Building on efforts to help its partner community capitalize on the growing cloud computing opportunity, IBM is making available two pricing and financing programs to help IBM Business Partners and start-up companies more easily build their own cloud applications and infrastructures with IBM technology.

Sounds fancy huh?

IBM will provide Cloud Application Providers — businesses that deliver Software as a Service (SaaS) — the option of acquiring IBM software for use in their SaaS offerings as a monthly rental subscription, complementing the way they receive payments from their own clients.

Additionally, IBM will provide financing programs specifically designed for IBM Business Partners that are building cloud computing technical environments. With low-rate to 0% financing and deferred payments on IBM technology and services, the company will offer qualifying partners the opportunity to avoid large up-front costs as they start their cloud businesses.

These two offerings build on IBM's program to develop the IT industry's broadest ecosystem of companies that provide a wide range of cloud computing services and technologies for clients of all sizes and industries. This recently announced IBM Cloud Computing Specialty supports IBM Business Partners that demonstrate their expertise and customer success in cloud computing.

“More and more clients are asking IBM and our partners to provide them with cloud capabilities around the globe, ranging from the flexible delivery of software applications to building private and public clouds,” said Jim Corgel, general manager, Independent Software Vendor (ISV) and Developer Relations, IBM. “IBM's business partner community is essential to our ability to support these demands, and we are committed to providing the industry's best resources and opportunities to help our partners grow their business through the cloud.”

Monthly Rental of IBM Software for SaaS Providers

The opportunity for Cloud Application Providers continues to grow as more businesses and organizations across several industries are turning to variably-priced, web-based software for different capabilities — from managing electronic health records to delivering industry-focused CRM and business analytics software.

With this announced pricing model, these ISVs will be able to offer clients the ability to get new capabilities up and running in a short amount of time without large up-front capital or on-going staffing to maintain the applications and hardware systems.

IBM's monthly rental software pricing allows ISVs to build and deliver their SaaS applications with IBM software — such as IBM WebSphere Application Server and IBM DB2 — and scale up or down the software licenses needed monthly based on an annual commitment. For example, this allows ISVs servicing retail clients the opportunity to use more software licenses during heavy holiday or “back to school” seasons, and fewer during historically lower shopping months.

“As an ISV providing our own ERP software to various industries, we now have several clients opting for cloud-based delivery of our technology,” said Claudio Bessa, international and new business director for Brazil-based IBM Premier Business Partner, TOTVS. “Through the monthly rental pricing from IBM, we can better manage our monthly finances and have the opportunity to grow or shrink the licenses we need each month based on our own deployment patterns.”

For IBM, this provides a new opportunity to migrate ISVs from competitive software platforms to IBM middleware. It also offers start-up ISV companies with an easier on-ramp to IBM technology as part of their overall offering.

Jump Start Financing for Cloud Builders and Infrastructure Providers

IBM Business Partners can quickly build and expand their cloud business with low-rate financing programs available from IBM Global Financing, the lending and leasing arm of IBM. IBM Global Financing helps credit qualified Cloud Builder and Cloud Infrastructure Providers reduce up-front costs, predict monthly payments, and optimize their cash flow as they enter new business models.

IBM Global Financing offers a range of financing alternatives to fit each Cloud Builder and Infrastructure Provider's specific needs, enabling faster build-out of a cloud infrastructure while keeping technology current and competitive with a well defined IT lifecycle strategy. These include:

  • Cloud partners can optimize cash flow and ROI with low-rate and 0% financing offers* 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, 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.

For more information on this new model and financing head over to www.ibm.com/cloud/partner/pricing and www.ibm.com/financing.

James Hicks

James is the Founder and Editor-in-Chief of HicksNewMedia, a Digital Publishing and Technology Consulting team providing effective and relevant solutions to individuals and businesses looking to more effective utilize the social interweb. Follow him on Twitter and on Facebook.

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James Hicks

James is the Founder and Editor-in-Chief of HicksNewMedia, a Digital Publishing and Technology Consulting team providing effective and relevant solutions to individuals and businesses looking to more effective utilize the social interweb. Follow him on Twitter and on Facebook.

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