Episode Transcript
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You were listening to be tob revenue
acceleration, a podcast dedicated to helping software
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executives stay on the cutting edge of
sales and marketing in their industry. Let's
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get into the show. Hi,
welcome to be to be a reven new
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acceleration. My name is already Amoutier, and I'm here today with Bruce Johnson
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from blue voyant. Are You doing
today? Press, wonderful rate. Thanks
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for having me. Good. So
today, Bruce, we wanted to invite
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you to discuss about the state of
the channel in North America, but that's
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a big topic, I would believe. But before we get started, it
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would be very, very useful if
you could give a shot introduction to yourself,
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as well as blue voyant, to
our listen us. Certainly right.
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So, blue boy is a next
generation cybersecurity provider, and what makes us
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different is we were built for the
industry by leaders who have seen this cyber
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security challenge from a different perspective,
leaders from Morgan Stanley, from Thomson Reuters,
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even from the intelligence community at the
NSA and FBI, Eighty two hundred
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unit and and GCHQ. And what
really makes us different is we were built
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on a threat intelligence platform that really
informs everything else that we do and it's
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an unrivaled in the world really,
but it's it's a leading platform for threat
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intelligence that allows us to deliver value
to our customers and really bring to the
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private sector and smaller organizations the level
of cyber security defense that has only been
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enjoyed by the very largest organization.
So Jim Rosenthal's our CEO and he,
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prior to starting blue voyant, was
the CEO at Morgan Stanley with a three
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hundred and fifty million dollar cyber security
budget, and his vision is to bring
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that type of cyber security defense to
smaller organizations who can't go out and get
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those same size types of resources.
So we've developed a company around threat intelligence,
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around man security services and around cyber
forensics and incident response that really brings
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that level of solution and cyber defense
to organizations around the world. Well,
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I must admit that the degree of
the fund those are the thinking heads that
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have been at the early stage or
at the creation of Blue Voyians, plus
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the team now, so all the
people that not only you'll see you,
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but also yourself person or the bad
girl that you are bringing to the table
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is definitely an impressive setup. Thank
you and we're excited about it. Good.
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Well, it seems that Luvillian says, the others say, is big
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backgrown and big back up from from
lots of interesting people. So very,
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very interesting technology company. From your
background, Bro said, an also from
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living and breathing the channel in North
America for as long as you've done,
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and I think one of the reason
the way we wanted to invite rees also
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because you leave both side of the
channel. So working from the vendors,
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what it's working for the actual channel, itscent it would be very useful if
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you could share with us or if
you could outline what's he's from your they'll
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spective jet your state of the channel
in North America and also the direction in
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which you see it going. Yeah, love to. As you said,
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I'd have been on all sides of
the channel work for companies like Samantec Ben
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on the vendor side, cynics,
as a distributor. I've been in the
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reseller space and it's obviously evolved over
those decades that I've been around. What
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I've seen really happened. It's really
incredible see how one sector of the business,
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the cybersecurity space can really drive an
entire channel because it's hard to be
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in the technology space anymore without offering
some level of information security, cybersecurity practice
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or or a consideration into that space. So what we're seeing is that is
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driving vars to who might traditionally be
in the storage space or infrastructure space or
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any other space. Just like cloud
has really kind of pulled partners into looking
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at things differently, cybersecurity is forcing
people to look at their businesses differently and
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it's also been a natural connection,
though, to another big movemental for the
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last couple of decades, which has
been moving away from the resale of a
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product to a recurring revenue model as
a business. So putting those two things
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together really has driven a lot of
development in the channel. It's driven channel
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partners to try to build tighter relationships
with their vendors in the offerings that they
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have, and it's also cause them
to look deeper into the opportunity of partnering
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with their distributors, who have access
to more technologies and can help them vet
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those technologies and then really put resources
together to go build practices. Some in
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some cases, many cases, the
distributors are actually augmenting a lot of what
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the the resellers or the service providers
are are doing with their own resources.
