The market change is also behind the move to increase the amount of resources being devoted to the STG channel in 2013. On Tuesday, IBM's Hennessy announced that STG is increasing dedicated channel sales resources by 50 percent, a vow repeated by IBM's Adkins on Wednesday.
Those include resources for business development, opportunity identification, proactive technical support, business plan development, mentoring and complex deal support, and co-selling and joint client calls, according to a presentation by Kristie Bell, STG vice president of worldwide channels, in a presentation following Adkins' speech. One specific example: IBM is expanding the number of partner-dedicated sales and technical sales personnel by 400.
IBM is investing $150 million this year specifically for STG sales-lead-generation activities, and Adkins said that would provide a 4-times increase in leads for partners. The company is budgeting $900 million for rebates this year, up from $650 million in 2012, and it is promising higher margins for sellers of the company's Power servers. In addition, Adkins promised a "significant increase in channel margins" for partners who invest in skills development and who "focus on IBM first."
"Hopefully we are doing the types of things, as we listen to you, to help enable your growth in 2013," Adkins said in his speech. "I do think this is a pretty good platform for growth in 2013."
"The 57 percent is very achievable if IBM stays focused on ensuring the field gets the message and embraces the partner model," said Michael Gray, chief operating officer for Champion Solutions Group, a Boca Raton, Fla.-based IBM partner, in an email to CRN.
"The compensation and reward systems still get in the way. Putting additional, focused resources on the channel certainly is the right move. Too much or too little? Only time will tell. IBM is making many of the right moves with regard to investment in partners, systems integrators and others. You just have to wonder what they were doing the last several years," Gray said.
Adkins touted what IBM sees as major partner opportunities to sell IBM systems for business analytics, cloud computing and IBM's "smarter computing" framework. Bell, for example, citing IDC numbers in her presentation, said big data would generate a 23.5 percent compound annual growth rate for server sales by 2016 and 53.4 percent CAGR for storage system sales.
The company is developing new partner "specialty" training and certification programs to help partners boost margins by selling higher-value products and services.
"We've concluded that a lot more specialization will be required" by partners, Adkins said in the interview. "Increasingly, our partners will have to invest in their skills to be in a better position to capture these opportunities." And putting the channel organization under STG would help there as well, he said. "We think we can accelerate the specialization part of the equation.
"There's a lot of money to be made by [partners] by leveraging all the capabilities we're putting in place," Adkins said.
PUBLISHED FEB. 27, 2013