Telstra kicks off 'root and branch' review of partner program

Telstra has kicked off a "root and branch" review of its partner program, CRN can reveal.

The two-year channel transformation project, which is operating under a code name within Australia's biggest carrier, will help Telstra transition from its legacy dealer channel to a strategy that better represents IT services and cloud partners.

Planning for the project has been in the works since the start of 2015, and kicked off in earnest this financial year, with an initial focus on channel remuneration, accreditation and professional services, Keith Masterton, Telstra's director of business & enterprise specialist partners, told CRN.

"It is a root and branch review of all the elements and the channel ecosystem.

"We have a dozen streams of work, some key elements that are due to hit in the second half, including refreshed channel remuneration, accreditation and lots of development around professional service capabilities and the technical tools to support that. Those three of the 12 streams will dropping in the second half of the 2016 financial year," Masterton added.

The trend away from a purely dealer network was evident at Telstra's recent partner awards, where IT services providers Jasco Consulting and Byte IT were both recognised.

In the modern cloud era, Telstra holds a position at both the vendor and distributor tier of the channel. It has built own cloud platform along with its traditional carrier and mobility offerings, sold by through distribution.

"We have about 150 tier-one partners and many more partners managed by four distributors, VExpress, Dicker Data, Aria Technologies and TBS Distribution," Masterton said.

Telstra is also aggregating solutions from third-party providers such as Microsoft and Cisco, both infrastructure-as-a-service as well as software-as-a-service – particularly Office 365 – via its Apps Marketplace. Other SaaS vendors include Box, Docusign, Symantec and Intel Security.

[Read more: Telstra stitching together Australian cloud network]

Masterton said the reinvigorated partner program would take lessons from Telstra's alliance partners, Microsoft and Cisco. "They are certainly leading channel organisations so we have a close look at what they are doing."

Success will be judged by "certain sales revenue metrics", said Masterton. "But I also want to be able to look in the rearview mirror in 18 months' time and see a really world-class channel program in place."

"The CEO's aspiration is to be a world-class technology company in everything we do and that is my aspiration as well for channel. I wanted to benchmark ourselves against what is world class and then execute against that."

Telstra is taking guidance from its Business & Enterprise Partner Executive Council. "They give us counsel as we move through this transition. We use BPEC to steer us," said Masterton.