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Sunday, August 20, 2006

EMC Provides New Pricing Model for Solution Providers that Stresses Value

This week, EMC announced during the CMP Technology’s XChange ’06 expo that it would be adding value-based pricing features for solution providers to its Velocity Partner Program. This program will offer discounts for solution providers selling all EMC hardware and software except the company’s VMware and EMC Insignia products.

Solution providers participating in this newly revised Velocity Partner Program are attached to one of four tiers; their assignment is based on sales volume and their certification and training. As part of this program, solution providers will undergo an evaluation every six months to determine whether they will move up to a new tier or remain in their same position. Each tier has a value-based pricing discount for hardware sales and a separately-run discount for the sales of software.

Pete Koliopoulos is senior director for channel and offer marketing and states that EMC will base the discounts solely on each solution provider’s performance and skills, causing it to be as objective as possible and clear for those participating.

Solution providers are excited about this seemingly clear-cut value partner program, and believe it will create loyalty among the community of providers that decide to commit to EMC. This new partner program shows EMC’s switch from direct-focus and its growth into a powerful force within the channel.

Blogged By: Computer Consulting Kit