Novell takes axe to flagging VARs

After completing a distribution cull, Novell is embarking on a ‘clean-out’ of resellers who are failing to invest in the software vendor.

As revealed by CRN, Novell has served termination notifications to two more UK distributors after recently parting company with Computer 2000 (ChannelWeb, 22 September).

Its remaining five distributors have been tasked with helping Novell to recruit 25­-50 resellers specialising in each of the three solution areas of security, virtualisation and open source.

But Dan Veitkus, vice president and general manager of partners for EMEA, said that total UK reseller numbers would remain steady as weaker partners are weeded out.

As an incentive for existing resellers to invest in the partnership and for new resellers to sign up, Novell is scrapping all annual partner fees from its fiscal year beginning 1 November.

From that date higher-level Platinum and Gold resellers will also be granted access
to Novell’s internal consulting resources.

Veitkus said: “We will be looking at partners that are only transacting with us and not adding value, and will release them. We want to recruit partners that have experience in these solutions.”

Veitkus stressed that partners would benefit from a new deal registration programme offering up to 10 points extra margin for wins with existing customers and up to 20 per cent for new customer wins.

“In the last quarter, Novell paid $1m in deal registration rebates and Europe was 45 to 50 per cent of that number,” he said.

A seven-figure sum has also been set aside for investment in EMEA partner enablement with Novell’s own professional services staff.

Scott Haddow, chief executive of VAR Trustmarque, said: "Novell has got its act together and it is one of our big bets for the next 18-24 monhts."

Mike Trup, managing director of Novell open source distributor Interactive Ideas, said: “Novell is not a new opportunity, but it is one that has been under-represented in the channel for a long time."