Certeon’s New Aggressive Channel Strategy Ensures Disruptive Margin

by: Nichole Gunn July 11, 2011

Flexing its channel partner program muscles, Certeon, an application acceleration vendor, recently announced that it has revamped its channel program.  The new feature is a surefire disruptive margin of a minimum of 20 percent on its aCelera software through channel partner sales.

With the launch of its very first channel initiative under one year ago, the company has signed up approximately 35 North American partners. Senior vice president of worldwide sales and business development Karl Soderlund noted that since the implementation of it’s channel model, the company’s sales distribution did a 180 turn; Certeon’s sales were at 20 percent channel / 80 percent direct, now they are at 80 percent channel / 20 percent direct.

Certeon’s objective is to have 100 percent channel sales distribution, which will be a key feature of its “hybrid go-to-market model.” Soderlund explained that the company’s Premier Partners are qualified for this guaranteed margin, and this margin has the capability of jumping to 40 percent if the reseller increases the product’s cost.

Soderlund also boasted that the company now alleviates the burden of partners’ attaining the margin. “We will guarantee 20 to 40 percent when they register the deal, (then) we work with the partner, determine the competitive street price and establish margin on that.” This feature is doable because Certeon is a software-based vendor, eliminating hardware vendor costs. “WAN optimization players typically make (an) 8 to 10 margin. This lets us double that. We are the only ones being this aggressive."

Additional changes to the company’s channel program include:

  • Reduction of tiered levels from three to two (basic and premier) – to simplify the program’s structure
  • An inclusive partner portal for: deal registration, approval tracking, business design guide, marketing support, and primary distribution frame
  • Margin calculator for optimizing partners’ margins

Another company tweaking its channel program is Dell. To create an effective categorization of training levels, the company recently increased its tier levels by adding two new levels: premier and preferred. This affords the company the means to recognize and reward the different levels of partner commitment, training and certification. Vice president and general manager of Dell Global Commercial Channels Greg Davis cited that the tweaks were a direct result of partner feedback.

Feedback is an excellent method of keeping the lines of communication open to ensure vendors have a finger on the pulse of their channel partners’ needs.


About Nichole Gunn