Brocade Eyes Cisco With New Channel Program
(URL: )
By Andrew R Hickey, ChannelWeb
8:00 AM EDT Wed. May. 27, 2009
Brocade is ready to pull the curtain off of its new channel partner program, the first major revamp since the data center and storage vendor acquired Foundry Networks last July, a program the company said will better position it as a strong alternative to Cisco Systems.
The goal of the new program, according to Barbara Spicek, Brocade's vice president of worldwide channels, was to launch a platform that integrates both the Brocade and Foundry product lines, but doesn't leave its core cadre of partners high and dry and wondering what to do with the new IP networking offerings and vice versa.
"Brocade as a company had quite a strong channel strategy basically across the years," Spicek said. "We've always been a 100 percent indirect company. We had a strong channel program but very much a loyalty-based channel program. We would more or less go to the big system players that sell HP, IBM or EMC."
Now Brocade has added Foundry, which has a legacy of single-tier and reseller-based programs that Spicek classified as opportunistic and project-based.
"The challenge now with them coming together is we want to create and launch a powerful integrated partner program that incorporates both the SAN and the LAN products and helps us create a strong networking channel to do more with the IP product lines," Spicek said.
Brocade's new global Alliance Partner Network channel program, which officially launched Wednesday, is designed to attract both storage and IP networking VARs with a selective and profitable program focused on ease of use, value and component-rich elements.
The new two-tiered program will comprise four distinct partner levels: distributor, elite, premier and select, each of which has specific requirements and benefits Spicek said will reward partners for knowledge, solution support and expertise. Partners will have access to deal registration to ensure project and investment protection, and Spicek said that Brocade has expanded its dedicated sales, marketing and technical support model.
"I really want to make sure it's qualitative, it's profitable and it's selective in terms of partnership," Spicek said. "We've been very clear from the beginning that we're not going to launch something that's over-distributed."
According to Spicek, wrapping in the networking products brought in through the Foundry acquisition and launching a new channel program consisting of the two product portfolios set Brocade up to be a strong alternative to Cisco, the leader in the data center networking space.
"We are now the only alternative to Cisco in terms of a real end-to-end player," Spicek said. "In this total market across technologies like storage area networking, wide area networking, metropolitan area networking, local area networking, there are only two that actually do it all. Between the two of us we're the only ones that talk about this complete unified data center story."
And the new Alliance Partner Network, Spicek said, will help VARs better compete if they're seeking an alternative.
"There also has to be a partner desire to look for an alternative. Partners are looking for vendors that really give them quality of partnership and margins back," she said. "Everything we're designing in the partner program is really geared this way. We're keeping it selective. We're going to be putting a lot of quality elements into the program, like the ability to deliver support and professional services that deliver revenue for them. We're going to be designing around growth initiatives so they get end-of-quarter rebates. We're trying to design the program to ensure we reinject profitability."
NEXT: Brocade Wants Partners To Be True Converged Players
At the outset, Brocade will align with several key distributors. Avnet and Tech Data have already signed on, and a deal is in the works with a third, Spicek said, noting that the distributors have strong IP practices to help Brocade partners grow their businesses through ex-Foundry gear.
"We're putting in tiered distribution because we have to consolidate the number of resellers because we're going from a single-tier to a two-tier model," she said.
Additionally, Spicek added that traditional Brocade partners and traditional Foundry partners shouldn't feel pressured to take on new product lines right away. Instead, Spicek said, it will be up to partners to decide where they want to play.
"From day one, the basic philosophy was we can't just go and combine the Foundry partners and the Brocade partners and give everyone access to everything or we would've been completely over-distributed," she said. "We want to give partners the ability to be true converged players."
"Don't think you need to sell IP switching technology right now," Spicek continued. "I want to offer them the path to be a true converged player. We're going to be enabling a lot of free education and training, or easy accessible education and training, because we want to differentiate from the other players. We're going to introduce the path to qualify and certify on the other product lines, but I'm recommending they see where they want to play."
Spicek said Brocade has set different revenue and certification requirements around the SAN and IP product lines. For example, elite partners are expected to generate $6 million in revenue to maintain that status. Additionally, Spicek said, the top 15 ex-Foundry partners have been invited to join at the elite level, while another 10 or so have been invited to join as premier partners with a little bit of leeway.
"The program from a benefits perspective is going to be very compelling," Spicek said. "You know most Foundry partners didn't have much of a channel program or benefits, so they've very much embraced the new program."
Other partner benefits include two percent MDF for elite and premier members, free education for elite members, demo equipment benefits and more, Spicek said. Brocade also is putting substantial investment behind sales enablement, certifications and bringing partners up to speed.
"We actually do marketing," Spicek said, adding that under the 2 percent MDF program, partners can split them 60 percent and 40 percent, with 40 percent for true marketing campaigns and 60 percent for reinvestment into equipment and training. "They're actually taking the dollars they make and reinvesting them. We're rewarding them and they can reinvest them toward building the skill set."