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Newsletter Home > June, 2007
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Linksys Channel Program Fits the Cisco Model
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Linksys is in the process of revamping its channel program to more closely model the channel program of its parent company, Cisco Systems.
The Linksys Partner Connection (LPC) program is a tiered program for partners who sell the Linksys Business Series and Linksys One product families. The LPC program also includes technology "specializations" that will be quite familiar to SMB-focused channel partners who are experienced with the Cisco framework.
"Our intent is to reward partners for their technical and service aptitudes," explained Linksys channel vice president Nigel Williams. "The training is all available online and free-of-charge except for the testing, which carries a nominal fee. We're very much attuned to the fact that the SMB carries a lower cost structure, and we've designed our requirements to fit the market."
According to Williams, the majority of Cisco's 34,000 channel partners also carry a value brand to accommodate price sensitive customers. Yet the two companies share a partner overlap of only 5-7%. The revised Linksys program is expected to boost that percentage substantially.
The program is based upon three basic categories of channel partners: Registered Partners; Business Elite Partners; and Business Elite Specialized Partners.
The Registered Partner tier is the entry point into the program, and requires little more than a basic company profile to establish a relationship with the vendor, receive a base-level discount attend monthly webinars, and gain access to collateral, newsletters, etc.
Building upon their existing status as a registered Linksys partner, channel organizations can move to the Business Elite Partner level and earn an incremental four discount points by achieving a "Foundational Certification." Such partners are required to pass sales and technical exams focused on the basics of network attached storage (NAS), switching, and Linksys One-ready products. Role-sharing is allowed so that partners can have one employee that is specialized in both tracks.
After achieving Business Elite status, partners can move into the Business Elite Specialized level, thereby earning an additional three discount points for specializations in SMB-focused NAS, Voice, and Linksys One solutions. A separate track will also be available for managed service providers.
Elite-level benefits include discounts on demo units, proposal-based MDF, and special promotions.
At the strategic level, the program is designed to align with the Cisco partner program, enabling the channel to leverage unrestricted products from both Cisco and Linksys. Linksys also intends to take advantage of Cisco's distribution capabilities to enhance its global reach and enable distribution partners to build SMB initiatives across the brands.
The enhanced Linksys LPC program and alignment with Cisco partner program is expected to roll out in the US and Canada in August 2007 and progressively in other regions around the world. Existing Linksys Partners will be asked to re-register into the new Linksys Partner Connection program. There will be a grace period of 6 months to re-register for the new program in the US and Canada. EMEA, LatAm and APAC regions will be rolled out over the next 12 Months.
Publicly-traded Avaya announced that it will be taken private by two private equity firms for approximately $8.2 billion. Under the terms with Silver Lake and TPG Capital, Avaya shareholders will receive $17.50 in cash for each share of Avaya common stock. Although the merger has already been approved by Avaya's board of directors, the vendor can still solicit proposals from third parties during the next 50 days, or respond to unsolicited proposals.
The announcement comes after at least four weeks of speculation that some form of merger or acquisition was imminent. Many of those rumors centered on possible acquisitions by rivals Cisco Systems or Nortel Networks. But such arrangements may have been problematic for a company like Nortel, which is recovering from well-publicized financial difficulties. And such a move would have also been difficult for Cisco, given technology overlap, and the sheer complexity of integrating such a large acquisition.
Going private may be an indicator that Avaya will embark on an accelerated software strategy, and needs to step out from under Wall Street scrutiny in order to make the necessary moves without suffering adverse stock impacts. But if such speculation is true, the company's relationships with independent software vendors and allied channel partners will be more important than ever. ISVs and channel partners will be watching developments extra closely. Avaya has been repeatedly criticized by resellers for a pendulum effect, ranging from indirect channel commitment to perceived over-reliance on Avaya Global Services and its own direct sales efforts.
The transaction with Silver Lake and TPG Capital is expected to be completed in the fall, subject to receipt of shareholder approval and customary regulatory approvals, as well as satisfaction of other customary closing conditions.
