Good Technology to restructure distribution channel

10.09.2005
Von Ephraim Schwartz

In the process of restructuring its distribution channel as it moves from a direct to an indirect sales model, Good Technology acknowledged Friday that it laid off part of its sales force.

Approximately 80 percent of the direct sales force was let go, as many as 175 or more employees, according to two sources.

While acknowledging the layoffs, Terry Austin, president, Worldwide Marketing and Sales, said the company would not release numbers. However, he said the move was made necessary by changing market conditions in which carriers -- instead of a large Good sales team -- will resell Good"s mobile products.

The growth potential in the mobile market is coming mainly from the demand for wireless access to e-mail and data over cellular devices.

Austin said it makes more sense for the carriers that already have strong relationships with the enterprise to sell a complete mobile package with a single bill.

"The carriers have the reach," Austin said.

There are approximately 650 million e-mail in-boxes in the world and only a handful that are wirelessly enabled. There were 50 million smart phones sold last year and that will probably double next year, added Austin.

In addition there are an array of new wireless devices soon to be released from companies like Motorola, Hewlett-Packard, Palm, and Nokia.

Senior Gartner mobile analyst Ken Dulaney said the move makes perfect sense for Good, noting that it will be easier to compete against its chief rival RIM, which also sells its service through carriers.