LIVE Q&A with Ivanti's CEO and CMO
July 13, 2017
Steve Daly | CEO & Chairman of the Board | Ivanti
Steve Morton | Executive Vice President and Chief Marketing Officer | Ivanti
On July 5, Ivanti announced an agreement to acquire RES Software. In this LIVE Q&A style webinar, you'll have the opportunity to spend 60 minutes with Ivanti CEO, Steve Daly, and Ivanti CMO, Steve Morton. They'll discuss the acquisition and what it means to you.
- Get responses to your questions from the CEO and CMO
- What does this mean for your product
- Long-term vision and strategy
- Find out more details here
McKay: Good morning and afternoon, everybody. Welcome to today's webinar. My name is McKay Allen. I'm the director of digital marketing here at Ivanti. We're excited you're here, and we're excited to be here with you today. We're going to make this not really like a webinar, but more like a free-flowing discussion. The image that's on your screen right now is what you'll see on the screen. There isn't a slide deck our executives are going to follow. They're going to talk through this acquisition, talk about what it means for you, and then they're going to take your questions. This is a live Q&A more than anything else, so first of all, let's welcome our CMO Steve Morton.
Steve Morton: Howdy, nice to be here.
McKay: Thanks, and our CEO Steve Daly, as well.
Steve Daly: Great to talk to everyone.
McKay: Before we get started, let's make sure everyone understands how to ask questions. There's a Q&A tab on your WebEx screen. Simply type your questions in there. We'll take them as quickly as we can during the conversation. If you're having any issues with audio or the visuals, as thrilling as they will be, type those in as well, and we'll try to take care of them.
Steve Morton and Steve Daly, why don't we turn it over to you? Let's talk through the acquisition and what it means for RES customers, partners, and prospects.
Steve Morton: I guess we want to start by saying welcome to all the RES customers.
Steve Daly: Yes, absolutely.
Steve Morton: We're thrilled to have you with us.
Customer Relations at RES
Steve Daly: As we went through due diligence, one of the things we recognized was that RES has done a very good job of supporting customers and being a partner with them. The relationship we have with our customers is something that's important at Ivanti and something we've talked about for years as a way to differentiate ourselves in the market. We're excited to continue that and learn some things from RES.
Steve Morton: When I first met Bob Janssen, I remember he gave me the book about creating raging fans of your technology. I remember we talked about the 10x value we should be bringing to customers, and we want to continue that focus. It's one of the things that attracted us to the business in the first place.
Steve Daly: That's right.
Steve Morton: We're excited to do that, and we appreciate the opportunity to talk to you and give you a little feedback about what we're thinking as these businesses come together. Maybe we can talk about some of the elephants in the room and have an open conversation. I'd like to start with what’s maybe one of those elephants. Why did we acquire RES? What are the big reasons we wanted to bring them into the portfolio?
Reasons for the RES Acquisition
Steve Daly: That's a great question. This is a conversation that began in 2016 with Allen and the team, a fall-ish timeframe when we first engaged with the team. What we saw was there were some interesting things RES had that we felt would complement, very nicely, what we're trying to do at Ivanti. The first one was what RES has been doing around identity and automation. That's really interesting and exciting. As we acquired AppSense, we saw they had started in the workspace space and pivoted into security as an extension of that, with a lot of growth coming from security. Likewise, we saw RES starting at the foundation of workspace, pivoting, and that identity of automation. That's a key part of our strategy going forward. We have a vision within Ivanti that the way IT is dealing with the complexity and explosion of devices, the speed with which the end-user computing environment is evolving, is going to be really hard to deal with if we don't change the way we look at IT.
Steve Morton: Yes, totally broken. It's not scalable.
Steve Daly: It's not scalable, and we got there for good reasons, but for us, our customers, and IT to meet the demands of users in the 21st century, we have to figure out how we unite IT and bring all these silos together. We believe a fundamental part of our strategy is to provide automation technology that brings all these technologies together and stitches them together in a way that IT can have a 360-degree view of the user and what we're trying to do to manage and secure them. This will be the core piece of the Ivanti strategy across all of our products.
Steve Morton: It makes RES part of something bigger in our story. Certainly workspaces is a component of that, and we'll talk about some of the overlap there, but the reality is, if we do this right, RES will be part of something bigger. It will work its way through all of our products. It will be foundational to this idea of the power of unified IT, which we think is a differentiated way of looking at the market.
