Nortel Continues Channel Push In 2008

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Nortel Networks is promising 2008 will see more enhancements to its channel program as the Toronto-based vendor adds new training specializations, focuses more on value over volume and enhances its relationships with distributors.

The updates come as Nortel builds upon the two-year plan it launched last March to re-invigorate its stable of VARs and distributors.

David Wilkinson, Nortel's vice president of North American channel strategy, said 2007's decision to revamp its once "unpredictable" Partner Advantage channel program business model resulted in the networking vendor focusing more on value than on volume, downplaying its product breadth and volume thresholds for partner rewards and keying in on the value partners can offer. Wilkinson said roughly 85 percent of Nortel's business goes to the channel in the enterprise space.

Where 2007 saw Nortel's discount structure change to better reward partners who were growing year over year, 2008 will continue on that path, Wilkinson said. Volume will still be rewarded; it just won't be the sole criteria for determining which tier partners fall into. Nortel currently has three partner levels: advantage, premium and elite. Going forward, partner ranking will be based on expertise and specializations along with growth and performance, not just on volume of business, Wilkinson said.

Putting more emphasis on value for its more than 600 contracted solution providers, Wilkinson said, Nortel will continue to offer one discount tied to partner level and then offer a different discount that reflects volume, meaning more partners will get higher discounts.

"We're really looking to drive mutual profitable growth for Nortel and our resellers," he said. "The infrastructure around our Partner Advantage Program wasn't adequate. We had this partner program, but it wouldn't scale."

Scott Davis, executive director of Broken Arrow, Ok.-based solution provider Xeta Technologies, said Nortel's new approach to how it will reward technical and vertical expertise will help him and other Nortel partners be competitive in their respective markets, ensuring resellers get a return on their investments.

"We are very excited to see this program become more formalized," he said.

By the close of the first half of this year, John Stasick, Nortel's director of channel management, said the vendor will offer a total of between six and 10 training specializations, another channel initiative that started last year when Nortel announced its advanced services, unified communications and SMB training specializations. A reseller's partner status is partly based on the number of specializations held by its staff.

The first new specialization for 2008 will be in advanced data -- a culmination of lab work and classroom work on Nortel's higher-level data products and switches -- with others to soon follow. Neither Stasick nor Wilkinson could say specifically what other specializations are on tap.

Stasick said Nortel's training specializations, which focus not only on the technical side, but on the practical side, are in response to market trends and partner needs and can ultimately help Nortel partners round out the skill sets they need to offer their end customers up to date and useful solutions and services.

While technical competency is still a large component, Nortel's specializations also have a "street smart component," Stasick said, meaning partners must have practical experience with solution sets. He said just recognizing the technical component is like recognizing a heart surgeon who reads the text books but has yet to perform an actual procedure.

NEXT: Nortel Enhances Distributor Relationship

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