IBM: Switch To Annuity Model

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IBM's message to partners is clear: Transform or be left behind. But now the company is offering partners real help through a series of workshops focused on big data analytics, cloud computing and overall financial modeling.

Michael Gerentine, Global vice president of channel marketing at IBM, spoke to CRN's Tom Spring about the current mood of IBM.

"The whole theme is really around transformation, and how are the partners going to move today from a traditional reseller model, to not just selling hardware -- and even software -- but how are they going to move into more of a cloud services environment," said Gerentine. "That means that they’ve got to change their whole business model for how they're going to move from selling one-time licenses of software or hardware to an annuity model, which is more the cloud model."

After running a pilot program with 80 partner companies last year, IBM is reaching out to an initial 200 to 300 businesses to join the Business Transformation Initiative, a workshop series for partners on profit margins and shifts in markets.

IBM also is offering the new Think Academy, “rich content” involving C-level executives that is now available for partners.

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