Exclusive Networks UK is hiving off its disruptive, "door-opening" value-added distribution activities into a separate arm, New Technology, as it looks to double in size to £200m by 2017.
New Technology, New Tech for short, is Exclusive's answer to the new VAD start-ups that have popped up in recent years and levelled claims that it has lost its cutting edge since it acquired VADition in 2011.
"The criticism that has come from the smaller VADs is we are too big now," Graham Jones, UK country manager at Exclusive Networks told CRN.
"You've got Kite and all these people coming in. They've got their place but we haven't forgotten about bringing new stuff in. We launched five new products successfully into the market last year; we just didn't beat our chests about it. New Tech will give that focus of a true, small VAD. Yes, to scale, we have to keep being big but we still need to do the exciting door-opening stuff."
Hiving off early-stage vendors into a separate arm with a separate P&L, ROI model and staff will enable Exclusive to keep hold of and grow its larger contracts with Fortinet, Palo Alto and FireEye, Jones (pictured) said.
Where many of the newer VADs lead on a technical sell, New Tech will focus on wrapping its component vendors into a solution sell, Jones said.
This will include a mobility/shadow IT bundle based on New Tech vendors including Druva, SecureAuth and Netscope, as well as established vendor MobileIron. WhiteHat and Lieberman will also sit in the division, which will initially have 10 dedicated staff.
Two more New Tech vendors will be unveiled before April, when the division officially launches, Jones said, adding that start-up vendors with modest ambitions need not apply.
"We're not being big-headed but we always ask vendors what their aspirations are and if they say £500,000 in two years, I'll say go and give so-and-so a call; he's a good lad and will help you. We want aspirations where they can scale up," he said.
The target for New Tech this year is to break even on £15m revenues, Jones said.
Exclusive Networks' UK business broke the £100m barrier last year as group revenues hit €627m (£455m). The plan is to double that to £200m by 2017, Jones said.
Since coming on board 18 monthsm ago, Jones said he had worked hard to position the UK business for the next stage of its growth.
"In the old days, VADition was run by an entrepreneur as a man in the middle everything must come through," he explained. "What I've done over the past 18 months is get a very good management team in place and empower people. I'm here to support people, not to boss them, and don't need to sign off every deal. My job is to keep that entrepreneurial spirit but to scale it up to £200m alongside the group goal to be €1bn."
Vendors have been split into three groups comprising the three largest franchises, the New Tech vendors and those in a middle group, which include Infoblox, Aruba, LogRhythm and Safenet. A new team looking to snag large SI deals from the likes of Avnet and Westcon has also been assembled, Jones said.
"Yes, we are big and have 120 people but if you look on the inside there's actually quite a few different models going on which have to exist if we are to keep growing."
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