CRN Says "Sitting on the fence is not the answer when it comes to cloud go-to-market strategy"

The path of IT distribution has followed some twists and turns in recent years and the well-understood two-tier system is continuing to evolve. This is driven in part by the fact that Web 2.0 technologies now in the cloud have less complex sales cycles and more easy-to-install offerings.

When it comes to their go-to-market strategies, IT vendors have a choice: channel, direct or a hybrid model. As technologies have become less complex, and therefore easier to sell, there is a line of thought that says let's go direct and keep all the profits ourselves.

Alternatively, we are seeing an increasing number of vendors that wish to hedge their bets and keep a foot in both camps. They have their own direct approach as well as partnering with a distributor. This way, they've covered all their bases, right?

I can see the logic of the hedge-your-bets approach. And for vendors that have had a less than positive channel experience I can understand the appeal. Tales of big brands dominating mind share with marketing muscle and deep pockets are not uncommon.

However, there is a lot to be said for choosing one option - the channel model - and sticking with it.

There's a well-known phrase: "There are only two options regarding commitment; you're either in or you're out. There's no such thing as life in between." And I think that rings true here. Why?

Like most things in life, the more you put in, the more you will probably get out. From the distributor's point of view, my preference of course is for my vendors to opt solely for the channel route.

After all, why should I invest my team's resources, time and effort promoting a vendor, if they are going the direct route too - effectively cannibalising, and in some cases under-cutting, my efforts?

That said, I recognise that for vendors to commit 100 per cent to the channel, distributors and resellers need to bring something extra to the table, something that a vendor cannot do without the channel's help.

This is especially pertinent for lesser known but innovative technology providers that are trying to enter the UK market but struggle to be heard above the hype pushed out by "competitive" brands.

This is where real value-add distribution comes into play, and lots of column inches have been dedicated to the topic. Is the term just another marketing catchphrase? Does it actually mean anything at all? I would say yes, VAD does stand for something.

It stands for the level of service that will ultimately persuade vendors to opt for the channel model. But not all distributors are equal so you want to be sure you are doing business with a real value-adding partner.

How close-knit is the distributor's ecosystem? Are there proven, positive and productive relationships between the distributor and its resellers and end users?

Look for evidence, including the presence of strong account managers with a solid track record in closing business and for regular networking forums that bring together the distributor's community to share experiences and strengthen relationships.

How extensive is the partner base? Your business is unique. You need to be sure that your chosen channel partner has sufficient breadth and depth of choice to meet specific needs.

This includes looking at your vertical expertise or technology offering - do you need someone who understands security, for example? Make sure that your chosen distributor can match you to business partners that understand your requirements, and can address them.

Are there any services on offer to help sales? Companies are generally more successful if they are supported throughout the sales process. Perhaps there is a tailored vendor support launch pack, pre-sales and technical training, a virtual marketing team or an end-user demand generation platform. If there are no additional services, look elsewhere.

I am passionate about maintaining the value in distribution and I firmly believe that vendors will be more successful if they are supported and rewarded through strong channel partnerships and enabled with the right tools.

But make a decision and stick with it. Take the direct route or go through the channel - but don't hedge your bets. That's a diluted approach that doesn't work. If that is your chosen strategy, at best your business will not realise its full ambitions, and at worst it will fail completely.

The choice is yours.

Cloud Distribution Inks Exclusive UK & Eire Partnership Deal With WatchDox

Reading, UK – 25^th November 2013 – Security and networking value added distributor (VAD) Cloud Distribution has signed a distribution agreement with WatchDox, a provider of secure file sharing, synchronising, collaboration, editing, annotating and mobile productivity solutions. The WatchDox offering is the most secure way to enable increased workflow and mobile collaboration by allowing end-users to access, share and control critical documents wherever they go on any tablet, smartphone, or PC, and even on devices beyond the IT department’s control. With immediate effect, WatchDox will enhance Cloud Distribution’s Enterprise Mobility stack and Cloud Distribution will become WatchDox’s sole distributor across the U.K. and Ireland.

