Vapour Cloud has announced it is on the lookout for 10 new tech channel partners, as the Yorkshire-based digital transformation firm targets 50% growth over the next 12 months.
The expansion plans come off the back of fresh investment in Vapour Cloud’s onboarding infrastructure, which the company says will streamline its “client win process” and build on its recent string of successful deals.
Since early 2018, the firm has negotiated seven key partnerships with non-competing companies in the tech channel, representing £2.5 million of deals for the businesses concerned.
Those seven existing deals consist of five VARs, as well as two Avaya partners – a significant addition given that Vapour Cloud has positioned itself as one of the fastest growing mid-market cloud voice partners in the UK, thanks to 3,000 Avaya licenses sold in the second half of last year.
Over the next three years, these existing partner relationships look set to generate £6 million of total contract revenue as some of the more recent deals begin to bear fruit, the digital transformation firm said.
“[Some] 85% of our revenue is now partner-based. 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," said Time Mercer, Vapour Cloud's CEO.
“This just shows 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 net recurring revenue of 96%, the business grew by 51% in 2018 – with a further expansion of at least 50% expected over the coming 12 months.
To help make that figure a reality, Vapour Cloud said it doesn't have any geographic preferences for its next 10 partnerships, despite much of its existing partner base being based in the north of England.
“Again, we’re looking to work with a mixture of IT hardware VARs 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 under one SLA which the current distributors struggle to service," ” Mercer added.
“In three years’ time I expect the uplifted partner portfolio to be generating £8 million of revenue per annum.”
