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IBM this week quietly announced it'll quickly require companions meet extra stringent certification requirements to resell a few products in its utility community.
The stream comes because of customers demand of bigger skill ranges from solution suppliers providing options around big Blue’s Websphere, Tivoli, Rational database and Lotus choices, among others, says Shaun Jones, vice chairman of IBM’s global Channels and familiar business advertising.
"in the past, any IBM solution provider could resell software offerings, we’ll now base companions’ skill to sell some options on extra stringent qualification criteria," he says.
As clients discover IT budgets slashed, software tasks develop into tougher to justify and sales appointments are greater complicated to comfy. Jones says partners with the optimum diploma of certification, education and proven expertise are doing premier out there at the moment, and the stricter certification requirements will help those partners extra differentiate themselves from their competition.
companions could be required to dangle IBM technical certifications, show earnings mastery and file distinct product plans with IBM, Jones says. with the aid of gratifying these standards, partners will additional hone their capabilities on items and services they’re most knowledgeable at, qualify for better levels of dealer incentives and advertising guide and in consequence, receive higher margins.
For ISVs and customized application developer partners that peculiarly goal the SMB and midmarket, there's a further course to satisfy IBM’s stricter criteria, says Jones. answer suppliers who carry customized purposes constructed on proper of IBM middleware can use these functions to reveal mastery and income success of their answer and the underlying IBM application, and may then meet the new requirements.
"companions that create solutions that sit down on properly of our middleware – CRM, ERP, as an example – they necessarily should have in-depth competencies of the software their options are constructed upon," says Jones. "if they can exhibit IBM what they’ve constructed and that they’ve had a successful promoting record, we analyze these components and will qualify them on that solution," he says.
Dave Kemper, managing associate at IBM solution provider Dataskill, says he believes the new necessities will aid drive new enterprise and also boost opportunities with latest valued clientele.
"this is an opportunity to evangelize on present applied sciences we already present, however also makes it possible for us to ramp up in technology areas where we haven’t been as strong during the past," Kemper says. The benefit for Dataskill’s shoppers is the assurance that their answer company holds the highest set of potential and may opt for and correctly enforce the appropriate expertise to solve their enterprise needs.
"There’s a much better diploma of assurance for purchasers that the correct solution and implementation paths are chosen, and that their investment can pay more advantageous dividends rather than becoming 'shelfware,’" Kemper says.
Kemper says the new necessities will aid to weed out answer providers who can also have received business from valued clientele based mostly fully on fee instead of capabilities, and should enable Dataskill to win extra valued clientele and enforce extra finished options.
"We hope that those partners who’ve handled IBM application as a commodity product can be eradicated from the market," he says. "We then can hope to power additional value for customers, so as to carry better margins based on more solution sales and more comprehensive options," Kemper says.
Jones says after consulting with companions throughout IBM’s application group, he feels the approach could be relatively simple for these companions who’ve already validated a high degree of dedication to IBM and solutions in accordance with its utility.
even though the circulate turned into announced the day before today, the alterations will no longer take effect unless October 2009, giving partners about seven months to make alterations and examine their company models, he says.
"For those companions who’ve already had first rate success with us, this aren't a large inhibitor for them to proceed doing enterprise with us," he says. For different companions, the new necessities will push them to consider their answer offerings and make a stronger dedication to increase their expertise and skills according to their company fashions and how ecocnomic providers’ solutions are for them.
"We’re giving partners a seven-month chance to consider their commitment and their readiness, and we will continue to work with partners to find where there are gaps of their ability sets that will work more durable on filling those gaps," Jones says.
partners who want to strengthen their commitment to IBM can take skills of IBM’s current income and technical practising and certifications, says Jones. With the assessments and methods already in vicinity, the onus is on companions to make a decision how they will proceed.
Jones says IBM will continue to present working towards and certification at a local stage, in addition to at countrywide and international companion conferences. He cites fresh Tivoli- and Lotus-focused movements at which IBM provided the certification exams freed from cost, and provides that IBM is already seeing calendars refill as partners stream to gain practicing and schooling.
Jones says the fruits might be accelerated revenues and gains for each IBM and its most committed answer providers.
"We’re not attempting to penalize any individual; we consider this could help all boats to rise, including ours," he says.
however some be concerned whether they might be in a position to meet the brand new technical and income certification necessities IBM would require for all application resellers starting in October. and some quantity resellers that provide little within the way of price-add capabilities may be in for main issue.
