Value Added Distributor Program Overview. Citrix.com

Transcription

1 Value Added Distributor Program Overview Citrix.com 1

2 Table of contents 1. Value Added Distribution 3 2. Requirements for Distributors Definitions Minimum Requirement Citrix Focus Team Failure to meet requirements 5 3. Business Plan and Review Business Plan Development Business Planning Tool Citrix Sales Partner Web Site Technical Support 6 4. Channel Enablement 6 5. VAD Incentive Program Details Benefits and Guidelines Eligibility and Performance Criteria The VAD Model Claim Procedure Incentive Calculation 9 6. Others Annual Billing 11 2

3 1. Value Added Distribution Citrix has invested in the creation of a Value Added Distribution business model throughout EMEA. We select and recruit our Distributors in the Citrix Channel ecosystem based on the following criteria: Being able to add value for the channel Adding value for the Citrix customers Being able to expand Citrix coverage Drive channel transformation and increase Cloud adoption with our channel partners and customers Importance and role of a Distributor for Citrix Channel Distributors work with Citrix Partner Teams as one entity to expand coverage and secure high customer satisfaction. Distributors should be responsible for the complete partner sales cycle while working with Citrix employees as a virtual team sharing the same goals and objectives. Driving the right behavior of Channel Partners To achieve the right behavior of our channel and drive Distributor and Partner success Citrix is constantly updating the Partner Program framework to align all resources towards our common business objectives and goals. 3

4 2. Requirements for Distributors VAD certification and requirements Table 1 Market type Country Certification requirements Group 1. Germany, United Kingdom 8 CCSPs 8 CCE-V/CCP-V or CCP-N/CCP-M Group 2. France, Netherlands, 6 CCSPs 6 CCE-V/CCP-V or CCP-N/CCP-M Group 3. Austria, Belgium, Denmark, Finland, Ireland, Italy, Norway, Spain, Sweden, Switzerland, United Arab Emirates Russia 5 CCSPs 5 CCE-V/CCP-V or CCP-N/CCP-M Group 4. All others 3 CCSPs 2 CCE-V/CCP-V or CCP-N/CCP-M Sales and technical individuals can hold separate certifications. The latest version of all Sales and Technical certifications are required. 2.1 Definitions Certification criteria relates to the certi fication criteria applicable to the Distributor for its authorization to distribute a parti cular line of product(s), as referenced in the Distributors Letter of Authorization LoA and set out in section 2.2. Citrix determines the products each Distributor is authorized to distribute through the LoA. ( > LoA section) Certified sales personnel means the Distributor s employees, who holds Citrix sales certifications. Certified technical personnel means the Distributor s employees, who holds relevant Citrix technical certifications. 2.2 Minimum Requirement If certification requirements are not met in the quarter required, the Distributor will be notified (please also see 2.4 Failure to meet requirements). Minimum requirements means the Distributor must invest and reach the least number of certifications to qualify for the Distributors agreed market type (see table 1). If the Distributor chooses not to meet the minimum requirements within the period requested, Citrix have the sole right to withdraw authorization for this Distributor (as stated in the LoA). In addition to certification requirements, Citrix will review quarterly achievements by the Distributor relating to activities and strategic objectives areas, such as: Demand Generation initiatives Participating in events and resourcing dedicated Citrix personnel 2.3 Citrix Focus Team All Distributors should maintain a unique Citrix focussed team. This means that the members of this team, shall engage exclusively on Citrix business and Citrix products. The functions within this team should include the following profiles: Citrix business owner Business Development and general business contact Marketing executive Driving Demand Generation plans mutually agreed with Citrix and manage SDF 4

