Red Hat announced several updates to its partner program including a shift to more predictable incentives, a new cloud partner module, and expanded enrollment opportunities in the company’s Sell With module and Specialized Partner program. The enhancements are focused on the entire partner lifecycle and intended to offer better simplicity, predictability and profitability, according to a blog post by Kevin Kennedy, VP of global and Americas partner ecosystem success.
“With these enhancements, Red Hat is providing a structure that prioritizes co-investment to drive profitability across core business areas for partners. By actively investing in partner programs, incentives and digital tooling, we can more seamlessly enable accelerated growth, reduce friction and expand market reach for our collective success,” wrote Kennedy.
On the incentive front, Red Hat is shifting away from basic reimbursement toward “predictable rewards that better compensate partners who invest in Red Hat technologies and solutions.” The update includes partner rewards for “valuable activities” through the customer lifecycle including pre-sales workshops and assessments. The offering is separate from traditional market development funds (MDF) and is designed to reduce the need for partners to make upfront investments to participate in incentive benefits, according to Kennedy.
“A major enhancement driving incentives is the expansion of rebates and deal registration to cover additional indirect routes to market, including OEM and cloud opportunities,” Kennedy said. “This significantly broadens partner eligibility for incentives and will help increase profitability for a wider range of partners. Additionally, partners will benefit from improved deal protection, so they can feel more confident in their engagements with Red Hat.”
In addition, booking activities will expand to include application services and AI in addition to product segments like RHEL, OpenShift, and Ansible Automation Platform.
As part of the update, Red Hat will introduce a new cloud program module for Red Hat Certified Cloud and Service Providers (CCSPs) later this year that will align with the consumption economy by focusing on annual recurring revenue for points rather than traditional bookings.
In addition, the company’s Specialized Partner program now offers an open application instead of the previous nomination process. Specialized Partners can earn an increased number of points, which can unlock deeper benefits, for each specialization they complete, Kennedy said.
Similarly, the Sell With module is moving to open enrollment for qualified partners.
Digital enhancements to the Red Hat Partner Portal include automated crediting for marketing and demand generation activities that are managed through the Red Hat Partner Demand Center and approved for MDF funding. The company has also implemented changes to digital enrollment designed to improve the onboarding process as well as expanded functionality to give partners better control and visibility for opportunities, progress and point accumulation.
