Additionally, IBM will provide financing programmes 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 programme 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.
Companies in industries ranging from health care to entertainment are turning to Cloud computing as a way to deliver and provide IT in innovative ways. According to analyst firm IDC, $45 billion will be spent on Cloud-related technologies, hardware and software by 2013, up from $17 billion in 2009.
"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", stated 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."
The opportunity for Cloud Application Providers continues to grow as more businesses and organisations 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 the pricing model announced today, 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", stated 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 needed on a monthly basis based on our own deployment patterns."
For IBM, this provides a new opportunity to migrate ISVs from competitive software platforms to IBM middleware, as well as to offer start-up ISV companies with an easier on-ramp to IBM technology as part of their overall offering.
IBM Business Partners can quickly build and expand their Cloud business with low-rate financing programmes 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: