'If our partners don't evolve with the times they risk acquisition or going out of business' - VAST Data's new VP of channels

Gregg Machon outlined to CRN that economic challenges are forcing VARs to evolve in order to survive

VAST Data recently appointed former director of channel sales at HPE, Gregg Machon as its new VP worldwide channels as the group looks for new ways to support partners in challenging times.

The data platform specialist has been on a steep growth trajectory - hitting the $100m ARR mark in just three years.

Talking to CRN, Machon explained that in his first five weeks at the company he has been focusing on putting himself in the seat of leaders of solutions providers, VARs, and system integrators, and "try to think about the challenges that that they are facing".

"It's an interesting period right now as anytime you see a softening of the market and the economy, you also see a consolidation of companies particularly in the partner space," he said.

"I think there's a real challenge for our VARs, solutions providers and integrators, to figure out how they're constantly evolving in order to survive.

"And if they don't, they're either going to be acquired or just simply go out of business because they're not evolving with the times and innovating along the way."

Focus on delivery

Machon explained VAST is now focusing on providing the right tools through its programme to help partners grow and evolve.

"There are also a few things that partners are asking of our programme," he told CRN.

"Firstly, the gross margin, there's got to be an opportunity to be able to make money with our partnership.

"But what's interesting is that usually comes as secondary or tertiary. In the conversations that I have with CEOs of partners, the first thing is usually - are you easy to do business with? Are you predictable to do business with?

"So, I think number one, I focus on just making sure that everything we've got is easy for our partners to be able to process.

"I think the second thing [partners want from us] is that business proposition.

"It's not just the technology, but beyond that, it's the opportunity to be able to create a new revenue stream for our partners to be able to help them innovate.

And finally, listening - we have a lot of meetings with partners and what matters to them is: Are you able to execute on the things that we talk about?"

But in order to deliver for partners, Machon said it's important for their sales teams across the world to be working together and on the same wavelength, in London, in San Francisco and everywhere else in the world.

"We spend a lot of time with our customers going through what we call the art of discovery.

"And then that art of discovery with a client leads to a design workshop. So, we spend time almost like a consultant to truly understand what are the pain points for our customers? How can we solve them, if we can solve them, and then we get their larger teams together to start to working towards a common solution.

"At the end of the day, where the rubber meets the road is where our teams are working with our partners at the field level and that there's a solid engagement.

"So, part of my job and my team's job is to make sure that that engagement is working well across our focus partners and our strategic partners."

Work in progress

As for VAST's partner programme, Machon said: "Today we've got a very simple programme and that effectively is a healthy discount on a healthy margin rather on the front end of the sale.

He explained this an important format not just for partners, owners and principals to make a margin, but also from the sellers who are often compensated based on the front end margin of a sale.

"Then on the back end we've got a simple programme. We provide different incentives based on kind of where our company's focus is. So that may be along a focus on working with a set of customers and prospects that we've identified.

These are what the company calls ‘bounty' targets, Machon added. Putting forth a healthy back end rebate and incentive for those partners helps VAST Data gain introductions into those accounts and start an engagement with them.

"We've got competitive rebates and incentives as well. But, that's really where our programme kind of stops.

"My job is to take a look at how we evolve that. How do we make sure that that programme does stand up to the very best of the manufacturers out there?"