Steve Daly: That's right, and the reality is, many of the product teams, as we've gone through due diligence and started integration discussions, are excited about our new ability to engage with the RES team. There are a lot of good technologies and a lot of really good people there.
That's the second piece of "Why did we do this deal?" With any software company, technology is copyable. You come up with a really innovative idea, and somebody in a garage can copy it, so it's really about the people, the innovation capability, and their understanding of the marketplace. It's about bringing RES DNA to Ivanti. We've talked about how, when we do acquisitions, it's not that one gets subsumed. It's like a marriage. We take two families and bring them together. We merge and come up with a new culture as we go forward.
Steve Morton: Yes, and that means a couple of fights in the family, by the way. It doesn't mean it’s seamless.
Steve Daly: No, that's right. There will be some yelling and screaming and some pain in the process, but the idea is we don't want to lose what RES was so good at in that understanding of automation.
Steve Morton: Right, and we talked about raging fans and things. The reality is, we can't afford to anger or push away, not do anything other than embrace that customer base.
Steve Daly: That's right. When we do an acquisition, and I mean, we're a big company now, but we're not so big that―
Steve Morton: ―not that big.
Steve Daly: We're not so big we can afford to make that customer base bad, or to end-of-life products. We need to continue forward with those products and the people to support them.
Steve Morton: I want to ask about that. We talked about some of the elephants in the room, and there's overlap between AppSense and RES regarding workspace management, right?
Steve Daly: That's right.
The AppSense and RES Overlap
Steve Morton: Those two competed, and it was a heated war for a long time. It's one component where there is overlap. What's our strategy and our position about how we'll rationalize that overlap? How will customers be involved in that decision?
Steve Daly: Out of the gate, the mantra is "Do no harm." There are no immediate plans to end-of-life either product. We'll continue with those paths. Ultimately, we believe the growth and the exciting parts of the portfolio are in automation and identity. We're going to throw resources behind that to accelerate development, and we’ll increase our investment in that. As we look at the workspace, what we're going to do, and teams are starting this process already―
Steve Morton: ―they're literally meeting today for the first time.
Steve Daly: We're going to look at what each product does really well and how we can take the best of both over time. We've done this in the past. We did this when we bought Shavlik. We're not going to force the customer off one path or the other. The goal is to bring them together over time. It could be a multiyear process to bring them together.
Steve Morton: To be super clear, there's no end-of-life plan. There's no change in the current roadmap. The plan is the plan until there's a new plan. That's the strategy. We're working with those people today. There are very legitimate reasons in the workspace market why someone would choose RES versus AppSense, and we're not going to―
Steve Daly: ―we're not going to blow that up. We're not going to say, "Sorry, it doesn't matter anymore.”
Steve Morton: We can't afford to do that, and it's not who we are. It's really not who we are.
Steve Daly: The third piece of the strategy is we have some go-to-market capabilities. It's not just about technology for us, it's also about some of the teams that come across. Historically, we've not had a huge presence in the Benelux region, so this is an opportunity for us to increase our investment in Benelux. We think it's a growth area, and it's been a growth area for RES. We'll continue to have a presence at Den Bosch. We'll keep development there.
For us, it opens up a market we haven't been very strong in. It also allows us to work with RES and make a big investment in strategic alliances, system integrators, so that team will remain intact. We'll continue to invest in partnerships that make it easier for our customers to consume our technology, whether it's the relationship with ADP that does onboarding and offboarding, for example, or relationships with other system integrators.
Steve Morton: That's a good value proposition RES brings to the table, that focus on onboarding and offboarding. It's a great use of automation technology. It involves identity provisioning, and that's a good message. I think one of the things we saw in the diligence was the ability to work that through our portfolio. It’s a world where people increasingly change jobs, maybe even within the same company. That ability to onboard and offboard in a seamless manner is a great value proposition. We can meet customers and help them with that.
Steve Daly: We'll continue to invest in that. We'll be able to bring more resources to bear on that in a way that we have more connectors, more systems we can integrate, more actions we can take through the automation and make it more seamless for our customers.
What about Bob?
Steve Morton: Right. Have you ever watched that movie "What About about Bob" by the way?
