McAfee Buys MX Logic: Pros And Cons for Partners
Further proof that the managed security services market remains red-hot: McAfee has acquired MX Logic for approximately $140 million in cash at closing, with an earn-out of up to an additional $30 million in cash if certain performance targets are met, according to a McAfee press release. But is this a good deal for VARs and managed service providers that are loyal to MX Logic?
MX Logic is among the best-known options for MSPs seeking cloud-based email and web security, archiving, and business continuity services. When it comes to channel strategies, MX Logic has aggressively pursued and recruited MSPs and VARs into its business ecosystem.
The situation is somewhat different over at McAfee. Though still a large security software provider, McAfee’s partner program has a hit-and-miss reputation among many MSPs and VARs. Management turnover — from McAfee’s top brass to the company’s channel chief — has frustrated some of The VAR Guy’s readers, according to private conversations I’ve had at recent MSP vendor conferences.
Still, McAfee has been striving to strengthen its partner program in recent months, notes CRN. MX Logic represents yet another major opportunity for McAfee to reach out and embrace a new channel audience.
In terms of the bigger picture, I have no doubt that consolidation within the managed services software market will continue to accelerate this year. Here’s why.
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I have to say that I am a bit disappointed to see this acquisition, as a top tier partner of MX Logic they have been one of our most strategic vendors. Their partner program is by far one of the best in the industry and it would really be sad to see them lose focus on their channel as this a acquisition unfolds.
Lane: I completely understand your reaction.
I don’t want to throw McAfee under the bus — I’m sure there are some VARs/resellers that work closely with the company and really value their relationship with McAfee. But on the other hand, rotating management and rotating priorities have caused considerable stress within McAfee’s partner program in recent years.
Let’s hope the best of MX Logic’s partner strategy continues forward.
Being a McAfee partner for over six years now, I have been through good as well as bad times. Unfortunately the last four have been bad since they pulled all local reps, inside reps basically have no power (when you can find one…Ingram couldn’t even find my new inside sales contact!) and constantly lose deals to direct sales reps. Channel VP’s with no authority or guts to do anything for the VAR, leaks of confidential customer lists to local Texas reseller’s (I had six calls into all of my 1,000+ seat renewal clients from a reseller in Texas…how convenient that they are also near the McAfee headquarters…hmmmmm). Absolutey the worst tank of a channel program I have ever seen in the industry. With McAfee I constantly get blind-sided due to my naive expectation that a channel focused company would do busines in channel friendly manner, at least with Dell I know what I’m dealing with? And yes before you ask, I still resell McAfee because it is a large part of my revenue base, but if I had to start over would think twice. Good luck to the Secure Computing and MX Logic partners…I feel for you, just like how I gave up on my Veritas business when Symantec was on it’s buying spree.
Jane: Your thoughts are Symantec-Veritas hit home. I was a big fan of that proposed merger when it was announced. But I think everyone (even Symantec insiders) would agree that the merger could have been managed far better during its initial days.
Curious to see how the McAfee-MX Logic deal plays out. We’ll be watching.
Joe: Don’t get me started on the Symantec-Veritas fiasco. Our sales team ended up training my Symantec rookie rep since they fired our Veritas rep of four years. We lost four six digit deals that were in process during the merger. When will these companies learn not to mess with a good thing? Not all is always bad though. I’m happy as clams with the Cisco-IronPort and Dell-EqualLogic mergers but then again all my same contacts are still there post-merger. The scary part of the McAfee-MX Logic deal is McAfee’s cancerous corporate culture kills the very few channel do-gooders that exist in their ranks, where MX Logic culture has always been loyal to their sales channel partners. We’ll see which one wins out…but I wouldn’t hold my breath! 😉
We have been a loyal client since Julian did his 1st road trips in 01-02 continually recruiting our entire customer base.
Certainly the technology and excellent client care for VARs made this a great product to resell with reasonable margins. The watering down of going offshore with McAfee will result in a huge loss in client base as the level of service cannot possibly be maintained once simply communicating an issue becomes the new challenge. Corporate sell-outs are killing America
MX Logic partners will get a very rude wakening. I just had three customers contacted this week by direct McAfee direct sales reps for renewals as small as 200 nodes. Looks like McAfee has removed the hard deck of 501 nodes and is trying to go direct to even smaller accounts. For me the gloves are now off and I will need to start talking with Trend Micro again. They’re channel program is top rate and hopefully their new hosted security platform is ready for primetime. Will keep everyone posted.
Jane: Yes, please do keep The VAR Guy and his readers posted.