Cloud Distribution’s Enterprise Mobility solution enables value added resellers (VARs) to promote an enterprise-class solution as a product sale or managed offering, including secure Wi-Fi connectivity, network access control, device management, data centric security and device APT and malware protection. WatchDox significantly enhances Cloud Distribution’s portfolio, particularly for organisations in industries such as technology, finance, legal and manufacturing, where sensitive information has to be shared externally.

“The need to deliver a secure enterprise mobility strategy is one of the most pressing issues that IT security teams are tackling today as mobile workforces are only set to grow. The addition of WatchDox means that our Enterprise Mobility stack can deliver a complete solution for resellers to offer their end users, all of whom are striving to prevent data loss, mitigate security breaches and meet compliance regulations,” said Adam Davison, director at Cloud Distribution.

“More enterprises are moving away from consumer Dropbox-type file sharing and mobile solutions due to security concerns. WatchDox provides the enterprise-level secure mobility and collaboration functionality that organisations need,” said Ryan Kalember, chief product officer at WatchDox. “Having recently established our EMEA headquarters in London, we sought a distribution partner in the U.K. With its rich IT security credentials and expertise in introducing new technologies to the U.K. market, Cloud Distribution was the obvious choice for WatchDox.”

Dave Henderson, Sales Director at, the UK’s leading mobility integrator, Bluefort Security, said, “The mobile challenges of security, collaboration and secure sync are almost universal among our customers. With WatchDox now part of Cloud Distribution’s portfolio, we can now offer a complete end to end secure mobile enterprise security solution, from MDM,MAM,  zero day malware protection right through to secure file share, edit and collaboration.”

Vendors included in Cloud Distribution’s Enterprise Mobility solution are:

·         Aerohive Networks - Simplified cloud-managed Wi-Fi and networking

·         Meraki                   – Next-generation wireless connectivity

·         Maas360                 – Gartner leader for cloud-based mobile device management

·         Lacoon Security      – Zero day malware, APT and AV protection for mobile devices

·         Watchful Software  – Data-centric security, DLP and ERM

·         WatchDox               – Secure sharing, control and collaboration with files on the move

All the technologies in Cloud Distribution’s Enterprise Mobility solution are next-generation, cloud-based and easy to deploy, delivering faster and easier sales cycles for resellers. The solutions can be sold as stand-alone offerings, bundled or as partner-branded managed services, enabling resellers to create their own bespoke enterprise mobility solutions that meet the needs of their end users.  

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About Cloud Distribution

Cloud Distribution is a value-added distributor of disruptive next-generation security and networking solutions that VARs can take to market quickly and easily. It currently distributes Meraki, PepLink, Talon Storage Solutions, Lastline Inc, Lacoon Security, WatchDox, Watchful and Fiberlink. Its portfolio of disruptive security and networking solutions helps resellers to differentiate themselves from the competition and create new markets to sell in.  The company was founded in 2009 by senior executives with a wealth of experience in the security, networking and optimisation space. Its philosophy is to take innovative, cutting-edge vendors into the UK market by recruiting and working together with skilled, reputable, market making partners.  For further information please visit www.cloud-distribution.com. Follow us on Twitter @cloudtweeters.

About WatchDox 

WatchDox enables organizations to access, protect and control their critical documents wherever they go on any tablet, smartphone or PC, even those beyond the IT department’s control. With WatchDox technology, organizations can collaborate securely with partners, safely adopt bring-your-own-device (BYOD) initiatives, and destroy their documents remotely if a device goes missing. More than 100 of the Fortune 1000 – including many of the world’s leading financial institutions, manufacturers and government agencies – depend on WatchDox secure file-sharing solutions. For more information, please visit http://www.watchdox.com.

