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Zix CEO Dave Wagner On How Buying AppRiver Unlocks SMB, Microsoft Opportunities

Dave Wagner dishes on how the AppRiver deal will streamline service delivery around Office 365, why Zix and AppRiver partners will continue being served by separate programs, and how he plans to double sales within the next half-decade.

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What did Zix and AppRiver each bring to the table?

AppRiver has built a platform over 12 years for doing entitlement, provisioning, and billing for partners so that it's very easy for them to administer Office 365 for their clients and attach the complementary email security services. That platform will, over the next 18 months, become the core Zix-AppRiver platform for partners to get easy integration of the suite of services and the ability to a la carte pick which services work with which customers in a very agile way. If you think about the small MSP managing 30 clients, each of those clients have employees leaving on Friday and coming in on Monday. The AppRiver platform allows those MSPs to add the new users easily, delete the old users, and updates the bill automatically, and takes care of the provisioning, entitling and billing for them.

What has surprised you as the two companies formally join forces?

The integration is going really well. We exceeded our expectations in terms of how quickly we were able to integrate Zix Encrypt into the Nautical platform. We completed that within 45 days of the acquisition. So that was a first big accomplishment. The second big accomplishment came in late June with the integration of Zix Archive into the Nautical platform. The technical integration has been a really pleasant surprise. Office 365 is growing very, very rapidly. Our core tenant was helping our partners and customers get through that migration, and get the right services attached to the mailbox. But that movement to the cloud has accelerated even since the beginning of the year, so we're really excited about that. And we're really pleased with the strength of the Microsoft partnership that we have with AppRiver. AppRiver is one of the very top Microsoft cloud service providers, one of the top two productivity providers in the CSP program for Microsoft. So the really tight relationship we have with our account team there building programs and services, particularly for the mid-market buyers, is something I've really been pleased with.

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