"There are just too many broadline distributors out there today," he says. "I definitely didn't want to compete with the big guys."

Heinzen thought about all of the small, up-and-coming vendors that struggle to find traction in the channel, the kinds of software companies that the larger distributors typically overlook. Thus, e-Convergence Solutions was born. The distributor, headquartered in Centreville, Va., began partnering with new vendors in areas such as enterprise instant messaging and convergence applications. Today, Heinzen's company is the only gateway to the channel for many of its vendor partners, and that's just the way Heinzen likes it. E-Convergence's president and founder spoke with VARBusiness recently about the changing distribution market, hot technologies and how he gives reseller customers what they really want.

VB: Many distributors are talking about offering more high-margin products and value-added services. What do you see happening in the market today?

Heinzen: I don't see any changes in their businesses. What do they do? They're an inventory stocking point, a source of credit, and they help manufacturers at the end of the quarter make their sales goals. That's the traditional game. Some of the larger distributors are talking a lot today about the engineering and support services they provide. But distribution's real value to the channel is that it's a credit vehicle, and it can get you product quick.

VB: So, how will distributors like you separate from the pack?

Heinzen: When I started this business, the No. 1 decision I made was to take different products that other distributors wouldn't be good at selling--products that had complex sales cycles, but higher margins. We don't have a warehouse, either. Most of our products are software, fully integrated appliances, managed services and other niche areas in the convergence space. Even if other distributors wanted to touch these areas, they couldn't do it as well as [we] can. I use salespeople who don't sit behind their desks hawking orders, but get out in the field and talk to the VARs. They're part of a solution sale. And since I don't carry inventory, I never feel the pressure to have my salespeople sell a certain type of product that's sitting on the shelves.

VB: How do you find vendors that fit your business model?

Heinzen: Well, a big part of it is that for these new companies, they can walk into some of the large distributors, and they're thrown into a catalog and have to give up $150,000 in MDFs and no guarantees for sales. It's difficult for these vendors to get mind share at the big distributors. It usually takes us four to six months to find and take on new vendors. For example, it took about five months to find the right vendor in end-point security. I weighed two areas equally: technology and channel commitment.

A company can have great technology, but if it's not interested in the channel, I throw it out. I look at its venture-capital funding, because some VCs will want to push the company toward direct sales. So, we went with a company called Safend, which does USB port security. The technology is flawless, the business plan is great, and 100 percent of the business goes through the channel.

VB: How do you sell vendors like Safend that are unknown to many resellers?

Heinzen: It has more to do with our sales model. They know these products we carry are solutions-oriented and have high margins. The types of discussions we have with our resellers are around solutions, not point products. So we'll do joint sales calls with Safend and another vendor, like Privacyware [an intrusion-prevention software maker], to present solutions. And the VARs are noticing them. Plus, VARs are looking for these high-margin, niche products that are coming from the start-ups and new vendors in the industry.

I think technology innovation is very healthy, too. Innovation isn't occurring at the big vendors, but at the small, entrepreneurial start-ups that are creating great technology. But they don't have any way to get to market because almost all start-ups are founded by engineers, not sales or marketing people. So, they need a way to get to market, and that's where we come in.