ESET's UK channel director talks services move, MDF and the importance of financing

Matt Knell, who joined the Bratislava-based cyber specialist six months ago, has big plans for the UK channel

European MDR provider ESET is looking to establish itself as the provider of choice for European firms and grow in the US, anchoring itself in a base of SME clients.

This was the key takeaway from the Bratislava-based firm's annual ESET World conference.

CRN caught up with the firm's UK country director, Matt Knell, six months into his tenure at the company and early into the ESET's US offensive, as the cyber specialist looks to grow revenues from overseas markets and appeal to enterprise firms beyond its core base of SME partners, towards whom much of the conference is geared.

"What we're trying to do, is enhanced margin. We want to go to a partner and be able to say 'look, we appreciate that it's a longer sales cycle and a harder push.' And by that, I mean, ask customers to look at different solutions on the table. So obviously, if they've got x, would you consider y," Knell tells CRN.

"The time and effort that this takes should be rewarded and differentiated between a renewal, which typically is somewhat standard and easier to do versus that new logo acquisition.

"As we develop the programme at an EMEA level and at a global level, then those things will become standard as part of our programme as well."

Apart from its self-service online portal, the vendor claims to be 100 per cent channel focused, counting Grey Matter and Millgate among some of its UK partners.

The hunt is on for services and subscription revenue

As for renewal, ESET is one of a slew of vendors looking to grow its subscription base and help more partners move to a services model – news that should be music to the ears of partners on the hunt for recurring margin.

"One is the MSP model, which we've seen a lot of success in our partners, both new and existing, is moving towards MSP – so selling the license and wrapping their support on the back of that," Knell says.

"And obviously, then they've moved to that model, trust that monthly model, which obviously aids the flexibility of licencing. So that's been hugely successful. And it's been a consistent growth pattern for us, which is great.

"With regards to subscription, I suppose it's a business as usual, but more about obviously, the upsell. So trying to move customers through the tiers of the solutions that we've got."

One hindrance that Knell cites to recurring revenue opportunities, is the relatively low, but growing, adoption of financing solutions, as cyber budgets, are put under pressure by a volatile economy.

"Finance, I suppose, has always been in the picture. But the adoption, I've seen a lot more in the last 12-18 months where customers are willing to finance and through partners through distribution," Knell explains.

"Obviously, that's where we're looking to lean on our partners to add that value as well."

When it comes to financing, Knell has one piece of advice for partners: bring up the conversation early. This, he says, can help add clarity early on in a prospect conversation, and avoid unnecessarily extending the sales cycle.

"What we typically see is the conversation doesn't happen early enough in the customer interaction. So what sometimes happens is when it's time to sign, someone will ask can we pay annually? And then that's when the financing option is brought up. So I think there's a big onus on us as a vendor, to bring that into the conversation earlier in the cycle, as it is on our partners."

MDF to the rescue

One of Knell's key points of focus this year is around the vendor's MDF strategy. ESET has already implemented significant changes on that front, looking to invest in partner events, which Knell sees as the most useful lever for partner education and customer outreach.

"So obviously, the majority of our marketing budget is going into MDF, so going into the channel and channel events. So this year, we're putting in a huge investment, much more money, much more support and much more flexibility on what we can do and what we are delivering in conjunction with our existing support," he says.

"So you know, we've invested in club Wembley, so hosting huge events there, which is fantastic. Yeah, the biggest investment is the amount of money we're putting in there. And then the resource and the support that goes behind that."