News

Monday 19th May 2008 - IBM has appointed Ingram Micro to join Express Data as its broad-based distributor for all software brands –Information Management, Lotus, Rational, Tivoli and Websphere. Mid-market specialists, Ingram Micro, joins the IBM stable as part of a new go-to-market strategy by Software Group, which aims to drive brand awareness and achieve market penetration with small-medium enterprises (SMEs).

IBM will also be working with Cellnet, Datastor, Express Data and Ingram Micro to deliver volume licensing programmes which convey new ‘bundled’ hardware and software packages to customers, with specific focus around storage, databases and unified communications. This move aims to reduce the process elements in purchasing IBM products and will make it easier for partners to do business with IBM.

Furthermore, Datastor has also been appointed to provide broad-based distribution for the Tivoli brand of software which offers storage, security and automation capabilities in addition to bundled offerings. Datastor will specialise in offering end-to-end storage solutions, allowing partners to take dynamic and complete storage offerings to their customers.

Phill Patton, Software Group manager, IBM New Zealand says, "We have achieved double-digit growth in software sales for the past three years in New Zealand and by establishing this new distribution strategy we will more than double our distribution capability and increase our reach into new market territory to drive future sales".

Express Data, the incumbent, has worked successfully with IBM for many years in New Zealand. However the phenomenal growth of IBM's portfolio, which has seen the IBM Corporation acquire 52 software companies since 2000 and make investments of $10 billion in the last two years alone, has created a real need for additional New Zealand distributors.

"With a New Zealand market footprint of over 2000 business partners Express Data has a long history in enabling IBM reach organisations with its ever-increasing software portfolio," says Paul Plester general manager of sales and marketing at Express Data. "Our strengths as a value added distributor lie in our capability to provide service excellence and specialised expertise to our existing customers."

The enriched channel eco-system aims to increase profitability through the value chain by opening up opportunities for business partners to work with IBM distributors for bundled hardware and software. This move enables IBM to deliver holistic business solutions through the channel to meet the needs of New Zealand SMEs.

"The channel eco-system is our lifeblood," added Patton. "All IBM software brands are sold entirely through business partners in New Zealand. With Ingram Micro and Express Data boasting over 4000 business partners between them, and with the reach we have through our hardware distributors, I believe we will see an explosion of interest in IBM software in new segments of the New Zealand market".

Ingram Micro brings over 2000 business partners to the deal, says Scott Cowan. "We have also made significant investment inside the business by establishing four new positions to meet the anticipated market demand". Ingram has also made structural modifications to its existing team to meet the opportunities this distribution partnership creates. "It's certainly a very exciting time for our business and the market alike".

New channel programme
Along with the new distribution model IBM is completing a new channel programme that will provide the existing partner community with a range of tangible benefits. Alongside incentivised software sales and greater financial benefits, the new approach will reduce complexity and create an environment where IBM is easier to do business with. This streamlined approach will enable the partners to put more focus on sales and customer service while enabling IBM to build its brand and reputation in the mid-market through leveraged channels and engagement with industry associations and influencers.

Milestones & Next Steps
Following the extensive and detailed consultation process that IBM undertook with its business partners throughout Q108, an RFP was issued to seven distributors who submitted proposals on 26th March. This culminated in the retention of the incumbent Express Data and the selection of additional distribution partners who will sign with IBM on 1st June.

All IBM distributors are chosen in accordance to strict criteria with regards to their business and customer service capabilities and market breadth.

"The establishment of this new agile channel eco-system meets the wide-ranging needs of the current market players. I believe these changes will make a real difference to the way our partners do business with us," added Patton. "This in turn will create greater market penetration and heightened brand awareness for IBM software in the New Zealand market".

Ends.

For media assistance, please contact:
Photography and media interviews are available on request.

Jacquelene Hopwell, Communications Specialist, IBM New Zealand
Phone (09) 359 8708 or (021) 288 5826
Email: jhopwell@nz1.ibm.com