IBM Offers Cloud Partners New Financing, Rental Options

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Looking to give its channel partners a leg up in cloud computing, IBM is offering new pricing and financing options that will make it easier for ISVs, cloud system builders and cloud infrastructure providers to expand their cloud offerings.

IBM is unveiling the programs Monday at its Impact 2011 conference in Las Vegas in front of some 8,000 attendees, including about 1,000 channel partners.

Big Blue has been ramping up its efforts to help channel partners expand into cloud computing this year. Last week the company unveiled the SmartCloud platform companies can use to run production IT systems in the cloud. And in February the company launched the Cloud Computing Specialty initiative that provides partners with a range of training, technical, sales and marketing resources.

IBM projects that cloud computing will account for $7 billion of its sales by 2015.

"The partner ecosystem is a very important part of our cloud strategy," said Dave Mitchell, director of strategy for ISV and developer relations, in an interview prior to Impact. "Our partners have been asking for this," he said of Monday's announcements.

IBM is giving ISVs who develop their applications on IBM software and host them in the cloud the option of renting IBM infrastructure and middleware software with monthly payments. That will bring those expenses in line with the monthly subscription fees those companies collect from their customers, Mitchell said. The rental pricing can be applied to such products as IBM's WebSphere Application Server, Lotus Domino, and DB2 and Informix databases.

Application providers taking advantage of the rental plan must commit to an annual contract with a fixed dollar amount. But IBM identified more than 20 middleware products commonly used by application providers that it would allow partners to mix to reach their dollar commitment, based on their needs. So if a partner commits to rent $10,000 worth of software each month, for example, it could rent $7,000 worth of DB2 and $3,000 of WebSphere Application Server one month and $5,000 of each product the next.


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