Extreme Networks channel boss: We are over-distributed

Bob Gault says vendor needs to get more out of loyal partners as it reinvents itself as software- and services-focused outfit

Extreme Networks wants to go "broad and deep" with fewer partners as it looks to reinvent itself as a leader in software-driven networking.

Talking to CRN, Bob Gault, vice president of global channels, admitted the vendor had become "over-distributed" ahead of its decision to restructure its business to focus on software and services.

Having become the world's fifth-largest Ethernet switching vendor through its 2013 acquisition of Enterasys, loss-making Extreme announced it would cut almost a fifth of its staff in May, a process it has now completed.

Gault said Extreme's efforts to embrace software and solutions must be reflected in its partner base, which generates 90 per cent of sales.

"We want to go deep and broad across a smaller number of partners," Gault said.

"We need to help transform our partners from just selling product to selling software and services as well as additional products. [This means] moving more towards cloud and managed services, which is what Extreme is going to be doing going forward."

Gault revealed Extreme is implementing mandatory solution-selling training across its entire organisation, which will be extended into its partner community.

Partners' ability to sell a solution addressing IT concerns, rather than just products, will then be tied into Extreme's compensation plan and partner incentives, Gault added.

"Extreme's overall vision that we just announced is that we really want to be a recognised leader in software-driven network and solutions," Gault added.

"That may seem big and bold, but we sell software today, we sell it in our sleep and our operating system really is a differentiator for us because it is easy to deploy, easy to provision, easy to configure and easy to manage. That is very different from a lot of the other operating systems that are out there."

In its fiscal Q4 ending 30 June, Extreme saw revenue slip three per cent to $150m (£96m) as GAAP net losses hit $15.7m, but chief executive Ed Meyercord claimed the vendor enters its fiscal 2016 on "solid footing".

Gault, who joined Extreme earlier in the year, emphasised that Extreme will not be "cutting any of its partners loose" but said less strategic ones will now get less direct support.

"I have recognised that we are probably over-distributed, whether that is through distribution or the channel," he said. "We need to generate more balance out of our channel and get more out of the partners that are loyal to Extreme today."