LockPath looks to channel to crack GRC market

LockPath looks to channel to crack GRC market
The governance, risk and compliance (GRC) market tends to be dominated by companies whose main road to market is direct, with the channel being an adjunct to those efforts. Kansas-based LockPath’s strategy is based on being an exception to that rule.”We think it’s quite significant as a GRC company to have so strongly embraced a channel sales method,” said Chris Caldwell, CEO, LockPath. “The channel has always been big for SIEM and firewall and that type of product, but it’s unique to be as channel friendly as we are in the GRC space.”

LockPath was founded in 2009, and has created Keylight, a GRC platform that reaches deeper into the market than is typically the norm in the space.

“It is not only easy to use, but highly scalable, and gives midmarket and SMB companies the ability to use a GRC app which was previously out of their reach,” Caldwell said. “GRC is typically targeted toward larger companies with heavier applications. In our app design, we have been able to get customers as small as 50 users, as large as 150,000. This has effectively broadened the market. This lends itself very well to the channel.”

LockPath did not, however, start on a channel path.

“When we started the company, we started with a direct model,” Caldwell said. “Partners had not had success in the path with GRC apps. GRC were extremely difficult for resellers, because they are very complicated.”

When LockPath hired a VP of sales, Bob Wescott, who had set up effective channel programs at other companies, they changed to a channel-first strategy. Caldwell said they will sell direct if the customer insists, but they strongly discourage it. They launched their channel program in 2011, and it has acquired major security partners, like Fishnet and Accuvant, as well as other partners, including consulting firms and the McAfee Innovation Alliance.

“Services from our partners are very complementary to what we do,” Caldwell said. “And we’ve made it easy for them to sell our product. Things have really taken off this year with our channel relationships.”

LockPath recently concluded a successful Series B funding.

“We used that recent capital infusion to increase our channel reps,” Caldwell said. “It’s a manner of having channel reps in the field to work with our partners, and our commitment is to have people in the field to work along with them.”

LockPath is expecting to grow its channel sales by 800% in 2012.

“Our first priority is our existing partners, but we are also looking to expand and deepen our channel,” Caldwell said.

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