"We're very bullish on this whole element. in the short term, it be going to be lots of work. but in the long term or not it's going to support us," observed Toby Banks, application income director at Toronto-primarily based Softchoice Optimus options. whereas he turned into confident his enterprise could meet the certification necessities for nearly the entire IBM utility products Softchoice Optimus consists of, he brought: "We're not at one hundred percent and i have no idea if we're going to get to 100%."
final month, IBM advised the about one hundred,000 answer suppliers that promote IBM software that it is switching from an uncontrolled distribution plan, beneath which solution providers were free to resell the business's software products after doing little more than registering as an IBM companion, to a controlled distribution plan with new certification requirements.
The trade applies throughout all of IBM's application product traces, including WebSphere, Tivoli, assistance administration, Lotus and Rational software. IBM channel executives said the "growth through skills" initiative, referred to as "Tuscany" while the software changed into under building, is designed to ensure that channel partners have the capabilities so as to add price to the software they're selling customers and aren't comfortably moving products.
"i am definitely rather encouraged by it," spoke of Stan Duda, government vp of income and marketing at Alpine Consulting, a Schaumburg, sick.-primarily based answer issuer. "We're increasingly working into the problem of preserving the margin in a deal," he stated, noting competitors from budget friendly resellers.
"This definitely is the place IBM would like its companions to go. It keeps out the riffraff and the americans who don't have in mind the solutions," Duda referred to. bad implementations of IBM utility and disenchanted purchasers harm all answer suppliers in that market, he introduced. "This affords us greater margin ultimately."
"We view it as a chance," Dave Kemper, a managing companion at Dataskill, a San Diego-primarily based answer provider, noted at the time of the IBM announcement. "again and again companions promote [IBM software] as a commodity or don't suggest the appropriate application. This application will be sure that the correct expertise are used within the sales method and on the technical side to be sure an answer is deployed appropriately."
One companion who requested now not to be recognized, youngsters, mentioned he has obtained calls from several different resellers who're apprehensive about assembly the certification necessities. "there may be a lot of people freaking out about it," the govt mentioned. The alternate also could lead to lowered revenue of IBM utility overall when the certification requirements kick in and push some expertise shoppers to competing items.
Duda mentioned the new distribution restrictions may also dispose of cases the place a solution issuer stumbles across a income probability outdoor of their core enterprise. devoid of the necessary certification, they may not be in a position to close such offers.
Banks pointed out the brand new distribution plan might have the most impact on volume resellers, akin to software apartment overseas and Dell's ASAP application subsidiary, that give few implementation services. "This allows businesses like us to compete more fairly against utility homes that have been competing against us on a extremely, very cutthroat percentage," he stated.
below the brand new plan IBM created 14 classes of utility items in which solution providers should have at the least two technical employees licensed by means of IBM to work with those items and at the least one income representative that has passed IBM's "sales mastery" look at various for those products. IBM software resellers are now evaluating what capabilities they have got in-apartment to meet these necessities and where they want extra practising.
Dataskill sells utility from 10 of the 14 product corporations and on the time of IBM's announcement Kemper pointed out the answer company already met the certification necessities for 5 of these groups. The business is making plans to educate employees and rent talents from outdoor -- increasing headcount in technical areas with the aid of 30 % and in revenue by as a lot as 50 percent.
Banks talked about Softchoice Optimus already has some 60 to 70 licensed employees overlaying about ninety eight percent of the company's IBM utility-related business. He stated there's one product area the business is at "medium-risk" of no longer assembly the certification requirements and one at "excessive-chance." because the business is primarily based in Toronto, Banks pointed out it has to get certifications in both the U.S. and Canada. "For me, that's very high priced."
a couple of IBM application resellers also raised concerns about the can charge of the working towards companions need to get certified. IBM did not announce a formal software to cover those expenses, but on the time of the announcement, Salvatore Patalano, vp of enterprise companion program earnings in the IBM software neighborhood, hinted the business can be aiding partners with training costs. "You move, we pay," he noted at one point throughout an interview.
Banks mentioned IBM has been offering coupon codes for some practising, similar to for Tivoli-related courses at last month's Pulse conference in Las Vegas, and vouchers to cover charges for certification checks.
SAN FRANCISCO (MarketWatch) — overseas company Machines Corp.’s quarterly income climbed 10%, as groups validated mighty demand for the company’s desktop hardware, the know-how significant stated Tuesday.
Armonk, N.Y.-primarily based IBM IBM, +0.40% observed its fourth-quarter profit rose to $5.three billion, or $four.18 a share, in comparison to $4.eight billion, or $three.fifty nine a share within the same duration a 12 months earlier. salary rose 7% to $29 billion.
Analysts had estimated IBM would earn $4.08 a share, and $28.2 billion in revenue, based on FactSet research’s survey.
