IBM PCD`s channel sales soar

"There has been a strong focus on market share gains and aggressive pricing from all vendors over the last quarter, along with an increase in direct selling from many vendors," says Oliver Fortuin, Personal Computing Division executive, IBM SA.

According to IDC`s Worldwide Quarterly PC Tracker Worldwide, PC shipments were up 7.6% year-on-year in the second quarter of 2003. Aggressive pricing and strong portable adoption were the main drivers behind these results, which were ahead of IDC projections of 4.1% growth. This is the fourth consecutive quarter of growth and represents the highest growth rate since the end of 2000.

"The reality in this highly competitive personal computing environment is that vendors need to provide excellent service to customers, whether this involves channel partners or direct sales," says Fortuin.

However, Fortuin adds that when it comes to the South African IT market, personal computer vendors need to understand that it is very channel-centric with many companies purchasing their PCs and mobile computers through integrators and value-added resellers (VARs). "IBM SA has therefore re-examined its channel strategy to ensure we deliver value, to both our customers and our partners."

Partners are central to IBM and the company has launched a central business partner organisation that looks after partner-related issues for the whole organisation. The foundation of this focus is PartnerWorld, an online facility to assist partners in managing their relationship with the company.

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"PartnerWorld is a structured Web-based forum through which partners and IBM can interact," Fortuin adds. "It is a one-stop, comprehensive source of hardware news, information and education designed to create a fusion of technology, service and support customers demand from their suppliers today."

IBM has transformed its image in the channel - resulting in there being 1 600 partners registered on the site. "As is the norm, the majority of IBM`s channel sales come through a limited number of partners, with the rest only active on occasion. PartnerWorld is designed to change this and bring as many partners as possible into the active selling cycle," says Fortuin.

"IBM PCD SA has also increased the percentage of its sales driven through the channel from 50% to the current level of 75% in one year," notes Fortuin.

The customer is king in today`s market and all hardware suppliers need to ensure they deliver the service and support their clients demand if they want to stay in business. "With a successful channel programme as well as a new, simplified product line in place, IBM PCD is expanding its share of the South African personal computing market through our partners," Fortuin states.