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AccessData's Gailey said his company has seen steady growth from moving its portfolio from separate point products to becoming a full platform of integrated technologies. The move has been a mixture of organic growth and acquisitions. In 2010, the company acquired CT Summation, an e-discovery platform that has been a longtime favorite at law firms. Developers have been completely re-engineering it while continuing to build out its arsenal of analytics and forensics capabilities. Meanwhile the AccessData sales organization has grown from seven sales people to more than 140 in four years, Gailey said.
"We've grown so much that we can't keep up pace organically, we have to now have an indirect channel," Gailey said.
Gailey was hired to build out a channel strategy last year and has been bringing on channel sales experts to help close deals. The company is looking to grow the channel by revenue by over 75 percent this year. It did about $29 million in indirect sales worldwide last year mainly from distributors, and the target is $50 million in 2013, Gailey said. The company entered Russia and China this year.
The company is also investing heavily in marketing, doing about 40 events in the last six months with about 10 different partners, Gailey said.
"We're spending money to build relationships with our partner sales organizations and executive organizations with our internal team, and we're doing it to build relationships with their top customers," Gailey said.
AccessData has also implemented a pro-channel compensation model, using an uplift to incent its direct sales people to move sales through the channel. It set aside about $3 million in the U.S. market to pay uplifts back to its sales people, Gailey said. If sales reps take the deal through the channel, they will make an additional 20 percent margin.
"If the executive management of this company and sales organization don't understand this strategy, then we'll all be dead in the water, but the good news is that all our front-line managers come from huge channel organizations and they get it," Gailey said. "We don't have channel fighting and conflict here."