IBM loses the x86 server crown
 Last year IBM was the channel champion in the server category. However, HP has taken the lead from IBM this time around, and the blame for it lies squarely with IBM. What tilted the scale in HP’s favor was IBM’s announcement in early 2008 of its decision to license its x86 technology to Lenovo.
This fuelled speculation that IBM might exit the x86 business. Even some loyal partners of IBM admit that the competition used this opportunity to their own advantage by telling prospects and customers that IBM might soon move out of the x86 server business. According to a number of IBM partners, the company did not act in time to put out the right communication to customers and resellers regarding its long-term commitment to the x86 business.
Sun ranked third in channel satisfaction. Its revamped partner program helped the vendor rope in some leading partners. While Dell polled more votes than Sun, it scored low on overall channel satisfaction as respondents are still skeptical about its long-term commitment to the channel.
Price-performance
IBM continues to be perceived as a vendor with better product features and performance. However, on price-performance it took a beating this year owing to complete lack of price aggression in 2008. A common misgiving among IBM partners in 2008 was that due to vendor’s lack of price aggression they lost several large deals to Dell and HP. In fact, Dell beat even HP on many such deals, and several IBM and HP partners resorted to selling Dell for large box-deals. Even on single-unit orders Dell continues to be a price leader in the entry to mid-level server segment, with a price difference of a minimum 10 percent on similar-spec products from HP and IBM. While Sun is perceived to have better product performance, it still lacks the price aggression that is required in the x86 volume category.
Marketing & branding
IBM and HP both enjoy an equal amount of brand pull. Dell and Sun are not far behind in brand recognition.
HP scored mostly because of its marketing strategy. The company does more advertising for demand generation than IBM, and also does more below-the-line activities to support its partners. In terms of quantity and quality of leads generated, HP’s tele-engine was rated better than IBM’s. Sun provides quality leads to key partners. Dell neither has a tele-engine nor does it do any channel-centric events for demand generation.
Service & support
In terms of service and support, IBM surged ahead of HP, Dell and Sun. IBM and HP are almost neck-in-neck on all aspects. What worked against HP was the lack of spares during the last 4 months of 2008. Both HP and IBM have wider post-sales reach than Sun and Dell.
Training & certification
HP is the best among the four when evaluated on the basis of training followed by IBM and Sun. HP conducts more training programs for its partners and their employees than any other vendor. Not only are these programs conducted in more cities, they are also more comprehensive than those organized by its peers. Its pre-sales and executive management programs are well-received. The Sun leadership program launched in 2008 for mid-level managers of the company’s key partners was well appreciated.
Channel relationship
The server channel is split between IBM and HP. There are almost an equal number of loyal IBM and HP partners, which implies that both companies are good at nurturing and managing partnerships.
HP scored because it came up with a comprehensive rules-of-engagement policy for customer mapping. This helped address the conflict between partners, and between HP and partners, which had emerged as a major issue in 2007. IBM, on the other hand, lacked the overall market aggression it had demonstrated in 2007. This further fuelled speculation about its exit from the x86 business. Also, in the first half of 2008, IBM partners complained of a direct-sales conflict, but this was rectified in the second half and toward the end of the year, the company has informed its partners that it will soon roll out its own set of partner engagement policies to avoid channel conflicts.
Sun started the year with a realigned partner program, and went on an partner enrollment campaign. Its new partner program was well-appreciated, but the company still plays second fiddle to HP and IBM in the portfolio of several respondents.
Those who voted for Dell confided that their involvement with the company in 2008 was tactical, and aimed at using the vendor’s aggressive pricing strategy to bag projects. Dell does provide deal registration tools. It also has a named account policy, but this isn’t formalized.
Winner in the Server Category in Channel Champions 2007
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