AMD Starts Aggressive Partner Program With Volume Incentive Rebates

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AMD wants its VAR partners to sell more commercial systems.

AMD has initiated a new partner program aimed to increase sales of AMD-based systems by value added resellers to business and commercial customers. The program is said to include aggressive volume incentive rebates as well as training, sales, and marketing support by AMD.

AMD's new invite-only partner program was launched on January 1 and covers AMD Ryzen-based PCs and EPYC-powered servers from OEMs like Dell, HPE, and Lenovo, reports CRN. Companies that sell more machines with AMD inside get rebates from the company on a per-CPU basis. Those who sell more systems with higher-end AMD CPUs get more money back from the chip company. In addition, sales personnel of value-added resellers (VARs) get training from the company to better communicate the advantages of AMD's Ryzen and EPYC platforms over competing Intel platforms.

VARs and solution providers can use the rebate money to offer better pricing for their customers, reinvest into the company development, train employees or hire additional personnel. In any case, the money will help AMD's partners grow, which will be positive for the processor developer. Note that this is different from what Intel was accused of doing in the past, which required exclusive agreements to use Intel processors.

AMD does not disclose how much money it will return to its value-added resellers, but solution providers asked by CRN indicate that AMD's incentive program is rather aggressive. The program was developed by Terry Richardson, an HPE veteran who joined AMD last year as the company's North American channel chief.

"When we presented the program and the 2022 proposed rebates for client and server, the feedback from the members of the advisory board was those are very, very competitive and very attractive," said Richardson in an interview with CRN. "If they choose to really understand and take the time to not only understand the AMD differentiation but start to aggressively position it, then there’s a reward."

Traditionally, AMD has been particularly strong with CPUs aimed at do-it-yourself (DIY) enthusiasts and client PCs, which is why Ryzen processors are among best CPUs for gaming. But since today AMD is selling every piece of silicon it can produce, it makes sense for the company to focus on selling business and commercial systems that use premium CPUs and therefore maximize AMD's earnings and profitability.
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