IBM to roll out SMB initiative

IBM to roll out SMB initiative

Trying to dig its foothold in the growing SMB (small and midsize business) market a little deeper, IBM is expected to roll out a new program to aggressively recruit developers that can deliver applications to that market more quickly.

The company's ISV Advantage Initiative will see IBM forging relationships with key developers that will create applications and solutions for IBM's more popular hardware platforms, including the xSeries and pSeries, and the Express versions of its server-based applications such as DB2 and WebSphere.

"The focus here is to create a broader ecosystem of partners made up of ISVs that will be focused on the application needs of SMBs," a source said. "IBM will give these developers access to whatever technical resources they need to get it done."

The new initiative picks up where IBM's "alliance lites" program dropped off a few years ago, according to one industry observer. Then, the company attempted to create partnerships with smaller vendors going after vertical or certain geographic markets. This latest attemp,t however, "appears to have more structure around it," according to one source.

"The logical path for IBM [with this program] to take here is to become a conduit that connects these ISVs to all of its own major divisions, which should give them an advantage over Microsoft's efforts, particularly among madcap companies," another source said.

One of the key partners IBM is hotly pursuing and is close to signing on is Intuit, the maker of Quick Books - a leading accounting package designed for SMBs. Intuit could serve as an attractive poster child for IBM's SMB campaign against Microsoft as both companies clash in the middle of what is arguably the industry's fastest growing market.

"I think IBM will be making a point that instead of trying to buy its competition [referring to Microsoft's attempt to acquire Intuit a few years ago], or compete against them it would rather work with them," said an industry observer who wished to remain anonymous.

The decision to begin partnering with smaller and more specialized ISVs goes back to IBM's decision made in 1999 to not be a direct participant in the lower end of the applications market. Some believe it will be important for IBM to stay true to that commitment and not wander into competitive waters with its own ISVs.

"They put a stake in the ground to say this would be their strategy, but it will always remain tempting to go after some of these lower-end opportunities," a source said.

Asked about the new initiative, IBM officials declined to comment.

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