Vigil Software has claimed its agreement to become Ultra Electronics AEP Networks' exclusive UK distributor will allow it to safeguard channel margins.
Network security vendor AEP, which was acquired by Ultra Electronics two months ago, has worked with a number of UK distributors over the years, including e92plus, Magirus and Wick Hill. From 2009 until earlier this year, it worked exclusively through Westcon.
Vigil director Alex Teh told ChannelWeb his firm has had its eye on AEP for three years.
"We held off signing with AEP until we believed there was a two-tier commercial model that would work," he said. "Since it has dropped its other distributors, we believe we can take the best SSL technology and rebuild its channel and customer base and drive the business forward. What we are able to do now is put together a deal registration programme and ensure that partners have high margin retention."
The two companies will work together exclusively in the UK for at least three years, as per the terms of the contract announced today. Teh (pictured below) explained that his firm hopes to bring on board 25 to 30 "traditional IT security resellers", with about 10 of these developing high-end installation, configuration and support skills. Partners can make margins of about 30 per cent, he claimed.
"AEP and Vigil are committed to each other long term," he said. "We do not have to be exclusive [with vendor partners], but it does help if they want us to run a deal registration programme on their behalf.
"We need to know that, where our partners are spending time developing business and bringing opportunities to the table, that a second distributor or reseller is not going to rip out the deal at five per cent margins."
Mukesh Gupta, managing director of e92plus, explained that his firm had parted ways with AEP "two or three years ago", as it was enjoying more success with competing vendors.
"They had some good technology, but they were doing too many things and never got any real direction or focus," he said. "Vigil has taken it on now, and they may give it the sort of focus that others were not able to."
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