Steve Daly: I have, yes.
Steve Morton: That's with Bill Murray. Maybe it's only in the U.S., but let's talk about Bob for a minute. What about Bob. You mentioned him as a founder of RES. He sent me a note the other day when the acquisition was made, and it said, "After 17 years, 4 months, 12 days," whatever the number was, "it was time to be part of something bigger." We're excited that Bob's engaged in the business going forward.
Steve Daly: We’ve been really impressed with Bob. Everybody who's dealt with Bob has been really impressed with him. He’s a great speaker, strategic mind, visionary, and absolutely he'll be part of the go-forward strategy within Ivanti. He's going to be joined at the hip with our CTO. They've already started brainstorming about ways we can deliver some of this automation from the cloud, for instance, or the next phase in the evolution of automation and identity.
Bob has some great ideas. That’s been his role for the past few years, looking at what's coming next, and we want to continue to leverage that and have it be a key part of our Ivanti DNA.
Steve Morton: You know Bob is a huge "Star Wars" fan, so he'll take two months off when the new "Star Wars" movie comes out, but after that, he's promised to be totally with us.
Steve Daly: I think with the entire Ivanti engineering team, right?
Steve Morton: That's a good point. One of the things RES was working on was some security stuff. There were some whitelisting things, and there were some other projects around automation outside of that. Do those things go away? Do they become part of the go-forward strategy? What will we do with those pieces?
Steve Daly: It's the same strategy we're taking with workspaces. We're looking at what we have in the portfolio and what RES brings to the portfolio. If there are reasons, whether it's innovative technology, ease-of-use, whatever the key value propositions, we're going to maintain it and try to bring it to all of the solutions we have in the portfolio.
Steve Morton: I think there's some concern, I'm sure, for some people. They’re asking, "If you focus the team on integration, does that mean the new features don't come as quickly?" There will be some of that tradeoff, to be honest, right? Some of that is the reality of integrating people, cultures, products, and stuff like that.
Steve Daly: Yes, but at the same time, compared to the investment RES was making in things like whitelisting, for example, we have three to five times more investment in that space than RES was making. I think from the customer perspective, you're right. There will be integration work. There will be time spent bringing these things together, but at the same time, we have a lot more resources to bring to bear on the problem of whitelisting or privilege management. For the customer, I think they'll see an acceleration along the roadmap over what they would have expected when we were fighting each other and self-optimizing. From a resource perspective, we can do some cool tasks now.
Impact of Acquisition on Employees and Customers
Steve Morton: I want to talk about the people side of it for a minute. The reality is, some people will not be part of the business going forward. There are always duplications when you make an acquisition, and some good people will be out of the business, so let's put our cards on the table. How impactful will that be, and how transparent will we be about those changes?
Steve Daly: You're right. Every time we do a deal like this, part of the value is we don't have to duplicate efforts in certain areas. Things like G&A are clearly overlap, and we'll consolidate those functions. When it comes to the rest of the business, we'll try to preserve many of our customer contacts, and customer-facing resources will remain. The majority of those will remain with the business. Then we'll look at the rest of the business. What we do in one of these processes is we don't look only at the company being acquired, we look at the overall.
Steve Morton: We optimize the whole business.
Steve Daly: The whole business. What's the right structure so we get the maximum amount of communication? We break down walls that are naturally there because we've been competitors for a long time. We're looking at that. We're going through that process right now. We'll be very open in our communication as soon as we know and as soon as we can. There are some restrictions, particularly in European countries, regarding what we can and can't say, how long we have to give employees notice before we announce to the market. We're very mindful of those, and we're trying to be as respectful as we can to the employees who are going to be affected.
Steve Morton: Right, but at the end of the day, an acquisition, and you made the point earlier, is partly the technology, but the DNA and the people is what we're going to do our best to preserve, that spirit, that expertise, all those pieces. Inevitably, change happens, and it's painful as we go through that, but it's what happens.
Steve Daly: Yes. We've done this enough times that we are very compassionate, very empathetic in the process. Ivanti is a group of individuals who have come from acquisitions. The majority of the employees have been through this process. We definitely will take care of employees who are affected, and there are a lot of people who understand what they're going through.
