IBMs iSeries Resellers: Overhauling The Rules

    January 30, 2006

IBM put forth new terms and conditions regarding its iSeries resellers in an effort to bolster that avenue of VAR in what many suggest may be a plan for future channel programs.

The program is designed to allow IBM’s resellers to increase their margins on certain deals. The new rules will kick in during the first quarter of this year.

In an article by VNUNet Steve Gibbs, the UK iSeries channel manager at IBM told CRN “We realized that we were losing partners because we weren’t investing in the channel. So we began working on this program two years ago to bring all our different programs under one umbrella that partners can understand.”

Gibbs went on to say the new program, Opportunity Advantage, is IBM’s latest attempt to improve the retained margin channel. He said under the new changes, the base discount has been bought down and the resellers have to “register deals and the value around each deal.”

“This means that VARs who add more value will be adding more margin. Resellers can stack up margin according to how much value they stack up.”

The move overall is a strong one for IBM in favor of their iSeries resellers. This will help those on the value side really improve their own profits and for IBM, it strengthens their networks for moving their own products.

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John Stith is a staff writer for WebProNews covering technology and business.