IBM rips up Ingram Microserver contract

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IBM rips up Ingram Microserver contract

Paul Kunert

IBM is winding down its UK partnership with Ingram Micro on System x following a review of the business, leaving the distributor without a top three server vendor.

At the start of March, Big Blue served the broadliner with a 90-day notice that the contract is being terminated, according to channel sources.

"Ingram Micro is selling the remainder of its stock but has been informed that its services are no longer required," said a source.

MicroScope understands that the broadliner accounted for less than 2% of System x sales in the UK and IBM had decided to cut the relationship.

"Resellers need help to sell IBM because HP is priced more aggressively and has a larger market share, so it's the path of least resistance. Ingram was not proactive," one industry watcher told Microscope.

The loss of IBM will leave Ingram Micro with servers from Lenovo and Fujitsu Siemens, as it had split with Hewlett-Packard enterprise servers and storage (ESS) at the start of 2006.

Since the start of the year, Big Blue has tried to breathe new life into its flagging System x sales, appointing Richard Potts to head up a 20-strong team of sales staff to drive the business through partners.

IBM refused to an interview but said in a statement that would not discuss specific business partner relationships.

"IBM reviews its distributor channel on an on-going basis to maintain strong focus on IBM product, maximise efficiency in the market place and drive sales volume. IBM remains highly committed to its distributor channel," it said.

Jon Bunyard, general manager at CCD, said "it was no surprise that IBM had dropped one [volume] distributor because the market is crowded".

Ingram Micro refused to comment.

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