Timing of Acquisition
Steve Morton: I guess another question is why now? If you're looking from the outside, and this is our tenth acquisition in five years, right? Why would we do this now? It seems like people on the outside would say, "Wow, you have some integration work to do. You have a lot on your plate. Why now with RES?"
Steve Daly: The reality is, you can want to dance, but you have to dance with somebody who wants to dance with you, so you take these deals as they come along and as they become available. Like I said, we talked with RES last fall, but we put the talks on hold because we went through our acquisition, the merging of HEAT. Then there were good reasons for us, and we said, "Hey, if you guys are still interested, after we come up for a little bit of air, let's talk again." RES was going through a process, and it just so happened that it was do the deal or not have the opportunity. We recognized, as we were bringing these technologies together, core to that was the ability to automate a lot of these processes and connect them. I view what RES has done in the automation space as the connective tissue between all these acquisitions. It'll be that hub that allows us to reunify IT. We didn't want to miss out on that ability and the people who knew how to do that.
Steve Morton: It is what it is, right?
Steve Daly: It is what it is. You do the deals when they come.
Steve Morton: They say when your record hits, you go on tour, regardless of what else you're doing, right? You only have those opportunities when they happen.
Speed of Changes
One of the questions that came in on the chat line, and it's a legitimate one, is regarding the people on both sides. There are a couple of changes in product management we've gone through. It seems quick. Part of our strategy was, if we're going to make these cuts, we'll try to make them quickly and move with the new go-forward team. But we did a lot of diligence on this deal.
Steve Daly: We did. Like I said, we've been talking since the fall with Al and the execs at RES, so we did a lot of diligence. What we’ve found in these instances is you spend time up front before the deal gets announced so you can take action right out of the gate, so employees know they’re part of the go-forward. They don't have to sit around waiting for the axe to fall. Customers know, "This is the person I'm going to deal with. I don't have to worry that six months from now, that person will be gone, or three months from now that person will be gone.”
What we've found is best for our customers and best for the employees is to do it quick. Take away the uncertainty and say, "This is the go-forward team. You know they will be around."
Price of the Deal
Steve Morton: Another question on the line here is around selling price. We don't reveal the selling price, but this was a good deal for us financially, as well. It's fair to say we wouldn't have done the deal if it were not at the right price, or if we didn't think we could do things. But this was not a situation where RES had to make a selling decision. We've been talking to them for a while, but this wasn't just a matter of getting a great deal on a great asset.
Steve Daly: No, and we would never do a deal just because it was a great price. We would end up looking like a holding company if we did that. There had to be a strategic reason why we did this deal, and for us, the strategic reason was particularly around automation and identity. It is a great customer base. We feel like we can solve a lot more problems for those customers in their environments. We can combine these solutions so they don't have to deal with as many vendors, and bring everything together.
It was about a strength in geography where we weren't strong. It was about teams in the go-to-market, particularly around system integrators, and it was around a cultural fit that matched Ivanti. So no, absolutely not. We'd never do a deal just because it was cheap. I wouldn't buy it only because it was on sale, and that wasn't the case with RES. When Al and I first talked, we both nodded our heads and said, "This would make great sense." The dance just took nine months to get there.
Steve Morton: Well, we were in the middle of something big ourselves with the Clearlake acquisition and rebranding the company.
Steve Daly: Like you said, we spent a lot of time with these teams to understand where the strengths were. We relied heavily on them as we made decisions about how we restructure, where the strengths were, and what strengths we could bring.
Steve Morton: One of the questions we have is around the executive team of RES. We made those changes. We've tucked people into the organization where we can with some notification stuff together. But the executive team has moved on, with the exception of Bob, who is going to be a big part of our go-forward strategy.
Steve Daly: That's right.
Steve Morton: I want to talk about partners. You talked about the importance of SIs, and I love that because becoming part of the stack of technology and these system integrators is important. What are we doing on the partner side? Can the people on the line who are RES customers expect to work with the same partners? How disruptive will that be going forward?
Steve Daly: One of the attractive pieces of the RES business was that they have good partner relationships. I've already spent time on the phone with several key partners, not SIs. Absolutely, part of our strategy is to continue to invest in the partner community. There will be no change in the partner programs. There will be no change in who the partners are. We'll be looking at a best of both, the aspects of the two partner programs, and going into fiscal year 2018, we'll bring those together. We'll merge those together, but the intent is to keep the partner community intact.
