The Ingram-IGS Deal

The devil is in the details. And there are a lot of them to be worked out. But the fact that the big kahuna of all services organizations, the $37 billion IGS, is going to SMB-focused partners with hat in hand speaks volumes about the power of local solution providers that act as outsourced IT departments for SMB accounts.

For years, CRN has underscored the fact that vendor services organizations are leaving millions of dollars in solutions sales on the table by failing to leverage partners. IBM is the first vendor that actually appears to be making a concerted, highly focused effort to do just that as it addresses what remains the relatively untapped SMB solutions market.

Ingram Micro solution providers are clearly excited about the prospects for the deal. They see the possibility for a partnership that could help them close more contracts by using the panoply of products, business insight and vertical market expertise that IGS brings to the table. That said, pulling this big deal off is going to be a Herculean task.

One key is going to be making sure there are clear rules that prevent IGS from attempting to pull the rug out from under solution providers who have serviced these accounts for many years. The nightmare scenario is the solution provider opens the door, and then IGS attempts to make an end-run and take the business direct.

Many solution providers are skeptical. In an informal crn.com poll, 43 percent of the respondents said they would never partner with IGS, and 25 percent said they would but with trepidation. So there is a big nut to crack in terms of trust and partnership. Ingram Micro's role as the critical link between its partners and IBM will also be crucial as the program rolls out.

At PartnerWorld earlier this year, IBM CEO Sam Palmisano told solution providers that IBM can't go it alone and absolutely needs the channel. Palmisano pointed out that IGS, even as the market leader, holds a mere 10 percent share of the $450 billion services market. If IGS and Ingram Micro get it right, my bet is that share is going to get a lot bigger.

What do you think of the Ingram Micro-IGS deal? Let me know at (781) 839-1221 or via e-mail at [email protected].