MSSP Security On-Demand has hired its first-ever channel chief in a push to expand its channel beyond telecom carriers to include mid-sized VARs and MSPs.
The San Diego-based company, No. 50 on the CRN 2017 Fast Growth 150, hopes to bring in 20 to 30 well-qualified IT channel partners next year with a background in security, according to CEO Peter Bybee.
Spearheading the channel offensive will be new Director of Sales Kim Scott, who previously served as director of business development for Winnipeg, Manitoba-based solution provider Online Business Systems. Bybee praised Scott's combination of sales and product management experience, saying it should serve her well in putting together complex cybersecurity solutions for channel partners.
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"She's got a unique perspective for understanding the industry," Bybee told CRN.
Security On-Demand recently landed its first IT channel partner with the signing of San Diego-based Technology Integration Group (TIG), No. 75 on the 2017 CRN Solution Provider 500, and is currently negotiating deals with a half-dozen other solution providers, Bybee said. Security On-Demand has enjoyed a two-year growth rate of 90.97 percent, according to the Fast Growth 150.
"We haven't become really well-known in the marketplace because we are focused on the carrier level," Bybee said. "But we see progress, and we're seeing a lot of interest."
Security On-Demand does more than 95 percent of its business through the channel, Bybee said, of which roughly 70 percent is through telecom carriers while 25 percent is through new channel partners such as TIG and data center hosters.
The company's primary telecom partner recently developed its own private-label solution, though, meaning that they're no longer leading with the Security On-Demand product.
"Selling through the channel is like herding cats," Bybee said. "You don't control the sale anymore."
Bybee said managed service providers have suffered a hit to their traditional sources of revenue due to changes in Microsoft's software licensing program and servers being consumed in the cloud rather than as an outsourced MSP service. As a result, Bybee said security had become a required part of the MSP's strategy if they wish to stay afloat.