Profitability key in Intel Security programme refresh

MDF, pricing and deal reg get facelift as Intel Security targets increased partner profits

Intel Security has unveiled a raft of new channel programme changes as it bids to boost the profits of its partners and encourage them to grow at twice the market rate.

The security player - formerly known as McAfee - admitted that its partners were not wholly happy with the structure of its partner programme and today announced a number of adjustments to areas including pricing, marketing development funds (MDF) and deal registration.

Speaking with CRN, at its Channel Press Summit in Lisbon, David Small (pictured below), vice president of EMEA channel sales, said the changes were initiated because partners were not taking home expected margins.

"We were finding that partners were not making the profits we were expecting, because it seemed that some of the profitability enhancements were being bled through and so we are now trying to protect that. What we are trying to do is make sure the partners retain sufficient margins to make sure their profitability is up, and that's the key focus of these changes," he said.

Within the programme changes, MDF has been altered to reflect which marketing tools work for partners in different regions, based upon measuring return of investment data.

"Previously MDF was done on a slightly more ad-hoc basis, [where we] support partners with a specific initiative. They would come to us with a proposal and with an idea for an activity, and we would agree to fund it," Small said.

"What we didn't do a good job of was closing the loop in terms of measuring the effectiveness of that event, and that's really the change we are making. Using the data in terms of effectiveness to shape what is the best way to invest the money - it's all about improving the execution."

During the summit, Small, and other Intel Security execs, emphasised the importance of deal registration and stressed the need to increase the number of deals being registered by partners.

Alongside this push for more volume, it was announced that the three different deal registration programmes would be "streamlined" into one programme. Small said this move was prompted by feedback from partners, noting that having three programmes was "slightly confusing".

When asked if this push for more deal registration could lead to deals being registered when the opportunity is not fully there for the partners, Small said the process was "monitored very carefully".

The partner programme changes - which become effective on 13 July - also include an alteration to the teaming plan, which is where Intel Security helps create enterprise customer opportunities and then engages the partner in the deal. The teaming plan will now be exclusive so once Intel Security engages with a partner it will not involve any other of its partners in that deal.

"What we do is say we will find, win and potentially lose this together. We engage you in the opportunity; we stay on course with you and [now] guarantee exclusivity."

Also announced were increased discounts for incumbent business - when partners create new business and it then comes up for renewal. At subsequent points of renewal, discounts will move from five to 10 per cent.

Intel Security announced it is doing away with tiered pricing so partners across all three of its accreditations will be given the same pricing over all products.

These partner accreditations have also been renamed from Elite, Premier and Associate to Platinum, Gold and Silver - in line with many other vendor programmes.

Small said he was hopeful that with the new programme changes, Intel Security's partners can grow at twice the current market growth rate.