Services key to anti-virus profits

By Lilia Guan on May 26, 2006 10:24 AM
Filed under Security

A services-driven approach to selling anti-virus software has helped reseller Group Services & Systems (GSS) garner profit margins of between 20 percent and 30 percent.

A services-driven approach to selling anti-virus software has helped reseller Group Services & Systems (GSS) garner profit margins of between 20 percent and 30 percent.

Will Court, strategic marketing manager, and Hayden Tanner, business sales manager at GSS said the anti-virus market companies have evolved from needing a sole anti-virus package to a variety solutions looking at spyware, adware and malware.

Court and Tanner claimed the company was making average profit margins of between 20 percent to 30 percent, using a services-driven approach.

“I’ve noticed that there has been a big drop in margins in the hardware sector and basically a reseller needs to make deals very quickly or they make no money.

“With [anti-virus] software solutions, value-added services can still bring in the cash,” said Tanner.

“If a reseller was looking at coming into the software market and only concentrated on box moving then they’re not going to make much money. If they provide ongoing services then there’s money still to be made,” he added.

GSS has been a McAfee channel partner for the past eight years and has mainly focused on supplying and implementing the security vendor’s products to the SMB market.
 
Follow us on Facebook and Twitter
 

Promo

Services key to anti-virus profits
 
 
 
 
 
Top Stories
Vocus buys 14.5% stake in Macquarie Telecom
Value of acquisitions to hit $150m in a year.
 
 
Datacom bringing 3D printers to Australian schools
Partnering with distie and software vendor Makers Empire.
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
Do grey market imports hurt your business?

Latest Comments
CRN Magazine

Issue: 336 | March 2015

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.