The outfit does not have a three tier program with clip levels and does not pay back end rebates. What it does is sort out an investment strategy with channel partners that will see the company work in lock-step with 40 solution providers globally.
It still has a channel of more than 4,000 solution providers, but these are served through distribution.
Nutanix channel chief of Chris Morgan told CDN that the company practices the 80/20 rule; it’s just applied mostly to the 20.
“The investment strategy with partners are based on which partners are ready on what we are doing and take it to the customer. Partners can still be transactional with distributors but we are focused on a small number and we want to help them transition their business. What has to happen is they need to break from the past and go to the future,” he said.
Incentives for the 40 partners include a strict deal registration program that ensures price protection. Morgan added that these partners also have the freedom to sell anything else.
The cunning plan appears to be working and putting the fear of god into outfits like Cisco.