The company will announce a set of sales promotions, including one that will offer buyers 35% off every RapidStream appliance they buy, if they sign an affidavit certifying they have decommissioned competing products from other vendors.
RapidStream is revamping its channel with a new Enterprise Security Partner Program. The firm will keep its three-tier sales model, under which Tech Data and Westcon in the US and Wick Hill and Azlan in Europe are its distributors.
But rather than selling through any VAR who approaches its distributors, RapidStream will now operate a very selective authorized dealer program that will require, among other things, that they are an authorized Check Point Software Technologies Ltd reseller.
RapidStream’s firewall/VPN appliances are, like market-leading Nokia’s, based on Check Point’s software. RapidStream is pushing low-cost and high-throughput VPN features as its major differentiator.
As well as the 35% discount to switchers, the company will offer a 40% discount on the first device purchased to new customers for a limited period. In addition, RapidStream will offer sales incentives up to $1,500 directly to its VARs’ salespeople.
It’s a great way to get their foot in the door for these VARs, director of marketing Dave Crilley said about the promotions. Existing resellers will be grandfathered pending authorization, he said, and about a dozen new VARs have already signed up.
By cherry-picking its partners, the company hopes to increase the quality of its channel and keep margins high. We’re avoiding overpopulation of VARs, when the end result is bringing margins down for everyone, Crilley said.
The decision mimics a move by rival firewall vendor NetScreen Technologies Inc, which in February overhauled its partner program in an attempt to prevent conflict in the channel, which bumps down prices and hurts business.
This trend could be seen as a way to combat the lower prices the commoditization of the market brings, but RapidStream’s Crilley said that price erosion is inevitable, you can’t fight that tooth and nail, and that its program will help end users get better service.
Also to be announced today is a new addition at the top-end of WatchGuard’s line of Firebox VClass firewall/VPN appliances. The new V200 device will provide 1.1Gbps of IPSec VPN throughput, 40,000 VPN tunnels, and 2Gbps of firewall throughput.
WatchGuard’s product manager Rodney Mock said the V200 will be the flagship appliance, aimed at large organizations and service providers. The Firebox VClass products use WatchGuard’s proprietary ASIC to speed performance.
The V200 will compete against NetScreen 1000SP and 1000ES, Mock said, as well as the Cisco Systems Inc PIX535E. In both cases, Mock said, the V200 offers a better price-performance ratio. The V200 costs $60,000.
