NetApp hints at services-inspired channel makeover
August channel updates will reflect more 'complex' channel makeup
NetApp has hinted that its upcoming channel overhaul will have a strong services theme after describing the complexity the move to the tech has brought about for partners.
The vendor tends to unveil most of its channel updates in August to mark the start of its second quarter. Head of EMEA channel Alfred Manhart said that this year's changes will have a strong services theme thanks to the massive impact the move away from hardware has had on the channel.
"Hardware sales created the bulk of the revenue in the millennium's first decade," he said. "Today, our partners' business success is dictated by the services they provide. So the value creation rests no more with resellers and distributors only.
"Instead, we see a more complex setup of different partners collectively serving customers in a given vertical - delivering consulting, applications, infrastructure, co-location services, and management/hosting. We are building programmes and partner expertise to help the channel tackle this complexity."
He said the latest channel updates - which remain under wraps for now - will "reflect the channel shifting towards services".
The changing nature of the channel has been something NetApp has been keen to talk about in recent months. Its UK boss Elliot Howard told CRN last year that the term "channel" is no longer truly relevant as it does not reflect how the industry works anymore.
Earlier this week, NetApp closed its acquisition of SolidFire, which Manhart said will be a "huge opportunity" for the channel.
"It really is a next-generation solution that benefits current and future channel partners looking to offer webscale-cloud-provider-type services."
Paul Stringfellow, technical director of NetApp partner Gardner Systems welcomed NetApp's services move.
"I think it is very true that we are seeing a general move [towards services] and in our business model we are moving towards services and consultancy," he told CRN.
"We don't see a future in the long term in selling infrastructure unless that infrastructure is part of a wider services strategy. Our business model is changing."
He added that the move towards services is good news for smaller firms like Gardner Systems because they are recognised for their dedication and focus on the technology rather than purely their sales figures, which was the case in the past when selling tin was top of vendors' agenda.
"To recognise partners like us who are not neccesarily [the biggest] but are dedicated, invest a lot, and have lots of focus is always attractive," he said.