IBM Plugs Partners Into Utility Model

IBM last week said it is investing heavily to certify thousands of new solution providers to sell and service IBM software products that will make the utility computing vision a reality.

As part of that initiative, IBM added a new Center for IBM Software to increase IBM software certifications among solution provider partners.

IBM also is beefing up its Start Now program for e-business solutions, adding business process integration and portal certifications.

Furthermore, IBM is planning a series of Express products aimed at the SMB segment in 2003. The computer giant said it is investing more than $1 billion a year on partner programs in the SMB segment.

Steve Mills, IBM senior vice president and software group executive, said utility computing is a large opportunity that IBM and channel partners could share,IBM through the extended reach of the channel and solution providers through the extra profitability they realize from integrating IBM software products.

"We've done a good job of being able to demonstrate that our channel partners can make a good profit working with us," he said.

"Partners are going to be crucial in delivering our 'on demand' vision," said Mark Hanny, IBM's vice president of worldwide ISV alliances and go-to-market operations. "The key thing for partners is that as customers move over to this model, it creates a lot of opportunities."

Hanny said IBM's existing rules of engagement will apply as the utility computing offering emerges for the SMB space.

IBM is not encouraging SMB VARs to make large investments in utility computing infrastructure, rather it is advising them to partner with ISVs and IBM where it makes sense, Hanny said.

Joe Young, president of Global Data Systems, a Pembroke, Mass.-based managed services provider that provides outsourcing services to SMB clients, said it remains to be seen if IBM's new initiative will gain a foothold. "We'll keep an eye on it," Young said. "If it gains traction, we will certainly investigate if it is something we can take part in or if we have to sell against it."

JEFF O'HEIR contributed to this story.