Partners Seek Commitment From IBM's Palmisano

Rick Hamada, president of Avnet Computer Marketing, Tempe, Ariz., recalled meeting Palmisano several years ago in New York to discuss ways that the company and IBM could tighten their distribution relationship.

"It was amazing. He spent the time with us to understand the channel and the challenges we were facing. He was fluid in the technologies, trends and issues. I was very impressed," Hamada said. "And certainly, under his leadership, the IBM-Avnet relationship in North America has grown from zero to a billion dollars over the last five and a half years."

Of course, Palmisano wasn't directly responsible for all of Avnet's growth. But Hamada believes that the IBM president and COO,who last week was named to take over the CEO reins from Chairman Louis Gerstner on March 1,grasps the value of the channel because of his earlier experience working with solution providers as the head of IBM's PC and services divisions.

"His leadership had an influence on IBM's continued channel strategy," Hamada said. "He's been very supportive of the channel and in finding the win-win scenarios for the plethora of partners IBM has."

Some solution providers, however, question IBM's commitment to its partners in the wake of its plans to replace channel field sales reps for its Personal and Printing Systems Group with telesales reps. Palmisano's first edict when he becomes CEO should be to keep those field sales reps, several solution providers said.

"The implication [of the move is that our level of support has been drastically reduced. It's disturbing," said Glen Jodoin, vice president of operations at GreenPages, Kittery, Maine. "They were our direct liaison to IBM. And don't forget, part of what we're selling to the end user is our relationship with IBM. This is major."

Jodoin and his peers note that channel field sales reps are a solution provider's lifeline to a manufacturer, helping them develop business strategies and keep abreast of training, sales and promotional programs and new technologies. Solution providers often say that when their relationships with their reps change or erode, they buy less from that manufacturer and begin looking for alternate suppliers.

"When dealing with a company like IBM, it's essential to have a face-to-face relationship with your rep," Jodoin said. "My message to Palmisano is to remember the value of the channel and not be afraid to support and promote the channel. Chasing Dell is a failed business plan. There is still more value in the channel than in the direct model. We represent IBM to the end user to provide the best solution possible."

Jim Illson, the former president and COO of distributor Merisel and now president and CEO of solution provider Wareforce, El Segundo, Calif., sells IBM products and is building a stronger relationship with the vendor. He said he hopes Palmisano will direct IBM to support the channel as much as possible.

"I would hope that he will continue to recognize the value that the solution provider can deliver and maintain a strategy of working actively with solution providers and distributors to get the key accounts," Illson said.

Bob Noren, CEO of eOneGroup, Omaha, Neb., a developer of e-commerce solutions that IBM features on some of its Linux-based servers, said IBM has been an active partner and he expects Palmisano to continue that legacy.

"I think Sam [Palmisano will follow where Lou Gerstner has left off," Noren said. "I'd like to see the great support they've given us in the past get even better."