VCG CEO opens up on lifecycle services ‘reinvention’

“It’s driving margins up, and we can already see that in our figures,” Robert Moss says.

VCG has a new focus on the entire customer lifecycle and is ready to take on business outside its retail stronghold.

That’s the message of CEO Robert Moss, who is leading the Stockport-based network infrastructure specialist’s efforts to reinvent itself.

Formed following the 2017 merger of Cisco partner Axonex and Avaya partner Vodat, VCG turned over nearly £25m in its fiscal 2023.

But Moss admitted the business “wasn’t doing as well as it should be” when he arrived in November 2022.

Lifecycle services shift

In the intervening period, VCG has moved to bring in fresh leadership and overhaul its go-to-market strategy, with EBITDA set to rebound 150% in its fiscal 2024.

“ ‘Overhaul’ is a good word to describe what we’ve done. We’ve also unpicked quite a few things,” Moss told IT Channel Oxygen.

“The problem we had previously was that our business was designed very much around the Cisco model of old. We hadn’t moved with the times and were almost order taking.

“How do we take customers on that lifecycle journey, rather than just selling them some kit? That’s what we’ve been driving through.

“What we’re now doing is taking a product which would normally be sold with a CapEx model, and wrapping that with some sort of support mechanism, and then with a financial wrap.

“That’s driving margins up, and we can already see that in our figures.”

“We’ve got a different breed of people”

As part of its reinvention, VCG’s service delivery managers have been handed more of a CX-focused role, in line with the company’s renewed technology lifecycle strategy, Moss explained.

“But we’re looking at it as an overall business strategy, not just for one vendor,” he emphasised.

“It works whether we’re selling Cisco, connectivity, Fortinet or Juniper. It’s just sales best practice and customer service best practice. We’ll see that managed service line in our business really drive up this year.”

A new business acquisitions team has also been created, meanwhile.

Their focus is partly on winning new Microsoft and connectivity customers with a view to then widening the engagement up the stack, Moss explained.

“We’ve got a different breed of people in our business now,” he remarked.

Moss said the new-look VCG – whose clients include Poundland, Evri, and Welcome Break – will appeal to verticals outside its retail stomping ground.

“Although it’s an area of strength, we’re not just a retail specialist,” he said.

“The customer excellence we’re trying to drive out through things like our managed services wrap runs across many markets.”

“We’ve seen a real change”

Despite the need to bring in cost controls, Moss stressed that VCG’s staff numbers have remained constant throughout his tenure.

It has also moved firmly onto the front foot, he emphasised.

Having recently opened an Exeter sales office, the Maven Capital-backed outfit this month upsized its Cheltenham office. Longer term, the business is planning to open more sales locations, Moss said.

Moss previously headed up unified comms provider Excell, leaving shortly after it was acquired by Wavenet.

“I could see quite plainly what the challenges were at VCG, because I’d experienced those same challenges with Excell,” he said.

“I knew I could impact the business in a reasonable timeline, to get it to a position of true growth.”

“For any business going through a transition, it’s a bit of a scattergun for the first six to 12 months,” Moss added.

“But over the last six months, a lot of things have just clicked into place.

“We now look like a business that’s in tune with our customer needs, not just one that’s trying to sell something to someone. We’ve seen a real change.”

This article was produced in association with IT Channel Oxygen.

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