Episode Transcript
WEBVTT
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Maybe we can help the exist in
US vendors with some pain points that they
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have in their go to market strategy
by doing some more services aligned to logistics.
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You're listening to BB revenue acceleration,
a podcast dedicated helping software executives stay
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on the cutting edge of sales and
marketing in their industry. Let's get into
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the show now. You welcome to
be to be riven your acceleration. My
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name is audiamutier and I am here
today with buried this month from it's crusive
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networks. How are you today?
Very fantastic. Good so bory. We
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are here today to talk about the
differences between the distribution model enough American in
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Europe. But before we dive into
the details, human just giving us a
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little bit of background. US to
your role. Wisinus creusive networks, as
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well as it's crusive network as an
organization, and what you guess is yeah,
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so thanks for having me on the
podcast. By the way, I'm
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set at the group level, so
I've got global responsibility as the CEO for
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primarily all the organic growth aspects of
the business, which is primarily the P
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of sales, services and marketing and
business development. So that stretches everywhere,
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from New Zealand all the way over
to the US, to San Jose and
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lots of play. This is in
between good so quite the way geography could
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coverage and in time of his clusive
network, could you just give us in
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a few words, you know,
the get the mission of his cusive networks,
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where your clients have chosen your gates. Mission is to disrupt traditional distribution
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in the technology sector. We've grown
primarily from a European base, in fact,
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with the only European headquartered global distribution
business. And over the years we've
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decided, because I guess I geographic
location from the US, is that we've
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put together very value base distribution service, if you like, for vendors who
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are on an expansion strategy. So
many vendors seem to establish a footle in
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their home market. And again,
the majority of our vendors are US base,
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but when they look at the challenges
which they face when they're expanding globally,
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they need a partner which understands the
intricacies and the nuances of each smaller
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region, which you know, primarily
the multicultural, multilingual business behavioral differences that
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exist in Europe. The trade in
mentality and passion that exists in the Middle
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East to obviously the same is true
as we go from India are and stretch
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all the way through, primarily for
our southern Asian back to the Antipodeans in
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Australia and New Zealand. Boosting and
expanding a company out of your native domestic
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market as got a list of challenges
which really limits the scope of the business
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trying to expand unless they have a
heart of like us who can act as
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them that can provide a whole load
of value based services like pre sales engineering,
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availability of Demo Care, go to
market plans, launch plans, sales
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need detection plans and then whole range
of professional post sales services like chaining and
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education, premium services like on site
support. For our on site support in
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Borneo is a lot different to supplying
for our on site support in Philadelphia.
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So that just gives you a flavor
how we act as a proxy for vendors
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as they begin to go on their
global adventure. That's very interest. I
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mean the Shure of expending geographically and
going out of shore. I would say
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domestic market is is something that we
we know really well at operatics week we've
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been able being mini customers and and
Europe is a tricky territory were the French
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like to thin at they are different
from the German, the German are different
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from the English, except t etc. As you are right, the culture
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of the mentality. And then you
open up to a Middle East and up
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appreciate that having that bunch of services
that you can offer being the extension of
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your clients, cells and marketing team. I guess in some extent induse regions
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as well as potentially taking all the
contract and currency and all the US are
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bits and pieces I'm sure you get
involved in, is definitely taking a bigger
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take away from from from the table
on the side. So I mean that's
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kind of leading me quite well to
the subject of the of the podcast to
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day. One of my main question
to you, which is a big,
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wide open question, but I think
it's considering your global coverage and and your
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experience of the distribution model across the
region and the fire that today we really
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want to focus between North America and
Europe. From your perspective, what would
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you high light as the main differences
between the distribution model in North America and
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in Europe? Okay, it's a
good question and something that we are aiming
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to change in the common years or
the comming months, in that, as
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as we've expanded ourselves geographically and established
a base in North America, the stand
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as a very different models. In
fact, you know, there's a high
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sort of link between or correlation between
the Geo in which you based and the
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further away that you go, the
more value base services that you want to
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buy off our menu. So as
we parachute into the US with an office
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in San Jose and were in Tampa, in Florida and various sales people based
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around North America, we're beginning to
really understand and digest that. You know,
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distribution in the US is historically being
different to the model in which we've
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delivered in the geos around the world, and it goes back to the,
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I guess, the legacy way in
which new technology businesses, primarily in Cyber
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Security and kyle transformation, which is
the two markets and which we specialize,
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have evolved. You know, very
often you launch a business and then you
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establish a national sales force covering all
the territories in the US, which is
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a big area of land covering many
rural and many huge metropolises and to maintain,
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you know, control of your own
destiny. You've gone for a very
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direct at high touch sales models where
you employed direct touch sales guys who sell
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direct to end users and enterprise organizations. Once they get momentum going, they've
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historically then decided that they've act work
with somewhat we called t one partners,
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which are some integrators, or resellers, or divars as they call them in
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the state, as a way of
fulfilling some of the contracts. Sometimes they
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go direct and a lot of time
the customer will push them towards their it
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solutions provider, if you like,
and then they build up a whole raft
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of intermediaries known as the resellers,
or tier ones as we call them,
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and they get defocused from their core
business, which is, of course,
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the growth and success of selling their
solutions. So they say, well,
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actually now after retrofit in distribution,
to take away some of the basic principles
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of running a channel to market,
which is availability of stock, having the
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right mix and availability, have the
right logistics in place. In the US
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they have a saying about being distribution
should be in a credit shield so they're
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being able to build, collect and
manage the whole credit worthiness of their channel
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and so to pay the vendor on
time, so they don't have to invest
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in a whole range of resources to
do that quote, you know, delivering
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quotations in a timely manner, you
know, within a couple of hours,
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and being accurate, you know,
being over night nine point five percent accurd.
