Iteration2: Competing on the Upper End

Accounting Technology, August, 2006

When a reseller is playing with large amounts of real money, say in engagements with hundreds of thousands of dollars at stake, being able to quote an estimate takes a lot more work. "The sales process has a lot of discovery, documentation, and prototyping. We take a lot of the risk out by having a more fully involved sales process," says Mike Gillis, CEO of Iteration2, a Microsoft reseller based in Irvine, Calif.

Iteration2, which has grown rapidly over the last three years, had $23.5 million in revenue in 2005. It got there by serving installations that usually have more than 75 users. Fees for software licenses and enhancements range from $600,000 to $1.2 million, with services at 1.6 times to 2.2 times the software cost. These prices are for companies that don't bat an...

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