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Outside In: "What do ISVs want from IBM?"
June 15, 2004
Outside in is a new, occasional series presenting opinions and analysis from important groups outside IBM.

Howie Hunger

As a cofounder of a boutique marketing consulting firm, I have the privilege of looking at the entire partnering ecosystem as an outsider. My job is to focus on the needs of Independent Software Vendors (ISVs), and share my findings with large partnering companies, such as IBM.
Since working as a consultant, I've been asked many times by IBMers "what do ISVs want from IBM?" Very simply, they want sales and go-to-market support.

IBM has a good track record in helping Strategic Alliance ISVs achieve sales, but the sales and go-to-market support have been elusive to the hundreds of other ISVs working with IBM. However, a change is happening with the PartnerWorld Industry Network program. By providing a combination of industry alignment, enablement and go-to-market sales support, the PartnerWorld Industry Networks are now delivering the help ISVs have been requesting.

For years, ISVs have been excited about IBM's middleware, but candidly, mid-size and small ISVs have had a difficult time knowing specifically who to work with in IBM, and how to achieve sales success with IBM customers. I believe the PartnerWorld Industry Networks are focused on solving the right problems, and continuing to improve upon the terrific support already provided.

For example: The Virtual Innovation Center is building on the success of the Innovation Centers and the Industry Campaign Designer continues to improve on the go-to-market assistance that small and mid-size ISVs need. Another highlight is the IBM Sales Connections, which is currently being piloted. It will provide ISVs who have an SMB opportunity sales linkage with the business partner sales team on the account.

I know that it is early in the execution of the PartnerWorld Industry Networks, and accomplishments are being measured in terms of how many industries have launched the program and how many ISVs have signed up. These are all good and necessary measures of program success, but you shouldn't forget that the ISVs will judge the success of the program by the sales of their products to IBM customers. And that's exactly what IBMers should be focusing on as well. It's imperative that execution of each element of the PartnerWorld Industry Networks achieve and exceed the ISV's expectations.

The results will be a simple win-win-win equation. When customers buy an IBM industry solution, the customer wins by getting a great total solution from IBM; IBM wins by selling middleware and the entire portfolio of offerings; and the ISV wins by selling their product.

Thanks for taking to time to listen to "an outsider's perspective". As I continue my research with ISVs, I'll be sure to share my findings with you.

Howie is interested in hearing your comments and questions. You can reach him at 914-874-5184 or Howie.Hunger@PersonalSystems.biz.

Howie Hunger retired from IBM in 2002. During his 34-year career, he led the launch of Software Vendor Operations -- an early successor of ISV and Developer Relations. Howie co-founded his consulting firm with Elena Malunis, also a retired IBM executive. Howie Hunger spends most of his time advising ISVs on how they can become a better partner with companies like IBM.

Here are a few of Howie's Hints:

When it comes to the ISV's products, Howie strongly suggests they are enabled on the appropriate IBM technology and keep up with IBM's advanced technology. "It doesn't do an ISV any good to make a product and set it on the shelf to collect dust. It will be out of date," Howie advises. He also stresses the importance of designing a product from the customers' perspective, as well as getting input from the IBM sales teams.
Howie offers this advice to ISVs when they are marketing their products: Lead with the customer's problem. "It's important to state the problem you are going to solve - this is going to draw your customer in."
All ISVs are looking for sales, and Howie is quick to remind ISVs they are responsible for driving the sales of their products. "You can't just sign up as a business partner with IBM and sit back hoping the product will sell itself," he warns. Success is built one transaction at a time, so he advises taking a successful sale, then figuring out how to use it to make multiple sales.
Finally, Howie recommends that all ISVs spend time learning and teaching. They should spend time with IBM sales reps learning as much about IBM's brands, services and programs as they possibly can. Howie says it is equally important for ISVs to be certain IBM sales reps understand the benefits of their products within the total IBM solution and teach them how it will help close business. "Because," says Howie, "after all - everyone wants sales."