IBM Channel Chief Marwaha Pledges To Fix Field Coverage Problems

"If there is any feeling that our [channel field] coverage has declined and it is affecting our business, we will fix it," said Marwaha in an interview with CRN after an address at Ingram Micro's VentureTech conference. "We have already increased our sales force into the reseller community."

Marwaha said field coverage is just "one leg of a multi-leg stool. What we have to do is make sure we get the right demand, we get the right coverage and we make this whole ecosystem work."

A number of VARs have complained privately that they have lost touch with their IBM channel reps in the wake of IBM's $1.25 billion sale of its PC business to Lenovo nearly two years ago. Some VARs also say Hewlett-Packard is eating into IBM share in the blade server market. The NPD Group, a Port Washington, N.Y., market research firm that tracks sales through distributors, says IBM slipped 8.2 percentage points to 60.5 percent share in the blade server market in 2006. What is lost was picked up by HP, according to the NPD data.

A large solution provider, who did not want to be identified and counts IBM as one of his largest vendor partners, said since the sale of IBM's PC business to Lenovo, his face-to-face contact with IBM has fallen off. "I can't tell you who my IBM rep is," said the CEO.

Another IBM partner, who also did not want to be identified, said HP is simply executing better in the field. IBM's top executives are espousing the right vision, he added, but it isn't translating into the field.

Marwaha, however, stressed that IBM is having success with the channel. In fact, he praised distribution giant Ingram Micro for helping drive a tight partnership with VARs. He said that IBM server sales through Ingram Micro VARs were up 15 percent in the fourth quarter. What's more, he said that sales of IBM ServicePac Services are up 15 percent; IBM Express product sales are up 46 percent quarter-over-quarter and 150 percent in the last year.

"The objective is not coverage," he said. "The objective is success. If [VARs] feel that there are things that IBM could do to be even more successful, they know how to get in touch with me."

Marwaha said IBM feels good about its success in the small and midsize business market, but wants to take it to "new heights." He cited the success of several VentureTech members who have partnered with the company in the past several years and have seen dramatic growth.

That said, IBM is changing its investments effective April 1 to step up its midmarket attack. "We clearly have decided we can do a whole lot better," Marwaha told solution providers.

IBM is already offering a 5 percent solution sales bonus and a 5 percent sales bonus for new SMB customers. Marwaha said IBM plans to shift more benefits to smaller solution provider partners. The company is expected to outline a number of new programs and initiatives at its IBM PartnerWorld Conference set for April 29 to May 2 in St. Louis.

In addition, Marwaha o told VentureTech members that in the next month IBM will come up with a sales incentive program aimed specifically at VentureTech members. He said he is determined to "figure out something that really produces results" for VentureTech members.

Several VTN members who partner with HP said it would take a significant effort by IBM to win them over.

"HP has the best technology," said Mark Lutes, president of Algoma Business Computers, a $2.5 million Sault Ste. Marie, Ontario, solution provider. "HP blade servers are awesome. We haven't sold IBM in years. It is hard to go wrong with HP."

Lutes said many smaller VARs have to focus on one vendor in the server market because of the high cost of supporting two platforms. "I would consider IBM again," he said. "But they would have to make assurances to us that the partnership is solid. They have to give us more confidence they'll support us when we need them equally as another vendor."

Gary Schmitz, vice president of technical services for Advanced Network Technologies, Omaha, said his company is so entrenched with HP it would be difficult to switch to IBM. "HP is doing a really good job for us," he said. "They have great support. We are very happy with HP."

Additional reporting by Craig Zarley