Sprint Wins Cisco TelePresence Connection Certification
Sprint has become the first U.S.-based global service provider to achieve a Cisco TelePresence Connection Certification; a designation aimed at recognizing SPs with network infrastructure capable of supporting Cisco's well-publicized, high-end teleconferencing solution, delivering life-size images, ultra-high-definition video (1080p), spatial audio and a specially designed environment to create a "room within a room" meeting space
In addition to static measurement of network performance, the Cisco certification program for TelePresence services adds best practices based on current industry standards for network architecture, management and performance including measurement, staff, processes and tools. These are audited annually to help ensure ongoing quality.
Meru Networks Taps New Vice President of North American Sales Operations
Wireless vendor Meru Networks has appointed Robert Bruce as vice president of North American Sales Operations. Bruce was previously vice president of Americas Channels at Juniper Networks, where he handled enterprise channels throughout Canada, Latin America and the United States. Prior to Juniper, he held executive-level positions in Cisco's U.S. enterprise channel sales and operations as well as service provider channels. Prior to Cisco, Bruce held sales positions at 3Com and Rolm/IBM.
Woven Systems Names Michael Langley Vice President of Sales
Woven Systems, Inc., a Santa Clara, California-based Ethernet fabric vendor, has named Mike Langley as vice president of sales. Mr. Langley will report to Harry Quackenboss, Woven president and chief executive officer, and will be responsible for building the company's sales organization and delivering on the company's revenue and market share plans. Prior to Woven, Langley served as vice president of North American sales at Force 10 Networks, was a major account manager at Cisco Systems, and held previous sales management positions at Interphase, Network General, and Cabletron Systems.
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On The Other Hand: Channel Programs' Seven Deadly Sins
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By: Ken Presti
As an analyst and consultant, I get a front-row seat to how vendors direct, and sometimes misdirect, their channel programs. Nothing can take the wind out of the sails as quickly as a poorly planned or executed channel program. These days, a number of channel partners are also stepping up with products of their own, often in the area of network management. This puts them in a somewhat new position of being both vendors and channel partners at the same time. To those of you in this situation, here are a few common mistakes to avoid:
Pinball pricing. Avoid the temptation to swing prices up or down, based on the sales volume of the moment. Channel partners need to know that the current numbers will be in place longer than a Las Vegas Keno drawing.
Faulty operations. Key functions such as order placement, shipping, forecasting, return merchandise authorization, etc. need to be pretty bullet-proof and straightforward. There tends to be very little patience for issues in these areas, and getting these wrong is similar to yelling, "Everybody out of the pool!"
Over-reliance on direct sales. Typically, vendors must rely on their own sales force until their product (or name recognition) catches on and the channel sees clear revenue opportunity. But by this time, the direct sales effort is usually somebody's fiefdom. I'm not saying they've strung barbed wire around the perimeter, but that stinging sensation is probably a clue. Look out for situations where the best prospects can only go direct, or paying direct reps less money when the channel is engaged. Either of those tends to push channel partners in the wrong direction.
Following dominant vendors too closely. "If Cisco does it, shouldn't we?" Not necessarily. You're probably trying to add a lot of new partners to the mix, but that's not exactly something Cisco needs to do right now. Different circumstances mandate different strategies.
Not balancing regional, national, and worldwide strategies. Many companies want to build worldwide market share. Yet it's hard to centralize all processes, requirements, and benefits while still maintaining a program that makes sense. This requires a delicate balance based on input from all parties concerned.
Go sell it; we'll wait here. Resale agreements with the channel are much closer to the beginning of the process than the end of the process. Vendors must continually work with partners to maintain the necessary mindshare in a highly competitive environment. Smaller, engineering-focused companies are especially likely to forget about this care-and-feeding component.
"I love my product, therefore you do too." This one goes out to those Little League parents who can't understand why Junior isn't in the starting lineup every day. That's okay, Coach. They're like that at work too. Just like Junior needs to hit the ball, the product needs to earn partner confidence. Distributors, VARs, and integrators have a lot of companies vying for their attention, and adding new products is inherently costly. The vendor's true clout in channel relationships corresponds to end user demand, market share, and the partner's ability to turn a profit. Until these attributes are clearly in place, the vendor is just another kid on the bench, hoping to get in the game.
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