Nutanix said it is "serious" about revamping its partner strategy and is unleashing software rebates for its new hyper-converged infrastructure XC Core platform. Partners can now earn up to $3000 per node for selling Nutanix software on XC Core.
"This isn't a light-hearted announcement. This isn't fluffy. This moves the needle," said Rodney Foreman, Nutanix's new global channel chief, in an interview with CRN USA. "We're making a strong statement to the partners in the market that we're serious. We want to grow our market share with partners and want to reward them for their growth and investment in us."
The hyper-converged technology pioneer is offering software rebates as well as a net new customer incentive to partners who sell its new XC Core hyper-converged solution, which is part of the Nutanix and Dell Technologies popular XC Series.
The new XC Core, unveiled on Tuesday, uses the same Dell EMC hardware and software as the XC Series appliances, but the software is licensed and supported directly by Nutanix. The solution lets customers buy Nutanix software licenses from partners and then add the licenses to pre-validated XC Core systems that are configured, built and tested by Dell.
Nutanix is offering a three-tiered software rebate based on the size of the XC Core system sold. Partners will receive either $1000, $2000 or $3000 rebates per node when they sell Nutanix software depending on the size of the XC Core.
"These rebates are just the start of what we're going to work on to transform and mature our channel business and grow with our partners as we evolve as transform to more of a software company," said Foreman.
Nutanix is also launching a net new customer rebate where partners can earn up to an additional five percent of the software deal when they onboard a new client that hasn't purchased Nutanix in the past. Foreman said the rebate is attacking the "white space" through both Nutanix and Dell partners.
“Many of our channel partners across Australia and New Zealand are finding huge success in selling Nutanix Enterprise Cloud OS software and Dell EMC XC as a package deal,” said Nutanix's APJ channel director Jacob Pereira.
“This announcement recognises and further rewards the efforts of those partners, and we’re confident the new incentives will encourage other partners in the region to see the value that combination coupled with their local expertise and guidance can bring to customers.”
The third rebate Nutanix is unveiling is for the top six partners in each of its main regions: the Americas, Asia-Pacific (APJ) and Europe, the Middle East and Africa (EMEA). Nutanix is giving these 18 partners an additional two percent of total software sales if they achieve specific growth goals on a quarterly basis.
"So for each top partner, we're setting a goal to grow off of their current growth rate," said Foreman. "The goal is quarterly growth on top of their run rate. That's two percent of their total software sales. You can stack the new customer rebate and this top partner rebate. That's significant. That really shows that we're really making an investment and focused on making our partners successful in the market."
The rebate news comes after Nutanix reported solid second fiscal quarter earnings on 1 March. The company has now achieved a US$1 billion annualised software and services run rate as Nutanix shifts to becoming a software-only vendor.
"As it unties itself from the hardware, Nutanix can become the ultimate software company," said Steele.