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VMware has refreshed its Partner Connect offering in a move that is designed to reflect the changes in the market and to provide greater levels of flexibility.
The changes to VMware Partner Connect have been designed to support the three core profit drivers that the vendor has identified: services, lifecycle profit and stickiness.
The vendor has settled on those attributes because it has charted trends across its partners network that have underlined that a concentration on services and customer relationships will result in larger profits.
The vendor’s better performing channel players are earning around 80% of their revenues from services, whether that be cloud, managed or professional, with profits 1.5x higher, and professional services revenue more than 2x higher, according to numbers shared by the vendor.
The other feature of the enhanced programme is flexibility, which reflects the move to a subscription-based channel economy, with VMware offering a flexible point system, simplified tiering, business model orientation and add more self-service and automation.
VMware is also looking to support any business model through a single programme to make it more inclusive. A unified approach means that support should be easier to deploy for partners.
“VMware has applied learnings from thousands of partners to drive the next evolution of Partner Connect and to help partners perform while they transform. VMware is well-positioned to help partners capture on the massive and growing opportunity in multicloud,” said Tracy-Ann Palmer, vice-president of partner experience, programmes and investments at VMware.
“We now have one unified partner programme that will be more flexible and efficient, with simpler paths to progression and more tools to help manage partners’ VMware business. We’re optimising incentives and programmes to help partners take their SaaS [software as a service] and subscription businesses to another level and capitalise on cloud-centric business models and economics,” she added.
Cyndi Privett, vic- president of research and owner of Viewpoint Research, said that VMware was putting itself in a position where it had a programme that would cover the needs of partners for the foreseeable future.
“VMware Partner Connect modernises and helps to future-proof the partner experience with VMware,” she added. “The changes we see VMware delivering in the Partner Connect programme are a recognition of the quickly evolving market dynamics that are requiring partners of all sizes to rethink their business models.”
The vendor shared some views from partners, with Joyce Mullen, president and CEO of Insight Enterprises, liking the points-based system.
“The recognition of our total achievements and capabilities as part of the VMware Partner Connect programme is a key driver for the continued investment in growing our VMware solutions business,” she said.