MSSP Proficio looks to enter Europe with new channel model

Security platform provider looks to switch from 100 per cent-direct to channel model

California-based managed security services provider Proficio is expanding into Europe with plans to shift away from its 100 per cent-direct model.

Founded in 2010, Proficio supplies a cloud-based security platform for enterprise customers which provides managed detection and response services, with end-point solutions set to follow soon.

While currently operating a direct-to-client model, Proficio has now launched a channel programme that will allow resellers to offer its platform under their own brands.

The platform currently supports over 560 vendors and can be made compatible with new vendors entering the market.

Tim McElwee, founder of Proficio, said the MSSP has reached a point where it needs to use the channel to facilitate its growth.

"[We're] 100 per cent direct and it's largely [because] when you're a newer company and you go to the channel, the channel doesn't want to trust a vendor that hasn't had much experience of dealing with customers, so we've reached a certain cadence in building a basis and understanding of the demands of the customer," he said.

"With that, and our ability to support a channel, I made the decision to go and expand in the channel because it's a lot less expensive to go out and leverage the channel than build a channel organisation.

"We will have a direct development team which will work with the channel and help them close deals, but our transition is happening right now."

McElwee added that Proficio has set itself the target of doing around 80 to 90 per cent of its business through the channel within the next three years, but said certain larger customers will insist on a direct touch with Proficio.

"We'll do some sort of finder's fee for customers that are brought in from the channel and want to have a direct relationship, so we'll reward partners, but I'd say that 80 to 90 per cent of our business over the next two to three years as we grow will migrate into the channel," he said.

While unable to disclose exact revenue figures, McElwee said that Proficio has seen 100 per cent year-over-year revenue growth over the past three years, and is targeting the $100m revenue mark in the next two and a half years.

The firm also secured $12m (£9.5m) investment in November, led by Kayne Anderson Capital Advisors.

European expansion

Proficio currently has offices in the US, Singapore and Australia and is now looking to set up a European base, with Ireland, the UK and Spain the current frontrunners.

McElwee said that the European base will start with an employee base of 20 staff but will look to replicate the growth of existing offices.

The US office has jumped from 25 to 60 staff since 2013 and will be at 140 by the end of the year; and the Singapore base has increased from 10 to 65 people over the last two and a half years.

McElwee said that there is a gap in the market for a Europe-based MSSP, with Proficio's competitors mostly based in India.

"I think there is [a gap in the market]," he said. "I know there are people trying to provide a service like we are out of India trying to come into this market.

"We think the model that people desire is having localised servers and support, as opposed to having offshore and long-shore infrastructure and people."