5 Citrix order team Ensuring order accuracy and processes are aligned with Citrix requirements Pre-sales and post-sales technical resource should be able to resolve Level 1 support calls Citrix commercial product specialists Achieves skills on current Citrix sales and technical certifications The focused team is required to fulfil the below activities and be aligned to an agreed joint business plan: Weekly reports list of Active quotes/partner activities Attend appropriate Citrix channel events relating to their business engagement Ability to demonstrate Citrix products 2.4 Failure to meet requirements Citrix has the right to require pre-payment at any time, in the event that a Distributor fails to meet the requirements. In such event, Citrix shall have no obligation to deliver any products, until it receives payment from the Distributor. The Distributor is required to ensure all available LoAs are signed and active at all times. The Distributor is required to meet the minimum certification requirements (see 2.2). Compliance is measured upon the specific Distributors market type qualification. Achievement of certification compliance is linked to Distributor incentives as illustrated and documented on the dashboard on Compliance rules are agreed and communicated to the Distributor and any changes to compliance rules or new certification updates for compliance is communicated to the Distributor when required. Distributors will be given 60 days to complete new certification compliance requirements, e.g. if a new certification is launched the 1st of February, the Distributor must fulfill the new certification as of latest 1st of April. If certification requirements are not met by the end of the quarter, incentive payments will be withdrawn. 3. Business Plan and Review 3.1 Business Plan Development By setting out mid and long term goals in a mutually agreed plan, Distributor gains commitment from Citrix and, with regular review, can track progress and alter the plan or the activities accordingly. In order to manage this in the best possible way a yearly business plan must be developed, communicated and mutually agreed. By doing this both parties gain commitment and a clear understanding of the expectations. The yearly business plan gives guidance and a framework for the complete year, and will assist in assessing results and tracking the progress on a quarterly basis (quarterly business reviews). 3.2 Business Planning Tool The supporting Business planning tool is available in the Citrix Partner tool ( and is the primary tool for the Citrix Distribution Representative and the Distributor in planning, managing and tracking the Citrix activities. At the beginning of each quarter the Distributor and the Citrix Distribution Representative determine activities to be achieved, and agreed in the yearly business plan, for the coming quarter. By acknowledging the quarterly business activities, both parties agree to the strategies and tactics described in the quarterly business plan. 5

6 3.3 Citrix Sales A Citrix Distribution Representative (collectively, Citrix Representative ) is available to assist the Distributor in developing both yearly and a quarterly business plans. The Citrix Distribution Representative arranges quarterly management reviews with the Distributor, and ensures that the Distributor is aware and aligned to the business focus and the status of their business development. 3.4 Partner Web Site Distributors have access to Citrix SalesIQ. This site contains product information and downloads, archives of Partner Notification Documents (PND), ready-to customize marketing and advertising templates in the form of KeyPlays, guidelines for managing marketing campaigns and funds, archives of monthly Distributor news and newsflashes plus information relating to the latest Incentive Programs and events. 3.5 Technical Support Details of technical support offerings for Distributors can be requested from the Citrix Distribution Representative. The document, Citrix Partner Tech Support Guide, outlines the support 4. Channel Enablement Training and enablement of partners is a critical component in driving partner productivity. Each quarter Distributors will be requested to train a set number of partner companies on various Citrix products, services and solutions as agreed with their Citrix Distributor Manager. This target can be found within the Citrix Partner tool. Citrix will provide the Distributor with sales and technical pre-sales training train the trainer along with course materials to allow Distributors to deliver the training to Citrix authorised partners. As well as Citrix product training, Distributors will be provided with Citrix Partner Program training and materials. Distributors are requested to use the Citrix Enablement platform ( com) to schedule their face to face and virtual (webinar) partner training to allow Citrix to track which authorised partner companies, and people have been trained. Citrix will provide Distributors with training on the enablement platform on request. There are two exceptions to the above. Distributors are not requested to use the Citrix Enablement Platform when a Distributor is running a new partner recruitment activity, or where the Distributor is running a solution training where Citrix is one of a number of vendors that make up the solution. These activities however should be discussed and agreed with their Citrix Distribution Manager. Distributors may customise course materials supplied by Citrix to meet the requirements of the partner audience, including adding Distributor branding to the materials. Distributors should not completely rewrite the materials or use alternative materials unless first discussed and approved with their Citrix Distribution manager. Distributors may request a new course be added to the Citrix Enablement platform to allow them to differentiate themselves from their competitors. Each course request submitted will be reviewed by Citrix to make sure it aligns to the Citrix sales priorities. Approval and processing of course requests is usually completed within hours following submission (Monday-Friday). New course requests should be submitted at Distributors are requested to drive partners to link their employees to their citrix.com partner company account. This is so that partner employees are brought into the Citrix Partner Program eco system, which allows them to receive partner communications, updates, product notification documents, promotions, and access Citrix partner sites so as Partner Portal, SalesIQ, enablement. citrix.com and training.citrix.com. 6