Steve Morton: Right before this call I was on a call with partners, the Ivanti partners and EMEA and that absolutely is the case. There's another interesting aspect about the international flavor of this. Because RES has such a strong geographical presence in Benelux and the Netherlands, this acquisition actually makes it so, even though we're headquartered in Utah, the majority of our employees are now international.
Steve Daly: Yes, outside North America. We're a global company, and we believe that's a great advantage for us because now we see the world not only through American eyes, and we have the ability to meet the needs of a global customer base. Even customers that are headquartered here in the U.S. aren't only U.S. based. They're global, as well. We feel like if you’re a RES customer, and particularly if you’re a global RES customer, the ability to support that worldwide customer has increased with this acquisition. We have global support centers around the world in Asia, and Europe.
Steve Morton: Yes, and that's something RES wasn't really invested in. There's some expansion there as well.
Steve Daly: Yes. Those customers should see a greater ability to support them globally.
Steve Morton: Also a great thing is that organizing principle of RES of customer first. We've described them as Nordstrom-like in their approach, which is an American retail chain, for those of you who don't know, that is known for excellent customer service. You can take back a tire to Nordstrom, and they'll get you into something new, though they certainly don't sell tires. It’s that attitude of let's fix the problem. We'll figure out what the problem was later, but first and foremost we're going to help.
Steve Daly: That's right.
Product Strategy Going Forward
Steve Morton: There are a lot of questions around here, and I want to be really clear on the product go-forward strategy. I'm going to try to state it even more aggressively. We think the real value of the acquisition is around automation and identity. Those are the primary technological reasons we chose this. We are going to, over time, bring together a common workspace product across our portfolio. We have two of them today. People chose them for different reasons. That journey may be a long time in coming. People are going to get in the middle and work on it. Our intention is to bring together the best of both technologies, and to your point earlier, we can't screw up that customer relationship. We have to do this very carefully.
Steve Daly: That's right.
Steve Morton: We have to do it profitably, but we also have to do it very carefully. It sounds like your commitment to the customers on the line is that we'll do exactly that.
Steve Daly: That's exactly right. We don't know what that looks like. We're going to take the next 60 days to figure out what that looks like over time and how those come together. We could maintain both as a tiered strategy. We know that ease-of-use is a big deal to the RES customer, and there are more complex, enterprise-like features to the access codes we chose in AppSense, so it may be a tiered strategy. It may be that we find a way to bring that ease-of-use to both technologies. We may bring some of the enterprise capability into a RES workspace and some of the ease-of-use into AppSense. A few years from now, your next upgrade could give you the benefits of both.
Steve Morton: We've done this, as you mentioned earlier, on Patch, right?
Steve Daly: Absolutely.
Steve Morton: We've had to do this. When you make acquisitions, you have to be able to do that, and you have to do it with minimal customer impact. You have to make it transparent, and it has to be a better value proposition. We know how to do that. I definitely understand the concern about the overlap, but this is something we've learned how to do very well.
One of the questions is regarding other parts of the business, other businesses that have been part of acquisitions. How have those grown, or thrived, or struggled under Ivanti? How's our track record, do you think, with other acquisitions?
Steve Daly: The track record has been great. Some of the acquisitions were more technology tuck-in acquisitions. Some were market consolidation. Some were adding new products to the portfolio. Most of them are growing. Our Shavlik, we carved that out of―
Steve Morton: VMware.
Steve Daly: Yes, VMware. That was in decline for the two years prior to us acquiring it, and we turned that into 35% year-over-year growth. Likewise, the Wavelink acquisition has grown every year since we've acquired it. We're not of the size that we can say it's okay if these products don't grow anymore, and we shut them down or put them in mothball mode until they fall off the map. We have to make sure they grow. With Shavlik, for instance, that was a product line where we had some clear overlap with―
Steve Morton: LANDESK
Steve Daly: With LANDESK Patch, and we've still been able to grow both those businesses.
Steve Morton: One thing we haven't talked about is how RES customers will be able to take advantage of other products in our portfolio, not we can sell them more, but literally, things like reporting, additional automation and execution tasks, the ability to create unified IT processes, our IT service management strengths, our operational security strengths, our world-class expertise in understanding systems. I mean, nobody knows the endpoint better than Ivanti.
