Ingram Micro Ups VentureTech Requirements, Strengthens Ties With IBM

DISTRIBUTION

The distributor introduced new policies at its VentureTech Network Spring event Thursday morning in an effort to cultivate a stronger commitment from VTN members. Bob Stegner, vice president of channel and U.S. marketing at Ingram Micro, told an audience of VARs that the VTN group hasn't met expectations yet and that the distributor is looking for more exclusivity from members.

New and existing conditions for VTN membership mandate that VARs must have: certification for IBM, Hewlett-Packard or another major vendor and have at least two outside sales reps focused on SMB solutions. Members are also prohibited from participating in other distribution programs, such as Tech Data's TechSelect, and are now required to participate in annual profit and compensation surveys and submit their year-end financials to Ingram Micro within 90 days of the end of their fiscal year.

Perhaps the most taxing requirements are that VARs are now required to have combined product and services purchases from Ingram Micro exceeding $300,000 annually for tertiary markets or $500,000 for a primary market. In addition, 65 percent of VTN members' total product purchases must be bought through Ingram Micro; previously, VTN required just 65 percent of distribution purchases to be through Ingram Micro.

Stegner said most VTN members currently meet all the requirements; those that don't will have until the end of this year to complete all the criteria.

As a result, Ingram Micro is increasing its exclusive offerings and benefits for VTN members, including new additions to IBM's partnership with VTN. Frank Vitagliano, vice president of distribution channels management at IBM, introduced to VTN members IBM's new "Think" strategy for new PC models such as the ThinkPad laptop. In addition, he previewed new developments with VTN's partnership with IBM Global Services. "Our global services unit is more committed than ever to working with the channel. There is no debate about that," Vitagliano said, adding that VTN members will soon be able to work with IBM Global Services as a sub-contractor on customer deals.

Microsoft was also on hand to promote its new CRM product and wet VTN members' appetites with special offers and support. Other vendors, such as Apple and Computer Associates, were also on hand at the event to promote their brands and exclusive promotions to VTN members.

Ingram Micro president and COO asked VTN members audience to become more aggressive in their involvement in the group. "We really need you to step up. Take some risks with us," Grainger said. "The other distributors can't compete [with VTN]."