“We simply delivered an outstanding quarter to cap off a good yr,” IBM Chief economic Officer Mark Loughridge mentioned throughout a conference call with analysts.
Loughridge said the quarter changed into the 32nd in a row to mirror profits increase for the enterprise.
Shares of IBM rose nearly three% to $154.91 in after-hours buying and selling, following the announcement.
IBM talked about income of its device Z mainframe computers rose sixty nine% within the quarter. universal, earnings of hardware, including the business’s mainframes, rose 21% to $6.3 billion.
IBM refreshed its line of equipment Z mainframes in September of ultimate year.
application sales rose 7% in comparison with the corresponding duration ultimate 12 months, to $7 billion, IBM observed. The company’s WebSphere, Tivoli and Rational software traces all posted double-digit percent positive aspects in income in the quarter.
Loughridge talked about the universal enhance in software sales within the fourth quarter become double boom cost posted in the first three quarters of 2010.
huge Blue’s global tech-capabilities revenue rose 1% to $10.2 billion within the quarter, while outsourcing signings rose 24% to $14.1 billion, the enterprise said.
leading as much as the quarterly report, some analysts had raised considerations in regards to the impact of increasing competitors on IBM’s outsourcing business.
Loughridge referred to the number of outsourcing signings within the quarter turned into double the number posted within the prior period, reflecting “a superb instance of volatility” out there.
For 2010 as ages, Loughridge pointed out IBM purchased 17 corporations, generated over $16 billion in cash, and returned over $18 billion to shareholders in repurchases and dividends.
trying to 2011 consequences, IBM talked about it expects annual income of “at least” $12.fifty six a share.
Analysts polled through FactSet have estimated the company will earn $12.63 a share in 2011.
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But some worry whether they will be able to meet the new technical and sales certification requirements IBM will require for all software resellers starting in October. And some volume resellers that provide little in the way of value-add services could be in for trouble.
"We're very bullish on this whole thing. In the short term, it's going to be a lot of work. But in the long term it's going to help us," said Toby Banks, software sales director at Toronto-based Softchoice Optimus Solutions. While he was confident his company could meet the certification requirements for almost all the IBM software products Softchoice Optimus carries, he added: "We're not at 100 percent and I don't know if we're going to get to 100 percent."
Last month, IBM informed the approximately 100,000 solution providers that sell IBM software that it is switching from an uncontrolled distribution plan, under which solution providers were free to resell the company's software products after doing little more than registering as an IBM partner, to a controlled distribution plan with new certification requirements.
The change applies across all of IBM's software product lines, including WebSphere, Tivoli, Information Management, Lotus and Rational software. IBM channel executives said the "Growth Through Skills" initiative, known as "Tuscany" while the program was under development, is designed to ensure that channel partners have the skills to add value to the software they are selling customers and are not simply moving products.
"I'm actually rather encouraged by it," said Stan Duda, executive vice president of sales and marketing at Alpine Consulting, a Schaumburg, Ill.-based solution provider. "We're increasingly running into the issue of keeping the margin in a deal," he said, noting competition from low-cost resellers.
"This really is where IBM would like its partners to go. It keeps out the riffraff and the people who don't understand the solutions," Duda said. Poor implementations of IBM software and dissatisfied customers hurt all solution providers in that market, he added. "This affords us more margin in the long run."
"We view it as an opportunity," Dave Kemper, a managing partner at Dataskill, a San Diego-based solution provider, said at the time of the IBM announcement. "Many times partners sell [IBM software] as a commodity or don't recommend the right software. This program will ensure that the right skills are used in the sales process and on the technical side to make sure a solution is deployed properly."
One partner who asked not to be identified, however, said he has received calls from several other resellers who are nervous about meeting the certification requirements. "There's a lot of people freaking out about it," the executive said. The change also could lead to decreased sales of IBM software overall when the certification requirements kick in and push some potential customers to competing products.
Duda said the new distribution restrictions could also eliminate situations where a solution provider stumbles across a sales opportunity outside of their core business. Without the needed certification, they won't be able to close such deals.
Banks said the new distribution plan could have the most impact on volume resellers, such as Software House International and Dell's ASAP Software subsidiary, that provide few implementation services. "This allows organizations like us to compete more fairly against software houses that have been competing against us on a very, very cutthroat percentage," he said.
Under the new plan IBM created 14 categories of software products in which solution providers must have at least two technical employees certified by IBM to work with those products and at least one sales representative that has passed IBM's "sales mastery" test for those products. IBM software resellers are now evaluating what skills they have in-house to meet those requirements and where they need additional training.
