Sales Cuts At Rasilient

By John Honovich, Published Feb 19, 2019, 09:49am EST

Over the past 2 years, video surveillance storage specialist Rasilient has expanded its workforce significantly, aiming to build its own branded business.

rasilient job cuts

However, this month, Rasilient has made significant cuts in its sales teams. Inside this note, based on interviews with Rasilient's CEO Sean Chang [link no longer available] and former Rasilient employees, IPVM examines the ambitions and challenges for the company, including specific issues in selling video surveillance storage.

Company ********

*********, ******* ** ****, specializes ** ******* ***** surveillance ********* ******* / servers. *** ******* ************ has ***** ** ****** but, ** *** **** few *****, *** ************ on ******** *** *** direct ******* ********. *** US *******, *** ** a *********-******** ***, *** a development **** ** ******** and ***** ***** ** North ******* *** *** Middle ****.

** **********, *** ******* has **** **** ******* in *** **** * years, ******* ** ~** employees, ***** ** *** cuts, **** **** ******** employee ***** ******* *** trend:

Sales **** ********

********* *** ~* *********, mostly ** *****, **** their ***** ******** ************. The ******* **** **** now **** * ** sales ********* ********* ***** the ****.

*** **** **** **** in * ****** **** and ********* ********** **** only **** ******* *** end ** *** ****, with ** *********.

******* ********* *** ******** Michael ****** [**** ** longer *********], *** *** at ********* **** ~* months *** ***** ********* [link ** ****** *********], who *** ** *** company ~** ******.

Why ********, ********* ** *********

********* ********* **** ***** Middle ******* ***** **** doing ****, ***** ******** sales **** ***. ********* **** they **** * ****** Middle **** ******** **** large ***** ******** **** as *** *****'* ******* building *** *** ****** *** *****.

*** ******* **** ***** minimum ******* **** ******** is ~*** ******* **** 1,000+ ******* ***** ***** strongest ****. **** ******* makes ***** ** ** as *** ****** ** fewer ******* ********* *** be ******* ** ********** or * ****** ******, making ********** ******* ********* like ********* **** ** justify.

** *** *** ***** American ***** ********, ********* ***** 'NVR ********' ** **** of *** ******* *** the ***** ******** ***** team, **** * **** of ********* ** ******* the ****** ******* **** wanted. 

Problems ******* ************ *******

***** ** ** *** know ****** ** ****** how **** ** *** the ** ***** **** is, ***** *** **** fundamental ******** **** ******* surveillance *******. ***** ******** are ***** ****** ** be **** ** *** Middle ****, ***** ****** combination ** ***** ******* and ********** ** ***** are ********* ******* *************, *** are ******* ******** *********.

************ ******** ******* ** hard ** ******* ******* of *** ******* ****** and **** ******* ***** buyers *** **** ***** to *****, ** ***** projects **** **** ***** and ************** ******. ***** the ********** ***** ****** of *** ***** ******** team, ** ***** ** hard *** **** ** close **** *****, ******* projects.

**** ******* ***** ******, it ** *** **** to ******** **** ** use ***** ***** ************ providers **** *********. ************ ******* *************:

****** ******, ** *********** will **** * ******** brand *** ****** **** they **** ************ ** for ******** ***. ** is * **** **** sell ** *** **** to **** ** ******* product *** ***** ************, despite *** ****** **** the ******** *** ****** is "********* *** *****".

Series ** ************ ******* *********

**** ******* ******, ********* is *** ****** ** a ****** ** ******* providers *** **** *** challenges ******* ************ *******. For *******, ********, *** famously *** ********** *** of ******** ***** ******** tens ** ******** (*** ironically ***** ***** ** now ***** ****** ** sell ******* ** ******* company ** *** ****** East). ****** ******* ******, who **** ****** **** of ******** ******* ******* multiple ********** ** ************ sales ***** ***, **** notably, *** *** ******* who **** **** ***** hard ** ****** **** surveillance ******* ****** **** decade.

Outlook *** *********

** ** *** **** what *** ****** ***** for *********, ****** ****** new ** *********** **** certainly ** **** ***********. One ******* ** *** is **** **** ******* specialist ****** **** **** of '******* *****' *** after ** **** ******* specialists **** *********, ***** is * *** ** skepticism *** *** * lot ** ********** ** see *** '*******' ***** 'sauce' **. ********, ******* specialists *** ************ ********** by *** ******* *************** of *******, ****** (** hurt **** *** *********** of ******* *******) ** the ****** ** ***** Codecs *** *.*** *** the ******* ****** ** resolution **** **** ********* the **** *** **** storage.

*******, ** ********** ******* providers **** ********* *** better ***** ***** ***** objectively, **** **** **** a ****** ****** ** overcome ********** *** ***********.

 

Comments (5)

Much like AnyVision, this seemed like a "hire first, plan later" approach to expanding their business. Was not surprised to hear of these cuts, though it is very unfortunate for the people involved.

The new Intransa company in the Middle East - Agility Grid - used to be the main regional sales outfit / reseller for Rasilient ... it is a resurrection of the former Intransa. There seems to be a fair degree of overlap between the two. Rasilient has definitely grown their sales team in UAE in last 18 months.

If they have been in business for ~17 years (founded in 2001) - how did they more than double staffing over the past 2 years?

Whose cash did they burn up?

 

I agree with UD1 that what Rasilient did appears similar to Anyvision's recent move - but I disagree that it is a 'hire first, plan later' approach.

 

This is often exactly the plan for new products/brands trying to get players in mature industries/markets to notice them:

1. Convince someone(s) that your new thing has actual potential value and ask them to give you some money to burn (VC).

2. Hire a temporary group of people to 'pump' the new name/thing and saturate industry people with same.

3. After fixed period of time, keep the top performers and jettison the rest.

NOTE:  This practice is not uncommon in short-cycle-sales industries - unlike physec, which is far from that - as mentioned in the OP.

"Given the relatively short tenure of the North American team, it would be hard for them to close many large, complex projects."

 

Interesting.  I was several interviews in with them a few months ago, but I really had a bad feeling about it.  I just couldn't prove the value of the solution to myself, and I don't want to try to sell  something I don't believe in.  Glad I passed on this one!

I think one of the major issues with Rasilliant and other companies with similar offerings, are that they are bringing their products through the "traditional" distribution channel - I.E - ADI, Anixter, CSC ect. Although those distributors offer the allure of quick access to the channel - in most instances distribution isn't moving the ball forward for these businesses.

In many ways, they stifle the opportunities by looking out for their own interests rather than their channel partners - both up and down stream.

 

Opinions ? 

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