Michael D. Rogers, Sophos

Channel Chief Name	Michael D. Rogers
Channel Chief Title	Vice President, North America Alliance, Channel & OEM Sales
Company and Division	Sophos
Markets Served:	Security
Company's overall 2007 revenue:	$178 million (FY 06)
Percentage of revenue from solution providers:	> 70%
Number of years with the company:	1.5
Number of years involved with indirect sales:	11
Number of employees in channel organization:	17
To whom do you report in your organization?	Mark Hatton, President, Sophos North America
Does that individual report to your CEO/president?	Yes
Describe your channel organization's major accomplishments over the past year:	* Launched 100% channel strategy in North America. All Sophos products are procured exclusively through our channel partners in North America. In moving to a partner centric model in North America, we are placing our partners at the center of our business and the success of our business. ? Launched a stratified coverage model ensuring a culture of reciprocation and investment between ourselves and our partners and that the value of key partnerships is realized for both Sophos and its partners. ? Introduced a two tier, variable margin structure - Standard Margin and Order Fulfillment Margin that appropriately rewards the level of partner engagement in each opportunity. ? Introduced a Deal Registration program with guaranteed margins for all qualified opportunities. Driven by a new online system, a formal process has been established at Sophos to offer advantages to partners who register deals that they develop. ? Introduced a Lead Distribution system. Driven by a new, best-in-class online system, Sophos distributes the highest quality leads that we generate to qualified partners. Sophos expanded its joint marketing efforts as well. ? Significantly increased marketing programs and investment in helping partners to drive demand generation. ? Captured the VARBusiness Annual Report Card Company of the Year -- Security Software
List up to 10 of your top products sold through the channel:	Sophos Enterprise Security and Control Sophos Endpoint Security and Control Email Security and Control Sophos ES1000 and ES4000 Email Appliance Web Security and Control Sophos WS1000 Web Appliance Sophos NAC Advanced Sophos Small Business Suite
Describe how your partner community has grown over the past year:	Sophos significantly strengthened its relationship with several LARs in North America in the past year -- in particular with Softchoice winning its Breakout Software Vendor of the Year award in July of 2006 and its Rising Star award in January of 2008. Percentage of revenue with this partner grew more than 158% from Q4 of '06 to Q4 of '07. Other regional security VARs -- in particular in Texas, Ohio, and California - experienced significant growth with Sophos as they grew their security and increased the presence of Sophos within their portfolio. Partners who focus on K-12 continued to experience strong business with Sophos and those who focus on the corporate market saw an increase in business development with Sophos. With the addition of centralized management, HIPS, and application control to its endpoint security offering, partners saw significant growth in the Sophos Endpoint Security and Control product. NAC-Advanced has strengthened the portfolio of partners who provide consultative assessment services and knowledge regarding emerging technologies in the marketplace. In addition, the relaunched line of Sophos Email Appliances added a valuable component to partner offerings in 2007. Sophos launched a Web Security Appliance in early 2007 and made a significant upgrade in January 2008 allowing partners to continue to take advantage of this Greenfield opportunity. Partners continue to realize the benefit of Sophos's expanding and innovative product line.
Name the one individual who has had the most profound impact on your life:	The one individual who has had the most profound impact on my life is my father, David The man my father was and the many things he taught have provided me with the foundation to be the complete person that I am today. Through both words and actions, my father taught me commitment, responsibility, work ethic, community, the ability to manage and overcome adversity, and the importance of a balance, between work and family. Growing up, raising a young family while first serving in the Navy for 6 years and then working 30+ years in technology, working his way up from an individual contributor to a leadership role at both Digital Equipment Corporation and HP, my father worked immensely hard. But while achieving success in his career, he always provided for the essentials for our family - materially and more importantly, emotionally - he was always there for us. It is this balance, of working hard to provide maniacal support to our partners and customers while remembering, at the end of the day, why we work so hard; to strive to become that complete person, which I know for me is rooted in the great qualities that my father embodied and the values that he handed down to me.
Please name the single most innovative initiative for which you were responsible for the past year?	Sophos's philosophy with regards to our channel partners clearly distinguishes us from other vendors in the security space. We believe that our partners represent our extended sales force and that they are the key to achieving true breakout performance in North America. We cannot exceed our business goals without enabling and energizing our partners. We encourage our sales teams to select and engage with partner sales representatives who will actively work with them to build a strong business in their assigned territory. We are committed to dealing with all partners objectively and to applying the policies and rules of our program fairly. We actively seek out and invest in partners who share our goals and approach to business and who are committed to building a business together that is founded on high quality, high value solutions. Driven by this philosophy, we have implemented an innovative approach to working with our partners. The major initiative reflecting this innovation is our launch of the 100% channel strategy. As mentioned previously, all Sophos products are procured exclusively through our channel partners in North America and we are investing heavily in the program year on year. Elements of this program such as the stratified coverage model, two-tier variable margin structure ensure that the value of key partnerships is realized for both Sophos and its partners.
