AppDynamics Strengthens Partner Program

AppDynamics has rolled out an enhanced partner program, introducing what it terms "first-of-its-kind" profit-sharing levels for the company’s solutions partners.

The company, which is known for its Application Intelligence Platform, provides users with the ability to manage and automate software environments in real-time, effectively driving up efficiency, according to the press release. Jeanette Jones, AppDynamics’ director of North America Channels, said the company is looking to attract partners who come from the infrastructure space and are looking to move into the application space.

The new program will rank resellers according to three revenue levels (silver, gold and elite), wherein partners receive an increasing amount of profit margin based on their sales. With the new program, partners have an opportunity to make anywhere from 20 percent to 30 percent margins based on their total sales.

“Our company is extremely hot and on fire right now, so from a value stack and moving them up the stack within the current client base will help them move out of just the standard commoditized infrastructure in to the application stack, which brings more value for them,” said Jones in an interview with The VAR Guy. “But absolutely I think the key thing is that margin because its no longer a commoditized entity like other products out in the industry and programs.”

The enhanced compensation structure provides solution partners with the margin off of the net price to the customer, according to the press release. AppDynamics is also giving partners increased collaboration and support on joint sales opportunities to ensure VARs have the correct training and tools for each deal.

In February, AppDynamics announced it had achieved 175 percent year-over-year growth for the previous fiscal year, which included an annualized bookings run-rate in excess of $100 million in its fiscal fourth quarter. The company also was named a “Leader” in Gartner’s latest Magic Quadrant for APM in July. With its enhanced partner program, the company is looking to capitalize on its recent success while giving back to the resellers, which continue to drive growth within the channel.

"While traditional partner programs work for some technology providers, our contention is that most do not protect the margins of their partners, since the payment to the partner is based off the ultimate cost to the customer,” said Joe Sexton, president of Worldwide Field Operations at AppDynamics, in a blog post. “The world is increasingly reliant upon software-defined businesses, and these businesses require software like AppDynamics in order to function and protect their revenue streams.”