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This is what they think is the
role of distribution in North America and
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some of the biggest global names that
were all familiar with have established their businesses
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in North America and really and what
is a fulfilment transactional distribution model, which
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for us is just one of our
services. They've primarily base their business on
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that model and that's how it differs
from our model, because the value,
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you know, the availability of resources
to do Presales, consulting, professional services,
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demonstrations, to do the market into
do the sales lead totection they've done
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historically themselves. So those sort of
services, the go to market services,
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the engineering services, the education services, the enablement services, the support services,
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the premium services, they've really had
no need for them in channel from
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a distribution perspective in the USA and
that's something that we hoping to challenge and
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to disrupt. Okay, so you
found US somewhere. What we tooking about?
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Chase, I guess what I would
call value eddy distribution, he said,
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in services, is being practive,
potentially even sometimes helping earlier stage vendors
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to built the market. Is that
correct? Yeah, I think you know,
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there are two. You know,
we've got to find the pain point
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for the North American venders, if
you like, already. So the established
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ones, we can say to them, well, what is your paying point
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in managing the channel? You know, where do you think you're missing and
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where do you think we can help? And my guess already is that they
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go after the big elephant. The
US economy, compared to Europe, in
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fact, is is huge, and
midsize reseller in Europe could be anywhere between
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fifteen and thirty million euros, or
two thousand two forty million dollars, and
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midsize reseller in the US would be
in their hundreds of millions of dollars turnover.
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So and the companies that normally consume
new technology early, the early adopters,
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if you like, in fact those
big enterprises. So my sense is
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maybe they need some help with the
mid market or commercial where we can go
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and avail all that channel to the
services that we've traditionally given in Europe.
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So that's my sense, is that
what can we do for you guys there
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in the mid market? The perhaps
the big distubidest can't do because their cost
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of sale is so low and their
focus is on streamlining and a very thin
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margin business. So we're sort of
same. Well, maybe we can help
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the exist in US vendors with some
pain points that they have in their go
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to market strategy by doing some more
services aligned to logistics. So our global
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footprint, for instance, and our
ability to deliver into a over a hundred
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and sixty seven countries, we think
maybe interest into them so that they can
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have one contact through a global deal
desk capability and deliver into multiple countries and
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territories in a very light touch way. We could do reverse logistics, we
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could do disposals, right, so
we can begin to add value in terms
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of those services. But then we
can begin to do training, we can
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begin to do presales, we could
do premium based services and hopefully we can
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help them launch new technologies or new
versions or modules of their technologies into this
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space, so to address a sector
of the market which they probably feel that
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they're under represented. instily, we
can say two new start ups from the
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US, why go disrupting the technology
market? Why didn't you disrupt the way
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in which you go to market?
So, instead of taking that traditional slow
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route, why don't we light up
the channel first in the US and found
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find those early adopt the partners like
we have in Europe and Asia and Middle
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Eastern so forth? Why don't we
ask them to help you scale and accelerate
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your go to market? So we're
having some very interesting conversations there and of
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course then we can avail those new
start to our full range of services and
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they can then obviously concentrate and invest
in the R and D component of the
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technology as opposed to the commercial delivery
of that. Of course they're going to
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have to have sales, pre sales
engineering services for the US market initially,
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but maybe instead of adding forty teams
of sales and pre sales guys doted all
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around every state or major metropolis or
market in the US, maybe they can
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cut that by half and then focus
only able in the channel so that we
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can scale and accelerate their go to
market. Yeah, I think that that
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makes perfect sense. Mean from our
perspective to gain, we're not as involved
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as you are in the channel and
the distribution model ourselves, but we've gone
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many time vendors telling us about the
cost of ticket. Fine try and working
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with a big distry. So they
need to reach that critical size, which
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sometimes very difficult to reach a critical
size because, as you mentioned, you
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need to reduce steps of having the
team, your own team in region,
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and that scalability can be can be
quite complex, I guess. So the
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ll make sense to me and I
see I see a great opportunity for you
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guys, defrom, perfectly honest.
That's I've got a question for you more
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on the Reseller, because I would
have thought that if the distribution models as
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evolved in that way, in that
I yes, less flixible, less value
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add more fulfillment type of role,
would you need to go through some sort
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of a transformation also of the sogne
layout, which would be the resellers behind
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that? You see you have you
already engage with the Strossilla. Do you
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see an apetite just rest all the
same passion in the Samer Petite as you
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guys are in Dome of creating the
demon from your clients or for your clients.
