CRN Network

IBM will allocate additional resources to help its software partners generate new business opportunities and improve their profitability. As part of its Software Value Plus initiative, the company will pass on sales leads valued below $50,000 to authorized partners.

IBM will also provide certification and training on cloud computing architecture to partners. As part of the training, partners will have access to more than 130 industry training sessions online and in local markets worldwide.

The move follows results of a survey commissioned by IBM that showed global IBM partners expected to improve profitability through IBM Software Value Plus Program and by taking advantage of cloud computing.

"Business Partners are key to IBM's success in the marketplace, and we continue to invest in new resources that help ensure their success. With this new initiative, we are now providing our partners with the same training and resources we provide our IBM sales team,” said Anil Menon, Vice President, IBM Software Group Business Partners.

"Our partners are constantly looking for new ways to demonstrate business value to clients and differentiate themselves from the competition. IBM's strategy to boost access to sales, marketing and technical skills with initiatives like Software Value Plus can help partners meet client requirements in a better way and also improve their profit margins," said A Francis Albert, General Manager, Redington India, an IBM value-added distributor.

The IBM Software Value Plus program helps software partners build technical, marketing and sales skills on IBM's software portfolio and key growth opportunities such as business analytics, collaboration and industry transformation.

Avnet Beats Q2 Expectations

The recovering economy helped Avnet perform well in the second fiscal quarter in both operating groups and all three geographic regions that it reports on, according to the distributor.

Avnet reported $103.9 million in net income, or 68 cents per share, on $4.83 billion in sales for the fiscal quarter ended January 2, 2010. Sales increased 13.2 percent compared with the year-ago quarter while earnings increased about 3 percent, excluding a $1.32 billion impairment charge in the year-ago quarter that dramatically impacted earnings last year when the economy collapsed.

Analysts had expected earnings of 59 cents per share on $4.55 billion in sales for the second fiscal quarter.

"Avnet's strong growth this quarter provides further evidence that the global economy has begun the next growth cycle as sales at both operating groups came in well above normal seasonality and our upwardly revised expectations for the quarter," said Roy Vallee, Chairman and CEO of Avnet, in a statement.

Avnet's Technology Solutions, which includes its enterprise computer products and services distribution, reported sales of $2.32 billion for the quarter, a 15.8 percent increase from the year-ago quarter. Sales in the Americas increased 11.7 percent, while Europe, Middle East and Africa revenue increased 4.3 percent and Asia sales went up 136.5 percent

"Technology Solutions also delivered a 77 percent increase in year-over-year return on working capital. Our TS business is well positioned to translate this resumption of revenue growth into higher margins and returns," said Vallee in the statement.

Avnet Electronics Marketing reported sales of $2.52 billion, up 11 percent year-over-year.

For the current quarter, Avnet expects sales of between $4.1 billion and $4.7 billion with earnings of 53 cents to 61 cents per share. Analysts have expected 52 cents per share in net income on $4.31 billion for the third fiscal quarter.