NTT/Verio's Good Call

At a time when carrier partner programs are falling short on several fronts, solution providers are lauding changes under way at NTT/Verio.

The Enterprise Hosting division of NTT/Verio has revised its program to boost partner compensation, support and communications while easing channel conflict, solution providers said.

And these changes are spreading to other divisions, they said. Craig Schlagbaum, vice president of channel sales at NTT/Verio's Enterprise Hosting division, confirmed that the company plans to roll out program changes across other divisions.

NTT/Verio's Schlagbaum: New plan is more 'favorable and rewarding.'

This move, among others, prompted Nik Nesbitt, co-founder of Denver-based MarketRace, a master agent, subagent and channel program development consulting firm, to join the program.

"When they [initially] approached us, the program wasn't broad enough," said Nesbitt. "As a solution provider, we wanted to be able to offer the full gamut of their service offerings, from voice and data to advanced hosting, which is more near and dear to a solution provider."

Nesbitt, former director of Qwest Communications International's Business Partner program, said he is developing channel programs for telcos and other technology companies. Although his company wasn't hired to help develop NTT/Verio's program, he said it has earned MarketRace's stamp of approval.

Nesbitt and other solution providers cite in particular NTT/Verio's willingness to hand-hold potential partners through the process of becoming authorized. "Our account manager came here and went over everything from training to how to order and how we are going to get paid," Nesbitt said. "The executive team really understands the channel."

If a partner lands a hosting deal worth $10,000 per month in recurring revenue, for example, that partner will receive $20,000 for the value of that annual contract, with some of that payment received up front, Schlagbaum said. He would not discuss the actual commission structure but said the former program paid 10 percent of the recurring base revenue and the new program is more "favorable and rewarding."

Channel conflict, which is at the top of the list of complaints solution providers have when dealing with carriers, has been alleviated at NTT/Verio, partners said.

"The No. 1 thing that [we have] seen work so far this year for carriers is channel integration of the agent and direct-sales force," said Emmet Tydings, president of Gaithersburg, Md.-based master agent AB&T Telecom. "Qwest has led the way there by far, but others like NTT/Verio are close behind. An agent can inherently better trust the carrier whose sales force is encouraged to work with them rather than against them."