IBM Looks To Gain An Edge In The Public Sector

Big Blue is taking big notice of public-sector opportunities and what its partners need to be successful in government. To prove it, IBM recently launched Public Sector Edge, an initiative that is now part of IBM's PartnerWorld Industry Networks and that will make it easier for solution providers, ISVs and systems integrators to work together and with IBM.

"This is about IBM putting a premiere initiative in place in the public sector," says Alex Gogh, director of channel marketing for Americas at IBM. "We recognize that the public sector is not an SMB market, it's not a commercial market--the public sector is a truly unique entity, and it requires a premiere program for our partners to succeed."

Building on IBM's existing PartnerWorld Industry Networks for ISVs in the public sector, this latest initiative will expand to bring together ISVs with fellow public-sector systems integrators and solution providers. The Public Sector Edge initiative is open to any IBM Business Partner and will act as a single point of access to all IBM public-sector-focused resources.

Gogh explains that it follows on IBM chairman Sam Palmisano's observation that the government sector would be a hypergrowth industry for IBM. "Two years, ago Sam Palmisano called out government as a strategic industry," Gogh says. "And Public Sector Edge is in support of that decision."

What does it all mean for IBM partners? Gogh says that IBM recognizes that its public-sector partners often "wear a variety of hats" at different points in different public-sector engagements. More specifically, partners require an extended amount of "teaming or coopetition," to help them succeed in government. "The ultimate goal is to bring the ecosystem of public-sector partners together and allow them to take full advantage of the wealth of the IBM marketplace insight and capabilities, in a way making it easier for them to sell into government," Gogh says.

The basic Public Sector Edge offerings include more government-focused marketplace insight, teaming information, channel enablement, incentives and marketing material. On the teaming side, for example, a solution provider working in the local government area looking to partner with an ISV will be able to connect with Public Sector Edge partners. "You can't go to a government customer and say, 'I'm going to help you improve your shareholder return,'" Gogh says. "You have to talk in the vernacular of the customer and understand the public sector is unique."

"There are nuances to the government space--from unique terms to conditions--and this initiative is a reflection of being driven by the customer," Gogh says.

From the partner side, Joe Mertens, executive vice president of San Antonio, Texas-based Sirius Computer Solutions, says "IBM has offered a lot of programs that have been successful for the SMB and enterprise-sector customers, but on the VAR side they haven't had a lot historically for the public sector. We've seen success in a lot of the programs in our commercial customer base and with a significant part of our business in the public sector, it will be great to have some of the same benefits and tools."

Specifically, Mertens sees the ability to partner with fellow public-sector ISVs as a big opportunity. He hopes to take advantage of the different marketing programs targeted at the state and local sector, where the majority of his government business takes place.

"Before, we were out looking on our own and now we can match up with an integrator who possibly has a specialization in a certain area that we normally wouldn't engage in," Mertens says.

On the ISV side, Bruce Taylor, president and COO of Atlanta-based Police Central, which provides technology for law-enforcement agencies, says that as a small company he sees the benefit of partnering with systems integrators and solution providers through the Public Sector Edge initiative.

"It's a challenge to find the right skill set in the IBM product arena to help close deals," Taylor says. The new Public Sector Edge initiative "sounds like a better way for us to identify and connect with systems integrators who have the relevant skills and knowledge of our customers' environments, and may even have done an installation and configuration of IBM hardware or software."

Police Central was one of the first public-safety software vendors to join the Government Industry Networks PartnerWorld program when it was announced for ISVs. "We've benefited from increased visibility with the IBM sales force and with customers and prospects through some outbound marketing and telemarketing with IBM's support and financial assistance," Taylor says.

Taylor says he sees potential for the program to include systems integrators and solution providers alike. "We sometimes get into an RFP or other bidding situation for government accounts that already have IBM middleware or software present and, typically, that has been configured and installed by a business partner, not IBM," Taylor explains.

Partner input is important to IBM, Gogh says. "This initiative is based on speaking with our partners about what they needed IBM to deliver on to make it easier for them to sell into the public sector; it's about listening and working with our channel." *

The Finer Points Of IBM's Public Sector Edge

IBM partners will be able to sign on to the PartnerWorld or PartnerWorld Industry Networks to access the Public Sector Edge information, and everyone is welcome to join, IBM says. Looking ahead, different membership levels will be designed with different benefits. "Partners are critical to us, and we want to make sure we get the new partners we need in this space," says Alex Gogh, director of channel marketing for Americas at IBM. "We recognize that partners have made investments in us and they want to be recognized for the investment they're making."

Public Sector Edge features:

A single point of access to informational, technical, marketing and sales benefits

Higher financial incentives to make it more profitable to sell with IBM in the public sector

Improved industry-specific sales and marketing support

Additional industry and competitive information to help partners develop thought leadership and positioning

Tailored offerings, such as government middleware solutions and Education Express offerings