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So it's been there's a lot of
things moving along and I think the two
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biggest drivers are that that I see
are the need to wrap security into all
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aspects of the offering and this again, this idea of recurring revenue model that
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it does what everybody's been seeking and
now starting to see how they can deliver
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through cloud services and in manage services
on that promise. Okay, so do
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you feel that there is really an
apskating of the channel going on? So
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Chin, their thought now being any
to beat more tnique, quote on more
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on the bowl from a product of
what you position perspective, simply because the
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market is becoming a little bit more
complex and more congested. I absolutely do.
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I think that you're saying you're driving
to more specialization and and people are
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digging in and having to invest in
I think one of the big invest in
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those resources, and I think one
of the big reasons for that is the
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lack of resources and talent in the
general population to cover things like cyber security.
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There's a very large gap. I
mean by some some studies it's a
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million on fielded security jobs, and
so the bars and service providers are driving
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deeper and better, I guess,
solutions and expertise to be able to go
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out and provide those those services to
the client base where the clients are unable
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to fill those walls. Yeah,
I also think, from from from my
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own perspective and my own experience in
in also engaging with a channel, that
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I feel that there is a little
bit more thought process from distributors, from
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resellers, to try to get solutions
that will fit with its shows and almost
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coming to coming to market with their
own bundles of solution that that will I
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guess she bought them to do two
things. First one would probably be having
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a competitive advantage on the market,
because we know that it's extremely competitive and
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extremely changing from your reseller to acquire
a new market share or offer new for
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resellers to acquire new clients. So
it's about differentiators, but it's also about
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keeping their clients. What we tend
to see or what we tend to feel,
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I think it's more feeling and seeing
it, to be honest with you,
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is re seller, distributor putting more
thoughts in what they can offer to
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the market? To also keep their
clients for longer. There is always almost
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that sort of quest going on,
trying to identify new vendors or new solution
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or something that will food fit very
well with an offering it is already existing.
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So I guess what I'm trying to
explain yet that there is a there
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is a always that research for innovation, always that we are seeking something innovative
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that we can bring to the market
so we can impress our clients. And
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I think from my perspective, this
is a big shift when when we started,
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and my career in the B tob
software business is a little bit short
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on and yours, Bruce. So
so my experiences is it's not as great
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as yours, but I feel that
we kind of moving from a fulfillment role
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of the channel to a bit more
of a specialized role. So, and
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it seems that what you just mentioned
is is very much aligned with what I
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feel as well. Yes, I
mean we're seeing the same fact. See
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the same thing. Instead, it's
more difficult for service providers, value added
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resellers, anybody standing in that facing
the customer and the customers asking for a
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solution. It's differs, more difficult
for that partner to not pick sides and
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have done the research. So you're
right on it. From what I've seen,
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the role of fulfillment and agnostic position
to provide whatever the customer wants because
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of the vast number of options.
Now we've got more technology and every category
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upsurdly. You know, it's making
it. The customers are reading on those
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advisors, those trusted advisors. They're
asking them to is now become a value
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in the value added reseller formula.
One of those value ads is the decision
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support, the ability to put things
together and help the customers side. You
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need to go this way as opposed
to just being there with a line card
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of fifteen options in each category.
Do you feel that there is again coming
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back to the side that you've been
seeing bus site, of the of the
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channel being in the resellers, let's
distribute to a your self and running the
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teams, as well as being at
the Vendo on the vendor site. Do
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you think it's much challenging? No, for this tribute those because obviously we'll
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speaking about the scaling while speaking about
being specialist, and I would have thought
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that this is coming with investment.