Cloud Distribution reports strong growth and builds momentum

Reading, UK, 28th October 2013 – Security and networking next-generation value added distributor (VAD) Cloud Distribution has reported strong business results for the first nine months of 2013, including 300% revenue growth, fuelled by a strengthened vendor portfolio, the introduction of a range of pre-packaged services to accelerate its partners go-to-market strategies and additions to its team.

“Cloud Distribution has had an incredible 2013 so far,” said Scott Dobson, managing director, of Cloud Distribution. “We’re making good progress against our mission to introduce disruptive, innovative security and networking technologies to the UK, and we’re already ahead of our revenue forecast.  We’re building a strong, evangelical reseller community by providing services and tools to accelerate their go-to-market strategies.  We are looking to exit 2013 with a strong tail wind which will set us up beautifully for 2014.”

Key successes include:

Extended vendor portfolio - signings include Aerohive Networks, Enterasys Networks, Exinda, Fiberlink Maas 360, Lacoon Security, Lastline, Talon Storage and Watchful Software.

Solution approach - four solution stacks have been created – LAN & Wireless, WAN, Enterprise Mobility and Security – all comprising products that are next-generation and cloud-based. The solutions can be sold stand-alone, bundled or sold as a partner-branded managed service, enabling resellers to create their own bespoke solutions that meet the needs of their end-users.  

Value-add sales tools – designed to support business partners in building qualified pipeline, and assisting with commercial and marketing activities, these include: 

·       Altitude – an outbound demand-generation service which has delivered 200+ opportunities in the past 4-months for Cloud’s business partners.  Altitude’s telemarketing team has grown by 300% in 2013.

·       Cloud Cover – a range of professional services and pre-packaged post-sales support offerings including Customer Direct, aimed at partners of all sizes who wish to outsource their support; Partner Branded, as with Customer Direct but calls are answered as if the customer is calling the partner; and Partner Enabled, to enhance a partner’s existing support offering.

·       Cloud Crowd and Cloud Club – high-level networking and incentive initiatives to create an active and productive ecosystem for Cloud’s business partners.

Dave Henderson, sales director at Cloud reseller Bluefort said, “Cloud Distribution’s Altitude service is second to none.  In a very short space of time we had a solid pipeline of qualified leads, many of which have now converted into deals. This really makes Cloud stand out from our more ‘traditional’ distribution partners.”

Jonathan Mepsted, UK sales director at Lastline commented, “Cloud Distribution’s demand-gen capabilities are unrivalled.  We’ve rapidly gone from a standing start to having a solid, qualified pipeline of leads, something that we could not have achieved so quickly on our own.  In addition, the fact that we are offering our customers a 24x7 Lastline-branded help desk, thanks to the Cloud Cover offering, has helped us reinforce our position as a credible player in the market.”

Strategic hires – Cloud Distribution’s team has grown by 350% in 2013 with hires across the board.  Among Cloud’s new starters this year are industry veterans Andy Fidgeon and Dale Wilson who joined the team as UK sales manager and northern account manager, respectively.

Industry recognition – winner at Microscope ACE and CRN’s Sales & Marketing awards.

Scott Dobson concluded, “The momentum we have enjoyed in 2013 is just the tip of the iceberg.  Our strategy of bringing innovative and disruptive security and networking solutions to market is paying off.  We are plugging a real gap in the distribution market, giving next-generation technology vendors the platform they need to succeed.”

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Cloud Distribution is a value-added distributor of disruptive next-generation security and networking solutions that VARs can take to market quickly and easily. It currently distributes Meraki, PepLink, Talon Storage Solutions, Lastline Inc, Enterasys, Lacoon Security, Watchful and Fiberlink. Its portfolio of disruptive security and networking solutions helps resellers to differentiate themselves from the competition and create new markets to sell in.  The company was founded in 2009 by senior executives with a wealth of experience in the security, networking and optimisation space. Its philosophy is to take innovative, cutting-edge vendors into the UK market by recruiting and working together with skilled, reputable, market making partners.  For further information please visit www.cloud-distribution.com. Follow us on Twitter @cloudtweeters.

