a unique approach to the distribution of networking, security, and business continuity solutions
TRANSCRIPT
RAD Data Com.WAN/LANAccess Solutions Established: 1981
SILICOMHome Networking
Established: 1987
RADVISIONIP Voice andVideo ConferencingEstablished: 1992
RITCablingManagementEstablished: 1989
RADWAREInternet AccessManagementEstablished: 1997
CERAGONWireless WAN
Established: 1996
BYNETGroup Distributor
in Israel
The RAD Group
• Coordinated Strategy
• Shared Marketing Channels
• Joint Development & Technology Sharing
• Some companies are Public
RADirectNetwork Services
Established: 2000
SANRADStorage AreaNetworksEstablished: 2000
RADWINWireless Local Loop Established: 1997
WISAIRUWB – Ultra WidebandCommunicationsEstablished: 2001
AXERRAIP Over Sonet/SDH
Established: 1999
MODULESIP for the Home
Established: 2000
RADCOMWAN, LAN and ATMAnalyzersEstablished: 1991
RADirect Company History
• Established in 2000
• Headquartered in Mahwah, New Jersey
• Member of internationally renowned, $450+ million RAD Group of companies that develop, manufacture and market solutions for diverse segments of the networking and telecommunications industry
• Original charter: To increase sales & exposure of the RAD Group companies in the United States as a value-added online distributor of networking and internetworking products manufactured by these companies
Three Primary Areas of Focus
• Networking / Infrastructure – Products from RAD Data Communications, FibroLAN
• Security / VPN / IPS (Intrusion Prevention Systems)
– Products from Radware, Check Point
• Business Continuity Solutions
– Products from Radware, SANRAD
Range of Solutions• RADirect specializes in selling data communications and
telecommunications access equipment, security & business continuity solutions including:
– Fiber Access Solutions – Extending enterprise voice, data or LAN over fiber infrastructure
– xDSL Last Mile Access Solutions – High capacity transport of data, LAN or voice over 2-wire/4-wire copper
– Migration of Legacy Services to IP – Solutions for transporting legacy voice, video and more over IP Infrastructure
– Voice & Data Convergence Applications
– Load Balancing Solutions – For multiple ISP links, servers, firewalls and more
– Firewalls, VPN Gateways & IPS (Intrusion Prevention Systems)
– IP Storage Networks (IP SAN/iSCSI) Solutions
RADirect Customer Breakdown
53%
34%
13%
End Users:Government
MilitaryEnterprise
UtilitySmall VARs:< 10 employees
< $2 Mil Revenue
Service Providers:Rural TelcosSmall ISPs
Tier 3 & 4 Markets
The RADirect Sales Cycle: Marketing
• An e-commerce business model at inception
• Highly detailed, well-organized online catalogs that can be searched by product type or application (including application drawings)
• Majority of leads today are generated through Internet Search Marketing:
– Paid listings
– Unpaid (organic) listings
• Current marketing mix also includes a proactive targeting of lucrative and underserved rural markets
Rural Markets: Opportunity
• While customers in rural areas experience the same datacom and telecom challenges faced by their urban counterparts, they are often underserved due to:
– Lack of local expertise / knowledge
– Lack of local resources
• Funds and infrastructure readily available
• “Utelco” concept is proving successful
Targeting Rural Markets
• RADirect proactively targets rural VARs and service providers, and helps to “fill in the knowledge gap”.
– Trade shows and events
– Publications
– Direct mail / cold calling
– Targeted website content
– Marketing collateral
The RADirect Sales Cycle: Systems Engineering
• RADirect’s systems engineers are among the most knowledgeable, proficient, and accessible in the industry:
– Boast an average of 20 years of experience per systems engineer in RADirect’s narrowly focused area of operations
– Offer free consultation to ensure customers always get the best solution
– Are available for “live chat” online during business hours
– Provide 2-hour or less response time on phone and web inquiries
The RADirect Sales Cycle: Account Management
• Dedicated account manager for every customer
• Quotes provided in 24 hours or less
• 85% of products ship in 24 hours
• Online account management
– Order status
– Tracking
• 30% of buyers are repeat customers!
Success Metrics - Revenue
Projected
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2001 2002 2003 2004
AnnualRevenue
Going Forward…
• Projected 2004 Total Revenues: $5.25 million
• How to accomplish?
– Expand product portfolio in 3 target areas (networking, security, business continuity)
– Increase Internet-based marketing activities
– Penetrate key vertical markets
RADirect Success Story: (Rural Utility) Pend Orielle County Public Utility District
• Washington State-based “Utelco” (utility that also provides communications services)
• Challenge: To provide T1 services to customers over a fiber Ethernet infrastructure
• Solution: Purchased RAD Data Communications’ IPmux TDMoIP gateways from RADirect
RADirect Success Story: (Rural Utility) Empire District Electric Company
• Joplin, Missouri-based rural “utelco” (utility that also provides communications services)
• Challenge: To provide managed T1 services over fiber
• Solution: Purchased RAD Data Communications’ LRS managed modem racks and Optimux fiber multiplexers from RADirect
RADirect Success Story: (Education)Illinois State University
• State University (enrollment: 20,000+) located in the heart of Central Illinois
• Challenge: Needed increased capacity for T1 voice extension across the campus. Required some unique features that are mostly found on higher-priced alternatives
• Solution: Purchased RAD Data Communications’ Optimux-T3 units from RADirect to transport T1s and E1s across their campus
RADirect Success Story: (Wireless/ISP) Heritage Internet Services
• Salt Lake City, Utah-based wireless ISP that recently launched one of the first citywide wireless networks in the United States
• Challenge: T1 Access - needed a reliable, easily managed, compact router for installation between wireless towers and their Internet backbone
• Solution: Purchased RAD Data Communications’ Web Ranger II T1 Routers from RADirect