Palo Alto Networks Revamps NextWave Partner Program

Palo Alto Networks is rolling out a redesigned NextWave Partner Program that reflects how AI and platform-driven security are reshaping partner economics, according to the company.

The update moves incentives beyond pure sales volume toward platform adoption, service delivery, and AI-enabled security outcomes, as Palo Alto Networks seeks to align partner growth with enterprise demand for consolidated defenses.

We spoke with Michael Khoury, VP of global ecosystem programs at Palo Alto Networks, about the new program and what it means for partners in an AI-driven security landscape.

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The updated program, available immediately, is designed to help partners move customers away from siloed point products and toward integrated security platforms spanning network, cloud, and security operations. 

The company said the changes are aimed at improving partner margins, accelerating deal cycles, and reinvesting more directly in partner-led growth initiatives as customers increasingly look for consolidated, AI-powered defenses.

“It has been three and a half years since our last program update, which was a minor evolution. Since then, the world has shifted. The exponential rise of AI and the rapid maturation of our ecosystem have changed the game. This has coincided with the customer desire for more than a point product solution,” Khoury said.

“Today, the world is moving faster, and cybersecurity is no longer an afterthought—it is the heartbeat of every company’s strategy. It is a fundamental necessity that allows organizations to scale safely. As bad actors leverage AI to exfiltrate data in minutes rather than weeks, our platform approach is the only way to provide true end-to-end security. We need an ecosystem that aligns with this mission—securing customers from the Network to the Cloud and the SOC, with human, machine, and AI identity at the forefront,” he continued.

Shifting partner incentives beyond point products

At the core of the revamped NextWave program is a focus on “platformization,” a strategy Palo Alto Networks has been emphasizing as enterprises struggle to manage sprawling security toolsets. 

Rather than rewarding pure sales volume, the new structure prioritizes technical expertise and the delivery of unified security outcomes across Palo Alto Networks’ portfolio.

According to the company, this approach is intended to reduce operational complexity for customers while creating higher-margin service opportunities for partners. 

By integrating security across network, cloud, and SOC environments, partners are positioned to deliver managed services, consulting, and ongoing optimization rather than one-time product sales.

“For our partners, this shift to ‘Platformization’ is a massive business opportunity. It allows them to move from being ‘product resellers’ to ‘transformation architects,’” Khoury said.

“By leveraging our AI-driven SOC and autonomous remediation, they can help customers secure their entire footprint in real time, while significantly lowering the cost and complexity of operations,” he continued.

Margin, velocity, and reinvestment take center stage

Palo Alto Networks said the new program is built around three primary benefits informed by feedback from its global partner base.

First, the company is streamlining rebates around firewalls and its next-generation security offerings, as well as broader platform adoption, with the goal of improving partner profitability and rewarding deeper technical engagement.

Second, Palo Alto Networks is enhancing its configure, price, quote (CPQ) capabilities and introducing more automated deal registration processes. These updates are intended to reduce friction in the sales cycle and help partners close deals more quickly.

Third, the company is introducing a new partner development fund that allows partners to reinvest earned rebates into demand generation, training, and solution development. 

“We are empowering our ecosystem with a massive infusion of resources—including advanced AI capabilities, specialized labs, and joint go-to-market offers—all designed to maximize partner profitability as partners deliver more and more comprehensive services to customers,” said Khoury. 

“Ultimately, this program is a competitive differentiator; it allows our partners to scale their expertise while ensuring our joint customers benefit from a fully integrated, AI-driven cybersecurity platform,” Khoury continued. 

Tailored tracks for MSSPs, distributors, and GSIs

The updated NextWave program also introduces more defined paths for different partner types.

MSSPs will gain access to predictable, tiered pricing models designed to support high-margin managed services. 

Distributors will see expanded capabilities and governance to support Distributor Managed Partner growth. 

Global system integrators will be able to participate in a forthcoming “Global Path,” which Palo Alto Networks said will reward multi-region influence and strategic consulting engagements later this year.

Authorized service partners will also receive real-time deployment assistance intended to support “first-time-right” implementations.

“The market is evolving so rapidly that the traditional VAR model no longer provides the breadth of value customers demand. We see large VARs pivoting toward delivery and managed services, GSIs expanding their platform offerings to drive transformation, and distributors augmenting their services,” Khoury said.

“The new NextWave delivers on our promise: to accelerate growth while allowing our ecosystem to scale, differentiate, and keep customer value realization at the center of everything we do.”

Early partner feedback shows excitement for collaboration and incentive transparency

Hugues Foulon, CEO of Orange Cyberdefense, said the program creates opportunities for closer collaboration and improved alignment between partner and vendor teams.

“The NextWave Partner Program serves as a catalyst for deeper strategic collaboration and trust between Palo Alto Networks and Orange Cyberdefense,” Foulon said in a statement. 

“By increasing transparency, especially around team incentives, we are able to align our efforts more closely, foster co-innovation, and tailor Palo Alto Networks’ solutions to better safeguard our joint customers against evolving cyber threats,” he continued.

For Palo Alto Networks, the NextWave update reinforces its broader push to align partner economics with platform adoption as enterprises continue consolidating security tools in response to evolving threats.