Cloud Distribution has maintenance services covered

 Uniquely enables VARs to wrap service revenue around cloud & subscription-based technologies

Reading, UK 14^TH October 2013 – Security and networking next-generation value added distributor (VAD) Cloud Distribution has extended its Cloud Cover brand of professional services, pre-sales, maintenance support and training services, by introducing a new range of pre-packed post-sales support offerings. 

Cloud Distribution’s new support services offer a menu of pre-packaged options with various SLAs available, as well as the choice of a white-labelled support service to enable VARs to offer their own-branded outsourced helpdesk with a dedicated telephone number.  A key advantage of these options is that they enable VARS to position themselves with customers as having a bigger team in place, enabling them to compete with some of the larger and more established organisations in this space.

As well as enabling Cloud’s reseller partners to offer an efficient and effective IT support service for the majority of products within the Cloud Distribution portfolio, these new post-sales options will enable them to build service revenue around cloud subscription technology and fast-track go-to-market strategies for new products, without the need for costly, upfront investment in additional resources.

Cloud Distribution’s new pre-packaged options include:

Cloud Cover - Customer Direct: Ideal for partners of all sizes who wish to outsource their support to our product specialists, enabling partners to focus their valuable technical resources on other revenue generating activities. This includes calls answered as Cloud Distribution, 1^st, 2^nd and 3^rd line support, as well as next business day advance (return merchant authorisation) RMA.

Cloud Cover – Partner Branded: Encompasses all the attributes of Cloud Cover Customer Direct with the added benefit of being “partner branded”. This means that all calls into the service desk are answered as if the customer is calling the partner, enabling the partner to give the impression of a larger organisation. This package also includes a unique, dedicated phone number along with 1^st, 2^nd and 3^rd line support on the partner’s behalf.

Cloud Cover – Partner Enabled: Designed for partners who have already made a significant investment and have a dedicated support desk. The enabled partners’ package provides first line support to the customer, with product specialists supporting the partner when required. 

James Ball, Technical director at Cloud Distribution said, “We value the success of our partners and do everything we can to help them grow their business. The availability of our post-sales maintenance and support services, especially the Partner Branded offering, creates the perfect climate for resellers to increase their profitability by delivering superior customer service and added services revenue.”

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Cloud Distribution is a value-added distributor of disruptive next-generation security and networking solutions that VARs can take to market quickly and easily. It currently distributes Meraki, PepLink, Talon Storage Solutions, Lastline Inc, Enterasys, Lacoon Security, Watchful and Fiberlink. Its portfolio of disruptive security and networking solutions helps resellers to differentiate themselves from the competition and create new markets to sell in.  The company was founded in 2009 by senior executives with a wealth of experience in the security, networking and optimisation space. Its philosophy is to take innovative, cutting-edge vendors into the UK market by recruiting and working together with skilled, reputable, market making partners.  For further information please visit www.cloud-distribution.com. Follow us on Twitter @cloudtweeters.

ChannelPro Says "Cloud Distribution seeks to ask the question - is cloud computing the tipping point for distribution?

Cloud computing is changing the distribution landscape - are you maximising the opportunity?

For decades the IT industry has operated effectively on a well-understood two tier system comprising distributors and resellers, with each having clearly-defined roles and responsibilities. However, cloud-based technology is fundamentally changing the distribution landscape, not just for the distributors and resellers, but for vendors and end-users too.

Cloud is here to stay

According to the Cloud Industry Forum, by the end of 2013, more than 75 percent of UK businesses will be using at least one type of cloud service. The Forum has also forecast that, of existing cloud users, 80 percent will increase their spending on cloud computing during the same period. Moreover, research firm Gartner predicts that by the end of 2013 the size of the cloud computing marketworldwide will be $150bn. So it’s fair to say that it’s more than a passing fad. It’s here to stay and it’s having a fundamental impact on the way organisations select, architect and deploy their IT.

