Is it time to ditch ancient partner programmes in favour of a modern alternative?

CRN asks if partner programmes are still fit for purpose after research suggests channel fatigue is setting in

Reboots are all the rage at the moment when it comes to TV and movies. The newer, flashier versions of old, worn-out properties have rejuvenated the entertainment industry.

Perhaps the channel will see a similar trend, as recent data from Canalys indicates partners are considering partner programmes to be less relevant and fit for purpose than they used to be.

In 2016, 94 per cent of survey respondents stated that such programmes were important when it came to evaluating relationships with vendors, but when surveyed this year, only 77 per cent of those surveyed considered it a key factor.

On the heels of that, at Cisco's partner summit in Las Vegas last week new global channel boss Oliver Tuszik announced big changes were coming, giving partners a lead-in of 12 months to prepare for them.

Kelvin Kirby, CEO of Microsoft partner Technology Associates, firmly believes that these programmes have become worn out, with partners now stuck between what vendors are plugging and what customers are demanding.

"One of the issues is that vendors are pushing their ideas on what partners should be doing, but the problem is, that doesn't always reflect the reality of what customers are actually asking for," he said.

"There is this attempt to retrofit what already exists into a very dynamic, changing world.

"For example, Microsoft has had the structure of a partner programme for so long now.

"But instead of getting rid and designing something that fits the purpose, they are putting sticking plasters in places and trying to mend it where it's really not fit for the new world of cloud."

He added that part of the problem is a wariness to ditch the tried-and-tested programme in favour of what will be, to begin with at least, experimental.

Alastair Edwards, chief analyst at Canalys, agreed with Kirby, but added that the challenge for vendors is to strike the balance between wholesale change and avoiding frustrating partners that have built processes around a programme.

Edwards said that dissatisfaction among partners will continue to rise, especially as more resellers move to new business models and that vendors must change their programmes to reflect this.

"If you are a partner that is not just a services-led company, and you use the technologies to enhance the solution that you are selling - but it's not your core value proposition - you won't think that a programme is particularly important," he explained.

"The Canalys research also shows how dependent partners are on these programmes now compared with the past. For the 23 per cent of partners who said partner programmes are not important, those are the companies that are probably services orientated."

Partner programme pitfalls

The Canalys data showed that 16 per cent of respondents named their biggest complaint with partner programmes as the lack of consistency, with vendors changing their programmes too often. This was followed by 15 per cent complaining about the complexity surrounding certifications and specialisations.

The top five complaints were rounded out by vendors having too many partners in the programme (14 per cent), discount programmes being too complex (11 per cent) and too much admin (10 per cent).

Technology Associates' Kirby said that too much time is spent training people to be certified in certain competencies that are not reflected by customer demand, which then leads to those individuals forgetting their initial training.

"That is a real challenge for partners because it means that you are having to re-educate those people and have them go through it all over again," he said.

"There are lots of partners getting people to study for exams but the content of those exams is not a reflection of what they do on a daily basis, and therefore the value of it for the partner diminishes."

Martin Jones, MD of Oxfordshire-based VAR Lan3, agreed with Kirby, but added that he likes the fact that these requirements force his team to stay trained up and abreast of the latest messages from its vendors.

Jones doesn't believe that partner programmes are becoming tired, claiming that this could be because of Lan3's "enormously focused" portfolio. He explained that the firm works with a relatively small number of vendors, compared with more general resellers.

His biggest gripe with partner programmes is the move to online support, which he thinks isn't up to standard.

"The availability of face-to-face training for our engineers has reduced, as vendors are trying to save money on their trainers," he explained.

"So there is more online training, which our engineers tend not to like because the standard and quality of the training can be quite low, and it can be a soul-destroying exercise."

Replacing people and face-to-face meetings with virtual tools can cause a rift in the vendor/partner relationship, according to analyst Edwards.

"Ultimately, this industry is about relationships and so vendors have to be prepared to put in place headcount and people if that is what is needed to support daily deals," he said.

"Virtual tools can frustrate partners because it can leave them feeling unloved and unattached. Whether a partner is a one-man band or a top-tier partner, the vendor has to create the same feeling of partnership with that partner."

Larger vs smaller partners

There is also a feeling among the channel that some vendors focus too much on their large reseller partners, to the detriment of their smaller ones.

Both Kirby and analyst Edwards believe this to be the case.

"We know that Microsoft is heavily driven by consumption and is driving that down through the partner network," Kirby explained.

"But that means that the larger partners who are selling the licences are getting the attention of those vendors, and the partners who are focused on more specialist areas aren't getting that attention."

Edwards said that this focus is becoming a very clear trend in the channel. From a vendor's perspective it seems to make sense, but he warned that some vendors go "too far in the other direction" and lose engagement with the channel.

"The logic of the calculation doesn't reflect the reach and the customer engagement that smaller partners can bring to them," he said.

"It can affect a vendor's SMB presence because most of those partners are typically smaller. The danger then is that you lose relevance as a vendor in that market or geography."

Lan3's Jones takes a more rounded view of this, calling it "cyclical". He explained that he has observed certain vendors focusing on large partners, to the detriment of smaller partners who eventually get fed up and take their business elsewhere. The vendor then turns their attention to winning back smaller partners, neglecting the larger ones.

"It's a cycle of trying to keep everyone happy," Jones said.

Fixing the fatigue

So how can vendors reduce the weariness felt by partners around their partner programmes, or ensure that it doesn't set in at all?

James Hardy, deputy MD of CCS Media, emphasised that he doesn't believe the channel is becoming jaded with partner programmes, saying that he does not see many vendors revamping their offering.

However, he sounded a word of caution to vendors undertaking these changes.

"They have to make sure that they are not redesigning partner programmes for the sake of it and that they are making positive revisions to them to support positive relationships with the reseller community," he advised.

"If I were to recommend anything to our [vendor] partners it would be to continue doing what they are doing; make revisions to remain relevant but make sure that we are involved and collaborating with them on those revisions and the impact it can have on our organisation."

Perhaps Cisco can form the blueprint for other vendors in redesigning its programmes - if that is indeed what it is planning to unveil in 12 months' time.

Perhaps a one-time fundamental overhaul could benefit both vendor and partner in the long term.

"A redesign creates a bit of pain for partners but I think it solves some of the issues affecting the vendor space, such as the constant sprawl," said Edwards.

"The core of that has to be simplifying deal registration and tier and rebate structures and creating a future-proof programme that reflects the changing business models of partners."