Logicalis CEO Plans Sales Overhaul To Focus On Vertical Markets


Partners need to strengthen support for line-of-business (LOB) executives, focus on services rather than technology, and simplify the customer experience to be successful in the years ahead. 

Logicalis CEO Vince DeLuca said his company plans to change 40 to 50 percent of its sales organization within the next three years to make IT more relevant to LOB executives as they assume responsibility for additional technology decisions.

"We need to make significant changes in our own organizations to be valuable and relevant to our customers," DeLuca said Tuesday during a breakout session of the Best of Breed Conference, hosted by CRN's parent, The Channel Company. "IT has to change to be an enabler of business."

New York-based Logicalis, No. 27 on the CRN Solution Provider 500, is moving beyond its traditional infrastructure roots and investing its new talent with knowledge around specific verticals such as health care as well as information scientists who know how to extract more value out of data, DeLuca said at the Hyatt Regency Grand Cypress in Orlando, Fla.

Getting the right mix of salespeople with specialized domain knowledge is expensive, DeLuca said, but will make it possible for Logicalis to penetrate the customer base in a more material way, he said.

Although Logicalis plans to continue offering horizontal, technology-focused solutions, DeLuca said the company has focused on making its core business as efficient as possible since commoditization continues to compress margins around infrastructure.

Even though the company is not planning to play at the management consultant level like Accenture, No. 2 on the CRN SP 500, or Deloitte, No. 18 on that list, the company has invested heavily in its vertical capabilities.

In health care, for instance, DeLuca said Logicalis can now provide customers with support around telehealth, patient enablement, analytics and imaging with one of the best imaging consultants in the world. The solution provider is also working closely with independent software vendors (ISVs) to develop formidable solutions around health care applications and the Internet of Things, DeLuca said. 

"We see this balance between line-of-business and traditional IT taking shape in a unique way," DeLuca said. "IT can play a significant role, but it has to shape itself differently with end users."

Logicalis is also attempting to drive conversations more relevant to line-of-business executives by leading with employees outside of the company's infrastructure practice, DeLuca said. These leaders rarely discuss devices or specs, he said, and are instead more focused on how IT can enable their businesses.