Our Partners are Equipped with 11 Service-Certified Tracks & 19 Solution Competencies: NetApp

Join Amit Singh in an insightful conversation with Ganesan Arumugam, Director of Channel Sales at NetApp India, as they unravel the significant disruptions that have reshaped the IT industry in recent years. From the cloud revolution to the changing demands of end customers, Ganesan shares NetApp’s innovative strategies, customer-centric approaches, and forward-looking insights.

How would you describe the significant disruptions witnessed in the IT industry in recent years?

The prevalent shift of customers to the cloud has redefined business practices and data management. Today, data isn’t confined to on-premise centers; it sprawls across multiple clouds, introducing complexities in data management. The surge in internet technologies, Gen AI, blockchain, and IoT devices has altered how customers approach application development.

Notably, sectors like banking witnessed a shift toward modernization, with Internet banking becoming ubiquitous, drastically reducing physical branch visits. This digital transformation trend is evident across various sectors like supply chain, manufacturing, financial services, and government operations. As data plays a pivotal role in business, the focus is on managing it efficiently and securely. Data is often dubbed as the next economic oil due to its critical role. Our key strategies align with simplifying, securing, cost savings, and sustainability in data management. Ensuring data security, irrespective of its location—be it in a co-location, public cloud, or private cloud—is a priority.

Cost savings amidst exponential data growth and addressing sustainability concerns of data centers are vital aspects. Our approach emphasizes agility and flexibility in cloud service delivery, enabling customers to adapt swiftly to market demands. A customer-centric approach tailors solutions to industry-specific needs, considering the stage of transformation each customer is in. Additionally, strategic partnerships and global collaborations, such as with NVIDIA for AI and SAP for ERP applications, play a pivotal role in our strategy, ensuring that we remain at the forefront of technological advancements in the industry.

What are the evolving demands of end customers and how your organization is innovating to meet these specific demands?

With 30 years of hands-on experience working closely with thousands of customers, we deeply comprehend their challenges. Consequently, we actively engage in developing new technologies, solutions, and products to align with their expectations. The predominant shift to the cloud has resulted in the creation of hybrid cloud environments, where critical data is distributed across on-premises, public cloud, and private cloud infrastructures.

Collaborating closely with major hyperscalers, our technology is seamlessly integrated as first-party services, making us a leader in hybrid multi-cloud data management. Our unique ONTAP operating system, serving as a data management solution, is available across all three major hyperscalers. This facilitates our customers in benefiting from a unified management solution for their entire data ecosystem, forming the foundation of our data fabric concept.

The data fabric empowers customers to establish a unified data management system, effortlessly spanning on-premises data centers and public clouds. This consolidated approach provides a single-pane-of-glass management interface for efficient data movement, tiering, and optimization.

Ensuring that customers enjoy the same advanced features and benefits, even when transitioning to the cloud, is a primary focus. We leverage modern storage technologies, including efficiency guarantees, data deduplication, compression, and compaction, to optimize data utilization.

Addressing the evolving security demands, we provide a robust ransomware protection guarantee, promising customers that in the event of a ransomware attack, their data will be restored. Additionally, our data solutions come equipped with inherent security features, encompassing ransomware protection and authentication protocols. This built-in security is a response to the growing demand for simplified and secure data management.

In response to the increasing need for unified data storage, as highlighted in NetApp’s 2023 Data Complexity Report, we have introduced a Unified Data Storage solution. This solution seamlessly manages diverse data types, protocols, and storage locations, providing customers with a comprehensive approach to unified data management. This innovation aligns with our commitment to simplifying and enhancing the management of unified data for our customers.

How have you expanded your solution offerings to incorporate emerging technologies over the past two to three years?

I’ll begin with ONTAP, our flagship data management software. Given the substantial migration of customers to the cloud, we ensured the portability of ONTAP, making it available as a first-party service across all major hyperscalers. This innovation emphasizes both availability and simplicity in managing storage. Security is another vital aspect we addressed; ONTAP incorporates built-in security features, including ransomware guarantees, access protection, and robust data management.

