IBM Reshuffles Exec Deck As Channel Chief Retires

William "Bill" Zeitler, senior vice president of IBM's Systems and Technology Group, is planning to retire on Aug. 1, and will be replaced by Robert Moffat, the Wall Street Journal reported Monday.

The Journal also reported that Nicolas Donofrio, executive vice president of innovation and technology will retire on Oct. 1 after 44 years with Armonk, N.Y.-based IBM. Donofrio will not be replaced.

Zeitler will shortly turn 61 years old, while Donofrio is 62 years old. IBM executives typically retire at about 60 years old, the Journal reported.

IBM also shifted a number of other executives. The company promoted Frank Kern to replace the retiring Douglas Elix as head of IBM's worldwide sales and distribution organization, and promoted Bruno DiLeo to the new position of general manager of its Shanghai-based Growth Markets Organization.

An IBM spokesperson confirmed the changes.

The moves come on the heels of last week's announcement at the IBM Business Partner Leadership Conference that Ravindra "Ravi" Marwaha, general manager of global business partners, would be retiring.

During his keynote, Marawah introduced Richard Hume as the new general manager of global business partners.

IBM solution providers said the executive changes are not surprising given how long many of IBM's top executives have been with the company, and that the changes could be a good thing.

Indeed, solution providers and IBM officials both point to many changes IBM has gone through in the last couple years, particularly its decisions to get rid of its hard drive, semiconductor, and PC business.

A lot of people were hired at IBM during periods of high growth, and as they are retiring they are being replaced by younger people who have less of a background in hardware and more of a software and services focus, said David Stone, vice president of business development at Solutions-II, a Littleton, Colo.-based IBM solution provider.

"IBM is also in the process of changing its coverage, with their focus switching to customer types not covered as much in the past, such as SMBs," Stone said. "Also, they're moving from a product and client focus to more of a solution focus, as it should be for a software and services company."

IBM's business is changing, but not always for the better, said Pete Elliot, director of marketing at Key Information Systems, a Woodland Hills, Calif.-based IBM solution provider.

"It's been a tough year for IBM in North America," Elliot said. "The business model has changed, and HP is very competitive at the SMB level. Last week, I heard some very positive things (at the Partner Leadership Conference). I hope IBM sticks to the strategy they have now where they understand that the partner is the last mile for IBM. We understand the customer and the solution, and I think IBM knows they need our support."

Hopefully the executive changes will also get IBM's various teams better aligned with each other, Elliot said. "They need to get their hardware team aligned with their software team, their software team aligned with their hardware team, their services team aligned with their hardware and software teams," he said. "Sometimes, they're not aligned. No fatal accidents so far. But they can do better."

Both Stone and Elliot said they are sorry to see Zeitler go. "It's unfortunate," Elliot said. "I've known him for years. He's the gold standard at IBM for credibility and technology. He has a good sense of humor, and is a smart guy."