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'IBM supports Netfinity with a global-level training program' - Jyothi Satyanathan, Business Manager, Netfinity, IBM India Ltd

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DQC Bureau
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Netfinity is perceived to be a high-end product. What measures are you taking to establish this brand among channels?



First of all, we want to establish Netfinity as the leader in the Indian market. We want the channel to look at it as the most reliable and readily available product in the market in all the states.



Secondly, since channel partners have to spread the product message to customers, we have started a lot of programs to keep them updated. We have a program called NetConnect through which we impart technical knowledge to our partners on the Web and certify them. The objective of this program is to enable partners to communicate the message better. When partners communicate technical matters effectively, customers get a lot of confidence. It is important for partners to know what they are talking about IBM products. The IBM education is basically aimed at helping partners to build up relationships.



Thirdly, we are planning some incentive programs for resellers. These could be in cash or kind.



Are you developing a separate channel for Netfinity or are you using the regular channel of IBM?



We are adopting a two-fold strategy. We are depending on our SI partners and distributors to attack the mass market. We are also developing a specialized channel in parallel, which could offer solutions on Intel's open architecture. In this special program, we recruit new people, we assist them by testing their packages and we try giving them discounts on the cost of the hardware.



We also give them Netfinity server-proven certification for their applications. This certification, the partners can use as a label to market their products. We are creating this channel very consciously. We go out and do marketing with them. We attend seminars with them.



What are your expectations from these partners who are joining you?



These partners see value in the servers that we’re selling. We don't tell them that you come to us and we will give you funds and things like that. They have to see value in what IBM offers - its business principles, products and services. Our partners have to provide a winning combination to customers and retain them. If this mutual thing works, then success lies there.



Our channel relationship is built on the foundation of trust. We are going to customers with a unified message where the customer sees value.



Do you find mind-blocks in the new channel you are trying to develop since many partners are used to pushing boxes while you want them to offer solutions?



No doubt, the Indian market is still in the developing stage. Computerization in several areas is just picking up. To that extent lot of market development has yet to take place.



At the same time, today's customer is looking for lot of value-adds. He is looking for total solutions. There is a lot of maturity that is happening. This maturity has resulted in business partners and vendors listening to customers and going back to them with solutions. At this level there is not much of a mind block. Yes, at the lower end there are still mind-blocks.



Have you set a target for yourself to enroll new channel partners?



No, at this point of time, we are looking at quality and evaluating most partners. We are not looking at numbers specifically from channel coverage point of view. We have got a good coverage in terms of normal business partners. About the specialized channel that I was talking about, it is a decision of finding the right solution vendor. See how he/she could address the market and then recruit them. It might be three or four a month. It is a long-term process.



We are looking at the best and we want to take them along. We are not in a hurry in this. It is a kind of slow pace with a steady plan.



How often do you conduct training programs for your partners?

We have training programs every quarter. Today training happens as a routine. Couple of years ago one had to put in a lot of efforts into training. Today we have a program called 'Train At IBM' with which we go to every city where partners are called in and trained.

Do you see the need for additional training for a high-end product like Netfinity?



For a high-end product like Netfinity, we ask our business partners to send their engineers for a three-day course called Tech-Connect Specialist. IBM supports Netfinity with a global-level training program. This course is held worldwide and if you pass, then you get a certificate. We encourage business partners to have a couple of these qualified engineers to form their core team and contribute to that organization's sales and support activities.



We provide two kinds of certification, one where an engineer becomes a tech-connect professional and then he can become tech-connect expert. A professional knows how to open the machine, how to handle the parts and how to talk to customers about the product. The tech-connect expert knows how to handle NT server, he could also be a certified NT or Novel specialist.



We train our business partners to ensure that they become Netfinity evangelists with customers. The Netfinity certification is recognized worldwide. They keep getting updates, drivers and fixes from the global level. That way it is not just an Indian program. The worldwide Netfinity certification is given to an individual. It remains with him/her even if the person moves from one organization to the other.



What schemes and promotional activities are you planning to push Netfinity in the market?



We run our programs every quarter. Currently we have a program under which we are running special prices for a couple of low-end bundles. Under this program, if a server is bought then we provide an additional processor at a very low price. These are very time bound promotions which we run very regularly so that business partners can focus and get that amount of value from customers.



What revenue targets have you set for your partners?



Yes, revenue targets are set for our partners by our channel team at the beginning of every financial year.



What are the problems you face with the channel when you deal with a high-end product like Netfinity?



The first problem is of knowledge. I can impart knowledge about the box during those three or four days of training that I give to a business partner. But when it comes to a high-end product like Netfinity, customers also look for information on networking, backups - a whole lot of solutions. Customers want to know about applications that can be built on the operating system, about virus and security.



For IBM alone to go out and talk about these things to customers becomes very difficult. Hence, we look for these skills in our business partners and here I find the channel slightly lacking in this. We would like our business partners to update their knowledge level constantly.



Channels complain of shrinking margins these days. What is IBM doing to safeguard partners’ margin?



It is a tough market today and margins are squeezed all around. What we can say is that our partners have been able to add value to our products and have been able to safeguard their margins. For instance, the processor that we are bundling with Netfinity currently costs Rs 80,000. Now it is totally up to the partner to recover Rs 0 to Rs 80,000 from the customer by adding value to his offering.



Sylvester Lobo

in Bangalore

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