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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.
Anurag Agrawal

The Unseen Engine: IBM's Three-Way Partnership Strategy is its Secret Weapon in the Enterprise AI Race

The global conversation around Artificial Intelligence is often dominated by the sheer horsepower of GPUs and the expansive promise of public cloud. While the market remains captivated by the meteoric rise of companies selling AI infrastructure, a quieter, more intricate strategy is unfolding - one that intertwines silicon, hardware, software, and a collaborative go-to-market (GTM) engine to tackle the foundational bottleneck in AI adoption: enterprise-grade infrastructure.

It is clear to me that IBM is architecting a sophisticated partnership playbook that moves far beyond traditional alliances. This is not just about co-marketing or creating reference architectures. On the contrary, it is a deeply integrated, three-way GTM model designed to deliver holistic AI solutions. This strategy uniquely positions IBM to address complex customer needs in a way that pure-play cloud providers or hardware-only vendors cannot. It is a story that has been flying under the radar, but one that the entire technology ecosystem needs to understand.

techaisle ibm write up blog

Beyond Reference Architectures: The 360-Degree Partnership Philosophy

At the heart of IBM's approach is the recognition that its strategic imperatives of AI and hybrid cloud are impossible to achieve without a robust ecosystem of partners. This strategy begins with a core group of strategic technology partners, with collaborations centered on technology leaders like  AMD, Broadcom, Dell Technologies, Intel, Lenovo, NetApp, and NVIDIA. The logic is simple yet profound: every AI solution is ultimately deployed on a server, powered by GPUs, and dependent on high-performance infrastructure to function at scale.

To capitalize on this, IBM is pursuing what can be described as a 360-degree partnership model that encompasses four key pillars:

  1. Selling To: Ensuring partners are confident in IBM technology by using it themselves.
  2. Selling Through: Enabling partners to integrate IBM technology into the solutions they take to market.
  3. Selling With: Establishing joint account planning and a co-selling motion where sales teams from both companies approach clients in unison.
  4. Building Together: Moving beyond basic reference architectures to co-create complete, market-ready solutions and blueprints.

The power of this framework lies in its transition from theoretical blueprints to tangible, integrated solutions. A historical parallel can be drawn to IBM's partnership with VMware, which transformed a nascent licensing deal into a multi-billion-dollar business by building a complete solution on the IBM public cloud. This history provides the blueprint for the deeper, more complex alliances being forged today.

The Game-Changer: A Three-Way GTM Model in Action

Anurag Agrawal

The Science of Consulting - How IBM is Redefining Value in the AI Era

In today's business landscape, characterized by economic volatility, geopolitical conflicts, and an unrelenting pace of technological change, CEOs feel immense pressure. They are tasked with the challenging duality of funding existing operations while simultaneously investing in innovation and driving growth. These were the themes laid out by Mohamad Ali, SVP and Head of IBM Consulting, during his keynote at their annual Think conference. Technology, particularly AI, is no longer just a tool; it has become the source of competitive advantage. Yet, navigating this new era is complex, and many organizations are struggling to move beyond AI experimentation to realize tangible business value. This is where consulting plays a crucial role, and IBM Consulting is positioning itself uniquely with an approach it calls the "Science of Consulting".

Defining the 'Science of Consulting

At its core, the "Science of Consulting" is about combining science and technology, including AI, with IBM's deep pool of human talent – its consultants, engineers, and designers – to deliver "outsized results" for clients. This represents an evolution of the traditional consulting model, acknowledging that in the age of AI, human expertise must be augmented and accelerated by technology.

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IBM
Anurag Agrawal

Orchestrating Success - IBM's Strategy for a Vibrant AI and Hybrid Cloud Ecosystem

The debut of IBM Partner Plus marked a significant evolution from the previous PartnerWorld program, specifically designed to accelerate partner business velocity in a rapidly changing cloud adoption landscape. Key to this launch were interconnected enablers such as insider access to sales and training materials, a focus on competitive and transparent incentives, and enhanced support for skill development in critical areas like AI and cloud. The program also introduced a simplified IBM Partner Portal offering real-time incentive visibility, an automated deal share engine, and increased co-marketing and co-sell support investments. These initial steps laid the groundwork for the simplified engagement, enhanced partner enablement, and targeted incentives, demonstrating a consistent strategic thread from the program's inception to its current manifestation in driving AI and hybrid cloud adoption through the ecosystem.

