Channelnomics

McAfee: Three Products Per Customer Unlocks Opportunity

Plusone Twitter Facebook Linkedin Digg Email
Steve Redman, executive vice president of global sales, McAfee

Steve Redman, executive vice president of global sales, McAfee

McAfee Inc. has found a key to success when it comes to growing its business with customers: Get three or more products installed.

Speaking at the company’s third-annual SecurityAlliance Partner Summit in Las Vegas Tuesday, Steve Redman, executive vice president of global sales, told partners the company has found that once its gets to three products with any given customer, its wallet share jumps eight times. Eighty percent of the company’s top 1,000 customers have three or more products in their business, Redman said. That number plummets to just one percent in the next 5,000 McAfee customers.

“We’re kicking butt when the customers listens to our story of Security Connected, but it’s not getting out enough,” Redman admitted, calling on partners get up to speed on the company’s complete strategy, and perhaps more importantly, the components underneath it.

Since its purchase by Intel Corp. three years ago, the company has been focusing on its end-to-end Security Connected message. But Redman expressed concern that, in focusing on that message, partners were not seeing the trees for the forest, particularly with regards to hot, high-growth areas. The executive pinned the growth in recent years of Kaspersky Lab ZAO in the endpoint market and Palo Alto Networks in the next-generation firewall in large part to the company’s failure to communicate the value or the parts of its solution stack. He said McAfee will remedy that deficiency, and outlined plans in various levels of completion to on-board acquisitions in situational awareness, next-gen firewall, advanced malware solutions and its simplified lineup for endpoints as areas of differentiation. He called on partners to get to know what McAfee is doing in some of these higher-growth areas, areas where many partners may have turned to smaller, more specialized vendor partners to address customer pains.

“If there’s a hot market out there, we’re doing it internally as well,” Redman told partners.

Global channel chief Gavin Struthers picked up on the same theme, telling partners, “You have an opportunity here to become less promiscuous.” The security space is a crowded one, to put it mildly, and Struthers made the pitch that partners will be better-suited aligning with McAfee’s broader strategy and the solutions underneath it than representing a handful of rivals, each in their own area of expertise.

“Customers want to see leaders with vision, and we’ve been talking about this Security Connected strategy for years now,” Struthers saids. “You have an opportunity to built a more sustainable business with McAfee.”

Struthers likened the multi-vendor approach to the Vegas tactic of spreading bets on 14 or 15 different numbers on the roulette table. While it might keep you in the game, he suggested, it made it impossible to win big. Instead, Struthers urged partners to “double down” on McAfee.

While Redman stressed the importance of cross-selling multiple McAfee products to customers, Struthers added the idea of cross-selling through up-selling. Struthers said that, about half the time a McAfee customer comes up for renewal on products, the company and its partners introduce a new product from the security vendor to that customer. He called on partners to do more and to think more broadly, looking at ways to move McAfee products into adjacent opportunities, including securing databases and virtualized environments. Mobility is also a top opportunity, now that its Enterprise Mobility Manager is fully integrated with the ePolicy Orchestrator management software.

“You could do a lot of things in mobile device management, but what you really want to do is secure those devices cross-platform, and we do that with EMM,” Struthers said. “For ePO customers, it’s a no-brainer.”

Struthers told partners to also use renewal cycles as opportunities to go after competitive displacement opportunities. Right now, top priorities identified by the channel chief included moving customers of Google Inc.’s now-defunct Postini e-mail security product to McAfee’s SaaS-based mail security offering, and moving customers of Symantec Corp.’s end-of-lifed security infrastructure and event management over to McAfee rather than going to Symantec’s  managed service offering.

Related Articles:

Leave a Reply