IBM software and Synnex relationship to end in October 11 July, 2009 By Chris Talbot

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News of the end of the software distribution agreement between the two companies came after it was reported that IBM sent its solution providers an e-mail on Thursday that the agreement was coming to an end.

This move will force partners that wish to continue selling IBM software products to choose another distributor, which may not be a problem for resellers that already deal with another distributor that carries IBM software but will require some work for others.

"Of course it's a big thing that they're pulling out of Synnex," said Michelle Warren, president of MW Research & Consulting. "An announcement of this situation is big enough. It's not surprising, though. I say that because they had pulled out of Synnex selling their x-series servers ... in the U.S. This is not in Canada. We're not sure if it's going to hit Canada. I have not heard any rumors that it's going to hit Canada. I've only heard that it's a U.S.-centric decision."

Warren noted the decision is likely to cause problems for Synnex resellers that sell IBM software, just as it did for Synnex resellers that sold System x servers. They'll have to look to other distributors and learn about the pricing and terms before trying to sign on with the most appropriate one for them, she said.

Pricing, credit terms and existing relationships are all big issues for resellers, she added.

Additionally, a lot of resellers like dealing with Synnex because it's a large distributor that has a hands-on approach that is attractive to many, Warren said. Additionally, open source software that can be customized is very popular among Synnex reseller customers.

However, this move could open up additional opportunities for resellers that deal with other IBM software distributors, she said.

"It's been a long-term relationship between IBM and Synnex. Something happened last summer to cause this to go sour," Warren said.

So far, the changes in IBM's relationship with Synnex have not moved north of the border into Canada.