IBM injects $10m into ISVs

Galaxy scheme for Big Blue partners aims to deliver 'blinding' solutions

IBM has pledged $10m for its European independent software vendors (ISVs) to develop its iSeries platform and wants resellers to work more closely with it to create 'dazzling' solutions for customers.

The vendor has spent two years developing and selecting ISVs to participate in what it has dubbed the Galaxy programme, according to Anthony Reynolds, ISV development manager system sales group at IBM.

Primarily targeting the iSeries platform, IBM currently has 3,000 European ISVs across Europe - "Everyone from Sage right down to very small niche players," said Reynolds.

Under the Galaxy model, once an application is developed, IBM hopes to match-make an appropriate reseller to the ISV in order to sell a solution to a customer, said Reynolds.

To help development further, IBM is also offering the iSeries on loan for 24 months at one per cent of the list price.

"There is no point in us investing when an ISV has no channel to fulfil the hardware side. We want ISVs to dazzle the customer with the solution so they are blind to the platform.

"ISVs get customers hooked on the software and hence influence the hardware decision," Reynolds said.

"If a reseller goes to market with an ISV under the Galaxy programme, both parties receive additional incentives."

Paddy Lawton, managing director at IBM ISV Digital Union, said the initiative would not only help Big Blue's ISVs, but would also encourage more non-IBM ISVs to design around the iSeries.

"The scheme means ISVs are getting more margin, which is what they have been waiting for. It's also allowing us to add value properly and so compete against the bigger guys," he said.

IBM already has marketing and sales campaigns in place with enterprise resource planning ISV Sage. Bill Hill, marketing director at Sage, said its channel had fully embraced the scheme.

"All our major resellers have been partnered up with iSeries VARs and sales are already starting to happen," he said.