Managed Web Security Offers Compelling Business Case and Healthy Margins
LONDON and SAN MATEO, Calif., Feb. 17, 2006 -- ScanSafe, the pioneering Web security services company, has announced major new plans for its U.K. channel. The company, which sells its managed Web security services entirely through strategic alliances and enterprise partners, launched its brand new channel program and structure this week at an event for partners in London, where it also announced the findings of its first channel partner security survey.
The company, which is predicting triple digit growth this year, believes that with so many disparate security technologies and players flooding the market, the managed security service option is where the channel will begin to see incremental growth and opportunities for selling value added services. Craig Whitney, vice president of sales at ScanSafe, believes there is a compelling business case for security specialists in the channel to start selling managed web security alongside other software and hardware products.
"This is the first time that ScanSafe has launched a formal channel program," Whitney said. "Currently we are seeing phenomenal growth in managed Web security services, especially in the areas of Spyware Screening and Web Filtering, as companies start to realize that Web security is their first line of defense against Internet threats. We're seeing new subscriptions growing at around 70 percent month on month and we now have over 750 customers on board, ranging from banks to fashion designers."
Whitney, who joined the ScanSafe team from Microsoft earlier this year, believes that margins in the managed security space are extremely healthy right now.
"What we are looking for are channel partners with the same mindset as ourselves--ambitious, articulate, driven, with aggressive growth plans; experienced security specialists who are 100 percent focused on delivering the right security solution to the customer; and ultimately, partners who can educate customers on the merits of outsourcing these activities, which are incredibly difficult to do effectively in-house," Whitney explained.
ScanSafe is now focusing on building a small but elite team, with another 10 channel partners planned. This way the company can build an ethical channel structure, where partners have the ability to articulate their unique value in the marketplace.
The company is currently looking for partners in Scotland, Manchester and London, but is interested in any security specialist with the right skills and the ability to go out and deliver the early adopter message around managed Web security.
The company has announced a formal two-tier structure which includes:
- Strategic partners, including Integralis and Star, who co-brand the ScanSafe services and offer high levels of commitment
- Enterprise partner program (EPP) for experienced, high calibre VARs who can offer ScanSafe branded managed services as a strategic part of their security portfolio. Current partners include Matrix Communications, Nebulas Security and CSTL. The ScanSafe EPP offers VARs high levels of sales and marketing support, structured discounts, beta programmes and co-operative marketing events.
Channel Partner Survey -- Key Findings
ScanSafe surveyed its U.K.-based resellers and partners for its first annual channel survey, which included questions on key security trends and priorities to their business. A summary of the findings are below:
- Questioned about security priorities for the year ahead, respondents ranked the following (in order of priority):
- Consolidation of security products and services - 76 percent
- Email and web security - 48 percent
- Managed security services - 33 percent
- Perimeter security - 27 percent
- Desktop security - 23 percent
- Asked about managed security services (MSS) in 2006, respondents are expecting 10-20 percent growth this year in MSS. Top three growth market sectors are: financial services (31 percent); public sector (28 percent) and manufacturing/supply chain (16 percent)
- ScanSafe asked respondents to rank aspects of its service from poor to excellent -- on average, responses showed that the ScanSafe service was good to excellent across all categories, including: sales, customer service, training capabilities, ScanCenter interface, provisioning process and finance
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Asked for feedback on areas of the ScanSafe 'experience' that partners would like to see improved or modified to make the whole process smoother, respondents suggested that there are barriers when talking to customers about Web security issues. It seems that there is still some education to be done in making companies aware of the need for Web security and the potential risks of un-scanned HTTP traffic. Top enhancements to the ScanSafe service requested were (in order of ranking):
1. More detailed competitive data - 56 percent
2. Ability for client multiple log-ins - 48 percent
3. Simplified order form and separate renewal form - 28 percent
4. Quarterly sales training program - 15 percent
5. Increased auditing functionality - 10 percent
About ScanSafe
Formed in 1999, ScanSafe is the world's first provider of a fully managed Internet level Web security service. Powered by proactive heuristics technology Outbreak Intelligence™, ScanSafe provides a comprehensive suite of Web security services that guarantee high performance, best-of-breed protection. Its fully managed services screen the Web when users surf, keeping it safe and productive. Viruses, malware and spyware are blocked before they reach the network and Web access policies are enforced. ScanSafe currently screens three billion Web requests each month blocking two million threats on behalf of customers such as Bacardi and Eurostar.
Since pioneering the market for managed Web security, ScanSafe has maintained its global leadership and it continues to lead the direction of the market through its unrivalled product innovation. The company services customers in Europe, U.S. and Asia and has offices in London and San Mateo, California.
ScanSafe is privately owned, and financed by Benchmark Capital. Recent awards include winner of Red Herring Top 100 European Technology companies of 2005.
