IBM appoints NEXTGEN and Arrow Electronics as distributors

[This story has been updated with comments from Tech Data.]

IBM Australia has added CRN Impact Awards winner NEXTGEN Group and Arrow Electronics to its stable of value-added distributors, while also expanding its distribution footprint with Melbourne’s Meier Business Systems.

NEXTGEN and Arrow will work across IBM’s software, hardware, technology lifecycles services and cloud products.

They will also work towards converting their existing partner base to IBM and recruiting new partners.

Meier Business Systems will now handle IBM hardware and technology lifecycle services in addition to its current software offering.

The announcement means IBM partners now have a choice of four distributors in Australia, including long-time IBM distributor Tech Data Australia.

"We have been watching IBM transform"

NEXTGEN noted IBM’s “increasingly ecosystem-first” go to market strategy in Australia.

“We have been watching IBM transform and modernise their technology and channel model over the past few years, especially under Arvind Krishna,” stated NEXTGEN Group CEO John Walters in an announcement.

“Their more recent technology acquisitions and their channel first strategy fit neatly into NEXTGEN’s GTM and can be enhanced by our channel services model. We recognise that IBM has a unique value proposition and level of market maturity.”

In May this year, IBM Chairman and CEO Arvind Krishna said “revenue associated with the ecosystem” had increased from 15 percent to about 40 percent. He talked up the goal of increasing that to 80 percent.

Speaking to CRN Australia, Walters added, “I’m very excited about where they’re going, their go to market, their acquisition strategy and their technology suite.”

“When I went to RSA in April, they had the biggest stand. When I went to the AWS summit in New York last month, the IBM stand was the biggest stand as far as their Gen AI Watson and security portfolio.”

NEXTGEN has been interested in working with IBM for many years, stated NEXTGEN Australia MD Gavin Lawless.

“There are a number of us at NEXTGEN who have worked closely with IBM in the past and we have seen their transformation as they have sold off the legacy parts of their business and acquired game changing technology,” Lawless commented.

“IBM’s pivot to areas like Data, AI, Automation and Security are very aligned to where we are going and we are very confident in the role we will play in helping partners along this transformational journey.”

NEXTGEN’s work with IBM will involve use of its integrated marketing and sales platform and services (which it brands “NEXTGEN AO”) designed to deliver multi-channel outreach programs targeting target end users. This includes the NEXTGEN oSpace platform, which recently won the Emerging Innovator category in the 2023 CRN Impact Awards.

The pitch is that data, AI and NEXTGEN’s proprietary platform will help partners without the inhouse resources or digital marketing skills to acquire new clients at scale.

Arrow to guide partners

Paul Marnane, Arrow's general manager of enterprise computing solutions for Australia and New Zealand, said channel partners can lean on its local team to leverage global best practice to build their IBM practice.
 
“Leveraging our growth framework, Arrow will guide channel partners on their journey from strategic alignment, capacity development, go-to-market readiness, client engagement and ultimately, scaling their IBM business," Marnane said.

“Arrow and NEXTGEN each bring a wealth of experience and expertise that will expand the IBM Ecosystem and help new partners gain the benefits of delivering IBM technology to their clients,” said Elisa Kelsall, IBM’s general manager of ecosystems and alliances.

Tech Data reiterates pride in IBM partnership

Tech Data touted the size and experience of its IBM team in the channel. The distributor's vice president & country general manager ANZ, Andy Berry, flagging the company’s long history with IBM.

“With a quarter-century of partnership with IBM in Australia across the full portfolio, Tech Data is proud to continue supporting our partners as they scale their businesses and innovate,” Berry stated.

“Our partners tap into our expertise and deep knowledge of the IBM ecosystem and products, empowering them to deliver exceptional value and outcomes to their customers.”

Berry talked up Tech Data’s Centre of Excellence for IBM, which provides technical support and resources for POC and demos, enabling partners to bring to market exclusive cross-vendor IBM solutions unique to the APAC region.

Tech Data’s Centre of Excellence provides “exclusive access to tools, resources and strategic guidance, enabling them to build and accelerate their practice in the areas of solutions enablement, certification, and deployment,” Berry said.

Tech Data was focused on growing the IBM business through “continued investment and expansion in high-growth technologies, which include data and AI, automation, and security,” a Tech Data statement read.