ENTERPRISE TECHNOLOGY
specifically the Evergreen one , which is where we own the asset , but we ’ re providing an SLA to those customers . What we ’ re also going to be introducing is this concept of rewarding our partners upfront . So historically , when in any subscription model , the partner can only take their profitability when that customer is invoiced , we will ultimately move to a model where we will pay the partner for the total contract value all upfront in terms of their margin .
So that ’ s a big change at Pure and certainly for our industry where we ’ ve historically not done that . There ’ s been a reticence for many partners in general , not just Pure partners , to go down the subscription road because if I ’ m a sales rep or a partner , I want to get all my margin paid up front . I want to take the profitability as quickly as I can – so traditionally , they would push Capex , a traditional route to market model . I think this will take away that ambiguity and again , drive more profitable growth in a predictable way .
How does Pure ’ s programmatic pricing model benefit its partners in the updated partner program ?
We will continue to focus on simplification of our programs and this is an evolution rather than a revolution . We will continue on this journey . We still have two tiers of partners with Elite Partners and our Preferred Partners – Elite being the top tier in terms of certification and accreditation that comes with additional benefits . We ’ ve differentiated more the delta between Elite and Preferred , it was quite a blurred line before . It ’ s now a very clear line between Elite and Preferred so you know exactly what you need to do in order to get x number of rewards .
We are continuing our successful Pure Rewards initiative where we reward the partner EE and SE . And again , we ’ re really helping to push that towards net new logos , which is our primary driver . We will continue to drive new business in order to take market share . But the big change this year is that we ’ re going to reward our partners for existing business customers .
We ’ ve never done that before . We ’ ve always pushed towards that new logo activity that remains . But what we found is that partners open doors for us to get us into new accounts and then there ’ s no real incentive for them to cross-sell , to upsell other technologies into that account , or even land and expand in those accounts , because there were no additional payments available to them to do so . We ’ re now rewarding partners for not only new business , but ‘ land and expand ’ opportunities in existing accounts , which is a big change .
Can you give us an overview of your company ’ s current focus and the Latin America IT landscape ?
We are continuing to take market share as you can tell by the data points I ’ ve just given you from IDC . We will continue to push towards subscription but a key focus for our partner ecosystem across Latin America is
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