EMC Velocity changes target midmarket

Feb 05, 2013

Channel partners to deliver EMC-backed service contracts and rebates boosted for sub $100,000 deals

EMC (NYSE:EMC) has boosted backend rebates and removed certain certification requirements in an effort to grow its midrange business.

The changes to EMC’s Velocity programme are, in part, a response to an in-depth partner survey and two channel advisory board meetings which highlighted several hurdles. In terms of simplicity, EMC has removed the requirement for partners to have an implementation specialist on staff for its top Premier and Signature tiers. This allows partners that just focus on EMC sales, but not implementation services to qualify for improved margins.

Another significant change is that its top partners can now deliver their own EMC-backed support contracts in a fashion similar to Cisco gold partners delivering SmartNet. The move according to Fosse is not due to pressure from larger partners, but an effort to enlarge its market: “This is a channel play…they need to earn the margin, so they need to deliver the service themselves,” says Philippe Fosse, EMC’s VP EMEA channels.

The vendor now does 59 percent of its business through the channel in EMEA – a “growth engine” according to Fosse, which is increasing two times faster than its general business.

However, the firm’s aggressive two year channel recruitment drive is over, states the channel chief (pictured).

EMC has been actively recruiting since 2011, adding 1300 new partners to its channel community. This influx has added incremental revenue of around eight percent but, according to Fosse: “I have no intention of increasing the number of partners,” who says instead EMC will instead focus on helping partners to win more business.

“Or vision is very simple, we want the relationship with our partners to be simple, predictable and profitable…we are listening and trying,” he comments.

The firm also wants partners to focus on more than just large enterprise deals. Fosse admits some partners may not target EMC at the smaller site or branch levels but believes that the product portfolio is now well suited.

The firm is offering rebates of between three and eight percent depending on specialities and tier level across a range of products under the sub $100,000 market. The new S100 programme (sub $100,000) targets sales of VNX and VNXe unified storage as well as Avamar and Data Domain products.

The firm has also boosted MDF across the board and has moved its Mozy, Atmos, and Centera ranges into its Backup and Recovery Specialty, and Isilon to its Consolidate Specialty.

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