Dataskill sells software from 10 of the 14 product groups and at the time of IBM's announcement Kemper said the solution provider already met the certification requirements for five of those groups. The company is making plans to train employees and hire expertise from outside -- increasing headcount in technical areas by 30 percent and in sales by as much as 50 percent.
Banks said Softchoice Optimus already has some 60 to 70 certified employees covering about 98 percent of the company's IBM software-related business. He said there's one product area the company is at "medium-risk" of not meeting the certification requirements and one at "high-risk." Because the company is based in Toronto, Banks said it has to get certifications in both the U.S. and Canada. "For me, that's very expensive."
Several IBM software resellers also raised concerns about the cost of the training partners need to get certified. IBM didn't announce a formal program to cover those costs, but at the time of the announcement, Salvatore Patalano, vice president of business partner program sales in the IBM Software Group, hinted the company would be assisting partners with training expenses. "You pass, we pay," he said at one point during an interview.
Banks said IBM has been offering discounts for some training, such as for Tivoli-related classes at last month's Pulse conference in Las Vegas, and vouchers to cover fees for certification tests.
Product: WebSphere Studio Application Develop V5Manufacturer: IBMURL: ibm.com/websphere
WebSphere Studio Application Developer, version 5, is a build to integrate, value-priced solution that allows businesses to accelerate development and integration of complex applications. It optimizes and simplifies J2EE application development with best practices, templates, code generation and leads with the most comprehensive development environment in its class.
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WebSphere Studio Application Developer is IBM's core application development environment for the creation and maintenance of J2EE applications and Web Services. Based upon the latest innovations from Eclipse technology and written to Java? 2 Platform, Enterprise Edition (J2EE) specifications, Application Developer extends the open universal Eclipse Platform to help you:
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IBM WebSphere Studio Product Family
WebSphere Studio Application Developer is a member of the award-winning WebSphere Studio product family. In addition to WebSphere Studio Application Developer, IBM also offers WebSphere Studio Site Developer and WebSphere Studio Application Developer Integration Edition on Linux for your development needs.
Similar to its sister product and now available for Linux, WebSphere Studio Site Developer includes integrated support for Java, Web, database, XML, and Web Services development. This is a feature-rich and high value on-ramp for the WebSphere development experience. This product is most suitable for developers who need to build, test and maintain dynamic Web sites, but do not need to create EJBs. With Site Developer you can build robust Java applications, attractive Web interfaces and integrate your business applications with Web Services easier than ever before with support for XHTML, JDK 1.3, JSP 1.2, Servlet 2.3 and improved Web Services samples.
Site Developer has been designed to allow developers to quickly and easily build and test applications with built-in debuggers, a unit test environment with concurrent support for WebSphere Application Server V4.x, V5.0 or WebSphere Application Server-Express V5.0, codecompletion, samples and templates, tag libraries, a visual editor for Java and a an editor to map out and visually construct Web based applications using the same Struts-based Model View-Controller framework that is included in IBM WebSphere Studio Application Developer product.
WebSphere Studio Application Developer Integration Edition (now available on Linux) is the perfect companion for creating built-to-integrate solutions. It includes all the features in WebSphere Studio Application Developer, and functions like flow choreography, JCA support, and others to help you deal with complex development challenges.
Business logic and application data are scattered throughout the organization across multiple software assets. Much of the business logic resides in databases, packaged applications (such as Enterprise Resource Planning (ERP) systems), or in back-end systems (such as IBM CICS®) offering varying levels of transaction support. Other business logic can be found in existing Java and J2EE applications and Web services. Furthermore, companies face constant pressure to create new applications in order to cut costs, build customer loyalties, and gain a competitive advantage.
WebSphere Studio Application Developer Integration Edition can help companies to reduce IT complexity, reuse existing resources, and automate business processes through a powerful but simplified build-to-integrate framework.
Service-oriented architecture reduces the complexity of large-scale application development and promotes reuse by offering a standard way of representing and interacting with virtually all software assets.
Integrated workflow increases development productivity and promotes reuse by enabling developers to visually choreograph interactions between software assets.
Advanced transactional connectivity capabilities help developers avoid custom coding by providing extended transactional support for the many challenges related to integrating existing software assets with a J2EE environment.
For the first time, developers will be able to create fully automated Web services-based workflows -- the series of business processes needed to complete a transaction -- from virtually any software asset. Using a simple graphical interface, developers can transform any asset managed by WebSphere into a Web service and compose it into a fully automated transactional workflow. Companies can take a string of transactions -- such as checking the status of credit, inventory and shipping when processing an order -- and compose them as a Web service workflow and extend it to outside partners and vendors in a secure and managed environment. If any one phase of the transaction, such as the credit check, falls through, the entire workflow is automatically adjusted.