7 5. VAD Incentive Program Details Benefits and Guidelines 5.1 Eligibility and Performance Criteria A Distributor who has a current Distributor agreement and the LoA is eligible to participate in the VAD Incentive Program. The VAD Incentive Program rewards Distributors for meeting defined quarterly targets. These targets shall be agreed between the Distributor s representatives and Citrix s Distribution Representative, documented and acknowledge, by the close of business on the 5th (fifth) working day of current calendar quarter. The VAD can at that time access the quarterly targets in the Citrix partner tool ( Targets are subject to adjustment quarter on quarter, dependent on market changes and activities, or Citrix strategic approach to the market. Distributor performance is measured on four categories: Financial compliance Product bookings Strategic objectives and activities a. Financial compliance The aim of the financial compliance KPI is to ensure that the Distributor s credit and account with Citrix is in good standing. If financial compliance is not met, incentive rewards may be affected or withdrawn. b. Product bookings This portion of the VAD incentive is focusing on getting the Distributor to drive awareness, support and growth in the complete partner space. The aim is to reward Distributors when providing the required value-added services, such as market development and market coverage. The product bookings target is the sum of all Product sales, in a given quarter, which is booked through all the partners that transact with the Distributor (see Table 2). CSP bookings is specifically excluded from the target. c. Strategic objectives This portion of the VAD incentive is focusing on getting the Distributor to drive awareness, support and growth in the Distributor Managed Partner space. The purpose is to reward the Distributor when building reach within the channel, by expanding Citrix footprint and growing the amount of transacting partners. This portion is split in two different targets, one focusing on the total amount of transacting partners, and the second on the total amount of partners that only transact networking products (see Table 2, page 8). d. Activities This portion of the VAD incentive is focusing the Distributor on the scorecard activities. The aim is to reward Distributors when providing solid overall value-added services within the complete channel (see Table 3, page 8). The four categories are measured on a quarterly basis, specified for the each and every eligible Distributor. In the event that a Distributor fails to meet any of the Program requirements, or the commitments made in the LoA, or the business plan, the Distributor will then not be eligible for rebate. The purpose of the Program is to drive Citrix business, in accordance with the market needs and Citrix strategic goals. The quarterly incentive, credit note, will be issued latest 30 days after the previous quarter has closed. 7

8 5.2 The VAD Model The VAD Incentive Model is an instrument to increase market reach, hence expanding skills and capabilities within the Distributors Partners, within the channel. The overall purpose is to support the Distributors in their investments when expanding Citrix overall mindshare and business in the market. The model incorporates: Increase profitability and ROI for VADs when expanding partner reach and growing business in the Distributor Managed segment Expand the focus on value-add within the reward structure of the Program Support and enable VADs to grow and expand their mid-market presence Simplify measurements and give greater predictability for our Distributors to invest in Citrix Give greater visibility and alignment for our Distributors into Citrix objectives and strategies Expand the strategic business relationship with our Distributors See Model below: Table 2: Rebate payment based on eligible Distributor Managed Partner product bookings Attainment Target Strategic objective # of transacting Partners (Product bookings) Strategic objective # of transacting Networking Partners (Product bookings) Total pontential backend rebate based on product bookings through Distributor Managed Partners 0-80% 0.00% 0.00% 0.00% 81%-100% 0.00% 0.00% 0.00% 100% 2.00% 2.00% 4.00% >100%-110% 2.00% 2.00% 4.00% >110%-150% 2.00% 2.00% 4.00% Table 3: Rebate payment based on eligible product bookings (all Partners) Attainment Target Product bookings trough all partners VAD Activity 1 VAD Activity 2 Total pontential backend rebate based on product bookings through all Partners 0-80% 0.00% 0.00% 0.00% 0.00% 81%-100% 0.10%-2.00% 0.00% 0.00% 0.10%-2.00% 100% 2.00% 1.00% 1.00% 4.00% >100%-110% 2.00%-2.25% 1.00% 1.00% 4.00%-4.25% >110%-150% 2.25%-3.00% 1.00% 1.00% 4.25%-5.00% 8

