Database Software: Big Blue Bests the Rest
Attesting to this is the fact that in the product innovation subcategory of the 2002 VARBusiness Annual Report Card (ARC), only one point separated IBM,leader of the database software pack,from Sybase and Oracle (74 vs. 73). And Microsoft, which took fourth place
in product innovation, was only two points removed from IBM. Instead, the fiercest battles occurred in the support and partnership
subcategories, both of which were
clearly won by IBM, leading Big Blue to the No. 1 position.
"We've seen a lot more partners coming toward the IBM family of software," says Gary Schneider, director of data management channels and services at IBM's Somers, N.Y.-based data management division. "It reflects a lot of investments we've made in both our programs and in our overall philosophy of how to work with the channel."
Overall, IBM received the top marks for the category, with 70 points. Last year's winner, Microsoft, tied for second with Sybase, which in 2001 was the fifth-ranked vendor, each receiving 67 points. Oracle rounded out the fab four with a score of 65 points.
Solution providers gave IBM a ranking of 69 for support. Microsoft and Sybase tied again, with 63, trailed by Oracle, which received a grade of 60. In the partnership subcategory, IBM again took the top honors, achieving a score of 67. Microsoft and Sybase tied for second place, with a score of 63, and Oracle got 58 points. However, when it came to loyalty, channel executives gave Microsoft the highest grade, followed by Oracle, IBM and Sybase.
"Loyalty is a very subjective element, and it's probably a reflection of a lot of different things," Schneider says. "At the end of the day, [VARs have to make a profit, and they're in business to stay in business and to make money. You're only going to fight the infrastructure battle with your customer for so long," he says.
A less-than-stellar showing in one of the ARC subcategories can be a wake-up call to channel executives. After all, vendors often use the survey results to refine and improve strategy within their companies.
"I read the loyalty grading as an indication we have to drive more demand for our middleware platforms regionally and locally," Schneider says. "And not just in big Wall Street Journal ads or on billboards, but at local events, regional events and industry-focused [events, to really start to cater to these partners' specific needs, day to day. We are making strides to look at business-partner outreach programs, if you will."
For its part, Sybase hopes to boost its loyalty ranking by emphasizing that, in addition to its enterprise-class software, the company also competes in the small and midsize business (SMB) space, says Tom McMahon, director of ISV development at Sybase. "Because of the Sybase focus on the enterprise, most of our partners have alternative offerings into the small and midsize space," he says. "You'll continue to see Sybase playing in the [SMB space and opening up new business opportunities for us and our partners."
Sybase garnered the highest scores in managing channel conflict and ease of doing business, two areas of focus for the past year, McMahon says. The company streamlined its communications with programs for solution providers and "set lines of demarcation" and compensation standards for sales accounts, he says.
IBM continues to streamline the way in which it works with channel partners, hoping to remove some of the obstacles commonly associated with a larger corporation, Schneider says. "We're a complex company, and we need to help our partners navigate better," he notes. "They can't do that with a face-to-face account rep every day. They need to be able to do it for themselves."
As it further enhances its support offerings and channel programs, especially those targeted at smaller solution providers, IBM hopes to expand its footprint,and its database software sales,into previously untapped regions. But at least three other companies are also busy making improvements to the ways in which they work with their partners, hoping to take the lead in a contest that matches technical, marketing and support wits.