The rise of the Super VAD

There’s a new trend in town: the ‘Super VAD’ .

According to Exclusive Networks group marketing director, Barrie Desmond, there’s a new breed of distributor in the channel whose aim is to help partners switch to a recurring revenue model through a wider range of support services.

Desmond goes on to add that following its acquisition of VADition last year, Exclusive Networks now has “the reach and volumes of a broadliner but with the value and services of a specialist.”

Desmond claims advanced technical services, its own datacentres and NOC are key differentiators compared to the broadline competition, while its pan-European structure is wider than specialist rivals such as Wick Hill or Zycko. He does however concede that Computerlinks might be closer to the ‘Super VAD’ status, but feels that they are not as far along in their journey.

For the Super VAD concept to succeed, it needs to bring new disruptive innovators to market. The old VADition championed several now established vendors at an early stage and he points to Palo Alto and Arista as great examples of how they can add value. “In many cases, we were effectively offering everything to support channels for US vendors coming to Europe, “ he adds.

However, Desmond resists the charge that the Super VAD could steal high margin professional services away from the channel. In his view, smaller partners that can’t offer 24/7 support or pan-European capacity will want Exclusive to white label these services so that they can win the deal and make margin. “These are deals that they would not have got otherwise,” he comments.

Desmond admits that the firm is likely to drop a few of its established vendors that are effectively commodity plays with little value-add potential. However, Exclusive is looking at key new areas around SaaS and mobility where its VAD credentials can shine.

The group predicts it will grow revenues to €275m for 2012, up from the €182m it posted for 2011.