Overview

Started in 2001, the QLogic Signature Partner program has evolved into a first class global program that has garnered the five star rating award from Everything Channel for the last four years in a row. Its success is due to its focus on helping to make the reseller as successful and profitable as possible. So why make a change now? QLogic is investing in a new, simpler program to enable its channel partners take advantage of its growing portfolio of products. Previously, QLogic maintained separate programs for different products with different goals and objectives. There was one for Fibre Channel (FC) and iSCSI/NAS products, another for InfiniBand (IB)/HPC, and yet another for the government sector. Moving forward, a single umbrella program (regardless of market) will incorporate the FC, iSCSI, and IB technologies as “tracks” and will also expand to include emerging technologies like Fibre Channel over Ethernet (FCoE) and cover additions to QLogic’s portfolio, like Ethernet (via NetXen acquisition).

The ultimate goal of the new Signature Partner Program is to emphasize QLogic’s commitment to the channel. By providing additional benefits that open up new technology markets for its resellers worldwide and makes them more profitable, QLogic is demonstrating that commitment in a tangible way.

Analysis

Despite having a recipe for success with its previous program, QLogic recognized the opportunity to be more flexible and make it easier for its channel partners to grow their businesses, especially as new technologies are rolled out. The new program has some significant differences that channel partners should take advantage of if they want to improve their bottom lines.

The biggest change is converting the previous multi-tiered, technology-specific model into a simplified single umbrella model with multiple technology-based tracks (i.e., FC, FCoE, etc.). Let’s take a look at how this new program will impact the resellers:

• Simplification – Previously, partners received additional benefits based upon their tier, which is in turn based on revenue and certification levels. These benefits were restricted to the individual program they were in (FC/iSCSI/NAS, IB/HPC, Govt., etc.) and typically only applied to larger resellers with higher revenues. The new program is a single, combined entity with different technology tracks and benefits that can be obtained through not only revenue and certification levels, but also through metrics such as brand loyalty (level of exclusivity) and cross-platform portfolio sales. Essentially, by combining and simplifying the programs, resellers of any size, type, or level can now earn additional benefits from QLogic.
• Elimination of certification fees – Now that QLogic is making it easier to sell a larger portfolio of products (including FCoE and Ethernet), it has also taken steps to make it easier for channel partners to get trained and certified. It should be noted that QLogic is not using this as an opportunity to have partners to spend more time and money on classes. In fact, for a limited time, QLogic is waiving technical certification fees—a value of $2,400—and allowing its partners to test out of training classes. This is a brilliant strategy—as more VARs get trained, QLogic will get mentioned in more conversations with end-users. In addition, QLogic has invested in a new virtual technical training class, eliminating the need for channel partners to incur travel expenses in addition to losing valuable time (3 days) out of the field, enabling technical resources to take the class and test at their convenience from any location. The new program will continue to offer the online sales training course at no charge.
• Further commitment to the channel model – Partners enrolled in the new program will enjoy increased registration discounts on products. In addition, QLogic will offer a best price guarantee for the first partner to register a deal—those in the FC program will be familiar with this and now it will be rolled out to the entire program. In order to encourage expansion and make it easier to have a profitable business, QLogic will increase growth rebate payouts while lowering growth targets. Probably one of the biggest changes is the inclusion of all OEM-branded products going towards program credit, including IBM and HP. This is a real differentiator for channel programs as it allows resellers to get double the credit for any QLogic products sold through an OEM.

The new program should suit channel partners as ESG research[1] indicates that they want their technology vendors to constantly improve or refresh product lines, create partner programs, and provide adequate support and training (see Figure 1). This is especially true for those partners selling to enterprise customers.

The new program should also provide value to the end-user community. With reduced fees, more partners can take advantage of training and certification; the net result being that there are more knowledgeable resellers better equipped to solve customer problems. The partners that make the effort to achieve certifications will be rewarded with Signature status and will be differentiated from other resellers.

The Bigger Truth

Channel partners are constantly looking for companies with best of breed products and a strong commitment to an indirect selling model. QLogic is trying to fulfill both of those requirements by consistently delivering a strong product line and making investments to expand that line, as its additions of iSCSI, IB, FCoE, and now Ethernet demonstrate. With these expansions, QLogic resellers now have a complete portfolio of connectivity options. The new program also makes it easier for partners to get trained and certified on QLogic solutions. The addition of all OEM-branded products for credit, plus brand loyalty and cross platform rewards, means it is easier than ever to have a profitable business reselling QLogic solutions

Resellers that make an investment and take advantage of the free training and certification for the entire product line can expand their businesses with minimal risk while differentiating themselves from other resellers. One potential area for concern will be managing potential channel conflict for the technology segments. If most QLogic resellers take advantage of this opportunity, resellers in certain geographies may be facing competition from formerly complimentary resellers—perhaps an HPC partner that is now selling FCoE and FC or the reverse. QLogic will need to monitor these situations closely to avoid any discontent.

The new Signature Partner Program offers resellers an opportunity to deliver an expanded range of products to customers while driving increased profits to the bottom line. Now, QLogic needs to make sure the channel understands the new program and how to take advantage of it. For most companies, it is easier not to change something that isn’t broken, so QLogic deserves some kudos for overhauling its award winning program to deliver one that provides even greater benefits to its resellers

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