Veracode, an application security testing provider, is trying to increase its revenue by focusing more on its channel business and less on direct sales.
U.S.-based Veracode, which earlier this year received a major investment from TA Associates valuing the company at $2.5 billion, on Tuesday unveiled a completely revamped distribution program: the Veracode Velocity Partner Program.
In an interview with CRN US, Pete Harteveld, CRO of Veracode, which has 700 employees, said the company’s sales history was “very” direct sales-oriented when he first joined Veracode. about 18 months ago.
But Harteveld said the overreliance on direct sales ultimately limits the company’s growth. “It was clear to me that we had to do better,” he said.
Since joining the company, Harteveld, who previously led global sales and business development at Compuware, said Veracode has nearly doubled its distribution team to 16 employees.
Hartevald, who effectively acts as the company’s channel manager in addition to his other duties, said Veracode will work with distribution partners large and small. But he hopes to establish close relationships with players in the sector who have regional or territorial weight with customers, he added.
“We’re not trying to be exclusive,” Harteveld said. “But we’re also not trying to be out there trying to get 1,000 partners.”
The company would not disclose the percentage of its revenue currently coming from the channel.
But David Grazio, senior director of partner marketing at Veracode, said the company had “seen 70% growth [year over year] in agreements initiated by partners” so far this exercise.
“A compelling need” for a better channel strategy
Grazio, who joined Veracode about a year ago after years working in channel sales for various technology vendors, said Veracode was ripe for change in terms of sales generation.
“There was definitely a compelling need” for a better channel strategy, Grazio said in an interview with CRN US.
Harteveld agreed that Veracode’s relationship with the channel needed to change if the company was serious about increasing revenue.
“We needed to improve the way we [interacted] with the chain,” he said.
To that end, the new Veracode Velocity Partner Program is designed to enable partners to more quickly and cost-effectively build their security practices around Veracode’s cloud-native continuous software security platform, according to the company.
New features to program
Features include new demand generation campaigns aligned with security initiatives and a new role-based partner training and certification program.
In effect, the company is creating three tiers of partners, instead of two tiers, which will provide different degrees and types of services available to channel partners, depending on their wants and needs, the company said.
Veracode has also redesigned its partner portal.
This article originally appeared on crn.com