News

Clearswift undercuts rival with price guarantee

Microscope contributor

Clearswift has vowed to undercut eight of its major rivals' renewal prices by 20% in an attempt to win over new customers and reseller partners.

The email and web gateway vendor will kick start the promotion on 1 November with Websense, McAfee, Cisco, Symantec, BlueCoat, Trend Micro, M86 and Proofpoint in its sights.

Miles Rippon, vice president of worldwide channels at Clearswift, said most end-user businesses have seen their budgets slashed or were anticipating cuts.

"In this world, leading with technology is not opening enough doors for our partners," he told MicroScope, "it needs to be price and technology...we'll offer a guaranteed 20% reduction in whatever renewal customers happen to get from those vendors."

This flies in the face of a recent trend among some security vendors with Websense, SonicWall and more recently Microsoft upping their prices, which Rippon branded as "outrageous" and claimed it "squeezed the margins in the channel".

He said Clearwsift had made great strides over the last two years to make the business channel friendly, align the costs and make the organisation scalable.

"Our market share for the email and web gateway is clearly not as large as some of the competitors I've mentioned therefore we are the aggressors, rivals have to ring fence customers and rely on renewal streams or other technologies."

The promotion is open to all partners, who will still get the same margin on deals, and the expectation is that others will join the fold.

The strategy has been criticised by some in the channel with Scott Fletcher, chairman at Cisco Gold partner ANS claiming it could create a price war between the vendors,

"Clearswift should be pointing out the technology benefits not leading on price otherwise it becomes a race to the bottom which is in nobody's interest," he said.

However, Dave Simpson, commercial director at Clearswift Solution Provider Sofcat, said in situations where a customer was not satisfied with a particular solution, the promotion could "oil the wheels nicely for a competitive swap".


Join the conversation Comment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.