IBM Cloud Partners Gain Billing, Financial Options

IBM is building on last week’s SmartCloud enterprise service platform with dual  announcements for Big Blue cloud partners: ISVs can leverage cheaper IBM cloud middleware rental pricing, and service providers can use IBM technology to build out their platform with as low as 0% financing. IBM touts the moves as a sign of absolute confidence in cloud computing and commitment to helping channel partners succeed with SaaS.

Let’s go in order.  IBM’s so-called Cloud Application Provider developer partners can now rent cloud middleware like IBM WebSphere Application Server or IBM DB2 on a monthly basis, enabling them to get new services to market without having to pay huge up-front fees, according to the press release. And as the business grows and demand increases, ISVs can add licenses on a month-by-month basis. The endgame, IBM says, is to entice SaaS providers away from competitors even as they provide for those just making their first cloud moves.

As for the other part – IBM Cloud Computing and IBM Global Financing have come together for an offer that lets the company’s cloud builder and cloud infrastructure provider partners expand their offerings and, again, reduce up-front costs.

This IBM Global Financing offer comes in two flavors, with details taken directly from the release:

• Cloud partners can optimize cash flow and ROI with low-rate and 0% financing offers [with terms] that provide predictable monthly payments on eligible IBM hardware, software and services solutions. There are also lease options for select hardware that allow for mid-lease upgrades to the latest processor technology and peripherals, protecting the Business Partner’s investment and competitive position while minimizing costs.
• For large infrastructure deployments [$500,000 in the US, $300,000 abroad], IBM Global Financing offers initial payment deferrals of up to six months, allowing IBM Business Partners to avoid large up-front cash outlays, while growing revenue, and accelerate the cash flow break-even point of their cloud infrastructure investment.

It sounds like IBM has a pretty good sense of where they want to fit into the cloud services channel after all, especially when combined with their recent cloud partner specializations.

Whether it’s enough to compete with the recently-announced initiatives from companies like Dell and HP, well, only time will tell. But rest assured, now that IBM has a clear channel play in place, we’ll be watching even closer than ever.

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