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Certeon announces channel program enhancements, adds guaranteed disruptive margin

Massachusetts-based application acceleration vendor Certeon recently announced improvements to its channel partner program in a statement. The firm revealed the addition of a guaranteed disruptive margin of at least 20 percent on partner sales of its aCelera software.

The company launched its first channel model nine months ago and signed up 30 to 40 North American partners, said Karl Soderlund, senior vice president of worldwide sales and business development. In the past year, Certeon’s sales distribution has flipped from being 80 percent direct and 20 percent channel to 80 percent channel and 20 percent direct, with an aim to move to 100 percent channel in the future as part of the company’s hybrid go-to-market model.

According to Soderlund, Certeon Premier Partners are eligible for the guaranteed margin, which can potentially rise as high as 40 percent if the cost of a product is increased by the reseller.

“We no longer … put the responsibility of attaining the margin on the partner’s shoulders,” said Soderlund. “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. We can do this because being software-based, we don’t have the costs that hardware vendors do. WAN optimization players typically make (an) 8 to 10 margin. This lets us double that. We are the only ones being this aggressive.”

Other changes include the simplification of the company’s tiered channel program from three levels to two – premier and basic, with the latter being the tier for entry level partners. Additionally, a comprehensive partner portal has been developed, which includes deal registration, marketing support, tracking for approval, a business planning guide and main distribution frame, as well as a margin calculator to help channel partners maximize their margins.

Dell recently implemented the opposite tier changes to its channel program. In order to more effectively categorize different levels of training, certification and commitment, two new tiers for premier and preferred partners were added to the company’s channel offerings. According to Greg Davis, vice president and general manager of Dell Global Commercial Channels, the modifications were conceived based on direct feedback from partners.