Extreme Networks claims that it plans to catapult its acquired Aerohive business into the MSP space as it looks to more than double its subscription-based offering over the next three years.
The vendor's global channel boss, Gordon Mackintosh (pictured), describes Aerohive as "the most profitable networking vendor in the traditional resell model", but wants to introduce its MSP partners to the new business.
"Aerohive really is a growth strategy for Extreme now," Mackintosh said.
"From a partner perspective, they're going to see a broader portfolio being enabled by cloud… And with this we're going to enable their MSP practice.
"Having access to our platform will allow them to manage multiple customer networks - a year from now that will be from the datacentre to the wireless edge - and it will drive higher levels of profitability, offer much more customer intimacy than they've had before and make sure that the network can keep pace with the ever-changing requirements of the customers.
"We were looking for a third-generation cloud networking platform that we can pivot around, and integrate the vast array of switching and wireless and datacentre products that we have... It allows us to get a little ahead and try to offer some differentiation for our partners and customers."
Mackintosh said that one of the biggest "differentiation points" to his partners was that more will be able to add subscription-based payments to their business.
Around 85 per cent of Extreme's sales goes through its partners. Some 25 per cent of its business comes from as-a-service recurring revenue, with "aspirations to double that over the next three years".
"Our partners are very, very keen to move in this direction, as ultimately it increases the valuation of their business," Mackintosh said.
Geographically, he highlighted the Nordics, the Netherlands, Belgium and Luxembourg as "the real hotspots" for generating managed services growth for the company at the moment.
Referencing CEO Ed Meyercord's comments in May, Mackintosh said Extreme is being affected by headwinds in EMEA, claiming that Brexit and Germany's GDP slowdown are affecting customer procurement decisions.
"We're not losing business [in Germany], but we're seeing business being put on hold. Some of the economics that are happening with Brexit means there is a little bit of a slowdown there. And we think it's going to last a quarter or two," he said.
"But the market we're moving into - cloud, managed networking in the enterprise space - is growing in the high double digits and set to do that for the next two years.
"With the acquisition of Aerohive, and what we have already today, we're probably sitting at eight to 10 per cent market share.
"So despite what's going on, this acquisition is going to give us great opportunities to capture market share and capture the transition that is happening in the marketplace."
Extreme Networks is aiming to integrate some of its wireless technology and switching technology with the Aerohive cloud platform within the next 90 days.
He also pointed to $50m he's invested in partners over the last year to get "more feet on the street" with partner account managers in local markets.
The vendor's EMEA VP previously claimed that it has been openly looking to recruit partners of troubled Huawei.
While Mackintosh was more circumspect on how the poaching process is going, saying "you really have to wait six to 12 months" to see the results, he claimed that the Aerohive acquisition has brought some of his competitor's partners over to Extreme.
"We're seeing, not just from Huawei partners, but a board spectrum of partners that weren't selling Extreme in the past, becoming very interested in this new proposition, as all the acquisitions start to gel…We're regularly seeing inbound partners from some of our competitors looking to get on board," he added.
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