The cloud computing company continues to upgrade its channel program for a subscription world.
The Nutanix Elevate partner program is going to the next level.
On Wednesday, Nutanix, which enables hybrid cloud and multicloud computing, unveiled several key enhancements for its resellers. The changes come as part of the company’s overall strategy to get away from legacy compensation and sales models.
That’s because it’s a subscription world now — most cloud channel partners no longer want or need to be paid one time. Rather, they want opportunities to make money beyond the point of sale. But, for the most part, cloud vendors seem to be taking their time digesting and acting on that message. Two companies, Nutanix and VMware (competitors, incidentally), stand out as the most prominent exceptions. Both vendors have instituted so-called customer life cycle compensation, and they keep improving how they reward and motivate their partners.
The Nutanix Elevate changes, in particular, have been in the works for some time as the company implements upgrades in phases. Recall that, last year, the company started emphasizing partner expertise and capability over size, and started paying on a recurring-revenue basis.
“I’m proud that we went away from a traditional tiered partner program to a 100% competency-based program,” Christian Alvarez, Nutanix’s channel head, told Channel Futures exactly one year ago.
The updates announced on Sept. 21, 2022, reflect Nutanix’s ongoing efforts to give cloud partners what they want, specifically by shoring up that much-ballyhooed “customer life cycle” approach.
“[W]”We have addressed many of our partners’ needs to engage with customers through their life cycle — not just selling the technology, but enabling them to adopt, perform, expand and ultimately renew,” Alvarez said. “Elevate now supports and rewards partners along this entire journey.”
Exploring What’s New in Nutanix Elevate
Nutanix is kicking off the Elevate enhancements with something not yet common within the indirect channel. paying partners’ salespeople and engineers when they sell Nutanix into net-new accounts. Nutanix calls the initiative the New Business Individual Incentive.
“We really took our time” putting this aspect of Nutanix Elevate together, Alvarez told Channel Futures. The company had to consider local and federal laws, which require the compensation to count as ordinary income, and executives had to get partners to agree. With all of that cemented, Nutanix can now pass incentives and rewards back to the partner, where they then go from the partner to the individual.
“We’re somewhat arm’s length but we’re putting the onus and management of those rewards straight to the account manager and systems engineers,” Alvarez said. “Treating our partners as an extension of our sales is really fundamental and this is one big step in that direction to incentivize them for inserting Nutanix at the right time.”
Alvarez said that adding the individual incentives represents a direct response to partners’ requests.
“This is one that we’ve heard about from all of our partners,” he said.
The next change comes in the form of a pilot program for an incentive that will pay select partners for consistent, on-time renewals. Remember, Nutanix is now all software.
“This pilot program is essentially the first big step towards…