Solution Providers Sound Off On IBM-PwC Merger

"I'm happy to hear good news in this economy," said Raymond Hawkins, a senior account executive at Sirius Computer Solutions, a San Antonio, Texas-based solution provider and an IBM partner for more than 20 years.

That a company has the $3.5 billion in cash and stock that IBM is paying for PwC Consulting is in itself a positive sign in this difficult economic climate, Hawkins said.

What's more, Hawkins expects Sirius to gain access to new types of business expertise as a result of the acquisition.

"What [IBM's partners get from the PwC acquisition is that IBM can now give clients not only world-class technology and consulting but also world-class business consulting," Hawkins said.

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Stephen Allen, president of Integrated Technology Systems, a New York-based solution provider that serves SMBs, also approves of the deal. "I want to see companies like IBM and Hewlett-Packard thrive," he said. "I don't want to be presented with Dell being the 800-pound gorilla and the only other choice being a [PC clone manufacturer."

But Chris Pyle, president of Champion Computer, an IBM partner in Boca Raton, Fla., wasn't as sold on the deal. "We sell [IBM Global Services' support to our customers, yet in return we don't see that much coming from IGS," he said.

Yet "it wasn't like PwC was giving us any business either," Pyle added. "So it's business as usual. They were both competitors of ours. Now they're a bigger competitor."

Jerry Tabeling, president of Data Processing Solutions, a Columbia, Md.-based solution provider, echoed Pyle and others when he spoke of the "love-hate relationship" that Data Processing has with IGS.

"There are times when we partner or subcontract with them and other times when we compete head-to-head," Tabeling said. "I'm not sure what to make of the PwC purchase. Certainly this will give IBM some extra muscle, plus an entree into new accounts. But it's still too soon to really have an opinion. My guess is that it will take 6 months to a year to really see how it shakes out."

The transitional period for such a large merger will depend primarily on IBM's plans for existing PwC Consulting clients, said Bob Igou, senior analyst at the Gartner Group.

"The impact of the acquisition will depend on how IBM chooses to treat current PwC alliances and contracts," Igou said. "This will be one of many concerns the combined company faces as they carry out the integration of their resources."

Marie Lingblom, Paula Rooney and Christina Torode contributed to this story.