LinuxWorld To Highlight Vendors' SMB Agendas

Linux

With many Linux success stories in the enterprise behind them, these vendors,which often serve enterprise accounts direct,are now trying to enlist solution providers and systems integrators to drive the Linux business into the SMB market.

Armonk, N.Y.-based IBM plans to announce at LinuxWorld an expansion of its Value Advantage Plus (VAP) channel incentive program that will double the discount given to solution providers when they sell their applications and services to SMBs in combination with IBM software on Linux.

The VAP program, unveiled in March, hands out a 30 percent discount off IBM's list price to solution providers that build solutions and provide services for SMB customers using Linux and IBM software, such as its midmarket Express line of products.

The added incentive, which goes into effect Aug. 17 and doubles the current discount to 60 percent, will be honored until June 2004, IBM executives told CRN. The VAP program now has 192 partners, IBM executives said.

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"I only pay for it if it is a Linux win," said Scott Handy, director of Linux solutions marketing for IBM's Software Group "We're pouring gasoline on the fire for every customer install on Linux."

HP, Palo Alto, Calif., also plans to highlight at LinuxWorld a new channel program called the Linux Elite Program. The program will give resellers additional rebates and access to Linux specialists for joint engagements in the high end of the SMB market, executives said.

"We do see the SMB [market] expanding, and we're sweetening the pot for these deals," said Mike Balma, Linux business strategist at HP, adding that the program was privately rolled out to partners recently. "The enterprise is the first place Linux took off, but now we're getting to the point where many big boxes have been moved over to Linux, and now we're looking at midsize companies."

Red Hat declined to comment on the company's LinuxWorld plans but said it is on track to launch its long-awaited channel program soon.

"Red Hat is working to launch a new program this fall that will enable a broad range of systems integrators, VARs and resellers to further participate in the revenue from adoption of Red Hat Enterprise Linux-based solutions," said Michael Evans, vice president of channel sales and development at Red Hat, Raleigh, N.C. "This will demonstrate Red Hat's intent to have a channel-centric business model. We plan to shift our current revenue model of 70/30 direct/channel to 30/70 direct/channel."