Citrix Online programs bypass distribution

Citrix Online programs bypass distribution


Citrix Online has introduced two new partner programs to support the small band of local dealers reselling its software-as-a-service. The announcement will see it working more closely with its resellers but leaves distribution partner, itX, out in the cold.

To be known as Referral and Advocate Partner Programs, the global initiatives are aimed at improving indirect lead generation and gaining broader market reach, according to Asia-Pacific managing director, HR Shiever.

"We are now moving towards a single tier and will no longer be supporting the two-tier model because I don't think it's the right one for software-as-a-service," he said.

"It didn't give us enough flexibility when it came to setting prices in competitive situations or responding to sales cycle demands. We were too far removed from the process."

For itX, the changes mean it will only be allowed to sell Citrix Online products to its broader dealer base for internal use. The decision effectively downgrades it to reseller status, with resellers becoming end users.

General manager of distribution at itX, Greg Newham, said the vendor had not informed him of its plans.

"At the end of the day, a vendor is going to do what it wants and we'll make the best of it in whatever way we can," he said. "I don't know that Citrix Online has a good handle on what it wants the partner model to be."

Newham said Citrix Online had only wanted to work with a small number of partners since appointing itX six months ago.

It currently has less than 25 local dealers.

"It hasn't been looking for growth in terms of resellers or how it approaches the market," he said. "It's been working with a small number of partners and trying to get those guys as focused as possible."

itX, formerly Alstom IT, has been distributing Citrix products for six years.

Newham said the Citrix Online program changes would not affect this relationship because it was run as a separate division.

Partners in the new Referral Program were required to generate qualified leads for Citrix Online and earn a 10 per cent commission for each sale the vendor closed, Shiever said.

The Advocate Program is invitation only and requires dealers to participate in joint sales ventures.

Partners are offered a 20 per cent commission and gain access to the vendor's renewal stream if they meet certain targets.

"We would look at inviting partners based on geographical and vertical coverage as well as their capabilities," he said.

In other news, Citrix Online's national sales manager, Carl Braid, has returned to the US. He has been replaced by Michael So, who will be based in Sydney.

Brian Corrigan contributed to this story

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