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AppViewX's New Channel Leader On Power Shift From Vendors To Partners And Solving The Common Mistakes In Channel Programs

AppViewX's new channel leader Keith McManigal talks to CRN about the power shift underway between vendors and their channel partners, as well as fixing the profitability issues with partner programs.

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Why aren't vendors making program changes to better align with how channel partners make money today?

Many of the programs were designed years ago and it's hard to, once you design a program, to redesign it and change it a lot. As an example, most partner programs – Cisco's, F5's, Palo Alto Networks', NetApp – are all based on discounts. I'm going to make up numbers: If you’re a Gold partner you get 42 percent off, and if you’re a Silver partner you get 35 percent off. There's nothing in there about margin and these are large corporations so if you say, 'We're going to guarantee margins out there of 10 percent or 11 percent' -- that could potentially effect the bottom line in the shareholders' value.

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