NetApp Partners Get ‘Long-Term Program’ in New Partner Sphere Initiative
Channel chief Jenni Flinders talks with Channel Futures about the long-awaited updates and changes.
![NetApp partners get "long-term" program NetApp partners get "long-term" program](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt6a62595d6c178a73/6523ec118accf9ac462b4bba/Long-Term.jpg?width=700&auto=webp&quality=80&disable=upscale)
Olivier Le Moal/Shutterstock
One tangible way that new focus manifests for NetApp partners is in the dissolution of specializations. Rather, NetApp — following other vendors’ leads — has shifted to services and solution competencies. These models require partners, regardless of how they classify themselves, to demonstrate their expertise in practice areas, alongside product knowledge. For example, NetApp partners — whether managed service provider, reseller, system integrator, etc. — can pursue competencies in cloud data modernization on Amazon Web Services, Microsoft Azure and Google Cloud; hybrid multicloud with VMware; and AI with Nvidia DGX, among a number of other options.
The more competencies NetApp partners earn, and the more ways in which they prove services proficiency, the more they expand their revenue horizons.
Indeed, as NetApp partners contribute to incremental pieces of each deal, they will earn more (“life cycle compensation”). And the higher the participation tier, the more services and expertise they will contribute — and the more ROI they should reap.
As such, Partner Sphere features consolidated efforts.
Partner Sphere brings together the formerly disparate NetApp partner programs (for service providers, system integrators, consultants and others) under one umbrella. Tiers change from registered, gold, platinum and global/star to approved, preferred and prestige. The rationale for that reflected the move away from traditional partner programs, Flinders said.
“In today’s world, it’s what’s the as-a-service offering, what’s the managed services opportunity and support services, that life cycle support for customers,” Flinders said. “You’ve got to have that multipronged approach. You’ve got to be able to work with partners who have that services capability and … really drive deeper engagement … [and] higher collaboration with our partners. … This program is designed to enable all of that.”
To be sure, NetApp’s approach reflects the new standard structure for partner programs, though particularly for those in cloud and other, more IT-centric domains. The focus on life cycle compensation calls on partners to deliver more than they historically have — and therefore also potentially make more money than ever.
But, this model means partners must bring more to the table, too, including managed and professional services capabilities. This all adds complexity for partners, including in the forms of overhead and investment, as well as having to find ways to combat the ongoing IT skills shortage that can inhibit growth.
A number of NetApp partners already are equipped to do that. Some will have to double down on their strategies, or perhaps join the approved level for starters. NetApp is allowing partners to move through the new tiers as needed.
As for target customers, NetApp is doing what some of its fellow behemoth rivals have started doing.
In terms of target end users, NetApp partners, through Partner Sphere, will see more emphasis on small and medium businesses. Among large, cloud-heavy vendors, that has been atypical because leaders have not viewed SMBs as a profitable demographic. Rather, they’ve seemed to overlook SMBs in favor of enterprises and Fortune-whatever organizations.
However, that’s changing as executives — and not just at NetApp — understand the latent and sizeable buying power within SMBs. Earlier this year, research firm Analysys Mason made a hefty prediction: SMBs around the globe stand to spend $1.45 trillion on IT in 2023 alone. That would represent 6% growth over last year. In terms of regions, about 40% of that increased spending will come from the Americas. Another 30% will stem from Europe, the Middle East and Africa, and the remaining 30% from Asia Pacific.
“It’s market demand, right?” Flinders said.
Historically, NetApp has grouped SMBs into its commercial business. But it seems to be talking more about this demographic as its own entity and target market. And the channel is taking note, especially given Analysys Mason’s corresponding projection that one in three SMBs will switch channel providers in search of enterprise levels of service and support.
For NetApp, such activity is translating into “huge uptake from our partners, a lot of excitement from our distributors,” Flinders said, citing CDW as one example. NetApp partners like CDW, she noted, are multifaceted. They are “really good at selling into that SMB space as well as enterprise. So we see a good uptake … in that area.”
Another area where NetApp partners can expect Partner Sphere to focus is, of course, AI. While generative AI tends to dominate conversations around artificial intelligence right now, there are other forms of the technology. And NetApp intends to capitalize on demand.
“NetApp is uniquely positioned in this space,” Flinders said, due to the company’s partnerships with Nvidia, Domino Data Labs and similar providers. For channel partners targeting buyers such as data scientists, Flinders predicts big opportunities.
