IBM partners 'cautiously optimistic'

IBM India has initiated a comprehensive messaging strategy assuring its part-ners
that nothing in the short-term will change.

According to company spokesperson Varsha Chainani, between now and when the
deal closes in three-four mon-ths, IBM's business partners will see no changes
in product line or availability and no change in the support team.

"There also will be no change to the current product roadmap for next 18
months. However, in long-term, one worldwide product portfolio will evolve based
on the strongest product offerings from each company (IBM and Lenovo)," she
added.

In a communication sent out by IBM India to its partners, it has also assured
that the people interfacing currently with the channel community will remain the
same and that the 'new Lenovo will be a part of the IBM PartnerWorld program.'

IBM partners across the country have expressed 'cau-tious optimism' at
this develop-ment. "The biggest advantage we feel that will be accrued out
of this deal is in terms of price-competitiveness. Lenovo by virtue of its large
scale of PC business will be able to bring down the prices even lower, thereby
giving us an edge over players like HP or Dell," remarked Frontier Business
Systems Director Ravi Verdes.

Ontrack Solutions director G Balakrishnan shares a similar sentiment. He
added, "Even in the long run, True Blue partners like us may not get to
directly procure from the company. But the change should largely be in terms of
our billing point and the pricing," he added.

Director of Jalan Infotech Pravin Jalan believes that Len-ovo would rely more
on chan-nel for its sales and so such a move should only increase their
business. "Also there are possibilities of a wider product portfolio as a
result of the sell-off, which in turn will help our business," he remarked.

For Unique Infoways whose 90 percent business is depen-dant on IBM PC and
notebooks, the only big concern is to convince the customers. It is to be noted
here that Lenovo will work on a distinct branding and is expected to gradually
make a transition to a new brand over next five years.

According to Director of Binary Systems Harish Shetty, the challenge will be
to make customers understand that the 'new IBM PC'-since is now owned by a
Chinese company-doesn't necessarily mean a compromise on quality that IBM has
been known for. CDP director Nikesh Sakaria believes that the sell-off will give
IBM's competitors "a chance to make noise."

Additionally, as per the deal arrangement, all PCD (personal computing
divi-sion) employees of IBM India will move to Lenovo and a Lenovo entity for
India is expected to come into exis-tence. Even the manufactu-ring facility in
Pondicherry will now come under Len-ovo's ownership. "However, IBM will
continue to support Lenovo's PCs with IBM's service, support and fina-ncing,"
said Chainani.