Vapour Cloud is seeking 10 more partners as the business eyes 50% growth over the next 12 months.
In early 2018, CEO Tim Mercer declared he wanted to expand the digital transformation business by collaborating with other non-competing companies in the tech channel. The goal was to secure 10 partners within the year.
Seven partnerships were in fact negotiated, which represented £2.5m of deals for the firms concerned.
These seven relationships look set to generate £6m of total contract value revenue over the next three years.
The search is now on for an additional 10 partners over the next 12 months, following an investment in Vapour’s onboarding infrastructure to streamline the client win process.
“85% of our own revenue is now partner based,” explains Tim. “Since Vapour was established six years ago we have been determined to focus only on what we’re good at – cloud voice, video, network connectivity and storage. This is a complex space for many businesses, so if we can add value to their proposition – leaving them to concentrate on what they excel in – it should result in more comprehensive, powerful solutions and growth all around.”
“One of our most established partners has secured over £5m of revenue from working with Vapour in the past 30 months, and the bulk of that is recurring” continued Tim. “This shows just how lucrative this business model can be. Some people shy away from partnerships, but I think organisations with a clear customer focus thrive from working together in this manner.”
With many of Vapour’s existing partners located throughout the North of England, there are no geographical preferences for the next 10.
“Again, we’re looking to work with a mixture of IT hardware VARs (value-added resellers) who have struggled to generate recurring revenue streams, and Avaya partners will always sit nicely in our portfolio as we are able to deliver the network, cloud voice and SIP all under one SLA which the current distributors struggle to service.
“In three years’ time I expect the uplifted partner portfolio to be generating £8m of revenue per annum.”
With net recurring revenue of 96%, Vapour grew by 51% in 2018 and expansion of at least a further 50% is anticipated over the next 12 months.