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HoJin Kim: Pay-As-You-Go Model Is A Profitability Game-Changer For SonicWall Partners

SonicWall Vice President of Worldwide Channels HoJin Kim said the company’s shift to a pay-as-you-go monthly model opens the door for partners to drive big increases in profitability.

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What are the financial incentives to drive partners to the pay-per-use model?

Most of the financial incentives that we will provide partners will be around cost reduction not necessarily around back-end incentives. One of our guiding principles as we designed the program is predictability is key. In a managed services model predictability is probably the most important thing. So by putting in things like back end incentives that are performance based that while it is wonderful and adds dollars to a solution provider’s bottom line is not predictable. We would rather focus our efforts on making sure we are driving their costs down overtime in a predictable fashion as opposed to here is a five percent bump.

The more you make those types of offerings available in a managed services world it bleeds and just creates more top line degradation for the managed service provider. At the end of the day if you don’t have predictability for the bottom line and you see top line degradation that is not a game anybody can win.

How big a money-making opportunity is this for the channel?

It’s a huge opportunity for the channel. The channel as I have seen it started as a resale channel representing other vendor’s products. Now it has moved to a services led model which is where we are getting some critical mass now. The channel is now selling themselves and I as a vendor am now along for the ride as opposed to the other way around.

This is the fundamental shift we have been waiting for in the channel for the last 15 years.

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