Integralis adopts hybrid model in business shift

Integrator unveils plans to make 2007 shift to vendor/VAR status in managed security services push

Integralis is turning its business model on its head by morphing into a hybrid vendor/reseller to drive its proprietary managed security services into new sectors.

The integrator is also firmly on the acquisition path and is on target to hit 2m euro profit this year for the first time in its history.

Speaking exclusively to CRN, Graham Jones, chief operating officer at Integralis, said: “Next year we will push towards services sales and move our focus away from just vendors.”

Earlier this year Integralis unveiled its managed security services (MSS) portfolio following a multi-million pound investment (CRN, 23 February). MSS features the proprietary Integralis Security Information Service (ISIS), which the firm now intends to sell through its own VAR network as well as directly to end-users.

“Internally we have set up a managed services team and we will be almost like a vendor in that sense,” Jones added.

However, Integralis has no plans to cut ties with vendors, Jones stressed.

“We have redefined our core set of vendors and are now looking to make the most of these partnerships across the whole group,” he said. “But we are still looking to partner with new niche manufacturers.”

In terms of acquisitions, Jones said Integralis has significant cash reserves to invest and will be particularly targeting consultancy firms and managed service providers.

“A lot of local managed service providers don’t have the clout to expand their business and this is where we come in,” he said. “Although we intend to grow organically, we will be looking for acquisitions.”

Darragh Richardson, head of marketing at rival integrator Telindus, said Integralis is one of the few firms that has the power to change its model.

“We sell our own platform through some partners and it is vital to be clear about who owns end-user accounts and to guarantee integrity,” he said. “There needs to be a clear set of policies when operating a mixed model.”

He added other firms may also look to evolve their business models, but they would be specialised integrators rather than general resellers. “It’s quite an expensive model to develop and most VARs lack the resources to do so,” he said.

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