'It's going to disrupt distribution for the next 10 years' - Exclusive Networks hints at launch of consumption-based models for resellers

Exclusive Networks has hinted that it will soon launch new consumption-based business models for resellers as it looks to secure another 10 years of rapid growth.

The French security distributor made a raft of new appointments at the start of the year, with former COO Barrie Desmond returning to the business after a year-long sabbatical, and former Gigamon and Juniper Networks exec Gerard Allison stepping in as head of EMEA.

Speaking to Channel Partner Insight just weeks into joining Exclusive, Allison said that driving consumption-based selling models with its EMEA partners is a key objective over the next 12 months.

He said Exclusive Networks has the ability to disrupt the market with consumption-based selling in the same way it did with value-add services in the last 10 years.

"Apart from keeping and growing our global presence and executing locally, we will deliver new models which you will hear about in the coming weeks and months. Landing those will be key," he said.

"We will bring tremendous value with disruptive new models. The market is talking around consumption; let's see how distribution can bring real value with the consumption model. We've done it with services, and we're going to do it with consumption as well."

Allison said that most of Exclusive's vendors are eager to push consumption-based models through the channel, but some are at different stages of progress than others.

He explained that while many newcomer security vendors are launching into the channel with a consumption-first strategy, more established vendors might be forced to take a more gradual approach.

"A lot of the new products that vendors are bringing are on a subscription basis, so they're beginning to change that," he said.

"The consumption model is one they're looking at and saying ‘how am I going to achieve that?' Especially if they're listed companies; there's a challenge around that. They are ongoing conversations."

Allison said that Exclusive will be making some announcements around its consumption-based strategy in the coming months.

The French firm isn't the only value-added security player that is looking to disrupt the market by embracing new business models.

Swiss player Infinigate made a big splash in the MSP space when it acquired Germany-based SolarWinds MSP, RapidFire Tools and Kaspersky distributor Acmeo in 2018.

Its CEO, Klaus Schlichtherle, said he expects its MSP business to account for a third of its total revenues in around five years' time.

But Schlichtherle had told CPI that getting its vendors onboard with selling product using a consumption model has been no easy task, with many hesitant to move away from a traditional licensing model.

Allison, however, said that these new models will be the most disruptive force in distribution over the next 10 years.

"It is a quandary that has to be fixed, and I see distribution as the one place to bring it all together, and that's what is going to disrupt the next 10 years in distribution and the channel," he said.

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• Topics
• Distribution
• Juniper Networks
• Gerard Allison
• EMEA
• distribution
• distributor
• Exclusive Networks
• MSP