IBM Guides Partners Through Journey To Recurring Revenue

IBM is assisting its North American channel partners through the difficult transition to recurring revenue business models with a strategy to transform, protect and grow channel business.

IBM Vice PresidentMichele Sternsaid the company wants to help partners transform to the recurring revenue economy and expand to new business models, and the company has focused on three key areas in which it has aided partners: cloud, SaaS and embedded solutions.

’It can be quite difficult for them operationally to change their business model – everything from how they go to market, how they attract new customers, how they engage with new customers, and how they pay their sales force,’ Stern said.

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In particular, embedded solutions offer a launch pad to recurring revenue business for IBM partners while boosting their own brands.

’The opportunity to embed IBM technology, hardware and software into a business partner solution and then to sell that either as a white label with their name on it or with a label powered by IBM,’ Stern said.

IBM has worked with its partners through business transformation initiatives and workshops to develop plans to go to recurring revenue business models.

’We also work with them from digital marketing standpoints to help them re-create themselves on the web,’ Stern said.