Aims to ease unpredictability caused by coronavirus outbreak through incentive changes, adjusted credit terms
In the wake of the economic upheaval caused by the coronavirus pandemic, Lenovo is taking a series of steps to ease financial unpredictability for its channel partners.
The Lowdown: The PC and printer maker’s Partner Stimulus Package, announced this week and launched in partnership with Intel, Microsoft, and global vendor finance company DLL Group, includes adjusted incentives and credit terms designed to enable partners to better align their businesses with those of their customers.
The Details: In a letter to partners posted online, Rob Cato, vice president of the North America channel for Lenovo, and Chris Fabes, channel leader in Canada, laid out the details of the package:
> Flat-rate incentives: Lenovo is removing all target-based programs through June 30, putting in place a flat-rate incentive program. The move removes the unpredictability of target-based earnings. The vendor will provide the earnings every 30 days rather than following the 90-day payment cycle linked to target-based programs.
> Extended credit terms: Through DLL and the Lenovo Partner Credit Program, the company is offering extended terms of 90 days rather than 60 days, giving partners greater financial flexibility.
> Sales incentives: The vendor will continue to pay partners through its Sales Incentive Program.
> Work from home: Within the next 30 days, Lenovo will roll out a Desktop-as-a-Service (DaaS) solution that will include Intel’s vPro security technology. It also will come with the company’s Premiere Support and security software from Absolute. Lenovo also noted that Microsoft is making its Teams and Office 365 E1 available for free for six months to customers who don’t have Teams now.
>Tiering: Lenovo will relax the criteria for tier attainment in its Partner Advantage Program, recognizing that some partners facing supply or capacity constraints should not be penalized.
The Impact: Partners are caught in the middle of the economic fallout from the COVID-19 outbreak, with businesses temporarily shutting their offices and requiring many employees to work from home. Lenovo and other vendors are working to ease the burden on partners, which are being leaned on heavily by their customers to help adapt to the sudden adjustment to work-at-home policies.
The Buzz: “Lenovo recognizes the thousands of partners who comprise our solution provider community are faced with new and increasing challenges to manage their businesses and serve our mutual customers,” Cato and Fabes wrote. “As a company, we have always been at the forefront of partner engagement and have earned the trust of a partner community unmatched in their commitment and dedication to Lenovo.”