9 5.3 Claim Procedure At the end of each quarter, the Distributor is required to prove, to the satisfaction of the Citrix Distribution Representative, that the targets specified in the VAD Incentive Tool have been achieved. The Distributor is required to supply Citrix with relevant complete and accurate information. This allows the Citrix Distribution Representative to complete the VAD Incentive Claim, within the Citrix Partner Tool ( Failure to do so will delay the processing of the claim and the issuance of the credit note. Citrix determines the eligibility of any final claim. Failure to meet any of the targets for a specific category will mean no entitlement for that portion of the incentive. The Distributor will only be entitled to the portion of the incentive targets that have been achieved during the quarter. If the Distributor qualifies for the incentive in one or more of the assessed targets, Citrix will credit the VAD s account with the appropriate incentive within one month after the end of the quarter. This shall fully discharge Citrix from its obligations in respect of the incentive. 5.4 Incentive Calculation The VAD Program is divided into two sections when looking at eligible bookings. In the first section (product bookings & scorecard VAD Activity, Table 3, page 8), the eligible bookings is defined as all product bookings through all partners. Specifically excluded are CSP bookings, add-ons, services bookings such as Subscription Advantage, Maintenance, Citrix Authorized Learning Centre (CALC) and courseware products, support contracts and Consulting. In the other section (Strategic objectives, Table 2, page 8) the incentive calculation is using eligible bookings defined as all product bookings coming through the Distributor Managed Partners. Specifically excluded are CSP bookings, add-ons, services bookings such as Subscription Advantage, Maintenance, Citrix Authorized Learning Centre (CALC) and courseware products, support contracts and Consulting. (Please see an example of calculation on page 10) To understand what we define as Distributor Managed Partners, a list of Citrix Managed Partners is sent out annually starting each year from 1st of April. This list provides the Distributor with the Partners directly managed by Citrix, and therefore any Partner not named is deemed as managed by the Distributor. The VAD Program Includes a base portionand an overachievement portion. The overachievement portion is only available under the quarterly Product bookings target. The overachievement will be activated when the achievement surpasses the targets of 100%. Overachievement rebate payout will be given on the total quarterly product bookings up to a 150% cap. Citrix has also decided to exclude >$1M product orders under the strategic objective section within the program. The reason is that the eligible bookings under this section is only bookings coming through the Distributor Managed Partners, and orders >$1M are managed by Citrix through direct sales engagement. Under special circumstances, on a case-by-case basis, exceptions may apply and eligibility is to be decided by Citrix in its sole discretion. All payments made or credits given to Distributor by Citrix is in accordance with the Distributor Agreement, applicable LoAs and the VAD Program. The Distributor incentives are the only and final remunerations to compensate and reward Distributors for their quarterly achievements and investments. This includes e.g. personnel investments, administrative or marketing expenses to increase channel mindshare etc. Therefore, Distributor can claim no further compensation. 9

