IBM gives $500m incentive

Advantage scheme aimed at supporting partners' efforts in SME market

IBM has pledged to give $500m to its channel partners for demand generation tools and sales incentives as it looks to ramp up its presence in the lucrative SME marketplace.

A new scheme, known as IBM SME Advantage, is due to be launched at IBM's PartnerWorld event in New Orleans later this month.

It is aimed at all 90,000 IBM Business Partners and has four main elements to help resellers increase end-to-end solution selling, said Elaine Lennox, director of marketing for SMEs at IBM.

"We want to help our partners become more profitable so they can invest back into their own businesses," she said.

The first two Advantage themes are Channel Enablement, including the provision of a dedicated web site, and Incentives for Growth, with extra margins of between five and 20 per cent on particular product series.

"These incentives are not short term. They are a consistent set that will be in place for at least two years," Lennox said.

An extra $200m has gone into Demand Generation on specific marketing tools, including joint campaigns, Lennox added.

IBM also announced that it wants its partners to start working together under its Teaming element. "IBM wants its partners to build long-lasting relationships. IBM is like a dating agency that will help partners come together," Lennox said.

IBM VARs were positive about the initiative. Paddy Lawton, managing director of Digital Union, said: "It adds real value to your business as a reseller.

"We will get to market quicker and make more margin. It will also let the smaller guys compete with the bigger box-shifters."

Kevin Drew, managing director of Triangle, said: "It will have a huge effect because it runs though all sectors and is not tied to one particular IBM brand.

"Too many VARs think they are hitting the mid-market, but they aren't. It's a chance for IBM to force partners to look further into the market. It should result in a win-win situation."