You can just become a specialist by just
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sitting down and doing nothing. You
need to obscale your team, you need
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to train them, you need to
teach them, you need to have a
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better on the standing of the market, exet et Cetera. So that's when
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things that's the investment. But on
the other side, coming back to something
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that you mentioned early on, it's
a recurring revenue. Is that soft Towa
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as a service type of business,
almost moving to a manage service provider type
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of offering, which I would have
thought would bring less margin for the channel
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itself. So I kind of say
it does, from the conversation we are
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having right now, that there is
a requirement to have scale, there is
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a requirement for larger investment, but
that the other rends. There is always
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an issue of less revenue coming in
because you can service. You can't have
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a server or sitting at your on
your client side, you probably have less
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services that you can sell. So
does that do you think that's slightly change
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the business model or the way to
the channel is working? All those the
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upscaling versus on demand versus soft Toas
a service, from your perspective, effect
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the business model or or the way
the channel can your life? I think
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it does put a lot more pressure
on the distributor specifically, because the distributor
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has a larger spread of resources,
they're able to take on in specific areas
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and go make those investments and prepare
enable and help those bars build businesses and
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augment those businesses right because it's hard
for a for the alcoholma point of sale
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resell or the personality end endpoint with
the customer to go and invest all the
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it put all the people in place
on the bet, if you will,
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and yet and not also from a
workload perspective. So with the the flow
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of business, it's sometimes better for
the distributor to put those resources in place
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and then pull the resellers along with
them, and that's actually become a value
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add to the reseller to team up
with distributors who can help them even out
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that business and augment the services where
necessary. It's also it's a very good
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example of where sock service is specifically. Are a point where a lot of
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resellers and a lot of service providers
were out there saying, Hey, we'll
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do manage services, will do will
offer, you know, some infrastructure as
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a service, will do these things, and then they kind of evolved to
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hey, let's let's make that a
security as a service. But they found
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that building a sock is very expensive. So they're looking to providers like blue
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voyant to say, okay, you've
built your sock or your multiple socks and
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you've got those manned with all the
people that you need and all the analysts.
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So what we can do now is
go out and add a layer of
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service on top of that, put
our expertise into a particular industry or market
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segment and then leverage those sock services
of a blue voyant to ultimately build a
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profitable business where we haven't had to
do the outlet of funds. Yeah,
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I coun't put you. Agree with
you. I think it's a it's it's
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an interesting changing world for the CHARLITY
sell bus distribute out of the one the
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other two chill channel. Another thing
that's really interesting, and I guess I
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want to move the conversation to worlds
is is your global experience. You've been
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walking a lot in North America,
you've been working a lot in Europe,
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you've been working a lot in Apack. You've got you've got that very interesting
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global experience and my next question is
really around the differences or if you see
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any differences of any different level of
maturity between America's versus Europe versus a pack
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in term of channel in time of
you could be at the engagement level or
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the way they walk, may be
very interesting if you could comment from your
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perspective on the differences between regions.
Well, I'll give you my perspective,
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but it's purely from the seat of
a US based business going into new markets,
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and that's an important distinction because from
that perspective it's trying to get places
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that we can't necessarily cat in touch
with the same types of direct selling resources.
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So taking a business that is primarily
us, as we are today,
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for example what well Voy it is
is a global company, but most of
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our resources are in the in the
US. So our reach into Europe,
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for example, requires us to lean
on those channels differently than we would in
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the United States. When I was
at Semantech, we had a different play
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because we had an entire sales infrastructure
in and mea regions and things like that.
