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Barracuda’s plan to double UK revenue by January 2019 is a brave endeavour. With much of the effects of Brexit still to be felt, aiming to increase sales so significantly before the EU withdrawal process is complete appears very ambitious. Alternatively, you could argue that the best prospect of doubling sales is precisely before Brexit actually happens because it could be much harder to do so after it.
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So, maybe Barracuda has no choice but to go as aggressively as it can during the “phoney war” before the full consequences of EU withdrawal take effect. However difficult it might be today, it could be a lot harder in April 2019.
The other interesting aspect of Barracuda’s strategy, as outlined by Paul Lyden, regional vice president for sales, Northern Europe in November last year is to bet so much of it on growing the company’s partner base.
Whatever the prospect of Barracuda achieving its growth aims, the company has been very successful in recruiting channel partners. While it had planned to add 100 extra partners to its existing 180, the vendor has already taken on around 170 or so, almost doubling its reseller numbers overall.
But there’s an important caveat to make here. Doubling partner numbers does not guarantee that a vendor will double revenue. The two are not mutually assured. Sometimes, it will require more than twice the number of partners. Other times it will require less.
Very often, it’s who the partners are rather than how many they are that decides what level of revenue they bring in for the vendor. Recruit too many of the wrong type of partners and a vendor could end up expending too much time and effort on its channel for what it gets back in terms of increased sales.
So vendors need to ensure that not only are they adding more partners but they’re getting the right ones to deliver additional sales. The worst possible outcome would be to sign up resellers that end up competing with existing partners rather than expanding opportunities into other sectors and markets.
Still, it’s always a positive sign when a vendor is prepared to aggressively grow its business in a difficult trading environment and seeks to achieve that goal by broadening the opportunity for channel partners to get involved.