**Editor’s Note: Click here for a list of August’s important channel-program changes you should know.**
Program enhancements include the addition of new channel partners and referral benefits. The cloud security space represents a $2 billion “greenfield” market opportunity for vendors, VARs and service providers, according to Palerra.
Sebastian Rovira, Palerra’s senior director of business development and alliances, tells Channel Partners that the company currently has 12 partners under contract, evenly split between security-focused vendors and those that specialize in a certain cloud application, such as Microsoft Office 365. Its recruitment efforts will target both kinds of partners as “we look to fill gaps in coverage and reach into new markets,” he said.
“Our enhancements are intended to formalize various aspects of the program addressing benefits and requirements,” he said. “There were two key areas for improvement, both noted by partners. For starters, we are moving from a guaranteed margin model to a discount schedule with a much improved upside for the partner. The second focus area is the onboarding investment required from both sides in order to adequately enable the partner to build a repeatable service offering around our product.”
Updates to Palerra’s formal channel reseller and referral programs include product discounts and referral fees. Additionally, new partners receive personalized training and onboarding, access to sales and marketing materials, and demo and trial environments.
The channel-reseller program is for partners that resell its LORIC platform to their customers directly. The framework of the new channel program is based on a two-tier structure consisting of base and premier levels, each with associated benefits and requirements.
The channel referral program is for partners that recommend LORIC to their clients. Referral partners can register the opportunities online with subsequent follow-up and purchase handled directly by the Palerra sales team. A referral commission is provided back to the referring partner on all registered opportunities that result in a sale.
“At the moment our channel to direct mix is 20-80,” Rovira said. “We’d like to move the needle in the first year to 30-70, and look to grow the channel further after we’ve streamlined our joint go-to-market model with partners.”
In April, Palerra announced $17 million in new investor financing, bringing total investment in the company to $25 million. The capital is being used to increase sales and marketing efforts, and to enhance its platform.
“Clients are facing increasingly complex cloud security challenges,” said Derek Loar, partner sales executive for Microsoft. “Establishing a formal program will enable Palerra to build tighter relationships with the Office 365 solution provider ecosystem and provide customers with a very compelling joint value proposition.”