11:11 Systems reaches out with robust support for channel partners

Managed infrastructure solutions provider 11:11 Systems is poised to not only to meet but exceed its 2023 year-on-year growth rate of 23 per cent. In its sixth year of operations, the provider plans to expand its footprint and capabilities with the help of channel partners, not just in Australia and New Zealand (A/NZ) but across the Asia Pacific (APAC) region.

11:11 Systems specialises in wholesale infrastructure solutions delivered through a channel-first approach. According to Marc Beder, general manager of APAC, its primary focus areas include cloud connectivity and security, with channel partners including Data#3, Truis, Perfekt, Novo3 and Cyclone Computer Company in New Zealand.

Industry challenges

Beder stressed the importance of providing robust support for the channel, acknowledging significant challenges facing various market segments.

“There’s an awareness of difficulties but a lack of resources and skills to overcome them in the commercial mid-market,” he said to ARN. “You go to the top end of the enterprise; they’re aware of the challenges, but they have big enough teams, big enough scale, or deep enough pockets to address the challenges. It’s that mid-market where they’re struggling.”

Beder said 11:11 Systems sees a take-up of the offerings here because it can alleviate some of those pain points regarding where he sees value to the partners and where the channel can utilise the solutions.

“[MSPs] have struggled with the number of products out there, especially when discussing cloud. There’s Azure, there’s AWS, there’s independent sovereign clouds, there’s do it yourself, there’s keep doing what you have done with refresh and then you throw Broadcom’s acquisition of VMware in the mix,” he said.

He said there were elements of frustration, disappointment, and, in some cases, anger regarding the deal, with mixed reactions ranging from being annoyed by it to accepting the increase and moving on.

“There were those that immediately looked for alternatives. To me, that was more of a knee-jerk reaction. To switch a platform that you’ve been running on for potentially a couple of decades based on a cost increase that you don’t like is a knee-jerk reaction,” said Beder. “Now, for some, it’s right, and that’s okay, but it isn’t right for everyone. When you’ve got an ecosystem of your engineers, your history, your skillset and perhaps other integrations, suddenly changing that ecosystem overnight is not realistic.”

He said that when 11:11 Systems talks to organisations that have been in that position, it can provide an “element of reassurance” because of its “status with Broadcom and ultimately VMware.”

As a Pinnacle partner, Broadcom put the onus on Pinnacle and Premier Partners to support the wider service provider VMware ecosystem.

“There are about 4,000 organisations globally that didn’t make that cut, and that’s really where we were helping,” said Beder. “When we talk about service providers for their end customers, it gives them an alternative to staying with VMware but not having to bear the burden of that cost and manage it themselves because they could come to us for infrastructure-as-a-service and move away from the headache and burden of running infrastructure themselves.”

Supporting the channel

This plays into 11:11 Systems’ ethos of providing its channel partners with the right assistance.

“As a channel-first business, we want to support [our partners] in delivering real alternatives in the cloud connectivity and security space for customers,” he said. “You often find companies will release a product, and they think it’s a great option, but does anyone need it?”

According to Beder, the company was “purposeful” with what it brought to market and was very purposeful about not making “me too” offerings. Often, companies release a product and think it’s a great option but have yet to consider whether anyone needs it, whereas 11:11 Systems is purposeful in what it brings to market. Especially with any new offerings 11:11 Systems has created for the channel or any changes to current offerings. 

“We have an entry-level for our channel partners in remuneration through our program margin they can carry,” he said. “But as you grow with us, the opportunity for more offerings and capabilities to market increases. This drives further opportunities for both revenue and margin for them. For example, you could sell three things and there’s margin revenue for those, or you could sell 20 things, and there’s margin revenue for that.

“Therefore, there’s more available for channel partners to quickly get into those other tiers, where they can start to make more for their business.”

According to Beder, it’s really difficult for the channel to distil the noise; therefore, it’s important for 11:11 Systems to not only have self-service enablement and education that’s free of cost. 

“It’s in our best interest to enable them as best we can,” he said. “We regularly schedule webinars with channel partners, and then there’s support and offers. Our team channel manager, sales members, and solution architects will spend time with our channel partners not only on an opportunity-by-opportunity basis but also on an enablement basis, sitting with their team.

“We always look at how we can differentiate to deliver value to the end user and the channel partner themselves—regardless of whether they’re using it to underpin their service or as a reseller delivering it to their end customer. We’re very excited about how much further we can grow within the APAC market and are very committed to achieving those goals.”