is clear with all these things.........would say look into yours also. On the more....whatever he was doing but still he has given value to all bcos of his operating efficiencies.
    - Harry, Anonymous, Bangalore
 
                                         Nov 12, 2006 08:24 AM
                                         Report as offensive
  Yaar hamaari baat sunio aisa ik insaan (read - IT distributor)chuno, jisne paap na kiya ho, jo paapi na ho.
    - Rahul, Vision Infotech, Texas