Full text of Sandy Carter's email to channel partners
No doubt this will be a small comfort to Oracle CEO Larry Ellison
and friends, but IBM's doubling of money paid to partners for
displacing Oracle products is not about just swapping competitive
products, says Sandy Carter, vice president, IBM Software Group
"This is more about delivering more value to the client," she told Channel Insider.
Apparently crushing Oracle would just be an added bonus.
On April 13 Carter will be sending out an email to 100,000 partners announcing IBM's new Competitive Business Partner Sales Plays and a first-ever Software Value Incentive (SVI) Competitive Incentive to help partners grow skills, increase profits and win more business.
Click here to see the full text of Carter's email.
Partners who submit qualifying SVI competitive displacement opportunities in the areas of database management, application infrastructure and middleware, portal and security offerings, will gain access to an additional set of competitive sales and marketing enablement resources.
"We've done all the homework for them," says Carter. Deliverables include deep dives on cost savings, performance comparisons as well as helping with migration and migration tools. The idea is about changing the conversation from feeds and speeds to business outcomes, she says.
Big Blue, which reports it's already providing its software partners with more profit than anybody else, will provide SVI enrollees with up to double the standard fees – 8 to 40 percent cash bonus (up from 3 to 20 percent) -- for eligible competitive displacement opportunities. Carter adds that the deal involves only Oracle and its acquisitions, including Sun, JD Edwards and BEA, but other vendors will be added.
"It's not just to get more sales. We really focus on client value… and not just swapping for swapping sake," she said
Earlier this year IBM announced the results of a Global Business Partner Profitability Survey of more than 800 partners, including those from IBM, Oracle, HP and Sun, conducted by Ronin Corp. According to the survey, 60 percent of IBM's top-tier software partners said they see more revenue in the form of hardware, software, and services when selling IBM software as compared to revenue generated by other vendors' top-tier partners. IBM partners had 36 percent more gross profit for middleware deals than competition, says Carter, and the costs to partner with IBM are lower too.
Training and certification initiatives like 'You Pass, We Pay' means the money stays in partners' pockets, she says. And unlike some other vendors, IBM partners can sell both new licenses as well as renewals.
"We really put our money where our mouth is." The customers benefit with better outcomes, and the partners benefit with more money, Carter says.
Carter says there has been a constant dialogue with partners about concerns with Oracle, and not just about Sun. She believes the market is at an inflection point as partners try and decide which vendor they want to lead with.
"So many of them are questioning other vendors. I saw this huge hole and we're just going to drive a truck through," Carter says
IBM has been throwing a lot of resources, not just money, at the channel, says Carter. In recent weeks and months the company has begun passing on midmarket sales leads valued below $50,000; delivering new cloud computing certification; and providing direct access to more than 130 industry training sessions online and in local markets globally.
Carter says another recent study shows that two-thirds of customers now value industry expertise as much as technical expertise.
"Partners have to expand out beyond just the technology and really understand the industries."
At the end of the day, it's all about delivering more value to the client, she says.
"And what better way to get this message out than to leverage our partners."
The following is the complete contents of Sandy's email:
Up to 2X SVI Competitive Incentive and Sales Plays to Help You Win More Business!
I am excited to share some great news that may help you make money in the face of our competition!
I truly believe that now is the best time to be an IBM Software Business Partner. IBM offers software and solutions for a Smarter Planet that are clearly more complete, more integrated, more optimized, and more cost effective than the competition.
IBM Software is introducing new Competitive Business Partner Sales Plays and a first-ever Software Value Incentive (SVI) Competitive Incentive to help you grow skills, increase profits and win more business.
Here are new resources ready for you today:
1. IBM Software Competitive Business Partner Sales Plays
New competitive sales plays are now available with the resources you need to win with IBM Software in the areas of Database Management, Application Infrastructure & Middleware, Portal and Security offerings.
Business Partners who submit qualifying SVI competitive displacement opportunities will gain access to an additional set of competitive sales and marketing enablement resources.
2. Up to Double (2X) SVI Competitive Incentive
IBM Business Partners already make more profit with IBM Software than leading competitors according to our recent Business Partner Profitability Study. Now we are offering an exciting first-ever, incremental SVI Competitive Incentive to help you.
Business Partners enrolled in SVI can earn up to double the standard SVI fees for eligible competitive displacement opportunities subject to the terms and conditions for Business Partners to qualify.
Availability may vary by country.
Finally, I invite you to mark your calendar for our April 29 IBM Software Think!Thursday. Hear how you can leverage SVI with these Competitive Sales Plays designed to help you win more business with IBM Software!
Vice President, IBM Software Group Business Partners