Network General sniffs out new VAR partners
Network monitoring vendor rejects two-tier model in favour of adding numbers to channel ranks
Network monitoring vendor Network General has reshuffled its channel set-up to ramp up UK partner margin.
The vendor, which became a private firm in July 2004 after it was spun out of security vendor McAfee (CRN, 26 July 2004), wants its current VARs and new partners to add value to its flagship Sniffer product line, which provides enterprise-wide network and application performance analysis.
Charlie Abrahams, vice-president of sales for Network General in EMEA, told CRN that Network General's main European distributor was Tech Data, but a two-tier model was not working for the vendor.
“As of January, we moved to a single-tier model in pretty much all of western Europe,” he said.“Previously we had too many partners competing with each other and no one was making any margin.
“We worked with 180 VARs in Europe last year, with 10 to 20 doing most of the trading. We now have 30 to 40 direct resellers across Europe, with four in the UK and one in Ireland,” he said.
He added that Network General is not looking to add vast numbers to its channel ranks. However, it wants existing VARs to add more value.
“We have changed our partner programme from having a flat discount rate to one where VARs can register opportunities and then get an additional discount which is locked to the resellers,” he said.“This enables resellers to retain more margin.”
Abrahams added that Network General's new partners will be niche players that have a deep knowledge of networks and a specific interest in providing a network monitoring offering.
Ash Hussain, sales and marketing director at Network General VAR Axial Systems, said:“For the network management space you need specific knowledge, and Network General is looking to build with firms who have the core skills.
“I don't see competition as a bad thing. I think it will create more noise in the industry and more business for us.”