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Nutanix announces back-end rebate increases

Vendor looks to get partner compensation “on a par” with competitors

Nutanix has overhauled how it issues back-end rebates to bring pay-outs to partners more in line with the competition.

The vendor also says the new system aims to be more predictable and less complex that the one in place previously.

“We learned by experience,” said Nutanix EMEA channel & OEM lead Cyril VanAgt. “The percentage of rebates we were offering our partners were not on par with what our competitors are doing. And some of our rebates were too complicated and unpredictable.”

VanAgt was speaking at Nutanix’s NEXT EMEA event in Copenhagen, where he explained that prior to the launch of the vendor’s ‘channel charter’ last year, the firm offered no back-end rebates to partners at all. But now, he said, the firm was rolling out a “major rebate” for new customer acquisition, based on partners’ level in the channel programme: Pioneer, Scaler or Master.

“We have doubled the percentage on the Pioneer level and from one to two percent, from three to four at the Scaler level, and from five to seven at the Master level,” he said.

The channel exec said Nutanix also has another programme, the Partner Application Programme (POP), which started in February, and will run to January 2020. “We have published a list of strategic accounts to penetrate. It can be new accounts, or it can be accounts where we already present but very modestly.

“The reward for the partner is 10 percent back-end rebate. So if a Master sells into a new customer, that’s seven percent [for new customer acquisition], plus 10 percent per month. So that’s 17 percent.”

VanAgt also outlined a sales accelerator programme based on its OEM relationship with HPE, where partners are remunerated for selling its software on HPE’s DX appliances. “It's 10 percent for a Master instead of seven; it’s a six instead of four points for Scaler, and the same for a pioneer,” he said.

“I appreciate the fact that they do genuinely listen to the feedback,” Tim Jeans, head of specialist sales at Softcat, told Microscope, who noted that the rebates are still some way off the competition.

 “I think the rebate piece is key and starting to invest in that is important. On the one hand, they aren’t competitive with an HPE or Dell, and I don’t agree with their rationale as to why they’re not. On the other hand, it’s Nutanix’s business and we recommend the technology because it is right for customers, and not primarily for the back-end rebates. So I’m not sure it’s something the channel should be churlish about.

“But equally, I think it’s a solid step in the right direction.”

Elsewhere, VanAgt said Nutanix has doubled the size of its channel team in EMEA in the last two years and will continue to invest in a new team of inside channel account managers “which will allow us to reach more partners and have direct engagement.”

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