| Citrix Exec: We're Not Going Direct With License Renewals |
| Tuesday, 08 August 2006 by Michel Roth | |||
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The new policy is designed to level the playing field for Citrix's loyal, trusted advisers, whose renewal business is poached by other partners, Eacobacci said. Under the new policy, customers renew licenses online at full price, and Citrix is establishing an agency fee model to reward partners that influence those renewals. "The primary driver for this is that over the last few years, we've seen our partners influencing our subscription sales and influencing customers on a regular basis on products and services also not getting that renewals business," Eacobacci said, adding that the policy was developed in conjunction with some Citrix partners. Several partners cried foul last week after Citrix sent them a letter dated July 28 announcing that it would be instituting a new online license-renewal system and would handle all of the cash flow going forward. It's not a small chunk of change: Citrix posted nearly $99.8 million in second-quarter 2006 revenue and $331 million in fiscal year 2005 from license updates, and nearly 40 percent of that business came from North America. The new policies will reduce discounting in the field, Eacobacci said. Under the new plan, partners will be paid a 15 percent commission for influencing renewals, as long as they quote deals at 100 percent of the list price. The new policies will ensure that the right partners are compensated for their efforts and that customers are quoted one price, whether they renew via partners or Citrix, he said. "There's a lot of price confusion because some customers ask for quotes directly and some are through channel partners. This will eliminate that," Eacobacci said. Read the entire article here.
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