Trend Micro maybe the third most recognized security vendor behind Symantec and McAfee, but it is trying to become the top margin provider in the already over-crowded market.
One of the ways it’s doing so by leveraging a new alliance with Cisco Systems and its channel partners.
According to Pat Kewin, director Canada for Trend Micro Inc. margin levels go on top of what Cisco Systems is offering in its VIP, OIP and SIP programs.
“If a Cisco VAR sells Trend Micro along with the Cisco solution with an attach strategy, they’ll have an extremely rich security sale,” he said.
For example, the Cisco VAR would net 14 or 15 per cent off of any advanced technology sale. By adding Trend Micro with that solution they would be reward with an additional five to 24 per cent. In the end, the deal could net a reseller close to 40 per cent of margin.
Without Cisco, traditional Trend Micro partners would get between five and 19 per cent in margin.
Trend Micro, based in Cupertino, Calif., has only six Cisco partners in Canada in its SecureOne partner program at the moment, but Kewin sees this as a growth opportunity to sign more Cisco partners.
In 2005, Trend Micro’s Canadian office gained 49 per cent revenue growth. Last year, because of much higher revenue, the division reported a 22 per cent uplift, which is still above the industry average, said Kewin.
“Customers are making the move to Trend Micro. I believe a share shift has happened and the Cisco channel alliance provided some lift to grow the numbers. Customers who are with Cisco are now engaged by Trend Micro,” Kewin said.
The Cisco partnership was in a way future-proofing Trend Micro and its technology in the market. Kewin said customers know Cisco infrastructure and its Adaptive Security Architecture (ASA), which is a blade with Trend Micro technology for firewall and spyware.
The Cisco alliance became part of Trend Micro’s channel expansion in Canada. The subsidiary has only two distribution partners here: Broadliner Tech Data Canada and Interwork, which is a security specialist. Back in 2005, Trend Micro Canada had only 200 channel partners. Today it has 400.
“The channel expansion focused on Cisco VARs because not many of them have a security practice, but they do look to stop threats and attacks at the networking layer,” Kewin said.
Trend Micro also made another significant deal with Tech Data. Through the distributor, reseller can get access to Trend Micro usage-based licensing program. This program will be rollout in Canada shortly, Kewin said. It will also enable resellers to go out and offering a managed service in a usage-based model.
“Smaller VARs can buy licenses and get more annual revenues, while customers can cut out capital costs,” he said.