WSO2 Turns to Channel Partners to Hit Ambitious Growth Targets

WSO2 is tapping into the power of its channel partners to help it achieve its ambitious growth targets.

The vendor provides open source API management, enterprise integration, ESB and identity management technologies. It posted double-digit growth in revenue across its business units in 2020. It now has a 30% growth target this year in the UK — and is looking for partners to help hit this figure.

WSO2’s Ricardo Diniz

“We are growing our ecosystem of partners faster throughout Europe, mainly focusing on the UK.” That’s according to Ricardo Diniz, WSO2 vice president and general manager, UK and Southern Europe.

“In 2021, we should have 60/40 direct to channel sales across the region. By 2022 I would love to have 50/50. We are planning to go public in 2023. So to do that I am relying on developing my partner ecosystems, mainly in the UK.”

In the UK, currently 80% of WSO2’s business goes direct. That leaves just 20% indirect — but Diniz wants to ramp up that number. As such, the firm is investing in doubling its UK channel organisation to help identify and onboard new partners.

“My intention is to finish this year, with a 5%-10% increase in our channel sales in the UK,” he said.

Diniz said the firm has already signed up some recognisable partners, including Accenture.

“We are focusing on mid-level and large systems integrators in the UK to help us achieve the goal that we need to deliver by the end of this year,” added Diniz.

Services Opportunity

WSO2 has more than 100 partners across 78 countries, which generate more than $1 billion of revenue.

As a subscription business, Diniz said for every dollar a partner sells, they make normally between $5 and $7 in services.

“Our business is helping the enterprise drive digital transformation. We provide the technology the enterprise needs to help develop new digital business. Partners across these categories can offer that technology, provide a proof of concept (POC), implement it and support and maintain it for their customers,” he said.

Market Drivers

Diniz says a huge driver for the business has been the acceleration in digital transformation programmes fuelled by COVID-19.

“During the pandemic, if a business did not have any digital strategy, it would not survive,” he noted. “In the UK, some industries like retail and banking have seen a lot of digitalisation. Now with lockdowns lifting, we’re seeing a good opportunity in manufacturing, telcos and utilities. These industries are driven by consumer demand, so we think they will be the first ones to bounce back after lockdown.

“The first companies to know about those big transformation projects are the big consultant firms,” he added. “This is why we are investing in helping partners understand the added value that we bring into those conversations.

“We are focused 100% on the UK market now. We need to develop the ecosystem of partners here. So we welcome every system integrator to have a conversation and engage with us. We can deliver a lot of value, not just for the system integrator but to the end user,” Diniz said.