Internet security vendor SonicWall is looking for potential acquisitions to help its channel maximise margin opportunities on new products, according to John DiLullo, vice-president worldwide sales at the vendor.
DiLullo, who joined SonicWall in December, was formerly vice-president of channels and worldwide distribution at Cisco.
He told CRN: “We are 100 per cent committed to the channel. We had a good first quarter and are seeing growth that we have not seen before.
“The security market is doing very well. There is always a new threat that requires updates and that means recurring revenue for our partners.”
DiLullo added that SonicWall’s focus on the SME market, which is growing two to three times faster than other sectors, has helped strengthen the company’s position.
He said SonicWall treats its resellers like customers rather than as an extension of its own salesforce. “Instead of giving partners strict deadlines and pressurising them to hit targets, we build products with partners in mind. Every product has a recurring revenue model. We have to make sure partners are profitable,” he said.
The vendor has made several acquisitions recently, including Mailfrontier and Lasso Logic, and DiLullo would not rule out future purchases. “We have a full slate of products that we are developing, but we will also continue to pursue opportunities that will help us and our channel make more money from new technologies. That includes acquisitions,” he said.
Ken Hulme, managing director of SonicWall’s biggest UK distributor Tekdata, said: “Our SonicWall sales are growing quarter on quarter. This is helped by the subscription aspect of SonicWall, which is a gift for a traditional tin-box distributor.
“SonicWall is also very loyal to partners. When it makes acquisitions it puts the new products through its existing distribution channel, rather than cutting us out.”
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