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Novell Delivers Channel Program Enhancements to Boost Partner Profitability

Company increases year-over-year investments in channel five-fold; increases channel sales organization four-fold; appoints channel sales executives

WALTHAM, Mass. | February 9, 2009

Novell today announced global channel program enhancements and leadership appointments marking key milestones in Novell's return to a partner-centric business model. Based on partner feedback, the company enhanced its channel program to increase partner profitability and simplify doing business with Novell. The company also increased investments in sales, marketing and enablement support for partners. The new channel leadership roles and partner program improvements align with Novell's growth objectives in data center, end-user computing and identity and security solutions.

"We have shifted our company strategy to a partner-centric model to meet our aggressive growth targets," said Javier Colado, vice president and general manager, Partners. "This can only be achieved through a strong, well-supported partner ecosystem. Our focus is to drive an industry-leading profitability program - while decreasing our partners' investment requirements - and improve sales and marketing support. Our goal is to encourage new and existing partners to use Novell solutions to help customers reduce cost, manage complexity and mitigate risk in these tough economic times."

"Working with Novell has increased our ability to better serve our customers, and we’re encouraged to see these enhancements come to fruition," said Costas Speliakos, president and CEO of eos-Systems, Inc. "The high level of sales and marketing support gives us added punch as we forge stronger relationships with our customers and offer them robust solutions that address their toughest business challenges."

Elements of the enhanced global channel program include:

Increase Partner Profitability
Novell adjusted the program's margin structure to improve partner profitability and business by restructuring discounts and volume incentive rebates. Novell also introduced a deal registration program to provide margin protection.

Enable Quicker Time-to-Revenue
The company expanded training offerings to include on-demand sales and technical training making it more convenient and cost effective to acquire Novell® solution knowledge. The company also implemented a quick-start program to accelerate time-to-revenue for newly recruited, high-volume partners. To help build partners' services-based business, Novell offers access to deployment training, best practices and methodologies, and Novell professional services experts to mentor and ensure customer success.

Channel Program Simplification
Novell reduced administrative costs and simplified the ordering process by consolidating product SKUs and introducing a single price list. The company also introduced standardized volume discounts which streamlines a partner's ability to negotiate large customer opportunities.

Strengthened Channel Organization and New Leadership
Through 2008, Novell significantly realigned resources to further strengthen the channel organization and accelerate the internal transformation to a more partner-centric company. The company increased five-fold its level of investment in channel-based sales and marketing programs and increased the number of dedicated channel sales professionals four-fold.

In addition, Novell has appointed a seasoned team of industry experts to drive the company's commitment to its indirect sales strategy. Steve Hale will lead the Global Data Center Channel. Hale has 20 years of proven experience in enterprise sales and channel services including 17 years of executive leadership with Microsoft Corporation. Mark Taylor will lead Novell's Global End User Computing Channel. Taylor has more than 20 years of experience as a channel sales and management executive with Macromedia and LANDesk. Dan Veitkus, formerly vice president of global field operations for Novell, has taken over the role of vice president, Partners for EMEA.

In January 2009, Novell promoted Colado to President, Novell EMEA, with overall responsibility for sales and business operations in these territories. He will assume this new role after his current assignment to launch Novell's next-generation global channel program. The leadership of the program will transition to the company's marketing organization and report to John Dragoon, Novell's chief marketing officer.

For more information and additional details on Novell’s partner program, please visit http://www.novell.com/partners/

About Novell

Novell, Inc. (Nasdaq: NOVL) delivers the best engineered, most interoperable Linux platform and a portfolio of integrated IT management software that helps customers around the world reduce cost, complexity and risk. With our infrastructure software and ecosystem of partnerships, Novell harmoniously integrates mixed IT environments, allowing people and technology to work as one. For more information, visit www.novell.com.

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Press Contacts

Amie Johnson
SUSE, Inc.
Telephone: (801) 861-2893
E-mail: amie@novell.com



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