Another significant trend in data storage is the growing preference for flash technology due to its low latency and quick data accessibility. Recognizing this, we introduced our C series, also known as the capacity series, making flash products more affordable. While retaining our high-performance all-flash series (A series) for critical applications, we successfully ventured into providing a budget-friendly option for second-tier applications, resulting in remarkable growth over the last two quarters.

Furthermore, artificial intelligence (AI) has emerged as a game-changer across various industries. To stay at the forefront, we collaborated with NVIDIA, a leader in AI. This partnership led to the development of over 30 joint architecture and reference architecture solutions, ensuring our architecture aligns with the demands of AI applications.

As the industry shifts towards cloud services, we introduced a partner program called Partner Sphere. This program revolutionizes our engagement model with partners by offering innovative enablement programs. In response to the evolving customer expectations, our partners are now equipped with 11 service-certified tracks and 19 solution competencies. These competencies cover areas such as flash, cloud, customer services, and various service models, enabling partners not only to supply products but also to deliver implementation, deployment, and managed services. This shift is in line with current business dynamics where customer experience, coupled with a human element, plays a pivotal role.

Can you provide examples of how NetApp has excelled in delivering exceptional customer experience through the human element?

While I may not reveal specific customer names due to confidentiality, I can illustrate our methodology with a notable example. Take, for instance, a well-known mattress manufacturer like SheelaFoam. They provide sleep solutions to their customers and required a 24/7 data management solution for seamless access to their supply chain and ERP systems.

In collaboration with SheelaFoam, we closely engaged with them to deploy our solution as a standby system. Our professional services team, consisting of over 50 dedicated individuals, played a crucial role. They assisted in implementing the solution, offering services either on-site or remotely, depending on the customer’s preferred service model.

For SheelaFoam, our services contributed significantly. Their storage performance improved by 2x, leveraging features such as data duplication, compression, and compaction. This optimization extended beyond storage; it positively impacted their shop floor and enhanced supply chain efficiency. This is particularly critical for a consumer product company like SheelaFoam, where timely availability of the right products is paramount.

Consider the scenario where customers are looking for a specific mattress model. If it’s not in stock, they might opt for a competitor’s product. SheelaFoam, having multiple brands, needed to ensure that their products, including those of competitors, are readily available. This optimization not only improved supply chain efficiency but also addressed invoicing challenges through a robust 24/7 ERP system.

These successes showcase our commitment to understanding and actively participating in the specific needs of our clients, contributing not only to their operational efficiency but also, indirectly, to business growth. This customer-centric strategy aligns with our broader initiatives in delivering exceptional experiences and fostering long-term partnerships.

Can you brief us on the key digital transformation trends and technologies that you believe will significantly impact the business landscape over the next two to three years?

In the realm of artificial intelligence (AI), we proudly boast the industry’s premier data pipeline for AI. Our promotional stance is clear: “IT runs on data, and data runs on NetApp.” Integrated Data Services, a pivotal part of our approach, empowers customers to extract maximum value from their data, regardless of its location. As the market shifts toward intelligent technologies like AI, cloud services, microservices, and containers, NetApp has responded innovatively.

Our solution, Astra, specifically addresses the container management needs of our customers, ensuring they can navigate these new technologies seamlessly. The introduction of data fabric has been pivotal; it allows customers to access and manage their data, whether on-premises or in the cloud, in a simplified manner. Our commitment to staying ahead in the market involves constant adaptation to new technologies and trends.

Now, focusing on the evolving landscape, I’d like to highlight two critical aspects. First, the Intelligent Data Infrastructure is transforming the way customers perceive and utilize their data. Beyond mere storage and retrieval, customers now seek a more intelligent data center. NetApp’s response to this demand is the development of data fabric, providing customers with a simplified approach to accessing their data across diverse environments.

Secondly, the Sustainable Technology trend is gaining prominence. According to our complexity report, 83 percent of organizations prioritize sustainability. It’s not merely an IT priority; it’s a boardroom discussion. NetApp has aligned its technology and products with sustainability goals. We’ve introduced the Blue XV platform, offering a sustainability dashboard that enables customers to monitor energy consumption and carbon footprint. This empowers them to analyze trends over time and communicate their commitment to sustainability to stakeholders.

