IBM is revamping part of its sales organisation to better target the small to medium sized business (SMB) market.
The company has announced it will realign its system and technology group (STG), creating one sales division to sell to large enterprise customers and another to sell to SMBs of under 1,000 employees. A new level of sales management is set to be created within each of 220 national sales offices IBM operates, and the new SMB system sales manager in each territory will focus solely on SMB sales efforts.
IBM is making the changes to boost its market share in the $32bn (£16bn) market for IT systems for SMBs, according to Alex Gogh, vice president STG channel marketing. Its share of the SMB system market was just 15%, half of what it is for the overall system market. "This is a reaction to the marketplace opportunity and a recognition of how large the SMB market opportunity is," said Gogh.
Last month, the firm made clear it was also pushing its Z9 mainframe to the SMB market.
The SMB system sales manager positions are being created to offer just one level of IBM sales management to work with partners to sell to SMBs. "[Before], a partner had to go to five different IBM people in a territory. Now they just have one," said Bob Samson, VP worldwide STG system sales.
The reorganisation coincides with the introduction of new SMB products including blade servers. IBM hopes to build on the momentum created from its announcement of the best quarterly financial performance the company has recorded in six years. For the second quarter of fiscal 2007, ending 30 June, net income soared 11.8% year on year to $2.3bn (£1.1bn) on a 9% revenue gain to $23.8bn (£11.6bn).
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