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Let see the Direct Partner pricing structure evolution.First, the basis of the pricing scheme remains the same: The country or Basic discount is applied on the WPL and will not change in terms of %.Secondly, as explained in the previous slide, the standard and the Advanced specialization discounts disappear from the Converged Partner Program to become only 1 specialization in the Enterprise Partner Program.Thirdly, we decided to cancel the Premium discount for the following reasons:Because this discount is applicable to Premium partners only. As consequences, the Certified and the Expert partners feel discriminated.Because in most of the cases, when we grant an Extra Discount to a Premium partner, this impacts and even more this destroys the benefit the Premium partners has got through its Pricing scheme and we know that most of the deals done by the Premium partners are extra discounted.And finally because the OEM products which part is increasing in our portfolio, only benefit from the country or basic discount, that means neither the specialization discount, nor the Premium discount are applied and have a impact on its final pricing.To compensate the cancellation of the Premium discount from the Converged Partner Program and to offer a more fair pricing benefit to the partners, we decided to grant them a Volume Back End Rebate which will be detailed in the next slide.No change regarding the Yearly Business incentive as of today.
For the VAD, the difference between the Converged Partner Program and the Enterprise Partner Program is less significant than for the DR.The Basic or country discount will remain as of today.Only the specialization discount will be impacted with only 1 level instead of 2.Regarding the Core Activities discounts, there is no change in terms of % applied and obligations. Nevertheless, we will be more strict about the application of the rules and check the results of the actions for which we grant a discount. A specific focus will be done on the Point Of Sales. In case the VAD does not register on time and correctly its POS, we will remove the 1% up front we grant for this obligation.
Now let see the IR pricing structure.As, in the frame of the Converged Partner Program the calculation of the IR funding was based on both, standard and advanced specializations, and, as both specializations disappear within the Enterprise Partner Program, we spend a lot of time to brainstorm and to find a solution to not penalize the Indirect Resselers, keeping a same scheme with a same level of discount.As a conclusion, the incentive will be based on the certification level.For a given specialization, if the Indirect Reseller has go only 1 post sales ACFE, he will benefit from 2% as Certification Incentive.If the Indirect Reseller has got 1 post sales ACFE and at least 1 post sales ACSE, he will benefit from 4% as Certification Incentive.
As you are aware, Solution Premier Service is launched on July 2nd 2012. Product pricing is based onspecialization and on accreditation level, thus we have evolved service pricing structure for support contracts on Communication solutions. SPS discount (NN02) level will be based on accreditation level. There are no evolutions on the pricing structure for other product lines (OpenTouch Suite for SMB, Vital, Network).