Denis Ferrand-Ajchenbaum Speaks to CRN About Which Region the VAD is Eyeing Next to Expand

In the rapidly evolving landscape of value-added distribution (VAD), Infinigate is poised for significant growth beyond its established European base. Denis Ferrand-Ajchenbaum, the company’s Chief Growth Officer, recently shared insights with CRN regarding Infinigate’s ambitious plans for expansion, particularly in the Eastern Hemisphere. With a strategic focus on the Asia-Pacific (APAC) region, Ferrand-Ajchenbaum outlines the rationale behind this move and the company’s vision for the future.

A Comfortable Size in Europe

Infinigate has experienced impressive growth in Europe, achieving a 16% year-on-year revenue increase, culminating in €600 million in the first quarter of the year. Ferrand-Ajchenbaum, who joined Infinigate in February from Exclusive Networks, emphasizes that the company has reached a “comfortable” size in Europe. This stability provides a solid foundation for further expansion into new markets.

“We believe now we have a very comfortable size in Europe. So expanding in APAC would make sense to go to the next level,” he states. The company’s recent acquisition of Wavelink, which marked its entry into the Australian market, is just the beginning of its ambitions in the APAC region.

Targeting Southeast Asia

Ferrand-Ajchenbaum highlights Southeast Asia as a primary target for Infinigate’s expansion efforts. “Wavelink gives us one foot in the APAC region, but we want to grow that to extend to more countries, particularly Southeast Asia,” he explains. The decision to focus on this region stems from its service-led market dynamics, which align well with Infinigate’s tier-two distribution model.

In contrast, Ferrand-Ajchenbaum expresses reservations about entering the North American market, citing its concentrated nature and lower margins. “We are more keen to do it in APAC than in North America because NA is a very concentrated market, and the level of margin that they produce there is not fitting our model,” he notes.

Growth in the Middle East

In addition to its European and APAC ambitions, Infinigate is also making strides in the Middle East, particularly through its acquisition of Starlink in 2022. Ferrand-Ajchenbaum reports that the Middle East business is experiencing “spectacular growth,” and he aims to replicate this success across Europe.

“My goal for 2024 is to end the year on the same growth rate as our Q1 increase at 16 percent,” he asserts. This ambitious target reflects the company’s confidence in its growth strategy and the potential for further market penetration.

Priorities for Future Growth

Ferrand-Ajchenbaum outlines three key priorities that will drive Infinigate’s growth strategy moving forward. The first is vendor management and development. He emphasizes the importance of selecting the right vendors, particularly in the cybersecurity space, where the landscape is rapidly evolving. “This definitely is a game changer when you do value-added distribution targeting the right vendor with the right expertise, such as cybersecurity,” he explains.

The second priority involves embracing non-traditional go-to-market strategies, including professional services. Infinigate has unified its organizational structure to eliminate silos and enhance collaboration across its European and Middle Eastern operations. This restructuring aims to create centers of excellence that will drive innovation and efficiency.

Finally, Ferrand-Ajchenbaum highlights the importance of Infinigate Cloud, which has emerged as one of the fastest-growing segments within the organization. With around 6,000 partners connected to its platform, Infinigate Cloud is projected to generate $200 million in annual recurring revenue (ARR). “This is a fantastic opportunity for us to displace competitors who don’t have strength in that transformation piece,” he asserts.

Navigating the Cybersecurity Landscape

The cybersecurity industry is undergoing rapid transformation, driven by an increase in cyber threats. Ferrand-Ajchenbaum notes that organizations are increasingly willing to invest in cybersecurity solutions, making it a top priority in IT spending. He emphasizes the need for vendors to adopt a platform approach, moving beyond traditional categories and sub-segments.

“When selecting vendors, we consider these platforms and which will fit better for the ecosystem we address,” he explains. This strategic approach allows Infinigate to remain agile and responsive to the evolving needs of its partners and customers.

Challenges in the Marketplace

As Infinigate navigates its growth strategy, it faces challenges posed by hyperscaler marketplaces. Ferrand-Ajchenbaum acknowledges the tension between traditional distribution models and the rise of platforms like AWS, which offer third-party vendors access to their marketplaces. “We are a little bit more protected because we play in the SMB space, and there is no discount program in that segment,” he states.

Despite these challenges, Ferrand-Ajchenbaum remains optimistic about Infinigate’s position in the market. By focusing on its strengths in cybersecurity and leveraging its extensive partner ecosystem, the company is well-equipped to thrive in an increasingly competitive landscape.

Conclusion

Denis Ferrand-Ajchenbaum’s insights into Infinigate’s expansion plans reveal a company poised for growth in the Eastern Hemisphere, particularly in the APAC region. With a strong foundation in Europe and a commitment to innovation, Infinigate is strategically positioned to capitalize on emerging opportunities in the cybersecurity space. As the company continues to adapt to market dynamics and prioritize vendor relationships, it is set to make a significant impact in the global distribution landscape.