Big Blue battles Dell, HP on price

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IBM in the US is targeting Dell and HP with a price-competitive SystemSeller program aimed at partners selling servers and storage to midmarket customers.

The program, unveiled last week at PartnerWorld, aims to provide IBM partners with more aggressively-priced, preconfigured eServer and TotalStorage offerings for the midmarket.

The program would launch 1 April with 20 to 30 models including xSeries servers and Blade Center models, OpenPower Linux systems and TotalStorage disk and tape products, said IBM executives.

IBM also planned to offer IBM Global Financing initiatives under the program.

"Like for like product, we will be priced very aggressively against all our competitors, including Dell and HP," said Frank Vitagliano, vice-president of worldwide distribution channels at IBM.

Elaine Lennox, vice-president of SMBs for IBM's systems and technology group, said IBM would be monitoring prices every week to keep tabs on its rivals.

IBM planned to back up the program with US$100 million to spur partner sales of SystemSeller models.

Also, IBM would add about 70 channel reps to work with partners to drive sales of  selected servers and storage products.

Distribution executives and IBM partners hoped the SystemSeller initiative would help them win more deals against Dell.

John Paget, chief operating officer of IBM distributor Synnex, said bringing a set of a few industry-standard SKUs to market made a lot of sense for manufacturers, resellers and distribution.

"The success of the program, however, is going to depend on how well the preconfigured products meet customer requirements," he said.

Leonard DiCostanzo, group vice-president of US partner ICP, said he would tighten his partnership with IBM in the wake of the SystemSeller initiative. "This is a quick way to get a solution that fits a market opportunity," he said.

 

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