EMC: Transforming VARs Into Cloud Services Providers

EMC: Transforming VARs Into Cloud Services Providers:
EMC (NYSE: EMC) is enhancing and expanding its Velocity Service Provider Program. The changes, effectively Jan. 1, 2013, could help (A) VARs to transform into cloud services providers and/or (B) VARs to find partners that offer EMC-certified cloud storage services. So, how many VARs will embrace the initiative? Michelle De Hertogh, senior director of global alliances and service providers marketing, offered The VAR Guy some clues.
EMC’s efforts sound somewhat similar to sister company VMware (NYSE: VMW), which aggressively promotes service provider licensing to VARs and IT service providers. De Hertogh confirms that EMC and VMware often compare notes when developing partner programs, but ultimately the companies are separate and operate that way.

EMC’s Goals

Let’s start with nuts and bolts of the strategy. EMC says the Velocity Service Provider Program has three clear goals:

1. To enable a select group of service providers to successfully deliver cloud services that create value for our joint customers.
2. To attract and reward service providers globally who have proven capabilities
3. To adapt the program toward repeatability and to scale for growth

Some VARs Will Transform…

To be sure, EMC is not suggesting that all VARs will somehow become CSPs. To understand the potential implications here’s a before and after snapshot of the service provider partner program, provided by EMC…
Historically, EMC’s service provider efforts were:

• By invitation only with modest tier differences; plus partners were placed at specific levels.
• There were roughly 60 pure play service provider partners that received market development funds.
• Most processes for the partner program were manual in nature.

Effective Jan. 1, 2013, the Velocity Service Provider Program will offer:

• Greater tier differentiation, with roughly 180 partners from all sorts of backgrounds qualifying for various levels.
• Participation is earned rather than selected by EMC.
• Many partner program processes will become automated, with increased MDF funds available.

…But Most VARs Will Partner

Longer term, De Hertogh expects VARs to seek out Velocity Service Provider Program members as potential cloud partners. Over time, EMC some of its service provider partners to launch their own reseller programs, with EMC VARs plugging in.
That certainly sounds logical. But let’s not get ahead of ourselves. The VAR Guy will check in again with EMC in Q1 2013 (January-March), to see how the Velocity Service Provider Program is performing overall.