How has the acquisition of Foundry Networks impacted your channel network?
Brocade had a strong partner approach, primarily around the SAN system and
connectivity. Now we have changed the channel philosophy towards building up a
comprehensive parallel networking channel to offer converged and end-to-end data
center solutions.
In June, we launched the Alliance Partner Network (APN) where our primary
focus is to improve partner profitability as the IP world is hard pressed for
margins. We also want to be very selective and not recruit thousands of
partners.
We have already started talking to some of the classic Brocade partners about
getting involved in the Ethernet space. We have brought the traditional Foundry
partners into the APN program and are recruiting new Ethernet partners as well.
What are some of the differentiating factors about the APN program?
We are strongly focusing on lead registration and project protection, and
providing enablement to the partners in terms of training at low or no cost.
There are several vendors who charge a lot for offering these certifications.
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Barbara Spicek
VP-Worldwide Channels, Brocade |
We will recruit partners across three levels-Elite, Premier and Select-in
very selective numbers. When it comes to distributors in India, we will not have
more than three. The reason we will have limited number of Elite and Premier
partners is to guarantee profitability to those partners.
We are working with our partners to prepare joint business plans. We don't
want to waste our time talking to partners who are strongly engaged and have
very good reasons to stay with their vendors.
Because we are entering the market late and we know that there are many
long-standing partnerships and therefore also many instances of partners wanting
to stay with their vendors. We want to make sure that these partnerships have
mutual business plans which we can use to tap the market together.
What will be the profile of partners you will recruit?
We will look at resellers who come in with a very strong IP networking skill
set and professional service skills. Obviously as a vendor, we are late in
entering the market. Therefore, we will look at our reseller partnerships that
will help us augment our position in the Indian market.
At the same time, we come with a very strong value proposition given that we
own 80 percent of the data center business. We are interested in selective
partners who will go into the existing Brocade accounts and start cross selling
the networking products as well.
What is the USP of the APN program?
One USP is that from the technology standpoint, we are the only end-to-end
alternative to Cisco.
The other value proposition is that we are going with a very selective
philosophy. We will engage on a limited number so that our partners remain
profitable.
This aside, we have a very rigid and monitored lead registration program with
which we actually protect partners in the deal.
How do you ensure the last?
Most vendors actually ask their partners to pay heavily for certification
and training. To our partners- SAN and LAN-we offer MDF dollars across all our
product lines. Out of this, they can reinvest a portion of the MDF on training
their people. So it becomes a self-funding relationship which is what the
partners really love.
Partners are not so keen on their principal's technology prowess, as they
are on profitability. How will you actually enable that?
We run a comprehensive enablement plan which is part of the business plan
which includes training and then gets into details like account and lead mapping
exercises. We actively identify accounts and leads together with our partners
and ensure that we get into joint selling activities.
Secondly, one internal part of the partner program is that it allows the
partner to leverage the service support package. So we are actually allowing the
partner to create customer stickiness that will provide them with recurring
revenues.
Vinita Bhatia
vinitavs@cybermedia.co.in