The VAR Guy

August 29, 2008

1 Min Read
Voltage Security: Plugging VARs into SaaS Revenue

Sure, Voltage Security is gaining momentum with traditional channel partners. But take a closer look, and you’ll see that the company also has a SaaS (software as a service) strategy that’s starting to connect with partners.

Voltage specializes in email encryption technology. The company has lined up nearly 30 partners and roughly 40 percent of Voltage’s revenue now goes through the channel, notes eChannel Line. But ultimately, today’s channel players want recurring revenue. Lots of it. That’s where the Voltage Security Network and the company’s  partner program enter the picture.

Voltage is quick to brag about the quality of its expanding partner program. And the privately held company seems to be enjoying solid growth, including:

  • 2Q revenue growth of 80% compared to Q2 2007.

  • A customer base that now tops 580 organizations, up nearly 60% since mid-2007

  • An installed base of more than 2.5 million licensed users

What’s the upshot for partners? A few quick observations from The VAR Guy:

  • After several false starts, email encryption is catching on

  • Sometimes, small organizations — rather than big, public software companies — can drive new opportunities that you may otherwise overlook.

  • You can make a one-time sale promoting Voltage … buy why wouldn’t you seek recurring revenue from the Voltage Security Network?

Oh, and consider this: Nearly 90 percent of top managed service providers (MSPs) already offer some form of managed security, according to the annual MSPmentor 100 survey. But most of those MSPs focus on basic endpoint security, anti-virus and patch management strategies.

Email encryption, in stark contrast, remains an emerging market opportunity for most MSPs and VARs.

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