Security distributor Progress to launch SOC service for cash-strapped resellers

Many VARs can't afford the upfront investment to become MSSPs, according to Progress CEO John Quinn

Emerging security distributor Progress is set to launch a security operations centre (SOC) exclusively for the channel that will see it white-label services to partners who are currently missing out on managed security services revenue.

The London-based distributor is set to launch the SOC after it moves to its new office in Fenchurch Street in March.

Progress CEO John Quinn told CRN that security VARs are currently walking away from additional revenue streams because they cannot avoid the upfront investment required to set up a managed services practice.

"The VARs in security generally have good product sales and good post-sales technical capabilities with their install base, but the majority of them don't have managed services wraps," he said.

"VARs can't afford to do it. IBM can afford to do it and Capgemini can afford to do it, but VARs typically can't afford a £100,000 individual sat on the subs bench, when they haven't sold any contracts."

Quinn said that VARs not able to set up their own SOC are currently turning to managed security service providers (MSSPs) who offer similar services. The problem, he explained, is that these MSSPs will often sell to end users as well as channel firms, and so could be deemed competitors to the resellers buying their services.

He said that an experienced cybersecurity boss is set to be appointed to head up the SOC imminently.

The SOC will make vendors in Progress' portfolio available as a service to resellers - including the likes of newly signed Attivo Networks, PhishMe and RedSeal - but will also include vendors not in Progress' roster, potentially through OEM deals.

"Our focus with the SOC is to make sure we have a service offering around our vendors like Trusted Knight, Attivo Networks and RedSeal, so people aren't just buying tech; they're buying a proper service through their VAR," he said.

"We will target the VARs that have lots of customer relationships but don't necessarily have the tech pool or the resources."

Progress is currently at a headcount of around 45 and looking to take on another five staff as soon as possible, particularly to bolster the enterprise sales team, Quinn said.

Progress launched into Europe at the end of last year, and is also set to start to implement its start-up incubation plan when it moves to its new office, by offering space for vendors arriving in the UK to work.