ADTRAN this week updated its channel program for the first time in 15 years as part of an effort to simplify processes and increase partner profitability.
The ADTRAN Channel Partner Program has been reduced from five tiers to two Authorized and Premier partner levels.
At the same time, the provider of networking equipment is now making available additional financial incentives and discounts along with co-branded marketing collateral and technical support before and after a sale.
Finally, ADTRAN is also promising to give partners more influence over the ADTRAN product roadmap and services offerings.
Changes to the program were prompted by the need to make it simpler for partners to navigate the program, says Patrick Foster, enterprise channel manager for ADTRAN.
“Our existing channel program had gotten a little long in the tooth,” says Foster.
There are roughly a little more than 700 active partners participating in the ADTRAN channel program, notes Foster. That’s down from roughly 1,000 partners, which Foster notes in part reflects an overall reduction in the size of the channel.
The changes to the program come at a time when core networking equipment sales have become more challenging to close in the wake of the economic downturn brought on by the COVID-19 pandemic. ADTRAN in its most recent quarter generated $128.7 million in revenue, resulting in a net profit of $800,000. The company also added 33 new customers during the quarter.
However, with the rise of 5G networking and WiFi 6 in office environments, Foster says future prospects for ADTRAN and partners look brighter and that partners should not give up during these challenging economic times. ADTRAN is also betting heavily on a software-defined networking platform known as the Mosaic Cloud Platform to drive additional revenue.
Competition among providers of core networking infrastructure has always been fierce even the best of times. It’s not clear how much of an impact increased reliance on Internet services during the pandemic will have on providers of networking equipment. It should, however, only be a matter of time before Internet service providers start upgrading their network infrastructure to keep pace with the massive spike in vide traffic taking place around the globe as most employees continue to work from home.
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