Advertisement

Channel programs News

Converge Technology CEO On Channel Consolidation, M&A And Private Equity

Mark Haranas

Converge Technology Solutions CEO Shaun Maine explains why vendors want channel consolidation, how private equity firms don’t understand solution provider M&A like Converge does, and his company’s plan to grow $1 billion in sales per year.

Do vendors want the channel to consolidate?

Of course they do. It’s too much work for them. Like say they want to roll out campaigns. It’s much more work for them to talk to 25 [partners] as it is to one. So if we can roll it out to all their major markets, that’s a good campaign for them.

A lot of the campaigns are regional, which I get, but like how we did this [Red Hat] Ansible campaign—that’s a North American campaign. We go city to city, and it’s the same campaign that really works. We grew our Red Hat sales by 100 percent last year.

So the campaign is working and we’re getting net new logos and new people by having them come to you for these workshops. That engagement model works. A lot of the companies we buy have never sold Red Hat before. And yet now, they’re able to leverage our Red Hat practice across all the companies.

Because otherwise, think about the engagement model from Red Hat. They have to talk to all these different partners. Is it consistent? Is it not? Are their customers getting the right user experience?

A lot of times market development funds, the whole reason the vendor is giving it to you is to grow sales. Some smaller companies, they say they’re using it [for MDF] but they’re actually just putting it into the bottom line. So vendors want to be able to trust a partner. And they see it in the results, it’s all about sales growth.

If you look at the awards we win at all the vendors conferences—like our Red Hat Partner of the Year, Analytics Partner of the Year, Cloud Partner of the Year—this is because we are a growth partner in the mid-market, which is a segment that the OEMs don’t do very much in. They sell direct to the Fortune 500 really well, but they don’t do mid-market very well. This is where we really can help them out.

 
Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

Advertisement
Advertisement
Sponsored Post
Advertisement
Advertisement