IBM Launches New Partnership Program With Tech Data

Each IBM authorized TechSelect member will now be assigned a dedicated telesales rep, said Frank Vitagliano, vice president of distribution channels management for IBM's Personal Computing Division. TechSelect members will also now have access to a dedicated product rep who can make field calls, a position that will be funded by IBM and Tech Data, Vitagliano said. The sales rep will be a resource for TechSelect's nine regional organizations, he added. The new program is not exclusive to Tech Data.

The direct-sales rep coverage comes after IBM was criticized last year for cutting its personal computer division channel field staff in favor of telemarketing support.

Vitagliano said the changes in the new partnership program directly address complaints from TechSelect solution providers. Among the other benefits of the new program are a Fast Path Authorization program aimed at quickly authorizing the estimated 25 percent of the 290 TechSelect members not authorized to sell IBM products.

The new program also includes $100,000 in training funds to be allocated on a first-come, first-served basis for TechSelect members. Members will receive free sales and technical training on IBM's ThinkVantage technology, which is aimed at providing software total-cost-of-ownership functionality not available from IBM rivals, according to the company. The new funding will cover training for about 100 TechSelect members.

IBM is also making available by Aug. 15 a ThinkVantage technologies toolkit that includes direct-mail templates, product specifications, Web links and details on selling and integrating ThinkVantage technology into solution provider offerings.

Vitagliano also told TechSelect members IBM has fixed the product availability problems that have plagued the vendor in past. Tech Data's fill rates for its IBM PC products have increased to about 90 percent from 67 percent.

Rory Sanchez, president of SL Powers, West Palm Beach, Fla., said he had stopped selling IBM products because of supply problems. "If they fixed that, that overcomes a major hurdle and I will look into [selling IBM PC products] again," said Sanchez.

Vitagliano also detailed a new IBM Global Financing program that offers credit lines of up to $150,000 in inventory financing with zero interest for 45 days for IBM product.

Overall, IBM has increased its U.S. PC solution provider force from 7,500 at the start of 2002 to more than 9,000 partners today, said Stephen Mungall, vice president of U.S. Business Partner Sales at IBM. He maintained that increase is due in part to a significant number of partners joining the IBM program as an alternative in the wake of the Hewlett-Packard-Compaq merger last year. "Solution providers wanted to ensure that all of their eggs were not in one basket," said Mungall.

One TechSelect member said the changes, particularly the Fast Start program, would prompt him to get authorized by IBM.

Horace "Ace" Cathcart, senior government and educational consultant for Computers & Applications, a 22-year-old Bellevue, Wash., solution provider, said the only downside he sees in terms of the IBM partnership is the competition with the company's direct-sales arm. "Quite a few times that has hurt us," he said.

Vitagliano said there will continue to be some conflict with the IBM direct-sales reps, but he stressed that the company is aiming for price parity and even has a not widely publicized program that gives solution providers that have been undercut in one of their accounts by IBM Direct to get the same price IBM Direct quoted plus 3 percent. "We will not use price as a weapon," said Vitagliano.

SCOTT CAMPBELL contributed to this story.