Cloud vendors offered antidote to channel conflict

E-commerce platform provider Avangate offers ISVs the chance to ensure VARs get a cut of direct deals

E-commerce platform provider Avangate has marked its arrival in the UK by claiming its products protect VARs against vendors taking cloud deals direct.

The Dutch firm specialises in the delivery of cloud-based e-commerce platforms that are used by independent software vendors (ISVs) to let end users purchase their products online.

ISVs that use the platform also have access to an add-on module called Sky Channel Manager which measures the profitability of transactions carried out by their partners. It also ensures VARs get a cut of the deal if one of their customers tries to deal directly with the vendor.

Speaking to ChannelWeb, Carl Theobald, chief executive of Avangate, explained: "Traditionally, vendors that have helped ISVs sell online have been looking at the direct-to-consumer aspect of online purchasing, but Avangate has found a way to create a role for the channel in the online world."

The vendor claims to have forged partnerships with security players Kaspersky and BitDefender, and is in the throes of stepping up the number of UK ISVs it deals with.

"The UK is absolutely where we want to have a presence next, because there is a wealth of software vendors here," said Theobald.

"Also, there are thousands of SaaS companies emerging every day, but some of the biggest ones, if you want to purchase their products, you still have to pick up the phone, talk to a human being and go through the traditional sales methods."

Avangate said the product is also targeted at smaller software vendors, because it is harder for them to establish distribution channels.

"If you look at the top 10 or top 20 software companies in the world, in many ways they have a stranglehold on the market because everyone knows who they are already," explained Theobald.

"The other 10,000 software companies that do not happen to be in the top 20 represent a large portion of the market, but it is harder for them to get their message out to the market and build reseller relationships. They are the kind of folks we want to help out."