IBM still rules storage solution market

IBM continues to retain its #1 slot in the storage solutions segment after warding off both EMC as well as HP; however, the margin in this segment has narrowed down considerably giving IBM an edge of just 0.1% over EMC. As IBM continues to rule the charts with its product quality featuring as the top priority among its channel partners, it is over support issues that IBM garnered the maximum. Respondents to the survey unanimously voted in favor of IBM over competition when it came to after-sales support with HP bearing the maximum amount of blow in this criterion. Across segments this year, HP seemed to have lost much weight on support issues only although its product score and channel relationship management often outshone the others.

Most of the channel partners have vouched for IBM especially for its technical expertise, geographical reach and its turnaround time in times of crisis which has pushed up the preference for IBM's ranking further (compared to 2012). Interestingly, IBM has recovered from its previous lag of commercial terms to the channels this year outbidding HP by over 2% favourable votes. Last year, IBM's biggest shortfall in the survey was its rigid commercial terms of trading with its partners where some of the respondents had voted in favour of HP when it came to credits and billing.

The situation, however, this time seems to have gone totally in favour of IBM. Furthermore, IBM was also lagging in the channels management front by over 3% negative votes last year whereby it outbid competition by just over a margin of 1% which the company seems to have corrected this time. With the favour titling in towards IBM this year, the company has corrected its channel approach too improving its ratings in the channel by 5%.

The shift has occurred primarily on account of its formation of dedicated and effective teams which are not just limited in liaisoning with the channels but are extending their help in consulting partners over plausible solutions too for its clients. Training and enablement programmes too have helped IBM fall in line with the channel's sentiments.

However, it is crucial to note that innovative concepts like best-of-the-breed have come into the focus lately with some major players in the storage space trying to play their cards around it. However, even as HP and EMC have taken a setback compared to IBM marginally, the company needs to watch out for the recent aggression shown by EMC particularly over the commercial support front. Also, even though HP has lost to competition mostly on the support front in nearly all segments, the company is most likely to strike back at competition in 2013.

Sundar N Balasubramaniam, sountry manager, STG channels, SI & ISV, IBM India shared his views on the topic with the DQ Channels. 

What according to you are the key channel partners focused programs or initiatives that has helped the company establish a strong relationship with channel community?

Quality is a global statement for us at IBM. We have been driving our actions since the last 2 quarters where we managed to have a healthy place with our channel partners. We have continued to deliver on our promise to simplify the way we do business with our channel partners which helps them improve profitability as well maximise their growth. Our focus on verticals like video surveillance helped us immensely in securing a healthy market growth position.

What according to you are the key factors that enabled you to emerge as channel champions?

Our buy-back programme for the mid-market segment has been a big hit. With this programme we offered storage solution upgrades by means of an exchange and a simultaneous upgrade. Also our partner programmes aimed at enablement and training also helped us a lot in becoming the channel champions.

Please highlight few marketing activities undertaken in 2012.
As part of our umbrella programme, we launched Agent of Change campaign which was a partner exchange programme. Under the same we ran several sub-campaigns. It is interesting to note that our 30% of marketing spends goes towards storage for co-marketing activities.

Which were the key products/solutions that were a hit amongst the channel partners?
The V3700, introduced in January this year, was the biggest hit among the channel partners and it has a very strong and renowned performance in the mid-market segment. For the high-end market, the V7000 has performed exceedingly well with its strongest feature of offering value-for-money proposition.

IBM has scored well in the online support front. How have you managed to achieve this?
Our online support has a very user-friendly interface allowing promptness of support to the user. When logs into the website, a customer care executive immediately steps into action asking if he may help or call to understand one's needs of a particular technology or service that one may be browsing at the time. As regards after-sales support, IBM has scored high. Please highlight some of the initiatives which were undertaken to secure a good score in this field. IBM has established a robust service delivery model for the installed base of computers. We clearly understand the actual service requirements of our customers spanning across different verticals irrespective of their size. IBM has undertaken initiatives to improve further on this front and proposes a variety of alternatives to enhance the experience. There is an increased focus on the value of coordination and communication between functions within IBM allowing services to be provided in competitive manner and to provide appropriate feedback on the field.