All resellers great and small would benefit from providing total solutions and refusing to get dragged into price wars with competitors, according to Roy Zisapel.
The Radware chief uttered his universal solution during his recent Australia visit to meet existing customers, spread the word to potential new ones and give successful business partners a well deserved slap on the back.
Radware is distributed in Australia by LAN Systems and operates a reseller model of less than 30 partners ranging from tiers one to three. It sees its main customer bases as telecommunications carriers and medium to large enterprises. It goes to market exclusively through the channel with value added resellers and systems integrators who, Zisapel said, are doing very nicely thank you.
He cited Angel Computing Services as an example, a five-man outfit that is the second largest Radware reseller in the US and counts the New York Stock Exchange among its customers. Locally, Melbourne-based N-tech has only three staff but Radware products helped it secure the TAB as a client.
“It is important for resellers to be able to sell a full solution rather than try to compete on the cheapest price because there is no money in constantly trying to undercut your competitor,” Zisapel said. “We are seeing more and more resellers that understand architecture bringing value to customers by bundling our products into solutions. Whether they are into servers, security or networks we can fit into the portfolio and help them to secure more business with better margins.
“The opportunities for large channel partners is obvious but even a tiny reseller that has technological expertise of IP networks, some relationship with customers and is ready to make the effort to understand our products will be extremely successful,” he added.
General manager of Radware Australia, Tony Burke, said the company was outperforming its global operations in this country because the local market is quick to adopt Internet-based applications and a level of trust had been established since Radware opened an Australian office two years ago.
“There has been a shift in the market towards this technology,” he said. “It had been limited to a few customers but the growth in importance of Web-enabled commerce and applications has meant that demand has increased significantly.”
But success is not going to his head and Burke is not looking for large numbers of new partners to add to the model.
“We are determined not to commoditise the channel because attractive margins are a key feature and we don’t want to erode that by introducing too many [resellers],” he said. “We are more focused on developing existing infrastructure with partners that are already performing well.”
Globally, Radware returned to profitability this quarter for the first time since September 2001, but rather than labelling the previous 15 months as a downturn, Zisapel said the figures reflected a period of continued investment and a refusal to shed staff that has now left the company in a very healthy position.
“Last year we opened new offices in Japan, Brazil, Spain and China and that increased investment has paid of for us,” he said. “It is the best time to differentiate yourself from your competitors,” he said.