According to a new CONTEXT report, small resellers are raking in the dough from cybersecurity sales to SMBs.
The market watcher says small resellers (SMRs) mainly deal with small, medium and home office customers.
CONTEXT claims that in France, and to a lesser extent, the UK and Italy, SMRs have cashed in on booming demand from an SMB market boosted by more investment and the need for custom-made solutions.
It says the year-on-year revenue sales performance of France shows how hot the market is, with figures for Week 52 of 2023 revealing the country is the top dog in cybersecurity sales through distribution.
Across Europe, cloud security revenue sales as of Week 52 shot up by four per cent year-on-year.
But endpoint security and network security did worse due to a weak Q3 and Q4 2023, dropping 1.5 per cent and 0.5 per cent, respectively.
The cloud security segment in France smashed the overall European revenue sales growth for the period, with sales of 26.2 per cent year-on-year, followed by the UK (13.9 per cent) and Italy (11.8 per cent).
Cybersecurity revenue sales as a whole dipped slightly by 0.3 per cent but bounced back after a big spike in Week 50 across the top five markets (the UK, France, Germany, Italy and Spain).
The analyst firm says this is usually a key time of the year in cybersecurity channel sales because of customer renewals and upgrades.
CONTEXT global boss, research & business development, Joe Turner said: “The biggest chance is the fact that the SMB market is huge and keeps growing fast. It could hit $17-18 trillion global market size by 2025 (according to figures from Black Hat Europe 2023). This means a massive chance for channel partners to reach a big and growing customer base.”
“The second one I would say is higher profit margins. SMBs are often ready to pay more for top-notch services and support that are local (SMBs often like to work with local businesses that get their specific needs). This can lead to higher profit margins for channel partners that can provide these services.”
Turner says the SMB space also gives partners recurring revenue chances.
“SMBs are more and more looking for cloud-based solutions that offer recurring revenue chances. Channel partners can make the most of this trend by selling and managing cloud-based IT solutions for SMBs. This gives the SMBs peace of mind knowing that their IT infrastructure is being run by a skilled professional without them having to hire and train someone themselves,” Turner said.
