EMC partners slam "crazy" new revenue requirements
Resellers claim introduction of ambitious sales targets are not suitable for EMEA market
Partners have blasted EMC after it emerged the vendor is planning to introduce huge new revenue requirements on its partner programme from next year.
Last week, CRN exclusively revealed EMC's plans to introduce massive sales targets on its partner tiers when its new Business Partner Programme (BPP) comes fully into force next year. The framework replaces the old Velocity programme, which is being phased out.
At the moment, partners can work their way up through the ranks from Affiliate, Affiliate Elite, Premier and up to top-level Signature based on training commitments and specialty badges.
But from 1 January next year, the new BPP rules – seen by CRN in an email to partners – state that to reach the top Platinum tier, partners must transact a whopping $65m (£39m) with EMC, including services. To earn Gold and lowest-level Silver status, partners must hit the $15m and $1.25m marks respectively, also including services.
CRN understands the move will see all but the largest EMC partners downgraded to the lowest rank, with just Computacenter able to cling on to its top-tier status and Kelway, MTI and SCC earning a Gold badge.
One partner boss who fears his top-level-Signature firm will be demoted to Silver in the shake-up said EMC's move to align itself with the big boys could be shortsighted.
"The bigger guys are happy to sit back and take the orders but often big partners are just used as a route to market and don't actually go out there and change opinions – it is more the case of processing orders," he told CRN, under the condition of anonymity. "Smaller partners get out there in the marketplace and are really trying to drive EMC as the chosen technology."
He added that the move will seriously harm his business.
"The revenue number is crazy," he said. "Straight away there will be a loss of revenue to our business. We are going from Signature to Silver so will lose rebates to the tune of about $100,000, so there is a big financial impact.
"We are lobbying to get this changed. It's come from the States and it's just not suitable for EMEA or the UKI market."
At EMC World last month, the vendor pledged its commitment to its channel partners when it gave attendees a sneak peek into the new BPP programme. Resellers were impressed with its promise to allow the channel to earn rebates from the first dollar of EMC kit they sell, but the vendor's latest move has overshadowed the news.
"It is hypocritical and contradictory," said the partner. "It runs in the opposite direction to VMware. The big message at EMC World was ‘we're all about the federation of organisations working well together' but the programmes are not aligned."
The partner said his company will closely evaluate its partnership with EMC in light of the move, while another who also feared his top-tier reseller will be thrown to the bottom of the pile agreed.
"We're on threshold of that revenue [requirement] but it brings into question what is the incentive to continue with this partnership? It's a big leap," he said.
Top-level partner Union Solutions' managing director Jason Rabbetts said the changed partner level will not keep him up at night so long as EMC recognises his firm's commitment to the vendor.
"Just because you do millions of dollars of business, it doesn't mean you're always creating business for EMC all the time," he said. "Providing there is no prejudice to partners who don't have that high revenue but do create new business opportunities – and so long as EMC is not prejudiced on discount levels – we are not too fussed if we are Signature, Gold, Silver or whatever. [The name] is not important to me."
CRN was awaiting comment from EMC at the time of publication.