The Fast & The Furious


CRN logo By CRN Staff

3:00 PM EDT Fri. Jul. 21, 2006
From the July 24, 2006 issue of CRN
Page 2 of 10
Paragon Solutions Group

By Craig Zarley

Paragon Haydn HirstineThree years ago, Haydn Hirstine, president and CEO of Paragon Solutions Group, an IBM Premier business partner in Denver, crafted a plan to build a business from scratch by going after "white-space" customers.

White space in the IBM world translates to non-IBM accounts, namely ones controlled by Hewlett-Packard, Sun Microsystems, EMC and Dell. That simple, yet daunting mission yielded a whopping 875 percent revenue growth from 2003 through 2005, and Paragon is on track to do $30 million in sales this year, up from $19.5 in 2005, Hirstine says.

"In any given market, IBM has 20 [percent] to 25 percent market share," he says. "Our model from the beginning was to focus on the 80 percent that IBM doesn't have.

What makes these companies Fast and Furious
Groupware: A Startling Comeback
Paragon: Mining Colorado Gold
NueVista: Why Slow Down?
Micro League: Plan For Growth Pays Off
Integration Systems: Winning Customer Hearts And Mining
Sword & Shield: Compliance Plus Security Equal Sales
MTM: The Road Less Traveled
EBS: Manna In The "M" Of SMB
ACS: A Simple Services Formula
Network Innovations: Go VoIP, Young Man
A lot of traditional IBM remarketers and integrators are ex-IBMers who brought over customers and then they get into town and they all start fighting over that 20 percent [of existing IBM business]. I said from the beginning, if we are going to be successful, it's because we go out and replace Sun, EMC, HP and Dell."

Hirstine came to the solution provider channel with some inside information about his new business strategy. A former IBMer himself, his job at the vendor was as a competitive rep focused on replacing competitive products with IBM hardware and software. Because of that, Hirstine says he fully understood both the opportunity and the challenges in converting a customer from a competitive platform to IBM.

Hirstine jumped into the IBM business partner channel in 2003 when he bought Mountain State Computer Systems, a small IBM VAR doing about $1.5 million annually selling Intel-based systems to small businesses. He admits that the purchase was just to get his foot in the door of the IBM business partner community. Hirstine immediately switched the focus of the business from PCs to the full gamut of IBM server and storage technology by hiring engineers who could help customers mitigate the risks in migrating from a competitor's platform, notably Sun and HP Unix, to IBM. "When you convince people to move their technology, you may have a great value statement, but they get concerned about mitigating the risk of changing," he says. "That's where our strong engineering focus comes in."

Hirstine notes, too, that by focusing almost exclusively on competitive wins, Paragon dodges competition from other IBM business partners that concentrate on existing IBM customers.

 
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