VMware VARs' rebate woes over after system error fixed

System error meant new SMB rebate was not processed on time meaning partners had to wait till the next quarter for payment

VMware has admitted that a system error meant some partners could not receive rebate payments for a new SMB incentive for up to four months, but claims the issue has now been fixed.

Last year, the virtualisation vendor introduced new partner incentives to lure resellers into the "huge white space" of the SMB market. As well as lowering the deal size threshold from $10,000 to $6,000, it offered an additional 10 per cent rebate on deals to new customers (those who have not bought VMware in four years or at all).

However, the system in place to register new customers and process the rebate was unable to confirm the requests at the time of opportunity registration approval, meaning the rebate was processed in the following quarter.

Despite the issues, VMware claims it has updated the system tools to allow the new customer confirmation to be granted within 48 hours of partners registering the opportunity.

VMware's UK channel boss Ed Dolman said the SMB market is important for the vendor.

"The sub-100 [users] business is the fastest-growing segment and that was an area many commentators and partners thought was the competition's stronghold and they did not think that they would benefit from virtualisation; this is absolutely not the case," he added.

"Customers at the lower end are looking for consolidation and high availability at low cost too."