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But so I'll tell you that,
for example, from the large vendor
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perspective, we see the specifically in
the Europe areas, the role of the
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distributor is very different. There's a
much more of a value added position of
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place in the ecosystem. We've seen
the same thing evolved in the United States
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where the broad line, if you
will, distributors are taken on more of
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a value position and and that's happened
over the last you might say ten years,
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but certainly the last five, where
the traditional big, big broad line
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distributors are getting deeper into specifics and
deep specific areas and certainly adding a lot
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more resource around the solution selling and
things like that. So we're seeing a
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value added development in the United States
that's been there in Europe for quite some
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time. When we look at going
often to other regions, we see,
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you know, for example, an
a pack cultural differences are one of the
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biggest advantages that the channel brings us
to understand the culture and how to do
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business in those reasons, whether it's
Japan or Australia, wherever. So cultural,
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cultural things are very important and but
I would say in general, you
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know, it's a case where we
have to build a complex strategy around how
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we're going to leverage the channels in
each of those different regions. Absolutely,
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and I think you have confide here
right and starting with the statement that you
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loocate from a US company coming into
Europe. It's very valuable because we do
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it the other way. We sometimes
look at European clients or an Israeli client,
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for example. Is a turn of
historili started at a fantastic product and
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they want to scale in North America, and scaling in North America because of
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the the territory is so vast,
you need to you need to really have
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the granularity on the ground. If
you're scaling up in the UK, if
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you're s getting up in front,
if you're s getting up in even in
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Korea and Australia and things like that, at least you could find a local
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distributor or local partner. That Noda
market very well. You can do a
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bit of due diligents find a few. But when it comes to North America
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and going the other ways, got
his own challenges and I think this is
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some fiet. We would actually discussed
more details than other podcast but I will
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definitely pick your brain up on the
topic lateron. Another feel that I obviously
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the kind of my last question that
I've got for you is the improvement.
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So you again you have been working
for the channel. You are now in
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a vendor so you've got a vender
perspective which is increasing revenue sellings. You
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want the channel probably to do more
on the daily basis, Exetra, etc.
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But from your perspective, what's should
be, or what could be the
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improvement that we need to see in
the channel moving forward or in that think
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I see them moving from up.
I'd say the biggest thing is we need
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to we need to see a willingness
to build a tighter process and tighter engagement
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between vendor and partner. The willingness
and a lot of times that that means
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an investment which requires both sides to
choose fewer partners instead of trying to go
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out and do be all things to
all people. yesifically, the channel partner,
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the value added Reseller, the solution
provider. I really believe they need
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to pick fewer vendors and go deeper
into understanding those vendors and actually be willing
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to take sides in particular technical technology, technology arguments right and who? Yeah,
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it's which direction to go, so
that you can go deeper with the
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customer and provide more value together.
So the willingness to invest in that tighter
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engagement understanding of each other's businesses,
I think is critical and it's on both
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sides. The vendor has to pick
fewer partners and try to actually invest in
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the enablement in and go to market
with more strategic partners. That requires an
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investment of time and resources and and
delivery mechanisms and I think they also they
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also need to be willing to,
as I said, stand up for where
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they want to take their business,
a partner does, so that they can
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add value to the customer in their
overall strategy for around technology, so they
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can. Yes, you need to
add more and more value. I think
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those are the key things, but
that's that's very useful. Thank you very
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much for your insight on that,
Bruce. Last question I I've got for
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you is for the purpose of fologens
and for the purpose of all least and
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now, if anyone wants to get
in touch with you to discuss is all
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about Bluevoyan solution or just to have
a chat with you to carry on the
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conversation, as we just said there
on the channel, what is the best
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way to get old of Bruce Johnson? The best way to get hold of
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me is through Bruce Dott Johnson at
blue boy atcom and okay, it's my
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email address and I'd love to love
to chat with folks. What has been
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wonderful, Bruce. Thank you very
much for your time. I really appreciate
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or den say that you shod with
us today. So again, thank you
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very much. Thank you, Ray, my pleasure. operatics has redefined the
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meaning of revenue generation for technology companies
worldwide. While the traditional concepts of building
249
00:19:22.750 --> 00:19:27.299
and managing inside sales teams inhouse has
existed for many years, companies are struggling
250
00:19:27.339 --> 00:19:33.660
with a lack of focus, agility
and scale required in today's fast and complex
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00:19:33.779 --> 00:19:40.329
world of enterprise technology sales. See
How operatics can help your company accelerate pipeline
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00:19:40.369 --> 00:19:45.730
at operatics dotnet. You've been listening
to be tob revenue acceleration. To ensure
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that you never miss an episode,
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