Sun Doubles Marketing Dollars, Adds Partner Incentives
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By Joseph F. Kovar, ChannelWeb
12:57 PM EDT Wed. Aug. 20, 2008
Sun Microsystems on Wednesday unveiled enhancements to its Sun Partner Advantage Program aimed at helping its solution providers grow their business and that of the vendor.
The program changes were introduced at Avnet Technology Solutions' New Frontiers Conference in Colorado Springs, Colo.
Sun's number one goal is growth, and its number one vehicle for growth is the channel, which accounts for about 70 percent of the company's revenue, said Wendy Wheeler, vice president of North American Field Marketing for Sun.
The changes include new marketing support funds and new incentives to partners who open new customers for the vendor, Wheeler said. "We're dramatically increasing our investment in the channel to fuel our growth," she said.
One change is an addition to the company's Partner Growth Fund, which it introduced about 12 months ago.
Whereas the original Partner Growth Fund let Sun solution providers accrue marketing dollars for demo equipment based on their previous quarter's sales, Sun is investing an additional 25 percent into the fund in order to increased their marketing budget, Wheeler said.
The funds, which are accrued in an amount depending on partner revenue and level of Sun certifications, are now being paid on a quarterly basis instead of on a yearly basis as was the case over the past year.
"This gives all of us the ability to scale," she said. "When partners accrue market development funds on an annual basis, it's not flexible. But when they do it on a quarterly basis, it's more predictable for them."
Sun is also increasing its investment in two other types of marketing funds. One of them, partner-led funds, are allocated to partners for their use in marketing via their own sales campaigns. The second, partner-fed funds, are funds Sun invests in marketing with the aim of generating leads which are then passed to partners, Wheeler said.
Between the new programs, which are starting this quarter, Sun is expecting to double the amount of marketing funds offered this fiscal year compared to the past fiscal year, Wheeler said.
Sun is also increasing some of its rebates, said Cheryl Turja, director of Sun's U.S. partner program office.
Included are a couple of new business rebates, Turja said.
The first is an additional 9 percent rebate which goes to solution provider sales reps who open new Sun accounts. That rebate, which is paid at the front end of the sales transaction, is in addition to any other rebates including deal registration, Turja said.
The second is a rebate which goes to the principles at any solution provider which opens up new Sun accounts. That rebate can be used as desired by the principles, but Sun hopes they reinvest in new training or people to help expand their Sun business, she said.
The new rebates are expected to start on November 1, Turja said.
"We want to show our partners that we are investing with them and not telling them to go out and find new business," she said.