‘Over 90 per cent of our business goes through partners’: Extreme Networks’ SVP of global channels

Joe Spencer talks Partner First rebates, AI tools and channel focus

Extreme Networks recently launched Extreme Partner First, a channel track aimed at delivering more predictable profitability, faster deal approvals and clearer incentives as it looks to strengthen partner-led growth.

Joe Spencer, the vendor’s SVP of global channels and strategic initiatives, tells CRN the new framework replaces a rebate model that was previously inconsistent and difficult for collaborating firms to forecast.

“In the past, we’ve had a rebate that at times was unpredictable,” he says.

“Now, provided you are a Gold, Diamond or Diamond Elite partner, you receive a rebate based on meeting the minimum thresholds of that tier and on the SKUs you sell.”

The organisation intends to double down on channel relationships as more than 90 per cent of its business goes through partners.

“We have very few direct customers and it is not our intention to grow that business,” explains Spencer.

Where direct relationships exist, they are typically driven by exceptional circumstances and span sectors including government and education.

Globally, the firm has more than 11,000 registered partners with around 6,000 transacting each year.

Earlier this week, it also increased its presence across the UKI channel through an expanded collaboration with Paris-HQ distributor Exclusive Networks.

Updated channel scheme

In addition to rebates, the vendor has published a full list of eligible products and corresponding payout percentages, giving its ecosystem improved visibility over potential returns.

In a move the exec claims is unique in the networking sector, the company has also introduced a net new logo rebate for authorised firms.

“We believe we’re the only vendor where non-certified partners can earn a rebate for bringing new customers,” he says.

Gold, Diamond and Diamond Elite collaborators an also earn an additional one per cent rebate for new client wins.

Alongside financial changes, the programme introduces new AI tools aimed at improving partner efficiency.

The organisation has established an internal AI Office, staffed by a dedicated team supporting resellers and distributors.

“We’ve provided AI tools to funded heads at partners and we’re measuring their effectiveness,” the channel leader explains.

“They can use them for everything from product information to generating quotes.”

These tools are accessed via the Partner AI Assistant and sit separately from the company’s Platform ONE offering, which also incorporates AI capabilities.

Moving forward, Extreme does not plan to alter its existing structure.

“We do not currently have a plan to change our tier criteria or structure,” the exec tells CRN.

“There are more Gold firms than Diamond, and the fewest are Diamond Elite.”

Extreme predicts more than 30 new Gold collaborators to join within the first six months of the framework.

Existing Gold and Diamond businesses are also showing increased interest in progressing to higher tiers, he adds.

Partner base dominated by MSPs

Extreme’s ecosystem is increasingly shaped by managed services.

“It’s hard to find a partner today that isn’t also an MSP,” he says.

This shift is reportedly driven by customer demand for operating expenditure models and as-a-service consumption.

The company has also been onboarding more businesses into its MSP programme and plans to continue making this route more commercially attractive.

“Our NaaS offer is something we’re very proud of,” Spencer notes.

“We’re making it more lucrative and profitable for partners to sell managed services.”

Attracting new firms and supporting smaller ones

The organisation expects the new scheme to encourage more partners to move up the tiers.

“We anticipate many more partners wanting to become certified because of the predictable rebate structure,” explains the exec.

The programme is designed to accommodate partners of all sizes including smaller and emerging firms.

Deal registration remains behaviour-based, with preferential pricing for partners that brings Extreme new opportunities.

Profitability claims and success measures

The channel leader says the programme is around 20 per cent more profitable than competing schemes.

He notes this is based on feedback across comparative deals.

“Early indicators suggest partners are seeing around 20 per cent more profitability on average.”

Over the next year, Extreme will judge the programme’s performance using several metrics.

Key measures include overall company growth, the number of partners moving up tiers and adoption of core technologies.

“We’re measuring Platform ONE adoption, certification levels and partner enablement,” highlights Spencer.

“These are some of my primary KPIs.”