IGS Plays Nice With SMBs

Where, then, does that leave IBM's channel? At first glance, IGS' strategy looks like a head-on collision with IBM Business Partners, but Big Blue recently introduced its "Principles of Engagement" for its services arm, which were designed to eliminate channel conflict and allow VARs to partner with IGS. Previously, IBM solution providers had no vehicle to work alongside IGS and sometimes found themselves competing for business with the IT-services behemoth. IBM officials say that will no longer be the case.

"What we were responding to was feedback from partners that said, 'We want to work with you, but the system is too complex.' Channel partners also had a fear that we'd compete with them," says Mary Garrett, vice president of distribution channels and the midmarket for IGS. "The key is for IGS to have better coordination with partners on a local level so the two can work together."

The engagement rules dictate that IGS will not sell against or compete with IBM Business Partners that are selling IGS services to their SMB clients. In addition, if an IBM Business Partner brings IGS in on a customer engagement as a subcontractor, the solution provider will still retain ownership of that account as long as the partner has "the appropriate skills for the opportunity." Big Blue has also set up so-called IGS Business Partner Advocates around the globe to serve as "channel ombudsmen" for potential channel-conflict cases.

However, IBM partners that are offering non-IGS services will not be protected by the engagement rules. For example, IGS will be able to compete for business with an IBM Software Partner that is offering its own branded services instead of IGS-related services. Thus, IBM is making partnering with IGS more attractive.

Paul Thompson, CEO of IPT Northwest, an IBM Business partner based in Portland, Ore., sees value in working with IGS.

"If the situation were to arise, I would not hesitate to get involved with IBM on a services deal," Thompson says. "IBM basically figured the services piece out before anyone else, so I think the channel could learn a lot."

Brian Okun, director of marketing at Chips Computer Consulting, a solution provider based in New York, also sees promise with IGS.

"It expands our ability to deliver solutions to our clients and gives us the ability to add revenue by delivering IGS services and learn best practices from them as well," Okun says. The solution provider is a member of Ingram Micro's VentureTech Network, which began a similar alliance with IBM this year that allows SMB solution providers to partner with IGS and subcontract engagements to one another.

That program was met with resounding enthusiasm. The current "Principles" strategy looks to build on that momentum and allow more IBM VARs to partner with IGS.

Playing By the Rules
Excerpts from IBM's new "Principles of Engagement" for IBM Global Services and IBM Business Partners in the SMB market:

• "IGS respects the incumbent IBM Business Partner's relationship with the customer. When appropriate, IGS will support the sales and marketing activities of IBM Business Partner opportunities."
• When an IBM Business Partner engages a customer in the small or midmarket, "IGS does not intend to market those same IGS offerings and its specific components to that customer."
• "IGS will continue to make mutual co-marketing offerings and programs available to IBM Business Partners," but IBM expects partners to "continue to drive their own demand and leads."
• "When an IBM Business Partner initially brings IGS into a small or midmarket opportunity IGS will team with that incumbent IBM Business Partner on future, related IBM opportunities with the customer, where the IBM Business Partner has the appropriate skills for the opportunities."