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Compuware re-thinks pricing, eyes channel

Compuware re-thinks pricing, eyes channel

Compuware has taken a more flexible approach to licensing and restructured its sales model in order to avoid channel conflict and bolster its partner sales.

The moves come after a tumultuous year for the application monitoring and development tools vendor. In April the company announced global layoffs for the first time in its 30-year history as preliminary revenues for its fourth quarter tumbled 20 per cent, down $US100 million from a year ago.

The company dissolved most of its professional services, closing some of its 110 offices worldwide, paving the way for greater channel involvement. In Australia, the man driving increased partner involvement is Ted Curtis, Compuware's channel manager.

A year ago, Compuware's channel sales were "negligible", according to Curtis, but the structure and product line-up is now in place to take indirect revenues to around 5 per cent in the short term.

Curtis said the company has instigated a complete turnaround in that it is now compensating its own sales staff if a partner fulfils a deal. The compensation model is designed to encourage sales staff to engage partners earlier in the sales cycle and prevent Compuware's direct sales from undercutting channel partners for the same piece of business.

For the full story, read next week's ARN (June 19).


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