VMware announced the next evolution of VMware Partner Connect, the company’s single, unified, global partner program. The new Partner Connect framework aligns with today’s cloud, service and solution-centric business models, and will help partners improve their business performance and profitability today while transforming their businesses for tomorrow. The advanced VMware Partner Connect program will provide a flexible framework to support partner go-to-market with VMware, accelerate partner growth, and reward partners for all of their achievements and capabilities. VMware offers several immediate benefits, with additional capabilities and enhancements that will become available in the future.
Partners must perform today while transforming for tomorrow. VMware has identified three main profit drivers that appear consistently among the company’s most profitable partners: services, lifecycle profit, and stickiness. Each pillar is synergistic and interconnected to create revenue and profit opportunities. For partners focused on these three axes, the results are tangible. When comparing VMware’s most profitable partners to global averages: more than 80% of their VMware practice’s revenue comes from services (cloud, managed, professional); the profit from services is 1.5 times higher; and professional service day earnings are more than 2x higher.
“VMware has applied learnings from thousands of partners to drive the next evolution of Partner Connect and help partners perform during their transformation. VMware is well positioned to help partners seize the massive and growing multi-cloud opportunity,” said Tracy-Ann Palmer, vice president, Partner Experience, Programs and Investments, VMware. “We now have a unified partner program that will be more flexible and efficient, with simpler progression paths and more tools to help manage partner VMware business. We optimize incentives and programs to help partners take their SaaS and subscription business to the next level and leverage cloud-centric business and economic models.
Improved partner experience with a new Partner Connect structure
With the next evolution of Partner Connect, VMware partners will benefit from a new flexible point system, simplified tiering, business model focus, and add more self-service and automation to further improve customer service. efficiency and profitability of partners. Partner Connect will reward partners for the various ways they create value, including performance and capacity activities. Progression through the program will be based on the new points system rather than a complex mix of IT pathways. Partners who progress to the new Pinnacle Tier will receive even greater financial benefits and VMware engagement, including managed account coverage, joint business plan development, and access to big bet programs .
Additionally, Partner Connect will now support four different business models under a single program: Solution Services, Solution Builder, Cloud Solution Provider, and Solution Reseller. Creating this flexible and collaborative framework across these four business models enables VMware to unify support for all business models. VMware will provide a new self-service dashboard that gives partners easy-to-access visibility into their position in the Partner Connect program. Partners will be able to better track their progress, incentives earned, skills acquired, and other valuable telemetry for managing their VMware business.
Accelerating partner business transformation to selling SaaS, services and solutions
Customer success practices are key to helping customers derive continued value from cloud, SaaS, and subscription offerings. They are also a key component of lifecycle services identified by VMware as a critical profit driver. With the new partner-led Customer Success specialization, partners now have three options for executing Customer Success. Partners can create their own comprehensive offering through specialization, collaborate with VMware on Customer Success businesses, or resell VMware Success 360. These options allow partners to guide customers through every stage of their multi-cloud journey with VMware solutions, while providing consistent service. way of working with clients to help them continuously realize value and get results faster.
VMware launched the Go-To-Market Play System (GPS) for VMware partners to achieve the dual goals of delivering customer results and partner profitability. Focused on transformational business challenges (Strategy Plays) and discrete targeted IT solutions (Velocity Plays), GPS provides defined solutions with unified activation and incentives to increase value and reach, as well as digital marketing support. With GPS for Partners, VMware transforms fragmented GTM programs into a unified approach focused on customer results. These GPS games are at the heart of VMware’s results-driven partner enablement and go-to-market evolution, driving end-to-end alignment from partner capability development to successful customer.
VMware is now making the VMware Ignite program more widely available to partners and has aligned it with the Go-To-Market Play system and partner-led service initiatives. VMware Ignite is a unique partnership practice development and enablement program with a rigorous, proven methodology that provides structured development pathways to build capabilities across technical, sales, services, and marketing functions; access to VMware training and experts to support sales and practice development; and a variety of development paths for new and committed partners and distributors.
The new VMware Ecosystem Solutions Partner Studio, which includes Solutions Lab and Solutions Hub, enables partners to create and co-innovate on use-case-driven solutions to drive partner growth and differentiation in the global marketplace. Solutions Lab is an facilitated co-innovation framework that helps partners bring “big ideas” to market with guided assistance and assistance from VMware experts. With Solutions Lab, partners can deliver differentiated, repeatable and market-ready solutions. Solutions Hub is an integrated, self-service digital platform that streamlines the content creation, orchestration, and go-to-market process for partner solutions. Solutions Hub provides the digital tools to activate and publish selected solutions on VMware Marketplace today and other third-party marketplaces in the future; measure pipeline efficiency, adoption and penetration; and speed time to market with automation.
INDUSTRY AND PARTNER COMMENTARY
“VMware Partner Connect modernizes and helps future-proof the partner experience with VMware,” said Cyndi Privett, vice president of research and owner of Viewpoint Research. “The changes we see VMware making in the Partner Connect program are a recognition of rapidly changing market dynamics that are forcing partners of all sizes to rethink their business models. By bringing together various models under one VMware program with a more streamlined experience, VMware can help partners transition to as-a-service/subscription models, expand their service portfolios, and better leverage their investments.
“We love that this new points-based progression system recognizes and rewards partners like Insight for the strategic results-based growth we are achieving with our mutual customers,” said Joyce Mullen, President and CEO of Insight Enterprises. “Recognition of all of our achievements and capabilities through the VMware Partner Connect program is a key driver for continued investment in growing our VMware solutions business.
“VMware’s newly transformed Partner Connect program will provide ITQ with opportunities to drive our SaaS and subscription sales and enable more services-focused growth opportunities,” said Dennis Hoegen Dijkhof, Managing Director, ITQ Consultancy Country. -Down. “Partner Connect’s flexible points-based framework will recognize ITQ for all the ways we create value for our customers, including influence-based engagement, and reward us for all of our achievements and abilities with simplified level progression.”
“The updated VMware Partner Connect program will increase our operational efficiency while recognizing and rewarding our capabilities across all of our regions,” said Brian Connors, vice president and GM Software and Business Development, Lenovo. “The flexibility of the Partner Connect program provides us with increased opportunities not only as a global OEM, but also as a service partner driving TruScale and VMware Subscription and SaaS solutions through our channels. From a management perspective, the new structure makes it easier for us to manage our performance with a holistic, comprehensive view that enables unified engagement to unlock benefits for our multiple entities.
“The enhanced Partner Connect program will give us greater access to financial benefits and go-to-market resources to drive our SaaS and subscription sales,” said Adrianna Bustamante, Vice President, Global Alliances & Partnerships, Rackspace Technology . “As our business grows and evolves, the flexibility of the program will provide increased profitability through aligned incentives. This kind of value from VMware will provide Rackspace Technology with the foundation we need to help our customers become “Cloud Smart.”