LAS VEGAS — Lenovo released its extra thin X1 notebook at its first ever channel partner conference, but its new customer bonus offer for solution providers who bring in new business was anything but thin.
The new customer bonus was created from partner feedback. Previously, if a solution provider sold desktop systems to one of its ThinkPad customers they would not be eligible for the new customer bonus. Now they are. If a solution provider sells a customer a notebook, desktop or server they will get the bonus, which is around eight points in a back end rebate, for each unit sale.
Also part of this new bonus plan is 50 per cent off demo units, which solution providers will be free to resell to customers or use within their own environment said Chris Frey, Lenovo’s channel chief.
He added that Lenovo will bring out bigger SPIFFs, but those offers will be subject to monthly adjustments.
“We have a channel-first strategy. I know that every vendor talks about that. Everyone says it and I know they do, but I realize that I have to earn that right with you every day,” Frey said.
He added Lenovo is making increased investments in channel programs and training in an attempt to go deeper with solution providers. From last year to this year, Lenovo has gained 3,600 new solution providers and has grown 25 per cent in units in Canada with a year-over-year revenue growth rate that reached 40 per cent, which is better performance than the U.S. market, which grew at 26 per cent.
Frey announced that the vendor’s focus areas for 2012 in the channel will be in product line conversion, desktop share gains, partner productivity and speed to market. With that, Frey dramatically streamlined the number of partner programs form 27 down to six, while increasing channel investment by more than 150 per cent.
Lenovo channel account reps are now at 90, compared to 42 in 2010.
Lenovo will also rely more on its distribution partners, according to Frey. Lenovo will use distributors as a strategic hub for fulfillment to deliver the company’s message. Frey is also pushing Lenovo’s solution provider network to sell more to existing accounts especially with its desktop line. He believes this strategy will lead to more services opportunity for solution providers.
“All-in-One desktops are hot and it can get you into multiple segments such as K-12, healthcare and the SMB. It’s cheaper than a flat panel based system and its serviceable,” he said.
Frey added that a new channel financing program will be released shortly. He didn’t provide CDN with any specifics about the financing program except to say that it would include partnerships with distributors.
Eric Lo, president of Genx Solutions of Markham, Ont., said Lenovo’s timing with the channel couldn’t have come at better time. “This is a good time for them to reach out and I have learned more about Lenovo products at this North American partner conference then ever before. All their new channel plans rings true from what they have promised us from four years ago,” said the long time IBM and Lenovo solution provider.
Lenovo Canada director of channel sales Stefan Bockhop also revealed that Lenovo’s deal registration program uses a third party company to maintain program integrity. “We don’t use our deal registration system as a filtering system for direct sales,” he said. The program also automatically confirms deals to channel partners that are $25,000 and under.
Another significant announcement that the company will produce servers on its own. In the past, they produced servers through a joint venture with IBM. Bockhop said the server business is a greenfield opportunity for Canadian channel partners.
“We knew we needed to offer the full suite to be relevant in SMB. Solution providers can really rely on us for hardware on client server opportunities. We’re not looking to get into the data centre market. These are SMB-level servers, but they’re robust and I think there is room for another relevant player in the server market,” Bockhop said.
Lo agreed, saying they can be an alternative to Dell and HP.
“Lenovo’s server products are still not there yet compared to other vendors. Their selection is still limited but they just got started,” Lo added.
Bockhop said Lenovo servers could potentially bring a solution provider double digit margins, and could go higher if it’s a new customer.
Follow Paolo Del Nibletto on CDN: @PaoloCDN.