Steve Daly: You're right. We have a lot of expertise in that space. We've acquired expertise, and we've grown that expertise organically. The reality is we believe ultimately that for IT to meet the demands of this century, we have to unify all of these processes. We have to unify the technologies, and we have to do the work rather than make the customer do the integration work. Our strategy is to bring all these things together. However, if a customer is using a service desk that's not Ivanti, that's okay. We’re not going to force them by saying, "The only way you can buy RES is if you buy the entire suite of Ivanti solutions." We'll connect and integrate with others, but if a company wants to evolve and become united at the endpoints, we give them that path.
Steve Morton: I want to talk about the brand for a minute. We had a couple of questions on that. Do you have a favorite soccer team? The answer is the Netherlands naturally.
Steve Daly: Yeah, naturally.
Steve Morton: Okay. RES has built their brand equity, they’re certainly well known in that area, and we don't want to lose that. We are Ivanti. That’s who we are, that's the company. That's where all the companies are tucking in, but we do have a strategy for how RES will come into the broader Ivanti story as a brand.
Steve Daly: Ivanti was created because we have a number of brands through our acquisition strategy, and we recognized that our strategy is much bigger than any one of those brands or their brand value. We knew we had to have a bigger brand. We also knew that by creating the Ivanti brand, we could maintain some of the brand equity from RES or Shavlik or AppSense or others. We'll use the “powered by,” and we'll be sure we don't lose the equity RES has developed through the decades.
Steve Morton: It might not be as orange as we've seen it in the past, right?
Steve Daly: Maybe not.
Steve Morton: We have red, but it's not that far from orange or the RES color scheme from the Ivanti color scheme, but there's value to that name. That being said, RES was a small enough company that it was difficult to get awareness. It was difficult to walk in as a salesperson and have people know exactly what it was. We're not buying a Super Bowl ad either, but I think for a seller, if you're an advocate inside IT, and for a customer, there's an advantage to being associated with a larger brand and a larger story.
Steve Daly: Whenever we acquire a company, one of the things the company tends to recognize is wow, the ability to market is magnitudes better than it was as a small company trying to compete in a world of giants. What that means from a customer perspective when you're going in and trying to justify a spend, is it's a known company. You don't have to fight the fight of, "Well, are they going to be around for a while?"
Steve Morton: Yeah, financial strength, or whatever the case may be.
Steve Daly: That's right, or even know the name, because the Ivanti name is much better known.
Steve Morton: We have a question around connectors, and you made a point earlier. We think if you use our service desk it's going to be even better because of the integration, but it's not a prerequisite to doing business with us. What about our connector strategy, and are we going to remain committed, just like RES has been committed to working with other technologies across different parts of the stack? What's our connector strategy going forward?
Steve Daly: This is one of the reasons RES was so appealing. Our strategy is to connect, to be the force that unifies IT, to be the force that allows IT to get that 360-degree view, to be able to share across the silos that exist, from an organizational perspective. From our perspective, the ability to connect to everything in the infrastructure is important. We believe that eventually our customers will want to consolidate, but we recognize it's unrealistic to expect them to say, "I'm going to throw out my service desk, my client management, my mobile management, my security solutions to get the benefit of the RES automation engine.” We’re absolutely going to continue. All the connectors that are there today, we'll continue to support, and we’ll actually have a roadmap to add more.
Steve Morton: There are a couple of technical questions about integration points, working with Azure or with the connector strategy, things like that. My promise is, the product management team will follow up. We have notes here, and we'll follow up with you and would love to have the product managers talk and make sure they understand what those pieces are going forward. A number of the product team are coming along on the journey with us, so as I see those questions come in, my promise is that we'll follow up and have broader conversations with you.
Continuing the RES Culture
I'm looking through the questions, and there was an investment of customers and partners and people in this and it's disruptive when this type of change happens. We talked earlier about the executive staff moving on, us trying to integrate people, and some good people leaving the company. Maybe we could have a brief discussion about the Ivanti culture and how we're going to make sure the good experience they had with RES gets continued with Ivanti.
