Avaya axes VARs' right to MDF in quality drive

Partners must prove they deserve marketing moolah as vendor lines up to expel 500 EMEA resellers

Avaya is to excise more than 500 EMEA resellers from its channel programme and revamp its provision of marketing cash as it focuses on top-performing partners.

In his keynote address at the vendor's EMEA partner summit in Berlin, worldwide vice president of channels Jeremy Butt revealed that almost 1,200 partners were culled in FY11, although more were brought on over the course of the year. Some 435 of these were in EMEA. To begin in FY12, Avaya will chop another 1,000, more than half of these being in EMEA.

In another move to encourage commitment from partners, Avaya is getting rid of its existing business development funding programme, which entitles all resellers to a chunk of cash to drive sales. A new marketing development funding scheme is being introduced, with all money handed out at Avaya's discretion.

Butt stressed that more cash will be given out in total, but that resellers will have to convince the vendor they deserve it.

"A lot of money was wasted last year because partners were not able to execute," he added. "Now, some will get zero, and some will get a lot more than zero."

The vendor is also working to radically simplify its pricing processes, claimed Butt. The intention is to cut the average design-to-order cycle from 25 to 13 days.

"We think this saves 100-200 hours per salesperson, per year," said Butt. "I would like salespeople, sitting in front of a customer, to [be able to] give indicative pricing there and then."

The channel chief also vowed to continue his crusade against grey market activity. Butt revealed 31 cease-and-desist orders were issued by Avaya last year. Six resellers were expelled from the partner programme, while another 11 were issued warnings. The vendor also joined the Alliance for Grey Market and Counterfeit Abatement this year.

"The grey market still continues to operate; these people are stealing from you," he warned.

Butt claimed he is "a third of the way" towards his goal, which was stated at last year's EMEA partner shindig, of creating a channel programme that is predominantly focused on value, rather than volume. To help drive further change, a customer satisfaction component is being introduced, which will be mandatory for all VARs. A track for ISV partners is also being brought in.

"By the time we get to FY13, I would like to be virtually out of recognising volume, although you can never completely remove it," he said.