Sam's Channel IQ

While many top technology executives blindly chart a channel course, Palmisano has deep, intimate knowledge of the cost of sales and channel strategies of each and every segment of the $90 billion computer giant's far-flung business. That's no small advantage when you've got rival CEOs whose knowledge is a mile wide and an inch deep when it comes to the channel.

Those who want proof of just how deep Palmisano goes when it comes to the channel need look no further than our interview with the IBM chairman, excerpted in this issue and available in a longer transcript at www.crn.com. Palmisano talks about everything from his ability to use his executive information system to view sales and fulfillment by channel and partner to his vision of an a la carte menu that lets a partner decide where IBM can plug most effectively into its business model.

Partner profitability and stability have been watchwords of IBM's channel program for many, many years. That's probably one reason IBM continues to fare so well in CRN's monthly channel satisfaction rankings. On the hardware side, IBM has consistently ranked higher than rival Hewlett-Packard. IBM's software channel satisfaction rating, meanwhile, has remained a steady No. 3 over the past year, behind Symantec and Microsoft.

In this week's interview, Palmisano goes further than ever in detailing his vision for how partners play in IBM's on-demand initiative. In fact, he says on demand is actually not as big a leap for partners serving small businesses as one would think. "The opportunity is the same [as for the enterprise]," he said. "The question, I think, for a partner is, where do you want to play? This is why we think we need all kinds of partners. Bottom line, we need consultants and integrators, we need value-add guys who focus on the infrastructure, we need distributors."

That kind of broad partnership position gives Palmisano a good shot at achieving what truly is a visionary move to change computing for businesses of every size and shape. Of course, the channel IQ of all of IBM's employees will play a big part in whether IBM succeeds or fails. With channel-savvy Palmisano at the helm, the odds are in IBM's favor.

Which other CEOs have a high channel IQ? Let me know at (781) 839-1221 or via e-mail at [email protected].