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Are Driving almost the flagship of your
clients, weening Neu customerls on the
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help of your clients. Do you
see already attraction from from the rest of
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themselves? I think that's the question
really for us is what is the appetite
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for that the reseller layout in the
US to change and to accept this different
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type of model? I mean,
I think this it's a very competitive market.
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I mean we're in Cyber Security and
cloud transformation. I think the market
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is very complicated. Both markets self
from a lack of resource and skill sets.
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So maybe as acting as a proxy
for them is a proposition that they
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care much more willing to consider these
days, because it's historically, I think,
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they've been there as a fulfillment part
as well, certainly either big what
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I called megavars or divars who have
relied on their purchase and supply agreements with
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the big enterprises just to be a
conduit or a channel to market for these
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vendors. So going in there and
trying to provide a value based proposition may
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not be appropriate or relevant, but
certainly in the next lay it down in
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the regionals and the verticals and the
specialists. You know, it's just they
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cannot, like many end customers,
keep up with the speed and change of
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technology and I think that's a gap
in which we can fill and act as
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a proxy for the Vendor in Scaling, educating, on boarding these resellers as
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a proxy for them before they decide
right, this is the technology I'm going
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to work you know, so investing, so do the on boarding, but
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also work with companies like operatics to
do the direct touch, to find sales
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needs and opportunities, to do the
convincing. With one of our guys,
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Lauren, who runs it was the
king of Europe or the King of Mediterranean.
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He always says to sell to convince, we go direct, to sell,
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to supply, to invoice, we
go in direct. So I think
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we've got a certain amount of evangelizing
ourselves. So it's not only evangelizing the
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technology and the new innovation and the
new vendors in that respect, but it's
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also evangelizing the model and getting acceptance. Solve that and I think we've got
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a damn good choice chance because there's
a perfect storm of complexity coming together and
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what we're offering is simplexity, simplifying
what is a convert complex technology ecosystem at
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the moment where, from a cybersecurities
perspective, the velocity, the variation of
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attacks and threats and spiraling out of
control, there are regulatory and compliance issues
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which are becoming more critical and more
enforceable. Then you have the number,
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just the fewer number of technologies or
security tools people have to put into infrastructure.
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Ask, you know, make in
cteos and SISO's question whether they should
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go best of breed or the complex, as he is leading them to complacency,
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where they would, you know,
say, well, go to IBM
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or another generalist, I t supplier
deliver what, quite frankly, would be
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inferious solutions. And the fourth part
of the perfect storm, of course,
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is the skills. Get their over
million security side of a security vacacies in
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the US alone, two million worldwide. So I think the time is right
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for this provocative model where we can
convince the channel in the USA that maybe
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there's a different way. I've really
enjoyed the conversation today, Barry. So
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we coming to the end, but
from a perspective of I did call you
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early own value, a distributor or
someone trying to bring value a distribution to
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the US market. But it almost
sounds like a proactive distribution and I think
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I like the sun of that because
we we live the same story every day.
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It's about being practive, is about
taking control, is about advising and
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and supporting your clients in striving in
the in the market. So look,
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Verry, thank you very much for
your insight today. I'm sure the audience,
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I do, lots of interesting insight
from the experiment that you should you
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share them and the statements you mane
and some of the ads that you are
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convey as well on on the podcast
today. Let's question that I've got for
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you. I'm expecting people to probably
want to get in touch with your father
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to do the conversation today. What
is the best way of getting all of
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Your Berry? They can send me
an email, they can go on the
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website. My email address is bid
desmond, exclusive Networkscom, all the general
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website exclusive Networkscom or exclusive groupcom.
But we run a very flat, real
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organization here. No matter what anybody's
inquiry is, will give it my media
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at tension mob. That's wonder foot, but I mean it's fantastic and and
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I know busy you out the moment. We spoke a few weeks ago about
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about your objectives gazing the US and
that you have been very, very involved
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and back in fall squared a few
times. So I really appreciate the fire
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that you took the time today to
get always us and and again, thank
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you very much for your insight and
thank you for your time today. Well,
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thank you for the tenzero dollars for
doing it. Ha Ha, Ha's
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pleasure. It's in the broad I'm
going to see your desk these guys.
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Thank you. Thank you very much, burried. operatics has redefined the meaning
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00:20:18.190 --> 00:20:23.380
of revenue generation for technology companies worldwide. While the traditional concepts of building and
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00:20:23.500 --> 00:20:30.019
managing inside sales teams inhouse has existed
for many years, companies are struggling with
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00:20:30.059 --> 00:20:34.660
a lack of focus, agility and
scale required in today's fast and complex world
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00:20:34.930 --> 00:20:41.410
of enterprise technology sales. See How
operatics can help your company accelerate pipeline at
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00:20:41.529 --> 00:20:48.450
operatics dotnet. You've been listening to
be tob revenue acceleration. To ensure that
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