PineApp takes price hit to gain traction in UK

Gupta: We have 100-150 installations and the idea is to build on that

Email security appliance vendor PineApp is guaranteeing its resellers a 45 per cent margin to help it gain a foothold in the UK market.

The Israeli-based vendor launched in the UK in 2008, but admits it still has minimal market share in the country.

Rakash Gupta, managing director of PineApp UK, said: “In the UK we are not even noticeable on a pie chart. We have 100-150 installations and the idea is to build on that.”

PineApp previously offered discounts of 25-30 per cent, but is now guaranteeing resellers 45 per cent off the RRP price, even in competitive bid situations where the price might need to be dropped.

“We will take the hit so the reseller does not need to eat into that margin,” Gupta explained.

Gupta said PineApp’s technology competes with Clearswift and IronPort from a technology perspective, but was more comparable with Barracuda on price.

The vendor currently has about 20 active UK resellers, but is attempting to build on that by offering potential new partners a 30-day free trial of its technology.

Paul Thackeray, vice president of EMEA at Barracuda, dismissed PineApp as an “obscure ankle-biter”.

“PineApp has a low footing across EMEA and is obviously trying to make a name for itself,” he said.