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Enterprise App Vendors Tapping ISVs to Reach SMBs

Large software companies are rolling out targeted programs to help their reseller channels drive more revenue through the lucrative small and midsize business market and lessen the impact of economic turmoil. Leveraging the ISV channel to tap into an SMB market isn’t a new strategy, as evidenced by the number of ISV-focused support programs unveiled […]

Written By

Sharon Linsenbach

Nov 4, 2008

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Large software companies are rolling out targeted programs to help their
reseller channels drive more revenue through the lucrative small and midsize
business market and lessen the impact of economic turmoil.

Leveraging the ISV channel to tap into an
SMB market isn’t a new strategy, as evidenced by the number of ISV-focused
support programs unveiled by large software companies such as IBM, Oracle and SAP over the last few years. But
the strategy is beginning to pay dividends, as the channel’s importance has
been brought into stark relief by the economy putting a damper on large
enterprise IT spending.

IBM has been pursuing such a strategy for
about four years now, says Chris Wong, vice president of IBM
ISV and developer relations.

"Focusing on end customers with 500 employees or less didn’t make much
sense, because our DNA is built on large
enterprise customers," Wong says. Redirecting energy and resources toward
programs like IBM Express Advantage, which
gives partners turnkey, quick-to-deploy customer solutions targeted to vertical
markets to help shorten sales cycles and drive new revenue, has created
incredible opportunities for ISV partners
and also eliminated channel conflict, he says.

The strategy results in a mutually beneficial relationship, in which each
party plays to its strengths, Wong says.

"We realize that while these ISVs are incredibly skilled at the
technical aspects of developing, integrating and implementing solutions, they’re
not well-versed at business development, finding sales opportunities, marketing
and closing deals," he says.

Wong says while IBM’s channel relies on IBM
for back-end business development, marketing and sales support, and product
information and training, it’s certainly not a one-way street.

"We are incredibly reliant on our ISV
channel since we aren’t in the business of CRM
or ERP. Our strategy says we’re depending on our partners, [and] investing in
them means investing in IBM," Wong
says.

SAP’s strategy focuses not on customers
of a particular size, but on time to market and helping partners increase
customers’ efficiency, says Jeff Stiles, SAP’s
senior vice president of SME solution marketing.

SAP’s Best-Run Now initiative, launched
Oct. 29, looks across market segments and routes to market to help partners
deliver software and services packages that increase customer efficiency and
shorten sales cycles, Stiles says.

"We’re working with partners to help make it easier for them for them
to sell and make our solutions faster for them to implement," Stiles says.
Companies of all sizes are facing slowing sales, credit limits and increasing
costs and are looking for ways to increase visibility into their cash flow and
liquidity, make efficient work force shifts, more rapidly access critical
performance data, and streamline supply chains, he says.

Enterprise App Vendors Tapping ISVs to Reach SMBs

Sharon Linsenbach

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