On the security front, considering the prevalent cyber threats, NetApp has embedded robust security features in our solutions. Whether it’s protecting against insider threats or guaranteeing recovery in the event of a ransomware attack, we take a comprehensive approach to data security. Our commitment to data protection is reflected in our guarantee to recover customer data within a specified timeframe, providing assurance amid the rising threat landscape.

Can you also share some forward-looking strategies essential for channel partners and IT service providers to remain resilient and successful in the evolving IT services marketplace?

Channel partners and IT service providers face challenges in an evolving IT services marketplace. At NetApp, we believe in addressing the fundamentals. Firstly, partners need to align with an OEM that offers not just the right product but also facilitates team enablement. Our Partner Peer Program reflects this commitment. We not only sell products but also enable our partners on technology, solutions, and services.

Our certification programs and solution competency certifications help partners stand out from the crowd. In a world where partners aim to differentiate themselves and move beyond mere transactions, NetApp’s programs empower partners to provide differentiated services to their customers. Beyond revenue growth, we measure our partners on profitability and their alignment with NetApp values.

Lastly, partners are in business for profitability. NetApp’s partner program ensures that partners receive the right incentives, rebates, and financial support. Through Marketing Development Funds (MDF) and headcounts, we invest in our partners, fostering mutual growth and success. This three-fold approach—team enablement, differentiation, and profitability—guides our strategy to support partners in navigating emerging technologies and market trends. The Partner Peer Program unifies various partner types, ensuring all benefit from our diverse offerings.

Can you discuss your business and channel achievements over the last 18 to 24 months?

Over the past two to three years, we strategically shifted our focus toward establishing long-term relationships with a select group of partners. This departure from sporadic business dealings with numerous partners allowed us to deepen our engagements and concentrate efforts where our expertise lies. Today, a significant portion of our business is derived from a carefully chosen set of skilled partners.

To manage our bandwidth effectively, we concentrated our investment, time, and efforts on nurturing relationships with a few select partners. Simultaneously, we streamlined our approach for the long tail of partners, those who engage in occasional transactions or whose primary business is not storage-related. Leveraging our distributor-managed partners model, we empowered our distributors with equivalent NetApp skills. This approach has proven to be successful, with approximately 20 to 25 focused partners and an additional 60 to 70 partners managed through our distributors.

Our commitment to the channel is evident in the fact that 100 percent of our business in India is conducted through partners. We refrain from direct billing, ensuring our partners are the front face in the market. This commitment has not only fostered partner investment but has also provided assurance that partners are integral to our market strategy.

What are your top focus areas and expansion plans for channel partners over the next two to four years?

Our primary objective is to empower our channel partners to address evolving business needs, whether it’s in cloud migration, data management, backup, AI, or digital transformation. We aim to build a robust channel network characterized not only by revenue but by the strength of partnerships. Our goal is to foster committed and loyal partners who possess comprehensive skills in NetApp’s technology.

Building a strong channel network involves equipping partners to deliver innovative solutions and navigate customers through the complexities of digital transformation. Our partner program focuses on increasing revenue, and measuring success in terms of year-on-year revenue growth and profitability. We have implemented a structured approach through the Partners Peer Program, enabling partners with the necessary skills for solutions and services.

Recognizing that a single partner cannot be an expert in all areas, we provide options for partners to choose relevant solution competencies based on their customer base. Benefits, incentives, and rebates are aligned with partners who are strategically aligned with our objectives, whether in AI, flash, or cloud services.

In essence, our plan is to nurture strong partnerships that enhance our ability to deliver cutting-edge solutions. We aim to support our customers’ digital transformation, cloud adoption, and hybrid environment management across various industries through our channel partners. The objective is not only to grow with select partners but also to extend our reach through the long tail partners managed via our distributors, ensuring comprehensive coverage across diverse markets and segments.