10 Example: The way of calculating incentive achievements is explained below Quarterly Product Bookings VAD Activity 1 VAD Activity 2 Total VAD Activities Incentives Strategic objective # of transacting Partners (Product bookings) Strategic objective # of transacting Networking Partners (Product bookings) Total Quarterly Distributor Managed Incentives Total Quarterly Incentives VAD quarterly target $600, VAD quarterly achievement $660, Attainment % of target 110% 88% 108% 108% 129% VAD quarterly backend % 2.25% *0.00% 1.00% 3.25% 2.00% 2.00% 4,00% VAD quarterly backend USD $14,850 $0 $6,600 $21,450 $8,400 $8,400 $16,800 $38,250 *non-qualifying The example is based on Product bookings of US $660,000, where US $420,000 is Distributor Managed Partner Product bookings. The calculation equals to; US $660,000 multiplied by 3.25% (1.00% %) giving a sum of US $ This should be added to the Strategic objective target achievements that equal US $ multiplied by 4.00% (2.00% %) giving a sum of US $16,800. The total incentives in the given quarter is therefore US $38,250 (US $21,450 + US $16,800). Plotting achievements in model diagram Attainment Target Strategic objective # of transacting Partners (Product bookings) Strategic objective # of transacting Networking Partners (Product bookings) Total pontential backend rebate based on product bookings through Distributor Managed Partners 0-80% 0.00% 0.00% 0.00% 81%-100% 0.00% 0.00% 0.00% 100% 2.00% 2.00% 4.00% >100%-110% 2.00% 2.00% 4.00% >110%-150% 2.00% 2.00% 4.00% Attainment Target Product bookings trough all partners VAD Activity 1 VAD Activity 2 Total pontential backend rebate based on product bookings through all Partners 0-80% 0.00% 0.00% 0.00% 0.00% 81%-100% 0.10%-2.00% 0.00% 0.00% 0.10%-2.00% 100% 2.00% 1.00% 1.00% 4.00% >100%-110% 2.00%-2.25% 1.00% 1.00% 4.00%-4.25% >110%-150% 2.25%-3.00% 1.00% 1.00% 4.25%-5.00% 10

11 6. Others 6.1 Annualized billing Purchases of a multi-year subscription for any Citrix Cloud service(s) are for the full value of all years of the subscription. Billing is on an annualized basis (split over the term and paid in equal amounts prior to the start of each 12-month term). In the event of a default under any annual payment, and should such default continue for a period of thirty (30) days, then any and all remaining payment amounts shall become immediately due and payable. Citrix reserves the right to suspend or terminate customer service delivery for non-payment as set forth in the applicable terms of service. Each multi-year subscription purchase is final, non-cancellable and non-refundable. For purchases made by the Distributor between 1st April 2017 and 31st December 2017 of multi-year Citrix Cloud SKUs, with election of the Citrix instalment payment option, if any, for resale to reseller customers; Citrix agrees that, save for the initial installment payable for the first 12 month period, the Distributor shall not be responsible for outstanding instalment payments for subsequent 12 month periods due to Citrix, if the Distributor does not itself get paid such payments by the relevant reseller, if caused by, through no act or omission of the Distributor, the end-user customer ceasing to pay the reseller due to the end-user customer being subject to an insolvent or compulsory liquidation under the laws of the country in which the end-user customer is incorporated. In the event that the Distributor wishes to invoke this liability waiver, it must provide notice to Citrix at #Legal-EMEA@eu.citrix. com, and, upon request, assign all its rights and interests as to those payments to Citrix, as well as its other related remedies available at law or equity, and execute any documents required for enforcement of such rights and interests by Citrix, as well as provide reasonable cooperation and support. 11

12 Locations Corporate Headquarters 851 Cypress Creek Road Fort Lauderdale, FL United States Silicon Valley 4988 Great America Parkway Santa Clara, CA United States Citrix Systems, UK Ltd. Building 3 Chalfont Park Gerrards Cross Bucks, SL9 0DZ United Kingdom Phone: About Citrix Citrix (NASDAQ:CTXS) aims to power a world where people, organizations and things are securely connected and accessible to make the extraordinary possible. Its technology makes the world s apps and data secure and easy to access, empowering people to work anywhere and at any time. Citrix provides a complete and integrated portfolio of Workspace-as-a-Service, application delivery, virtualization, mobility, network delivery and file sharing solutions that enables IT to ensure critical systems are securely available to users via the cloud or on-premise and across any device or platform. With annual revenue in 2016 of $3.42 billion, Citrix solutions are in use by more than 400,000 organizations and over 100 million users globally. Learn more at Copyright 2017 Inc. Citrix Systems, Inc. All rights reserved. Citrix, Access Gateway, Branch Repeater, Citrix Repeater, HDX, XenServer, XenApp, XenDesktop and Citrix Delivery Centre are trademarks of Citrix Systems, Inc. and/or one of its subsidiaries, and may be registered in the U.S. and other countries. Other product and company names mentioned herein may be trademarks of their respective companies.