IBM unlocks top-tier resellers for distributors

IBM is removing the option for top-tier partners to buy hardware direct, and is now supplying the channel exclusively via distribution.

Previously, top-tier partners could buy direct from IBM, but these companies will now need to purchase from local disties such as Avnet, Ingram Micro and Synnex.

IBM hardware comes under the Systems & Technology Group (STG). The main product lines are Power servers and IBM storage – STG shrunk significantly last year after the sale of its System X commodity server business to Lenovo. (Lenovo has confirmed to CRN that there is no change to distribution for the System X business under Lenovo.)

Top IBM partners have been expecting the move for more than a year, but told CRN the change had been delayed by the Lenovo sale and only kicked off from 1 January this year.

It is expected the change will impact some of the country's top IBM partners, such as Advent One, The Missing Link Network Integration, Blue Connections, Meridian IT, Southern Cross Computer Systems and Data#3.

The reseller channel for IBM Software already goes exclusively via distribution; the change at STG means the entire indirect channel for IBM hardware and software now goes disties, with the exception of mainframes.

Darren Adams, general manager of Avnet Australia & New Zealand, told CRN the change was mostly all upside for the distributor. "Based on our skills and experiences learned during our 15-year IBM heritage in Australia, and our existing market share and number one distribution position, we therefore hope to earn the right to partner for the majority of the business."

Adams said Avnet's extensive service and support would be a benefit for those tier one partners now going via distribution. "In Australia, we have more than 20 dedicated IBM resources – including engineering, sales and pre-sales. Additionally, resources in logistics, sales, finance and marketing all stand ready to simplify this transition and ensure incremental opportunity for all that join our ecosystem."

Jon Fox, general manager of Advanced Solutions at Ingram Micro Australia, said: "We see this as a positive move for the vendor, the reseller community and Ingram Micro. IBM is a key vendor for Ingram Micro and their new partner program will further enhance their standing in our organisation.

"The scale that this move will bring to distribution will allow us to really invest in our partners, allowing the resellers to leverage our logistical, operational, sales and technical capabilities, which in turn will give them the ability to scale their business and put more focus on driving sales and delivering customer service to their clients," added Fox.

Wes McDonald, general manager, systems, at IBM Australia and New Zealand, agreed that distributors would be able to provide partners with "skilled sales, technical resources and more flexible ordering".

"A single distribution model across hardware and software simplifies the process for our business partners," said McDonald.

"This strategy will better complement business partners' go-to-market model and will deliver higher value to clients," he added.

CRN spoke to half a dozen IBM partners about the move. While tier one partners weren't necessarily enamoured with the switch to distribution, some hoped that disties would provide better fulfillment and value-added service.

The change in tack comes amid some major shifts in IBM's channel business, both locally and globally.

Here in Australia, two of its key channel chiefs – Phil Cameron and Leo Lynch – have left the business, while on a global level, CRN US reported this week that IBM was combining its hardware and software channels into a new global partner group.

Meanwhile, The Australian is reporting that IBM is set to cut up to 400 jobs in Australia.