Customers of IT partners today aren’t just looking for products. They are seeking guidance on increasingly complex infrastructure decisions, from AI readiness to power and cooling modernization. That shift is putting new pressure on IT solution providers to move faster, act more strategically, and deliver measurable outcomes for their customers. But while expectations have evolved, many partner funding models have not.

In this blog, we explore how to rethink traditional market development funds (MDFs) by introducing a more flexible, performance-driven approach that helps partners plan ahead, invest with confidence, and better support customer transformation in a rapidly changing market.

To help partners keep pace with this new market, we’ve sharpened our foundation to provide a simplified, transparent, and consistent partner framework.

The MDF dilemma: Solving for predictability

Recent research from The Channel Company highlights significant, industry-wide hurdles for the modern partner:

• The One-Hit Wonder: 53% of partner marketing activities remain standalone, ad hoc events.
• The Resource Gap: While larger partners may have dedicated staff, many have limited resources and rely heavily on vendor support. Smaller partners often rely on shared or part-time resources (52%), with less than one-third having dedicated marketing staff.
• The Funding Barrier: 46% of small partners fund most of their own marketing because they don’t qualify for traditional MDF.
• The Planning Challenge: Many partners struggle with complex vendor processes and unpredictable approvals, resulting in reactive rather than strategic campaign planning.

Bottom line: Leading vendors must create predictable, transparent funding programs with early approvals that let partners plan ahead.

Introducing the BDF performance engine

The Omdia report on 2026 Partner Trends reveals that partner programs are evolving through bundled incentives and integrated services that simplify participation while increasing partner profitability and value contribution.  It’s clear to us that traditional funding is no longer the best engagement method for our partners. Our innovative new approach introduces a hybrid model called Business Development Funds (BDF), available to our Premier and Elite Regionally Managed Partners.

Think of BDF as your performance engine

The program combines accrual-based MDF with flexible, performance-based rebates, giving partners a predictable path to reinvesting in growth. To date, we have provided pooled MDF. While that’s not going away, we aim to be more competitive and make partners more agile and strategic. We designed the framework to reward the efforts of all partners.

In addition, we have integrated the partner funding experience into a single platform for clear visibility into the payment process. This removes the traditional back-and-forth so partners can focus on what really matters.

Let’s explore the specific ways the BDF framework enables Schneider partner growth.

The BDF advantage: Flex and fuel

One key benefit of BDF is that, beyond calculating numbers, it represents a strategic shift in how we invest in our shared success.

Here’s how those investments benefit you:

• Financial Flexibility: BDF is split into two streams. A significant portion is delivered as a Performance Bonus—flexible funding to support strategic investments to boost growth and explore ways to enhance our partnership.
• The Software Kicker: We are introducing a new EcoStruxure IT Expert Performance Bonus Kicker that directly increases your payout based on specific partner behavior related to software. This way, we reward those who are truly “all in” on the digital journey.
• A “Multipliers” Mindset: We’ve built this model to reward Momentum. Payouts are now growth-adjusted, providing more fuel as you expand your footprint with our full power stack.

These positive changes aren’t limited to a select group of partners. We’re also opening up growth opportunities for partners at all levels. Here’s how:

Spark Funds: A strategic catalyst for all

While BDF serves as a performance engine for Premier and Elite Regionally Managed Partner tiers, we believe growth should be accessible at every maturity level. Our Spark Funds remain the “Strategic Catalyst” for these partners at Select, Premier, and Elite levels, providing proposal-based access to MDF.

By opening Spark Funds to all levels, we ensure every partner has an opportunity to ignite the momentum needed to scale. However, to move beyond single-point marketing and yield greater results, Spark Funds will require a clear business case and meeting strategic parameters. This approach ensures you aren’t just enabled but also driving measurable outcomes and customer acquisition.

How to get started

If you’re ready to move from transactions to transformation, we are ready to help you map out your 2026 path:

1. Verify Your Status: Confirm you are active in the IT Solution Provider (ITSP) track and your mandatory agreements are finalized.
2. Align Your Strategy: Work with your Schneider contact to align your project ideas with clear and measurable business goals and our parameters.
3. Monitor Your Momentum: Share your progress with your Schneider contact to see how your Edge performance is translating into funding.

The winners in this new era will be the partners that proactively leverage program benefits designed to expand customer reach and broaden solution portfolios.

Our commitment to you

The focus on partner speed and profitability is why we do what we do. We are proud to report that this commitment recently earned our program a 5-Star Rating from The Channel Company, recognizing Schneider Electric for delivering a best-in-class partner experience that puts your growth first. Learn more by visiting our IT partner site. 

Let’s get to work.