IBM Broadens European Power Systems ISV Promotion
September 15, 2014 Timothy Prickett Morgan
A deal that IBM created for its Power Systems customers and software partners earlier this year for its Europe, Middle East, and Africa region has been extended to include new Power8 iron.
The original deal came out in January, and it is called the 2014 Power ISV Solution Connection Program. As the name suggests, it gives business partner and system integrator companies rebates that range from $500 to $3,000 if they work with application software providers to close deals running on Power Systems iron. The deal was updated in announcement letter ZA14-1004, and it gives bigger rebates to those pushing Linux than for those pushing IBM i or AIX on Power Systems. The rebates are a little juicier in some cases on Power8 machines than on Power7 and Power7+ iron, but are generally the same. Here is what the rebates look like:
As is often the case, the bigger the box involved in the deal, the bigger the rebate. But honestly, compared to the cost of configured systems, these rebates are nominal. What they are, however, are increased margin on the deals for resellers and ISVs. Even though this is a European deal, the rebates are calculated in U.S. dollars.
There is paperwork involved to do these deals for the business partners and system integrators, who have to outline the marketing plan between themselves and ISVs to get the rebates. The relationships between the solution providers and ISVs do not have to be exclusive. The Power Systems channel manager in each country has the final say over whether a deal meets IBM’s criteria or not. The deal tops out at five systems per unique customer account. IBM also expects for deals involving IBM i-based high availability software to have a Capacity BackUp (CBU) configuration of a Power Systems machine in the deal. Upgrades, used gear, try-and-buy offers, and any machine purchased for internal use by business partners or system integrators are not eligible for rebates. This tweaked version of the deal also includes Russia and the Commonwealth of Independent States (CIS) that were originally part of the Soviet bloc.
This offer is not available in the United States, Canada, or Asia as far as I know. Which is curious.