A Unique Approach to the
Distribution of Networking,
Security, and Business Continuity
Solutions
Company History/Background
The RAD Group
RAD Data Com.
WAN/LAN
Access Solutions
Established: 1981
BYNET
Group Distributor
in Israel
WISAIR
UWB –
Ultra Wideband
Communications
Established: 2001
SILICOM
RIT
Home Networking
Established: 1987
Cabling
Management
Established: 1989
RADCOM
WAN, LAN and ATM
Analyzers
Established: 1991
• Coordinated Strategy
RADVISION
IP Voice and
Video Conferencing
Established: 1992
CERAGON
• Shared Marketing Channels
Wireless WAN
Established: 1996
• Joint Development & Technology
Sharing
RADWIN
• Some companies are Public
Wireless Local Loop
Established: 1997
SANRAD
MODULES
AXERRA
RADirect
RADWARE
Storage Area
Networks
Established: 2000
IP for the Home
Established: 2000
IP Over Sonet/SDH
Established: 1999
Network Services
Established: 2000
Internet Access
Management
Established: 1997
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
RADirect Today
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
Technology Equipment
Distribution Landscape
RADirect
RADirect Customer Breakdown
Service Providers:
Rural Telcos
Small ISPs
Tier 3 & 4 Markets
13%
53%
34%
Small VARs:
< 10 employees
< $2 Mil Revenue
End Users:
Government
Military
Enterprise
Utility
The RADirect Sales Cycle
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
Internet Search Marketing Example
Paid
Organic
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
$6,000,000
$5,000,000
$4,000,000
$3,000,000
Annual
Revenue
$2,000,000
$1,000,000
$0
2001
2002
2003
2004
Projected
Success Metrics - Employees
10
9
8
7
6
5
4
3
2
1
0
Employees
2001
2002
2003
Going Forward
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
Recent Success Stories
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’ OptimuxT3 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
www.rad-direct.com