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ManageEngine's Strategic Expansion in North America: Focusing on Smaller Markets and Regional Teams

ManageEngine, a leading enterprise IT management solutions provider, has served customers in North America for over a decade. With a strong focus on small and medium-sized businesses (SMBs), the company has gradually expanded its reach to enterprise customers as word has gotten out about the breadth and simplicity of its solutions.

As ManageEngine grows its regional presence, it adopts a strategic approach that involves establishing a physical presence in smaller markets, building regional teams, and providing dedicated support for enterprise clients.

The Shift from SMBs to Enterprise Customers

ManageEngine's journey in North America started with a focus on SMBs, with most of the support and operations handled by India. However, as the company's portfolio grew, enterprise customers began noticing. Sekar Subramanian, Director of Sales, North America, explains, "Along the way, because we had products in almost all major verticals, bigger customers, enterprise customers started looking at us, and we have been pulled from the SMB market into the enterprise."

ManageEngine realized the need for a local presence to serve enterprise customers better. "Since we are generating more attention from enterprises, we need to have people in North America to serve those enterprise customers and prospects. We are supporting these enterprises by hiring local pre-sales, account management, and technical support people," says Subramanian.

Building Regional Teams and Expanding into Smaller Markets

ManageEngine focuses on hiring local talent in various states across the United States as part of its expansion strategy. "The plan we have for the enterprise account management team is an account manager and a technical expert in each state," explains Subramanian. The company has already started the hiring process in the Midwest and plans to extend its reach to the East Coast and Southwest states in the coming quarters.

Interestingly, ManageEngine targets smaller markets like McAllen, New Braunfels, and Bastrop, Texas, instead of major tech hubs like Austin and Silicon Valley. This decision is influenced by the company's ethos of supporting rural development and boosting local economies.

"One of the reasons we plan to build a presence and employ people in small towns is our ethos in India. Our CEO and company's vision is to explore smaller markets and rural development—places where we can make a bigger impact and boost the local economy," says Haja Moideen, Associate Director, United States.

The Importance of Dedicated Customer Support

With the shift towards enterprise customers, ManageEngine recognizes the importance of providing dedicated customer support. Subramanian emphasizes, "We wanted a customer support presence in North America to provide local support for enterprise clients. It’s easier to support enterprises if they talk to someone based in the US. It's also easier to fly to meet in person."

Haja Moideen adds, "We want to share the ManageEngine knowledge base. Just like a customer doesn't buy an iPhone for one or two reasons, ManageEngine customers may initiate a relationship with a single solution; they ultimately purchase several integrated solutions. The ultimate reason is the simplicity with which we solve their business problems. Our solution solves the problem and then others down the line."

The Land and Expand Approach

ManageEngine's growth strategy in North America revolves around "land and expand." Subramanian elaborates, "Our model is land and expand because we have multiple tools. We look for a sweet spot for the prospect's pain points. We identify the best solution to the pain point and gain the customer’s confidence. Once the customer is happy with their purchase, we tell them about additional modules and products that can address their needs."

This approach has proven successful for the company, with more than 15,000 customers in North America using five or more ManageEngine products.

Organic Growth and Customer Advocacy

ManageEngine's growth in North America has been primarily organic and driven by customer advocacy. Sagay Joseph, Regional Technical Head says, "We listen to customers at our user conference. Many have been with ManageEngine for 10 to 15 years. Leon, who you met yesterday, has been using ManageEngine for ten years. But it hasn’t all been at the same company. He has moved two or three times. Wherever he goes, he takes ManageEngine with him."

This customer loyalty has been a significant factor in the company's expansion, as satisfied clients bring ManageEngine solutions to their new organizations.

Adapting to the Post-Pandemic Landscape

The COVID-19 pandemic accelerated the shift towards remote work and digital transformation, and ManageEngine has been well-positioned to support its customers during this transition. Subramanian notes, "From the business perspective, this has helped us. We saw more customers moving from on-premise solutions to the cloud. Since we have both offerings, we have facilitated their move to the cloud. We continue to see consistent growth in our cloud business."

Looking Ahead

As ManageEngine continues its strategic expansion in North America, it remains focused on building regional teams, providing dedicated support for enterprise customers, and leveraging its strong partnership with Zoho Corporation. With plans to hire 50 people by Q1 2025 and establish a presence in significant states nationwide, ManageEngine is well-positioned to strengthen its position as a leading provider of enterprise IT management solutions in the region.


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