Interview With a Vendor: Capacity & Capability Make the Difference for Extreme Networks

by Monitor Staff May/June 2009
In January, Extreme Networks announced it had selected LEAF as its partner in a new customer financing program. The Santa Clara, CA-based company provides converged Ethernet networks supporting data, voice and video for enterprises and service providers. For a change of pace, the Monitor speaks with a representative from the vendor who gives readers insight into the company’s selection process.

Monitor: Please give our readers a sense your company and its products.

Extreme Networks: Our company addresses enterprise and carrier networks where performance, operational simplicity and value are essential. Extreme Networks enterprise solutions span from the network edge, where devices connect, to the data center where servers are supporting higher data rates and integrated IP storage is becoming essential. Extreme Networks offers sophisticated, high-performance Ethernet network solutions that deliver the increased bandwidth, to ten gigabits per port, fine-grained control plus infrastructure security and resiliency. This provides the network foundation helping organizations support all forms of data, business applications and converged communications throughout the campus.

M: What sparked your company’s decision to seek a vendor partner?

EN: Extreme Networks has been committed to our channel partners since we first began shipping products in 1997. We decided after a combination of talking with our field teams and our partners that a formal financing program would be a terrific value-added option. The program can help smooth out some of the financial pains being felt out in the marketplace — both at partners and with end-users.

M: Was this arrangement with LEAF a new endeavor or did LEAF replace an existing relationship?

EM: Yes, this is a new relationship.

M: Was the arrangement competitively bid? How did the selection process work?

EN: We reviewed a selection of competitive financial institutions for this objective. At its conclusion, we were confident that LEAF Financial had both the track record and the resources to meet our needs.

M: Could you share the critical considerations (aside from pricing) that had you select LEAF?

EN: We especially liked the fact that LEAF Financial had the financial capacity and capability to extend that help to our channel partners. LEAF also possesses specific experience in dealing with the IT channels — two-tier distribution models included, and this was critical for executing the program.

M: Your business is international in scope and from the press release announcing the customer financing program, the program with LEAF is for U.S. customers. Do you have a foreign partner? If yes, who is it?

EN: Today, the program is for U.S. customers who go through U.S. partners and distributors, but we will weigh the benefits of extending this program to our international partners in the future.

M: Does this customer financing arrangement give you the opportunity to deal with more “difficult” credits? Is there a structure to mitigate risk with C&D credits?

EN: Extreme Networks does not deal directly with the issuance of credit, however through the relationship with Leaf Financial, LEAF can assess and provide financing for partners and their end-users depending on the situation. Our relationship helps broaden the options.

M: Is there any expected annual volume or was there a penetration rate assumption built into the forecast?

EN: We expect that this program will eliminate some barriers for purchasing that were in place beforehand. Beyond this, we don’t disclose forecasts.

M: Could you name a few of your primary competitors and did Extreme Networks enter into this customer financing partnership to better compete with their financial offerings?

EN: We compete with other LAN vendors, such as Juniper Networks, Procurve and Cisco and many do offer financing programs, but our program development was in answer to the distinct needs of our partners and end-user customers.

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