Encryption has been sold too technically, says a UK specialist about to embark on a major channel expansion drive. Egress Software Technologies supplies cloud-based encryption services through the channel, and having doubled in the last two years, plans to do so again.
CEO Tony Pepper, one of the two founders, says it has sold through security VARs and a small number of integrators, having particular success in the UK health and local authorities, and some other verticals. But with the management and registration work done by Egress, it is a lot simpler to install and manage than many believe. It is a competitive market, he agrees, but one where a lot of product was sold in the past on the basis of ticking boxes. There is a lot of encryption that has been adopted in pockets where it has been deployed “because it had to be”. Now, he thinks Egress's channel can pick up a lot of business from customers who know what they want, and a channel that can sell it. Old-school systems and solutions bundled as part of an overall security offering won't be able to complete. Symantec's existing resellers might find his offer quite interesting, he thinks.
Egress is an encryption services provider offering businesses of any size or sector email encryption, secure file transfer, secure web forms and secure workspaces; providing a broad opportunity for existing and potential partners. Its Switch platform operates under a community-based licensing model, meaning it is free for third party users.
With a new channel programme includes three partner levels: alliance, associate and approved, all benefiting from deal registration, opportunity protection and discounts, European growth is the plan for the next year. “We're being dragged into other markets, including the US, as the business grows, but in 2015 we intend to invest strongly in the new geographies.” Egress won venture backing last year which means it is strong enough to expand at the required rate. With interst coming from the Nordics and Benelux, those would be obvious places to start building this new channel, but the opportunities seem to be everywhere.
And while distribution is probably not needed in the UK, in Europe it could provide a ready-made channel, and he wants to talk to any two-tier players who want a part of what he says will continue to be a fast-growing and relatively high margin business. “And because it is recurring revenues, this makes it even more attractive”. Encryption is not new – it has been sold for the last 20 years, he concludes, “ but the channel is looking at a huge opportunity now, and those that get in now will provide the backbone of the business to come. He can see a five year growth plan ahead.