About IBM's WebSphere Software
WebSphere is the market-leading Internet infrastructure software, or middleware, for creating, running and integrating e-business applications across a variety of computing platforms. Built on open standards such as Java 2 Platform, Enterprise Edition (J2EE), XML and the new Web services standards, and endowed with IBM's core strengths of reliability, scalability and security, WebSphere server software and development tools are used by tens of thousands of customers and have shown 12 consecutive quarters of double-digit sales growth. For more information visit ibm.com/websphere.
For more information on Studio products, please visit us at ibm.com/websphere/studio.
Miscellaneous SoftwarePress Release Summary:
TestMQ module makes use of IBM's Crossing Point APIs to enable TestBench to track, capture, and analyze MQ messages that are sent and received by iSeries-based application programs. It also enables TestBench to automatically track, test, check, and verify all server processes, data extraction and maintenance, central script and results storage, as well as thorough testing of PC processes. Module is compatible with Websphere MQ v5.3.Original Press Release: Original Software/Rochester collaboration results in new TestMQ module Original Software, the world's leading provider of testing solutions for the IBM iSeries, has announced the release of TestMQ, a new module in its flagship product TestBench for iSeries. The new module boasts support for IBM WebSphere MQ (formerly MQ Series) that has been the result of a five-month collaboration between product developers at Original Software andtechnical staff at IBM's Rochester headquarters.
TestBench for iSeries is already the most powerful and widely used automated testing solution available for the IBM iSeries, capturing and tracking all PC and server activity related to an application under test. The technical collaboration between IBM Rochester and Original Software has resulted in the TestMQ module. TestMQ makes innovative use of IBM's Crossing Point APIsto enable TestBench to track, capture and analyze MQ messages that are sent and received by iSeries-based application programs.
WebSphere MQ enables applications on multiple platforms to send and receive messages via an MQ data queue - as long as one of the applications is on a platform compatible with WebSphere MQ (there are over 35 of them, including all IBM and Microsoft platforms). TestMQ uses API exits to capture and analyze the content and data of MQ messages as they are sent to or fromMQ-enabled applications on the iSeries.
Support for WebSphere MQ in TestMQ enables TestBench to build an even more detailed picture of an iSeries application under test. This includes complete and automated tracking, testing, checking and verification of all server processes, plus data extraction and maintenance, environment protection, central script and results storage and much more - as well as thorough testing of the PC processes.
Doug Fulmer, World Wide Sales Executive for e-business Infrastructure for IBM's iSeries Division, welcomed the collaboration with Original Software that enabled this to happen. "IBM is delighted that Original Software has shown their support for WebSphere MQ," he commented. "They have underlinedthe way in which this technology is being embraced in the IBM user community. Original Software has worked with Rochester to develop a new use of IBM's new Crossing Point APIs to track and analyze all significant MQ events. This clearly demonstrates how partners can use IBM technology in highly innovative ways to satisfy user requirements and create opportunities for themselves in the process. It also serves as an example of Original Software's inventiveness and skills in the field of total testing."
Colin Armitage, CEO of Original Software adds: "WebSphere MQ is being rapidly adopted by the larger iSeries organizations across the world. It was clear that support for the technology in TestBench would be essential to maintain and enhance the product's competitive edge. The successful collaboration between Original Software and IBM that has resulted in TestMQ demonstrates once again our resourcefulness and commitment to developing our position at the absolute cutting edge of iSeries testing technology."
TestMQ is available immediately from Original Software, as a separately chargeable TestBench module. Users will need WebSphere MQ Version 5.3 to access the new TestBench features.
TestBench for iSeries is established as the world's leading automated test solution for the IBM iSeries. The product supports intelligent data extraction, automated test case preparation, record/playback capabilities for any iSeries-based application, establishment of a library of reusable test cases, data protection, data rules definition, file compare, full reporting facilities and audit-ready reporting. More information can be found on our website: www.origsoft.com.
About Original Software
Headquartered in the United Kingdom, The Original Software Group was founded in 1997 to develop, market and support a range of productivity solutions, initially for the IBM iSeries (AS/400) platform. OSG has over 250 customers in 20 countries worldwide.The company sells direct worldwide but has also forged a number of distribution agreements in Europe and North America.
Burberry, DHL, HMV, HSBC, Johnson & Johnson, Nike and Sony are among the companies to benefit from Original Software's approach to iSeries software testing. Original Software is an IBM Developer Business Partner. Test us out now at www.origsoft.com.Related Thomas Industry Update
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