“It’s tapping into the new buyers out there, and really being able to understand how to monetize,” she said.
Other Partner Sphere additions include a new content hub where NetApp partners not only can gather information, they also can collaborate with peers and NetApp sales teams. Furthermore, look for deal registration, lead opt-in for qualified NetApp partners, upgraded dashboard insights and more.
As for insight into how long Flinders thinks Partner Sphere will remain as NetApp’s channel program, go to the next slide.
Channel programs seem to come and go every year or so, even at major corporations. NetApp has been talking about Partner Sphere for about a year now, and Flinders expects the initiative to serve as the foundation of the company’s strategy for years to come.
“This is going to be a long-term program for NetApp,” Flinders said. “We’re excited for the launch. … Our partners know this has been coming. They’re excited.”
As for partner reaction, go to the next slide.
Partner testimonials reflect Flinders’ enthusiasm.
Taiwan-based HwaCom Systems, for example, has teamed with NetApp for three decades.
“We look forward to optimizing the Partner Sphere program’s updates to increase innovation and drive growth with customer solutions that create competitive advantage in a challenging market,” said Gary Chen, general manager of the application services provider.
Bob Olwig, executive vice president of global partner alliance at World Wide Technology, agreed.
“NetApp’s transformation to a solution competency-led program demonstrates their commitment to providing customer-focused outcomes,” Olwig said. “It aligns extremely well with WWT’s engagement approach to provide best-of-breed solutions and services offerings, holistically focused on data management simplicity and security.”
For Insight, the impact of NetApp Partner Sphere on its business will be significant.
“With a keen understanding of Insight’s business objectives and priorities, the NetApp partner team continuously strives to improve relevance, develop internal and external relationships, and create joint offerings with Insight to meet the needs of our collective clients,” said Matt Collins, vice president of strategic alliances at the multibillion-dollar IT solutions firm.
Partner testimonials reflect Flinders’ enthusiasm.
Taiwan-based HwaCom Systems, for example, has teamed with NetApp for three decades.
“We look forward to optimizing the Partner Sphere program’s updates to increase innovation and drive growth with customer solutions that create competitive advantage in a challenging market,” said Gary Chen, general manager of the application services provider.
Bob Olwig, executive vice president of global partner alliance at World Wide Technology, agreed.
“NetApp’s transformation to a solution competency-led program demonstrates their commitment to providing customer-focused outcomes,” Olwig said. “It aligns extremely well with WWT’s engagement approach to provide best-of-breed solutions and services offerings, holistically focused on data management simplicity and security.”
For Insight, the impact of NetApp Partner Sphere on its business will be significant.
“With a keen understanding of Insight’s business objectives and priorities, the NetApp partner team continuously strives to improve relevance, develop internal and external relationships, and create joint offerings with Insight to meet the needs of our collective clients,” said Matt Collins, vice president of strategic alliances at the multibillion-dollar IT solutions firm.
NetApp partners now have access to the long-awaited Partner Sphere program.
Initially intended for an end-of-April launch, the initiative went live this morning after about a year of planning and previews. NetApp partners have been in the know about the transition for the last couple of months, giving them time to strategize about where they will fit in.
NetApp’s Jenni Flinders
“We wanted to make sure we were not only aligning to the market needs, but also on how our partners have evolved, and what works for them and how they provide value to customers that are driving exceptional outcomes,” Jenni Flinders, senior vice president, worldwide partner organization at NetApp, told Channel Futures. “So it’s been a long time in the works, going through this to make sure that what we bring to market allows for partner innovation as well.”
Here’s our most recent list of important channel-program changes you should know. |
NetApp Partners Embrace Cloud, Subscriptions
Indeed, the refrain NetApp partners will hear around Partner Sphere should sound familiar. That’s because NetApp stands out as the latest legacy-technology company to make a big push into the cloud and subscription era. Founded as a provider of on-premises hardware and software for data storage, NetApp itself now operates more on a cloud basis. Its products take aim at hybrid and multicloud environments, as well as artificial intelligence and analytics. As such, expect Partner Sphere to emphasize cloud and services over older approaches to data storage.
There are a lot of details to consume when it comes to the changes and upgrades inherent to Partner Sphere. In the slideshow above, Channel Futures shares more from our conversation with Flinders about what NetApp partners need to know, including which buyer demographic is getting more love from the $16.5-billion company.
See the slideshow above to learn more about Partner Sphere.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Kelly Teal or connect with her on LinkedIn. |
About the Author(s)
You May Also Like