New Extreme Channel Program Sets Different Standards

The program formally expands the relationship between Extreme and its partners, said John Spiliotis, vice president of America's sales at the enterprise networking hardware vendor.

Extreme has had a basic, "start-up" channel program up to this point, Spiliotis said. As the company crosses the $500 million revenue mark and evolves beyond the start-up stage itself, it is time for Extreme to evolve its program, he said.

Spiliotis said Extreme needs to add national providers to move to the next level. Extreme's switching line is targeted at large enterprises, but the vendor has little penetration there, he said. Because Extreme's current partner base comprises regional solution providers, the vendor's products are more likely to be found in midsize companies, he said. "There are some large enterprises that want to use Extreme, but they won't if we can't point them to a solution provider with national scope," he said.

Extreme's new program creates three classes of Extreme partners, awarding different discount levels based on sales volume and certifications, Spiliotis said. However, Extreme plans to avoid pricing conflicts between national resellers and regional solution providers by setting different standards. In order to achieve the same discount level as a local solution provider in a particular region, a national provider would need certified engineers and salespeople located in that region and would have to achieve significantly higher sales volume targets, usually three to four times higher than the regional provider, Spiliotis said.

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The highest level of partner, Extreme Advanced Solutions Partner, or EASP, is where the distinction is made between national and regional solution providers. A regional provider is required to have two certified engineers and one certified sales specialist to achieve EASP level. National solution providers are required to have one certified engineer and one certified sales specialist in each location to achieve EASP status.

EASPs must provide point-of-sale reporting, sales forecasts, quarterly business plans and inventory reporting.

In return, EASPs earn product discounts from 30 percent to 38 percent depending on sales volume and a dedicated Extreme account team, as well as vertical market discounts, competitive allowances and other benefits. EASPs can source product through distribution or direct from Extreme.

To achieve the second level, Extreme Solutions Partner, partners must have one certified engineer and one certified sales specialist on staff. ESPs, which are required to provide point-of-sale reporting, receive sales support from both Extreme and a distributor. ESPs source product through distribution. Discount levels are determined by the distributor.

The third partner level, Extreme Reseller, is largely for the occasional Extreme reseller, Spiliotis said. Reseller-level Extreme partners deal mostly with their distributor partners.

Tom Gobeille, president of Network Computing Architects, Bellevue, Wash., said he thinks the new program is well-structured to help Extreme and it partners grow. "The program focuses on selling business solutions rather than hardware," he said. "There is margin to be made if it's sold properly."

Gobeille said he also appreciates the fact that Extreme spent a lot of time talking to partners before finalizing the program.