What were the key channel partner investments you made in the past year?	In early 2007, Sophos announced a significant shift in our channel partner program and go-to-market strategy in North America. Implemented 100% Channel Model - Sophos is investing heavily in the channel program in North America by offering very attractive financial benefits for our partners. All Sophos products are procured exclusively through our channel partners. Sophos offers highly competitive margins and has introduced a two tier, variable margin structure - Standard Margin and Order Fulfillment Margin that appropriately rewards the level of partner engagement in each opportunity. First-class account management and pre-sales/post-sales support - Sophos has increased its channel team staffing this year attracting top talent from major competitors in the industry. These dedicated Sophos account managers work closely with partners to develop valuable partnerships. And, Sophos's many inside sales and technical personnel support the channel heavily both pre- and post- sales. Key investments have been made to provide exceptional Sophos--staffed resources to support channel selling. Infrastructure investment to support channel initiatives -- 1) a best-in-class, on-line Deal Registration system 2) a best-in-class, on-line Lead Distribution system for distribution of high quality leads for our partner base 3) a new, on-line ordering system for partners 4) a new, on-line system to give partners the ability to offer on-line selling via their own websites More than 200% increase in marketing funding -- Sophos has substantially increased its investment in joint demand generation and new business development activity for partners. Efforts include joint events, special promotional activity, email campaigns, webcasts and seminars, and downloadable evaluations and whitepaper activities. In addition, high quality leads identified by Sophos's demand generation engine are being distributed to qualified partners for opportunity development.
How are you attracting the next generation of solution providers?	With the implementation of its 100% channel model, significant team staffing increases, and the expansion of its security solution portfolio including some key appliance offerings, Sophos has moved to an active recruiting phase seeking partners who have a complementary business model, are interested in growing or strengthening their security business, and with whom a culture of reciprocation resonates. Sophos Channel Account Managers are actively seeking, qualifying, recruiting, and enabling new partners who fit the Sophos profile as well as managing and enabling mutually valuable relationships within the context of the stratified coverage model. Sophos security solutions are designed exclusively for the enterprise market. Sophos has developed new and strengthened existing relationships with several LARs throughout North America including Softchoice, Insight, SHI, and ASAP. From executive level engagement to technical support calls, individual relationships have been fostered at every level of the organization. Historically, Sophos has realized particular strength in the Higher Education and K-12 markets and has worked with partners who specialize in these areas. In the past year, the company has strengthened its presence in the corporate sector with several significant wins. Sophos identifies and works with partners who bring specialized knowledge to the application of a horizontal solution as well as the unique needs of corporations in specific verticals in the market. A key tenet of Sophos's Partner Program is to grow our respective security businesses. To this end, Sophos is committed to the success of our valued partners' businesses. ? Launched 100% channel model driving more business through partners, engendering a culture of reciprocation, and minimizing channel conflict ? Continue to offer highly competitive margins and introduced a two tier, variable margin structure - Standard Margin and Order Fulfillment Margin that appropriately rewards the level of partner engagement in each opportunity. ? Sophos offers the same margins on new and renewal business ? Introduced a best-in-class Deal Registration program guaranteeing margin on a deal regardless of which partner the deal closes through ? Provide hands-on pre-sales selling and technical support reducing the need for in-house partner expertise (Sophos also provides training to ensure that that expertise is eventually developed as appropriate based on the partner's business model) ? Introduced a Lead Distribution system to distribute the highest quality leads that we generate to qualified partners. Sophos expanded its joint marketing efforts as well. Sophos invests heavily in supporting demand generation through the provision of cooperative funding, tailored and co-branded marketing materials, and access to Sophos marketing professionals. ? Introduced an on-line selling capability to allowing partners to sell a range of Sophos products directly from their website with only very minimal investment on their part
What is the greatest challenge you overcame in the past year?	Sophos is a privately held enterprise security vendor. Its exclusive focus on the enterprise market (the company has no consumer offerings) and original roots in Europe have presented challenges in building broad awareness within the partner community. But, Sophos has overcome these challenges by taking an innovative and channel-friendly approach to building its partner program and relationships with partners. Sophos has significantly increased its presence in the channel community by offering a strong program including attractive margins, opportunity protection, unrivalled pre- and post-sales support, and customer acquisition programs and support. Sophos's success in winning the VAR Business Annual Report Card survey - Company of the Year -- Security Software as well as Sophos's recent positioning in the Leaders' Quadrant in Gartner's Magic Quadrant for Endpoint Protection Platforms, 2007 are strong testament to Sophos's position as the new leader in the security space.

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