The cloud computing company continues to expand its channel lineup for a subscription world.
The Nutanix Elevate Partner Program takes it to the next level.
On Wednesday, Nutanix, which enables hybrid cloud and multicloud computing, unveiled several key enhancements for its resellers. The changes are part of the company’s overall strategy to move away from old compensation and sales models.
That’s because it’s now a subscription world — most cloud channel partners don’t even want or need to get paid anymore. Rather, they want ways to make money beyond the point of sale. But for the most part, cloud providers seem to be taking the time to digest and act on this message. Two companies, Nutanix and VMware (competitors, by the way), stand out as the most prominent exception. Both providers have introduced what is known as Customer Life Cycle Compensation and are continuously improving the way they reward and motivate their partners.
The changes to Nutanix Elevate, in particular, have been in the works for some time as the company implements upgrades in phases. Recall that over the past year the company began to prioritize partner expertise and skill over size and began paying on a recurring revenue basis.
“I’m proud that we’ve transitioned from a traditional tiered partner program to a 100% competency-based program,” Christian Alvarez, Nutanix channel leader, told Channel Futures exactly a year ago.
Announced on September 21, 2022, the updates reflect Nutanix’s ongoing efforts to give cloud partners what they want, particularly by supporting this much-vaunted “customer lifecycle” approach.
“[W]We have met the needs of many of our partners to engage with customers throughout their lifecycle – not just to sell the technology, but to enable them to adopt, perform, expand and eventually innovate,” said Alvarez. “Elevate now supports and rewards partners throughout this journey.”
Explore what’s new in Nutanix Elevate
Nutanix kicks off the Elevate enhancements with something not yet common in the indirect channel: partner salespeople and engineers pay when they sell Nutanix to new customers. Nutanix calls the initiative New Business Individual Incentive.
“We really took our time” putting this aspect of Nutanix Elevate together, Alvarez told Channel Futures. The company had to comply with local and state laws that require compensation to be counted as ordinary income, and executives had to obtain partner approval. With all of this cemented in place, Nutanix can now return incentives and rewards back to partner, where they then go from partner to person.
“We’re a little standoffish, but we’re delegating the responsibility and management of those rewards directly to the Account Manager and Systems Engineers,” Alvarez said. “Treating our partners as an extension of our sales is really fundamental, and this is a big step in that direction to motivate them to adopt Nutanix at the right time.”
Alvarez said the addition of the individual incentives is a direct response to partners’ requests.
“We’ve heard that from all our partners,” he said.
The next change comes in the form of a pilot program for an incentive that pays select partners for consistent, on-time renewals. Remember, Nutanix is just software now.
“This pilot program is essentially the first major step toward…