Palo Alto Networks Preparing Partner Program Revamp Around Next-Gen Security

As its next-gen security business continues to grow, Palo Alto Networks is planning to revamp its NextWave Partner Program later this summer to address its expanding security portfolio and better align its products with improved sales and revenue opportunities for its partners.

“The last time we had some program changes, a few years back, we were not focused as much on next-gen security as we are today,” said Michael Khoury, the vice president of ecosystem partners for Palo Alto Networks, in an interview with ChannelE2E. “For the last few quarters, [customers] have been hearing a lot more about [products like] Palo Alto Cortex and Cortex Cloud. So, we have evolved a lot more beyond being just a next-gen firewall company.”

Khoury, who joined the company nine months ago after similar partner roles with major vendors including ServiceNow and Cisco, said deep evaluations of Palo Alto’s business patterns and financial reports have fueled the upcoming partner program changes.

“When you look at our financial reports that we share with the street every quarter, there is a lot of focus on annual recurring revenues, next-gen security, and where we want to go,” said Khoury. “I felt we did not have that as a key focus area, but the company was already moving more and more in that direction. We want to continue to win in the firewall space, of course, but we also want partners to help us focus more on the next-gen security side of the house.”

Khoury said he joined Palo Alto to review its partner programs and how they address MSSPs, MSPs, Global System Integrators, and others — from routes to market to resale programs, services programs, distribution, and more.

The plans are still in development, he said, but will include changes to the program’s requirements, benefits, and incentives.

“Yes, partners have been sharing feedback about what they want to see, but we also want to see changes as well,” said Khoury. “We are not just going to ask partners to do more — we are going to invest more in them, and we are going to be asking them to invest more in us as well.” The updated partner program will offer partners greater access, benefits, training, enablement, and funding for programs, he added.

“Some things are good foundationally” with the existing partner program, he said. “But we feel like we need to move the ecosystem in the direction where the company is moving — next-gen security, annual recurring revenue, and being more focused on services. Frankly, a lot of the [needed] delivery and implementation Palo Alto cannot do, so our partners will be able to provide more consulting services, more managed services, and more implementation services. There will be opportunity for partners to help us not just from a sales motion, but also from a delivery and value-added services motion — which they like to do.”

Khoury said he expects the revamped partner program to be unveiled after August, when the company’s new fiscal year begins. “We are working those details out now, as well as reviews and all the approvals. We are going to roll it out and give partners enough time to adjust.”

Analysts: Partner Program Updates Help Companies Stay Up to Date

Shelly Kramer, founder and principal analyst with Kramer & Co., told ChannelE2E that Palo Alto’s move to update its partner program is a logical response in a marketplace where partners play critical roles for large technology services companies.

“Over the past year or two, tech vendors have realized they cannot possibly do it all alone, and that the path to faster growth and greater revenue is investing in — and often revamping entirely — their partner ecosystems,” said Kramer. “And services is the name of the game on so many fronts, and it is clearly playing a role here for Palo Alto as the company works to revamp its partner program.”

For MSSPs, MSPs, and other partners, this ability to get and stay more closely involved with customers is extremely attractive for their revenue and business growth, she said.

“It looks like Palo Alto is listening to partner and channel feedback with an eye toward developing a program that facilitates that,” said Kramer. “I look forward to the final details being hashed out and learning more when Palo Alto rolls this out later this summer.”

Another analyst, Zeus Kerravala, principal analyst of ZK Research, praised Palo Alto’s plans, noting that “good channel programs are always adapting to current market trends, and yes, they can often be cyclical. In this case, channel evolution is critical for Palo Alto and its security peers. Security is evolving and becoming more AI-driven. This requires different skills and a different selling motion.”

In addition, Palo Alto’s partner program excels in providing extensive product knowledge to its partners — a key factor, particularly with traditional security products, said Kerravala.

“Selling a platform requires some evangelizing skills as well as the ability to sell outcomes, and I suspect that is driving the change,” he said.