>>Yeah, >>from The Cube Studios in Palo Alto and Boston. It's the Cube covering IBM. Think brought to you by IBM. >>Hi, everybody. We're back. And you're watching the Cube's coverage of the IBM think digital event for 2020. This is that he's socially distant and socially responsible. You? My name is Dave a lot. David Larose. Who's the general manager of the IBM partner ecosystem? David, Good to see you. >>Likewise. Great to be here. >>Yes, it is. Your first year in running the the ecosystem. You probably don't expect to be managing through the this world crisis this novel Corona virus. But what was your first move? Your outreach to partners? How are you communicating to them? Maybe you could share with us how that's all going. >>It certainly wasn't in the break. So when I took this job, you're right. But, you know, we have a very strong relationship with with our partners, and what we have is we have a global advisory board. So about 25 or 30 of our largest customers across the world, we engaged with them very, very quickly. That's all of the CIOs presidents, vice presidents of styles, um, and we engage with them on a survey and said, How are you thinking about it's what are the what are your big concerns and, you know, not unusually. They came back with a couple of key things. Number one was, and their primary concern is how do they support their clients? That was probably number one on their list of things followed very closely. By enabling their firms that have a financial stability that was number two and then probably number three. I would say it was, you know, managing their work. But they're moving to a digital only type of environment, similar to what IBM has done ever kind of the three, the three big concerns. And then we spent some time talking to them about how we could help, then really deal with that and address some of those problems. And earlier this week, we we announced so therefore very key things around. How do we help them? One. How do we adapt our programs and our incentives and, uh, really looking at providing them with, you know, extension of things like loyalty program. So don't worry about you know, your ability to re validate and recertify. We gotta protect your loyalty for 2020. We added a lot of incentives in the hardware systems program in the second quarter, so we've increased by half a percent off their based incentive from the first dollar that a lot of areas around programs in terms. Then we sort of really tried to address that point of view around digital. Um, some companies were digitally ready, but there are many companies that weren't actually know a digital platform, but also we very quickly rolled out what we call it my digital marketing platform, where partners can come in and download content and curate content from IBM and then wrap their own campaigns around that and get that out and continue to engage with their clients and their partners. Um, and we funding all of that 100% from an IBM perspective on using our car marketing goals. We used to have a 50 50 funding model without with their partners. But in this particular scenario, that's a digital program that they're running with funding at 100%. And then we're also opening up to provide consultancy on how to optimize digital. So I think you know the thing that we've done here is just their programs in terms quickly, um, or money back into the into the program during the second quarter and protect the ability for our partners and then really trying to help them and enable them to get Teoh Digital our workforce and the digital program. >>Yeah, a couple things there. I mean, we were talking earlier to the the folks from IBM Global Finance, and that's a key part that you mentioned liquidity. You know, certainly these partners air obviously very much concerned about the uncertainty ahead. So having a partner like IBM that can, whether it's, you know, pass on, you know, lease terms, etcetera and provide that sort of blacking is this key? I think the other thing, too we've heard from a lot of executives, is you've got to stay close to your clients during we always do, but especially during times like this, And that's where partners are so crucial in IBM huge company, you know, massive direct sales force, but you can't cover everything. And so having the partner who's got intimate relationships, I mean, I was on a call earlier this week with a partner in Minneapolis I mean, he knows everybody in that region. And so you just that level of intimacy, I think becomes very, very important in times like this, doesn't it? >>Absolutely. And stay connected with with that. So we have about, you know, just a lot of, Ah, 21,000 active planners across across the world and staying close to the senior members of our largest partners is is really important to us. We had a We hosted a call earlier this week actually, with with their advisory council to test the programs that we've gotten in the market, Are they getting where they need, where they need the help the most? We take a lot of feedback with adjusted our programs. We're looking at this on a literally a daily basis right now on don't envisage that we would we would update pretty agile in terms of how we move that. But you know, to your point, having a partner network that we do have around by the hardware and software only on and is right, so learn what were wrong. You know what they're hearing from their pot from their clients and, you know, it allows us to more easily and quickly address needs across all of the IBM client set. >>So we interview a lot of partners, and, you know, when you talk to the familiar, they've got to make money. They have. The margin is very important to them, but it's almost it's table stakes. I mean, again, they can make money a lot of different ways. So what differentiates the suppliers is all these other things that you're talking about? Um, So I want to ask you when you came in to this this role, what you're doing priorities in terms of, you know, partner outreach, retaining that, that loyalty And what do you see changing a za result of this pandemic? >>Yeah, it's a great question. So look, four key priorities that we declared very early on and, by the way, you know, took over from John Touched at the time. And John has spent the last two years really transforming, um, your channel and the way we engage with channel. And so there was a lot of hard lifting that was already done, but it was sort of four. Things that we focused in on one was obviously, how do we continue? Accelerate IBM drive into the hybrid multi cloud market, particularly now with the integration of Red Hat into the organization. That's a very different, you know, sales motion that Wei had so accelerating that was one of the key parties, the 2nd 1 waas. And how do we continue to differentiate on the value and so ensuring that that our programs