Email this article   Print article 


IBM Boosts Rebates To Encourage Higher-Value Channel Solutions

By Rick Whiting
February 28, 2012    7:48 PM ET

Page 1 of 2

IBM is offering financial incentives to encourage channel partners to sell systems that combine IBM hardware and software products, and for developing and selling solutions targeting such areas as cloud computing, security and business analytics.

Along with elevating the value of solutions sold by IBM channel partners, the new IBM Solution Accelerator incentives, announced Tuesday at IBM's PartnerWorld Leadership Conference in New Orleans, are also designed to get more partners to work with each other and with value-added distributors.

"This is important because we're all engaged in this transformation," said Steve Mills, senior vice president and group executive of IBM software and systems, in a keynote speech. "We're all dealing with our customers continuing to move the bar up, as it were, towards realizing greater value from information technology.

IBM executives at the conference are making it clear that the company's own goals are tightly linked with those of its partners. "We cannot achieve our 2015 roadmap, our growth aspirations, without the help of our partners," said Mark Hennessy, general manager, global business partners and midmarket, in a meeting with reporters.

Hennessy was named IBM's new channel chief in early January, after Virginia "Ginni" Rometty took over as the company's CEO on Jan. 1.

Under the "Software and Systems Reward" component of the new program resellers can earn rebates of 5 percent on eligible hardware systems and 15 percent on eligible software when they sell those products together to a single customer. Those rebates are incremental to any other margins and rebates the partner may be eligible for.

Partners can earn an additional 10 percent rebate under the "Business Solutions Rewards" element of the program for selling software packages targeted toward IBM's key initiatives, including business analytics, security, cloud computing, risk management, business social networks and what IBM calls "smarter cities" -- the instrumentation of everything from traffic management systems to power grids.

IBM already has qualified some 60 software packages for the Business Solutions Reward effort, Mills said, with more to come.

Next: Boosting Partner, VAD Cooperation

1 | 2 | Next >>

To continue reading this article, please download the free CRN Tech News app for your iPad or Windows 8 device.
Related: Videos | Slide Shows | Comments

SHARE THIS ARTICLE

More Channel Programs

Recent Articles

50 Cool Tools For Solution Providers

Here is CRN's list of 50 breakthrough tools - software platforms, applications and cloud services - that partners can use to run their own business and more effectively manage their customers' business.

One In Three VARs Says Has Fired A Vendor This Year

A recent partner survey conducted by Enterasys Networks finds that solution providers are calling it quits with vendor partners for a variety of reasons -- with a lack of trust being one of them.

5 Companies That Dropped The Ball This Week

For the week ending May 17, CRN looks at five companies that were either asleep at the wheel or just didn't make good decisions.

  More Slide Shows




Related Videos
Loading...