Firms face UK channel challenge

Overseas companies looking to storm the UK security market must work hard for success.

In the crowded security market, introducing new products to a channel already spoilt for choice is a huge challenge, particularly when the global economy is stuck in a major downturn.

The argument has two sides ­ the first being that established players have the market sewn up, but the flip side is that there is, in fact, still a demand for niche technologies, provided they do something completely different to the competition.

The secret of success

So what should vendors be doing to establish that channel bond?

Duncan Hume, director of sales and education EMEA at DDOS software vendor RioRey, which announced its UK channel assault this month (CRN, 14 April) ­said: “Security partners, both resellers and distributors, are under attack. Not only from security threats, but also from the vast number of suppliers all vying for their attention.

“Security suppliers setting up in the UK need a clear understanding of what they want from the channel and how they can provide the tools and programmes to enable channel partners to deliver clear messaging to the target end user market.

Expecting distribution and VARs to create the market is a recipe for failure. A mixed model will never work.”

Ash Patel, UK managing director of Stonesoft, said messaging is key.

“We made the decision to enter the UK market about 10 years ago,” he said. “It has been a successful move commercially and strategically and the channel has been invaluable. About 90 per cent of the security market is dominated by overseas vendors, so I do not see that being an obstacle for new players.

“When the tough economic climate leads end users to buy familiar brands, new players need to differentiate themselves from the competition. The most important question is not whether you are a UK or overseas vendor, but whether you operate a 100 per cent indirect policy.”

Carole Theriault, senior security consultant at Sophos, agreed.

“As budgets are squeezed, the importance of clear and concise communication in the channel is paramount,” she said. “From this position, they can advise customers on future requirements to meet their specific needs ­ ultimately enabling them to boost margins in this time of financial uncertainty.”

Nigel Seddon, managing director UK and Ireland at Trend Micro, said stability is vital.

“If a new overseas security company was to try and establish itself in the UK now, the challenges are so much greater that you would question whether it would have much of a chance,” he said.

“A big established firm might be better perceived when entering the market, but it would still need to build trust and establish channel partnerships. In current conditions this would take longer than normal.”

What the channel wants

Graham Jones, UK managing director of integrator Integralis, said VARs are often inundated with vendor offers.

“We are all too familiar with overseas firms knocking on our doors on a daily basis,” he said.

“We have to sort through each one, assessing up to 20 per quarter and only selecting one. We look at the technical and commercial offering, and we are diligent on corporate social responsibility, asking whether they will be here long term or planning to be acquired.”

Jones said that when reviewing these new solutions, you need to ask whether the features are unique, or whether one of the major vendors is simply going to add them to their existing solutions. “I would encourage firms entering the UK market to come prepared ­ the more they do this, the better use of everyone’s resources and hopefully a quicker time to market,” he said.

Ken Ward, managing director of specialist security distributor Wick Hill backed up Jones’ comments.

“Wick Hill has a reputation for successfully introducing foreign security vendors to the UK market and getting them established,” he said. “Key to our success is very careful product and company selection; and the willingness to invest time, money and effort to back up that choice to get the company established.”

Challenging times

David Ellis, director of e-security at Computerlinks, said: “Recent experience has shown that it is harder for start-up security vendors to enter the UK than a few years ago. Many VARs are trying to consolidate their vendors to reduce costs and sharpen focus. Unless the vendor has a really unique and compelling story, it will find it very difficult.

“If its product is unique, it should look to partner with a true value-added distributor that can offer a complete infrastructure such as technical support, field sales,
pre-sales and marketing, or accept that it will need to make a hefty investment to build this. Without this, the manufacturer will struggle to be taken seriously by resellers and end users alike.”

In short there is a market still up for grabs but it requires a lot of patience, hard work and investment. Are you up for the challenge?