are staying up to speed and that they're being modernized? You know, the IBM possible program is being a program predominantly built on Recile over the last 10 years. Now the microchip that we're now talking about platforms not talking about consumption. And this week during Partner World, we're gonna talk about how we are going to evolve the part of the program to move into the rest partners who are building on platforms. And how about they're moving to consumption again, all around hybrid, multi, multi cloud. That's kind of the second thing skills, skills and expertise for out for a channel. We kind of have declared that we want our channel to be the most skilled channel in the industry, and it's really interesting, Dave, during this period of the pandemic, it's one of these times where we seem to have more recent and more time, and the partners have been giving us a lot of feedback to say during this time around. Workforce is home and is connected digitally. Why don't we? Wasn't IBM help with in enhancing the enablement programme certification? And so we're doing a lot around that. We see a Z great opportunity to CIO to really develop certifications and skills and expertise during this period. Um, and then the full thing is around winning in what we call out selective segments. And so we want our partners to operate across the IBM portfolio and across our client set. But where we really need the help and where we're putting the money in the programs is around the mid size organizations where they can bring the portfolio into places that it doesn't have this today, new clients or existing clients with with IBM. But the Jason like server was that kind of the four priorities and what we're seeing is and this situation that we're going through this pandemic going through, it's actually accelerating the areas around moving. My partner multi cloud cloud is becoming a differentiator for us and accelerating. I need to get a program that is relevant beyond just resell. But you know this, this concept of platforms and building. But as they build with their own light beyond platform and consumption, So I think it's it's actually accelerating what we've seen and have it moving forward. >>It's interesting what you're saying about resale. We've talked many, many years now on the Cube about the partner ecosystem. It really used to be about resale. You know, we have a majority of his box selling, and you could make a lot of money doing that, you know, a decade or two ago. But when Cloud came, partners really started to underst and that that there was a sea change happening in I T. For a while there, they thought, Wow, you know, this is really going to be challenging. Cloud's going to kill us. But what they realized after a while is with five exactly complex hybrid Cloud is it's not simple to cure and create a seamless experience across clouds on prime etcetera. So the huge opportunities open up, add value. So there's been a massive change in the mindset. Uh, and it sounds like particularly with digital, that the pandemic is going to accelerate that on. People are going to come out of this, um, almost having done some exercises, maybe in a little bit better shape than they came into it. You buy that premise? >>My question is no question about it. I mean, if you think about, you know, IBM portfolio for a minute. Um, and over the last really 6 to 9 months, we have containerized out our software portfolio. It's based on the, you know, the kubernetes container ization and an open ship. So we're ready from a portfolio perspective. And, you know, now we're catching up from a program perspective we're introducing this week and out in the world this concept of a build program and a service program, and so that is their will preserve and continue to evolve the cell program that resell. But you know this concept of the build program and the service programs and only extend the reach that we have to the data and the ecosystem that we're operating in new sets of partners. But is that one of transition, that business from recent consumption? We're going to support that. But then you have to your point around this whole digital everything from digital capabilities around, generating amount of opportunity and a little bit about that earlier with my program and the funding that we've got behind that the experience that we're we're offering as consultants, but also this concept of digital selling. You know, there's not all about partners are savvy around digital selling. So we've been doing that for many, many years. And, uh and so we're opening up digital selling Enablement sessions, Webinars consultancy and a bunch of assets that that IBM has and has invested in for many, many years and opening that up to you want to add channel? >>Yes, There was some great opportunities there for our partners. I mean, we The Cube has been covering the Red Hat Summit we had Jim Whitehurst on. We're in the process of scheduling Arvin so great to see, you know, kind of connect the dots between those franchises and identify the opportunities, and they're significant. I mean, Red Hat has a lot of momentum in the market. IBM has a huge presence, great opportunity to modernize applications, And then your point about the hardware side we just saw on IBM s latest earnings, released at the Fisher running in hardware right now on, uh, you know, obviously tailwind of the Z cycle, but other parts of the portfolio storage from 19%. So so some exciting times for partners, even though there's so much uncertainty in the market again, staying close to customers, you know, doing doing right by your employees, leveraging the IBM relationship where you're obviously providing a lot of backdrop in support. David, I wonder if you could just sort of wrap a bow around. You know, think 2020 is the virtual trucks are pulling away away from the virtual digital Mosconi. What's the take? Aways will give us the bumper sticker. >>Look, the bumper sticker is that it's never been a better time to be an idea. We've got a leading portfolio that is now ready for the new world. Will the consumption and the world building on um, we are, you know, we're modernizing our programs to ensure that you can make money here. There's a lot of money to be made as we as we get into this thing, this new world and we are behind you right now to support you financially and to get you develop digitally enabled guy. So never been a time to be an IBM partner right now. >>David. Great message. Thank you very much for coming on the Cube. And best of luck to you. Stay safe and ah, again, really appreciate your time. >>You too, Dave. Thanks very much. Bye. Site. >>You know, uh, and you're watching the Cube here at IBM? Think 2020. Our digital coverage. We'll be right back right after this short break. I'm Dave Volante, and you're watching the Cube? >>Yeah, yeah, yeah.