Vendors Shower VTN VARs With Membership Perks

The organization's 350 members received a slew of exclusive offers from vendors such as Cisco Systems, Computer Associates International, IBM, McAfee, Microsoft and Veritas at the VentureTech Fall Invitational in Las Vegas last week. The offers ranged from rebates to free software to increased marketing funds. Some vendors only had 15 minutes to detail their offers because the agenda was so full.

The number of exclusives was an all-time high and signals that manufacturers recognize the strength of the organization, said Bob Stegner, vice president of U.S. marketing at Ingram Micro, Santa Ana, Calif.

When VentureTech began recruiting vendors to offer exclusives about two years ago, it was not an easy sell, Stegner said. It took IBM's lead to get others to follow.

"The vendors first saw the success of IBM. That's the No. 1 reason. They've seen [IBM's Frank Vitagliano] get up and talk and have success. He's been a real evangelist," Stegner said.

Last week, IBM reduced the minimum requirements for VentureTech members to qualify for competitive displacement rebates. Solution providers now can earn rebates of up to 5 percent for selling $25,000 worth of IBM products into accounts new to IBM. Previously, the threshold was $100,000.

VentureTech members have earned the reward, said Vitagliano, vice president of global distribution channels at IBM. IBM's market share of PCs, notebooks and servers among VentureTech members has increased to 59 percent from 22 percent two years ago, he said.

IBM is not alone.

"Our growth is significant within VTN, and we are just getting warmed up," said George Kafkarkou, senior vice president of worldwide channel operations for CA, which unveiled its own VentureTech program last week. Overall, VentureTech members' revenue with Ingram Micro increased 29 percent in the second quarter, year over year, Stegner said.

VentureTech members praised the vendors' commitment. "It's incredible, but to be honest it's more about the commitment from the vendors than it is about the rebate or the exclusive," said Angie Wong, president of Network Designs Integration Services, Fremont, Calif.

SPECIAL PERKS FOR VTN MEMBERS
Cisco: Exclusive contest for growing revenue in wireless, IP and security; also planning an SMB Select authorization and will allow VTN members to be fast-tracked into the program
Computer Associates: VTN members will earn Affiliate Partner status, which enables them to potentially earn 3 percent through front-end rebates and 3 percent in incremental back-end rebates on commercial licenses or boxed products bought through Ingram Micro; member must generate $5,000 minimum monthly revenue on CA products to earn back-end rebate
IBM: Lowered the bar for VTN members to participate in its new competitive displacement program--incentives start at new customer accounts generating $25,000, instead of $100,000; also plans exclusive Rip Out and Repair (ROAR) program to reward VTN members replacing alternative brands with IBM products
Microsoft: VTN member companies received free Windows Server 2003 Enterprise Edition software valued at $2.1 million
Veritas: Will grant double Veritas Advantage points for VTN members to participate in SME Online Training; also will provide the top Veritas revenue-producing VTN member in each chapter with market development funds of $2,500 to support storage-focused end-user events (based on 3Q and 4Q sales)
McAfee: Chance to win trip to Bahamas for selling McAfee Managed Services; offering $100 spif for completion of online training and free NFR Secure-1 to first 100 resellers that finish online training