F5 Networks says some customer projects are being brought forward in the crisis because of customer need for urgent transformation, and also because decision-making can be faster when everyone is working online. “Partners are asking for early access to technologies, not just for products, but also because they need to accelerate change transformation,” says Neill Burton, Director of Channels and Alliances UK & Ireland at F5. The sales cycle has shortened and F5, which is over 95% channel-sales based, actually had a big spike in its pipeline in March, he reveals.
In his UK&I region specific solutions in business continuity, including remote access and availability are very much in demand from F5.
The boost is driven by remote working, but also the security in the cloud. So, he says he is seeing growth even as the company tries to establish what the new normal will look like after the crisis. F5 CEO François Locoh-Donou (pictured) has indicated that the theme needs to be “help the customer before business” and so old rules are being bent in order to keep customers running. “F5 is prioritizing the responsibility we have to protect the health and safety of our employees, customers, partners, shareholders, and community during this global pandemic,” he says."I can also report that F5 customer order fulfillment and Returns Material Authorization (RMA) services are unaffected by COVID-19 at this time. We are encouraged by the resumption of manufacturing activity in China, and other parts of Asia, that are a source of raw materials."
“We’ve already taken several steps in our UK&I region – extending credit, allowing customers to take delivery even before orders are signed through, extending licenses, especially to NHS customers. “it’s the little things – consulting and solving problems, not standing on processes,” says Neill Burton.
But there will inevitably be fall-out in the channel with failures expected, even some large companies may disappear, he says, which will prove difficult for vendors like F5 with its aggressive growth targets. It is playing in the right areas – security, cloud, remote success and digital transformation. “We’re not furloughing or laying people off. If anything we’re hiring. But I fear for some partners – and not just the small ones.”
At the same time, a new partner programme - Unity+, with focused and larger discounts is aiming to drive higher margins for the UK’s 400 partners in UK&I. They do this by selling on the strategic aspects rather than products. The F5 Unity+ plan rewards them on specifics like selling software, services and subscriptions, enterprise license deals and working on scaleable solutions. “We see acceleration in secure cloud in the crisis, even though the market was changing anyway,” he concludes.
F5 is working on providing a number of free resources to customers. This includes free licences to non-profit, education, and public sector organisations fighting COVID-19. The company is also allowing customers to take delivery before orders are signed through and is extending licenses, especially to NHS customers, it says.
