Microsoft Drops Gold and Certified Levels and Embraces “Competencies”
Partners, get ready—there are big changes coming in programs from channel players Microsoft, IBM, and Oracle. IDC’s program director for the software business solutions group explains what it means to you.
By Colleen Frye
Darren Bibby is program director, Software Channels Research, with IDC’s Software Business Solutions Group. Before joining IDC, he managed channel programs for Microsoft Canada, including the Microsoft Partner Program. He spoke recently with writer Colleen Frye about changes in Microsoft’s and other comprehensive vendors’ partner programs that are moving toward specialization, and what opportunities that may create for the channel.
ChannelPro-SMB: What should partners expect from Microsoft this year?
Bibby: This is a very big year for Microsoft and its partner base. They promised that by October 2010, which was well over a year’s time for partners to prepare, they’d be getting rid of the gold and certified levels in the program. The new levels will only be based on “Microsoft Competencies,” or areas of expertise for partners. And you can get a Competency or an Advanced Competency designation; there will be 20 to 30 competencies in total. This is a very big change for partners, to really show Microsoft and their customers their true specializations. And this is a big revamp in the program for Microsoft. Now they’ll have 30 mini programs under one consistent umbrella.
ChannelPro-SMB: What is the upside/downside for Microsoft partners with this change?
Bibby: There’s going to be a clearer recognition of their abilities. The fact that partners will be recognized based solely on competency makes it easy for customers to know what partners are good at, and Microsoft salespeople will know what a partner is good at; they’re often looking for the best partners to bring on road shows and the like. So having a competency as key way to be recognized should be useful.
The downside is almost the same thing—it’s going to be difficult for some partners to explain their relationship with Microsoft if they have many competencies. From what I’ve heard from partners, they think it’s a good idea to specialize, but the downside is they’re worried about how awkward it might be to explain in the future. But Microsoft gave 15 months’ notice for partners to figure it out.
ChannelPro-SMB: IBM recently had some partner announcements. What was significant there?
Bibby: One big point that’s interesting is Software Value Plus; it’s the way the IBM Software Group is doing the distribution of software. For a partner to resell [certain] software, you have to get authorization first. There is also a set of products in open distribution so anyone can resell them. The set you have to be authorized for are the more complex products, so it’s good for partners who really invest in IBM. If you’ve invested your people and solutions in IBM’s technology, and you’ve got the skills, then you’ll be rewarded—you’ll be able to resell specific products.
I also think IBM’s Principles of Engagement is a positive symbol to the partner community. A few months ago IBM put out this business partner charter, or “constitution,” to say how IBM will work with business partners. On January 25th, the Principles of Engagement were an elaboration of that charter. There were more specifics of when IBM will go direct, when they’ll support business partners, how to resolve conflict, etc. It’s a very good step, and not something we’ve seen very often in the vendor community. There was a plethora of announcements. If I were an IBM partner I’d be pretty happy with the amount of investment going into them.
ChannelPro-SMB: Oracle at the end of the year also announced a specialized-based partner program. Is this the future?
Bibby: I don’t think everyone will go this way, but I think the comprehensive vendors will because they do so many things. Oracle is a very different company than it was 10 years ago. They were a database company, then they were database and applications. Now they’re a hardware company with the Sun acquisition. It’s imperative that a partner program adapt to the changes of the overall company.
The Sun acquisition is a fascinating development. It’s an opportunity and a threat—it will go both ways. A lot of shakeout of the Sun channel may have already happened. A lot of other vendors are trying to attract Sun partners. But it should be an opportunity for partners to represent the whole stack. At least that’s the way Oracle is coming across—that they’ve got the whole stack.
