Proximity trims the fat and takes aim at big boys' bases

Avaya partner goes full pelt at BT and Vodafone after streamlining portfolio

VAR Proximity Communications is looking to attack the customer base of the top telcos after streamlining its portfolio and skilling up its sales force.

The company was formed in 2009 through the merger of leading Nortel partners Applinet and the Unified Group. Since the Canadian vendor went bust, Proximity has built a sturdy relationship with Nortel's new owner, Avaya. The Berkshire-based reseller also works with wireless vendor Aerohive, IP telephony player ShoreTel and call management specialist Teleware.

Stuart Legg joined the firm around the start of the year as sales and marketing director, with a remit to restructure its sales operations to the end of securing new custom.

"What we have done is consolidated the portfolio," he told ChannelWeb. "I felt we were spreading ourselves too thin. We have put some real focus on our key vendor partners and just got really good. I have made sure pre-sales, marketing and internal sales have all become experts."

In 2010, Proximity grew revenue 8.4 per cent year on year to £8.4m, while operating profit increased almost sevenfold to about £360,000. For 2011, the firm is projecting to post a top line of £10m, said Legg, with plans to expand to £12m in 2012.

"We have aggressively gone out and won business, primarily through digital marketing," he added. "Our sweet spot is anything between 500 and 7,000 users. We have focused on customer types and really gone after our competitors' bases.

"We have definitely gone after BT's base, and have regularly come up against Vodafone and Intrinsic and people like that. People who work for Vodafone or BT are very professional, but they can trade on a brand name. [Our sales team] is very dynamic."

Legg explained that now all his sales staff can sell the VAR's entire portfolio, rather than specialising on a certain technology or service. Proximity will continue to focus on its chosen key vendors and markets for the foreseeable future, he added.

"We've got good at what we do and made sure everyone can converse in those languages. Taking on another vendor is [an investment of] about another quarter of a million pounds," explained Legg. "If we get to a point where we grow revenues and profits, and we can say ‘there is a chunk of money there', let's invest.

"We walk away from probably more deals than we ever did before. We have lots of focus on the deals where we have a good chance of winning."