(VIP + OEM) * VI Employees = $9B IPM Opportunity

Todd Osborne

I was working with my 10 year old on math homework and somehow a discussion on multiplication led to a conversation about VI’s press release from yesterday describing our $9B market opportunity by 2015. He did some quick math in his head and without a delay figured out that we need to grow by more than 1000% to get anywhere near $9B. While his math was correct, I told him we won’t necessarily own the entire IPM market and probably won’t get to $9B in revenue in 2 years. However, we did discuss how a small company like VI grows very quickly and captures as much revenue as possible as fast as possible. The multiplication factor comes, not only from a differentiated product and stellar team of VI employees and sales teams, but also from a strong partner network.

At VI, we have been growing our partner business ever since we started with a couple million of revenue in 2008, and this multiplication effect has been accelerating recently. Last quarter we had a whopping 85% of our business sold through a combination of our VIPs and our top OEM relationships.

The next phase of our growth will come from expansion across our key verticals into new customers, monitoring more applications at our current customers, and expansion into new geographies. We are relying on our partners to help us resell and deploy services to customers. Channel partners will introduce us to new accounts and our top OEMs will include VI in more of their virtualization/server/networking/storage purchases. Infrastructure partners are making TAPs a standard in the physical infrastructure, service partners will use VI to optimize performance in virtualization and cloud projects, and alliance partners will demonstrate the value the VI has in the physical, virtual and cloud infrastructures. Partners are at the core of every element of our growth.

With recent new hires, our world class partner team is now 11 strong, and the rest of VI’s employees also play critical roles in our partner relationships. The VIP program has over 50 Gold partners and 6 Platinum partners, a great distributor with Zycko in Europe and many other emerging resale and distribution relationships. Our OEM partners are hitting their stride, and those that resell our product are seeing their infrastructure business grow as a result of partnering with VI. We have tested and certified that VI works well in environments with solutions from several industry stalwarts including VMware, HDS, EMC, IBM, Dell, HP, VCE, Microsoft, SAP, and Oracle. It has been a great launch of our partner business, but there is still more to do. This is why we continue to invest in people and programs to focus on the OEMs, the data center infrastructure partners, and to deepen our relationship with our VIP resellers.

All of this opportunity is why I am so excited that an industry expert is joining VI’s team to lead the next phase of growth. Doug Smith, welcome to VI!!! We all know your experience will lead VI and our partner ecosystem to capture as much of the IPM market as possible as quickly as possible. I look forward to helping VI expand into new markets as I take on a new role as Regional Sales VP in the Asia-Pacific region.

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