IBM's Palmisano: Services, Infrastructure Are Key Partnering Areas

IBM

"We don't want to disintermediate the channel," Palmisano said. "IBM cannot get to where it wants to be without them. . . . We have to manage this and compromise and not be selfish about the opportunities. . . . We are not going to leave the channel. It is too fundamental to our income statement."

Palmisano said IBM is a "niche player" when it comes to services and will partner with solution providers that work with IBM Global Services.

"We [have $37 billion in services revenue and that makes wonderful headlines, but we are really small, and there is so much opportunity" in working with partners that would help complement IBM's services business, he said.

Palmisano said he has confidence in channel partners' ability to evolve into solutions-based businesses. "Partners are wonderful businesspeople," he said. "They are no slouchers. They have a proven track record."