NetApp to Change How It Measures, Compensates Partners
The new NetApp new partner program will de-emphasize traditional reseller models.
May 13, 2021
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Chris Lamborn, NetApp’s channel chief, said most of the company’s partners are already moving in the direction of these changes.
“We are now starting to move away from just being about install and support, and focusing toward deployment, and then that life cycle, and around being able to manage the customer through the transitions they go through,” Lamborn told Channel Futures. “We will be switching and re-measuring every single partner to the new criteria.”
NetApp is following the playbook to which Microsoft has shifted, and many others are in various stages of transition, Lamborn said. The company laid the groundwork for the transition in late 2019 with the launch of its Keystone services. Keystone lets customers procure NetApp’s on-premises storage solutions as a service and pay monthly or annual subscription fees.
“Keystone is really getting traction now,” said Jim Elder, NetApp’s Americas channel chief. “It was something that took a while to get off the ground and get running. But we’re seeing a fast-growing pipeline there. We’ve got a few partners that are really leading the charge there.”
Among those leading that charge is General Datatech (GTD), NetApp’s largest partner. John Woodall, GTD’s VP of engineering said it took awhile to get aligned with Keystone.
“The launch of Keystone services got off to a slow start, but it is starting to gain ground,” Woodall told Channel Futures. “It opens up more ways for a customer to consume what they want. We’re starting to find success. We have pipeline, but it’s been relatively new for us.”
In preparation for next year’s overhaul and the new tiering structure, NetApp has started implementing changes to its partner program. Among the changes, NetApp is:
· Expanding its partner ecosystem with specialists who sell, consume or influence NetApp purchases.
· Shifting incentives, with a focus on new customer acquisition, FlexPod usage and cloud consumption.
· Increasing compensation to NetApp partners who register deals or set meetings.
NetApp also is rolling out new solution specializations for Cloud Preferred, FlexPod, SAP, AI/ML, data protection, data security, hosting service Provider, infrastructure and Spot by NetApp Preferred.
Moreover, the company is changing its services-certified specializations with a new cloud-focused certification that focuses on hybrid cloud life cycles. Among them are Integration Services Certified, Lifecycle Services Certified and NetApp Keystone Services Certified.
GTD’s Woodall was among the first NetApp partners briefed about the current and forthcoming changes. At a high level, Woodall said many, though not all of GTD’s customers, are shifting to managed services that generate ARR.
“I think it’s a realistic change in how NetApp is reflecting its go-to-market strategy with how it wants their partner community of the future to mold itself or choose to invest in what they think is important,” Woodall said. “I don’t disagree with it. There are still some details to be forthcoming, that are more specific to each partner, in how they map from the old structure to the new structure.”
In the coming weeks, Woodall said he will meet with his NetApp partner manager. At that point he hopes to understand how the company plans to map the new capabilities and specializations to GTC’s business plan.
“That will allow us to look at where do we want to invest in terms of capabilities that we may not have, or get credit and recognition for capabilities that we had that they didn’t have a way to reflect,” he said.
Woodall said NetApp still must provide more specifics about the pending changes.
“I need to see is what are the new certifications, not just the capabilities,” he said.
Also, while NetApp may plan to de-emphasize technical certifications, that doesn’t mean partners can do so, Woodall said.
“I think in the end, underneath it, you still have technical certifications that you have to check off,” he said. “You still have to have ONTAP, if you will, as something that you have demonstrated through a proctored exam that your team is competent in for deploying and potentially doing operational management in an MSP context. So that’s not going to go away.”
Woodall said NetApp still must provide more specifics about the pending changes.
“I need to see is what are the new certifications, not just the capabilities,” he said.
Also, while NetApp may plan to de-emphasize technical certifications, that doesn’t mean partners can do so, Woodall said.
“I think in the end, underneath it, you still have technical certifications that you have to check off,” he said. “You still have to have ONTAP, if you will, as something that you have demonstrated through a proctored exam that your team is competent in for deploying and potentially doing operational management in an MSP context. So that’s not going to go away.”
NetApp partners are learning that the storage vendor will significantly change the way it measures and compensates them next year.
The new approach will de-emphasize NetApp’s longstanding practice of giving partners more status based on transaction volumes and technical certifications. Instead, the company will recognize and reward partners based on annual recurring revenue (ARR) they deliver. Also, rather than focusing on a NetApp partner’s technical certifications, they’ll reach higher tiers based on their different market specializations.
NetApp’s Chris Lamborn
NetApp’s new approach to measuring partners will ultimately result in a new tiering structure. The changes won’t take effect until the beginning of NetApp’s next fiscal year in May 2022. But performance during its current fiscal year, which started this month, will be the basis of how NetApp measures them.
NetApp is a provider of hybrid cloud data services and management.
In the slideshow above, NetApp channel chief Chris Lamborn breaks down the important changes; plus, Americas channel chief Jim Elder discusses how Keystone services from NetApp are gaining traction with partners and customers. We also hear from a NetApp partner who is cautiously optimistic about the changes.
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