By establishing a program designed for diverse partner models and emphasizing transparency and support from the outset, IBM Partner Plus created an environment conducive to the "Build, Sell, Service" pillars and the incentivization of high-growth areas like Software as a Service (SaaS) and AI. The program's foundational goal of aligning with partners expanding their cloud market presence directly correlates with the current strategy to leverage the ecosystem for broader reach and deeper client engagement in AI and hybrid cloud solutions. This continuity underscores IBM's sustained commitment to its partners as central to achieving scale and success in these transformative technology areas.

The strategic alignment with partners, crucial for success, reflects the fundamental reality that in the dynamic world of enterprise technology at the intersection of AI and hybrid cloud, scale is paramount, and achieving this requires not only innovative products but also a robust and interconnected ecosystem. IBM's strategy for driving growth in the AI and hybrid cloud era is deeply rooted in cultivating a vibrant ecosystem – a community of diverse participants, including value-added distributors (VADs), resellers (VARs), service partners, and independent software vendors (ISVs), working harmoniously towards mutually beneficial outcomes.

The objective of IBM's ecosystem strategy is straightforward: to work hand-in-hand with partners to scale the IBM technology business in a way that benefits everyone involved. This requires a deep understanding of each partner type's diverse needs and drivers and aligning those towards common goals, specifically seizing the significant opportunities presented by AI and hybrid cloud.

Anurag Agrawal

IBM's Strategic Partnership with Microsoft and the Launch of Apptio portfolio on the Azure Marketplace

IBM and Microsoft have an established and successful strategic partnership, marked by significant collaborations like ARO (Azure Red Hat OpenShift). In 2021, the general availability of Red Hat OpenShift on Azure evolved into Azure Managed OpenShift on Azure. In 2023, IBM achieved Partner of the Year recognition with over 13 accreditations across the Microsoft portfolio and seven in 2024.

ARO has been a cornerstone of this partnership, offering businesses a comprehensive hybrid cloud solution that seamlessly integrates Azure services with Red Hat OpenShift. This partnership has also driven IBM’s expansion on the Azure cloud marketplace, where IBM’s technology offerings have gained substantial traction.

In a significant initiative to enhance their long-standing relationship, IBM and Microsoft are expanding the partnership by bringing additional IBM solutions to businesses through the Azure Marketplace. This strategic move aims to provide businesses with a more streamlined and integrated experience, allowing them to access a broader range of IBM software and services directly within the Azure ecosystem.

Both IBM and Microsoft stand to benefit from this partnership, as Techaisle’s research indicates a growing momentum towards Azure Marketplace. 47% of businesses consider it to be secure, 45% find it well-understood, 44% utilize it due to its extensive footprint, and 41% perceive it as a mature platform. These positive perceptions highlight Azure Marketplace’s increasing appeal to businesses seeking reliable, comprehensive cloud solutions.

Expanding IBM's Offerings on Azure Marketplace: A Strategic Partnership

There are few absolute certainties in technology – but one subject that is beyond debate is that the cloud has permanently changed how technology is deployed and consumed within businesses, and AI is the latest disruptive technology. We know that AI is everywhere, but having arrived in a hurry, the changes made in response to its adoption will not leave abruptly.

Techaisle research shows that 72% of SMBs, 97% of midmarket firms, and 100% of enterprises believe technology is critical to business success. However, IT efficiency can be challenging to achieve. As the business pressures increase, the greater is the need for automation and orchestration. Business unit leaders seek inputs from IT to help achieve business goals. In straightforward terms, in 86% of firms, IT is expected to do more and is even seen as a source of innovation. In 79% of firms, IT is expected to deliver business outcomes faster. However, 80% of IT’s time is spent on support and maintenance; in 65% of organizations, IT is left with little time for innovation.

One of the key highlights of this expanded partnership is the introduction of Apptio Technology Business Management (TBM) software to the Azure Marketplace. Apptio, an IBM company, is recognized as a market leader in TBM and FinOps. It empowers organizations to make data-driven technology investment decisions and optimize costs across cloud and on-premise environments.

The roll-out of Apptio's product suite on Azure Marketplace will occur in phases, beginning with IBM Targetprocess on October 29th, 2024. Targetprocess is an Enterprise Agile Planning (EAP) software that integrates with Azure DevOps, facilitating better budget planning and management across diverse technology environments. IBM also plans to bring its flagship IT financial management solution, IBM Apptio Costing and Planning, to the Azure Marketplace in the first quarter of 2025. These initiatives highlight a commitment from both IBM and Microsoft to provide businesses with a comprehensive suite of solutions to manage and optimize their technology investments within the Azure cloud platform.

Trusted Research | Strategic Insight

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