Steve Daly: It was probably eight years ago that we as an executive team were sitting here, it was LANDESK at the time, and we were asking, “How are we going to be different in the industry” We compete with big people, big companies. We compete with a BMC, a ServiceNow, a VMware at some level, or a Microsoft. How are we going to be different? They can throw an infinite number of resources at something compared to what we can throw at it. How will we differentiate?
We came to the conclusion that the best way for us, the way they could never match, is how we interact with our customers. It's the way we partner with our customers. We have large Interchange events where we bring all of our customers together. There are testimonials on the website of companies that say, "I talk to Ivanti and the stuff I talk to them about shows up in the products. I can't get that anywhere else." It really is a partnership with Ivanti. That is absolutely something we believe is our long-term competitive advantage. It's something we will maintain, and it's something we don't want to lose. We know RES has the same sort of following with their customers. It’s always difficult when you go through these things. RES was going through a process, so RES customers were going to have to go through this one way or another because they were selling the company.
I believe, and Al believes if you talk to Al, that the best place for RES customers to land is here, because we share that philosophy and we understand the spaces. It's not something that's foreign to us. We understand the problems our customers are solving. We're not going to do boneheaded things that step us backward from what RES was able to accomplish.
Steve Morton: I think we're asking for a chance to prove that, right? The reality is, I can sit here and talk about it. Inevitably, there are going to be bumps along the road. Inevitably, we're going to miss something because that's human nature, but I think if you give us a chance, if you lean forward, engage in a conversation like you're doing, you'll find we're good to work with, we really do have your interests at heart, so I'm asking you to give us a chance to prove it.
Steve Daly: That's right, and we say that to RES employees, as well. Give us the opportunity. It's not going to be perfect. There are going to be times when we mess up. You used to do it one way, and now it’s different, or maybe we miss something. What we ask our employees, our customers, our partners, to do is raise your hand and tell us where we're messing up. We're willing to make changes. Sometimes things happen because you have people coming together and emotions, and it happens. We will make mistakes along the way, but our promise is that we're here to partner with our customers. If we break something, tell us, and we'll do everything we can to fix it, because that will happen in this process. What we can say is we have an open-door policy. I get emails from customers all the time, good and bad. "I'm having a problem here, can you help me?"
Steve Morton: Yeah, I get forwarded those. You mostly forward those ..
Steve Daly: Yeah, mostly I send them to you, but it is a very open door. For a company our size, we're unique in our willingness to engage at all levels throughout the organization.
Steve Morton: I'll close with this one, "Is there a secret plan to eliminate RES?” I hate to be that bold, but I've seen some questions in here. Is there a secret plan to use it as a market consolidation play for AppSense?
Steve Daly: No, there's not. Again, we can't afford to say sorry RES customers, move to AppSense or be done with us. We can't afford to do that. We don't believe we're in a competitive position where we could do that. The most important thing for us is that we're solving problems for our customers. There's no secret plan.
Steve Morton: No Star Chamber, that society type stuff.
Steve Daly: That society type of stuff. We're going to make investments in this so we go a lot faster in some of the areas where RES was seeing most of their growth.
Steve Morton: I want to wrap up here and say thanks for letting us talk to you for a while. There's a lot of uncertainty in your mind, I'm sure, as we go through this process. Give us a chance, we'll be open and transparent. We'll have additional calls. Steve, you and I have these chats with our customers quite often. Let's go do great things. A year from now, let's maybe get back on a webcast like this and brag about all the cool things we did to advance the RES value proposition and solve customers' problems. I bet that's going to be the case.
Steve Daly: I would, too. I'll just close by saying, “Welcome to the Ivanti family.” Our customers are the most important part of the business for us, and we don't want to mess that up. Please help us follow this path.
Steve McKay: All right, gentlemen, thank you very much. We appreciate it. You've answered a lot of questions. We've had fantastic participation from the audience. We had dozens and dozens of questions, and you hit on, basically, every one of them, so thank you for doing that. It was super transparent and super open, which I think you'll find with our executive staff. Thank you very much for joining us, Mr. Daly and Mr. Morton.
And thank you everybody for joining us today on the webinar, we appreciate it. You'll see a lot of information on Ivanti.com as this goes on our blog. Lots of information is being posted there and will continue to be posted regarding this acquisition and everything else that's going on at Ivanti. Thanks for joining us, everybody, and have a wonderful day.