Shifting landscape

As a distributor of next-generation cloud-based technologies, I must confess to having a vested interest in the positive evolution of an industry model that has remained largely unchanged for years.
From the vendor’s perspective, the increasingly widespread acceptance of technology solutions developed for the cloud has opened up the market. Historically the domain of the big IT brands with massive marketing muscle and deep pockets have dominated the market, but this new world of distribution is not concerned with, or constrained by, infrastructure and physical bits of tin. Next-generation, agile, start-up vendors now have a real shot at success. For these cloud-based technologies, the barriers to entry are well and truly shattered.
From the reseller’s point of view, cloud-based technology solutions are delivering shorter, less complex sales cycles with solutions that are easy to install and immediately available. The days of on-premise solutions with lengthy and costly implementation periods are over.

From the distributor’s point of view, more than ever in the current economy, there is a need to be truly ‘value-add’. Resellers need a distributor that can add value to them by assisting in creating new revenue opportunities from both products and services. Distributors need to find these new, innovative and disruptive technologies that their reseller community can take to market quickly and efficiently whilst retaining high margins and differentiating themselves from their competition.

Every silver lining has a cloud

The potential fly in the ointment is that the very issue that makes cloud computing so appealing is also what makes it so disruptive to the traditional delivery of hardware and software technologies, because it changes both the supply and consumption side of the distributor model. After all, if you look at it from the vendor’s point of view, cloud-basedIT solutions tend to be less complex, relatively easier to sell than on-premise solutions, and don’t require massive up-front investment. So why not sell directly to the customer and cut out the distributor and reseller all together?

As the old adage goes, if you do what you always do, you’ll get what you always get. Distributors and resellers are waking up to the fact that they need to radically change their approach to avoid their roles becoming redundant.

New business models

The cloud aggregation model promoted by some distributors is a good example of how things are changing. Effectively they are offering platforms that allow their resellers to aggregate cloud services from multiple vendors on a single billing platform. The ‘solution stack’ approach is another great example. Here the distributor ‘groups’ complementary technologies together which can be sold stand-alone, bundled or sold as a partner branded managed service, enabling resellers to create their own, bespoke solution that meets the needs of their end-users.

Services revenue is the new maintenance

However, to my mind there’s an even bigger opportunity in the shape of today’s next-generation technologies that offer a combination of cloud-based solutions with hardware, virtualised offerings or simply a pure cloud hosted option. This ‘hybrid middle ground’ is where the next big opportunity lies for distributors and the landscape is changing from box shifter, to one of offering managed services and cloud services.

By tapping into this ‘hybrid middle ground’ distributors can offer solutions that have a very low operating cost versus traditional on-premise solutions with a high capital expenditure cost. And by adopting a business model that’s built around managed and cloud-based services, distributors can create an ‘annuities’ model, where subscription effectively becomes the new maintenance. Selling batches of products or one-time services is so ‘yesterday’. This new model means distributors can sell monthly services either fixed-fee or utility-based. Now that’s real value-add.

I’d offer a note of caution here though, because although the annuities model represents a solid business opportunity for some distributors, it won’t work for all. These exciting hybrid offerings need a ‘new breed’ of distributor – one that’s nimble and agile, and can adapt to an ever changing market landscape. Having the ability to help these next-generation vendors carve out a market position (and cut through the noise of competitive offerings) is vital. As is the business know-how to commercialise them with wrap-around services delivered via the subscription-based model. And the final piece of the puzzle is the marketing muscle needed to stimulate demand and help build a solid, qualified pipeline. These three factors will determine which distributors will succeed in the hybrid middle ground, and those that will fall by the way side.

Whichever business model is chosen, the underlying offering has to be about real value-add on both sides of the distribution model, whether that’s helping a next-generation vendor to break into the UK market, or it’s helping a reseller create and deliver a branded managed service to their customers. Take a look at your business model. Are you doing all you can to maximise the cloud opportunity?