Biggish Blue has backed down on software price rises of 24 percent, but appears to have confused its partners and customers in the process.
Last month customers in the UK, as well Canada, Europe, Japan, Morocco and South Africa, had been told by Big Blue that they faced software rises of 24 percent. This week, IBM changed its mind saying that the rise in some SaaS products will be 15 percent.
This marks the second change in policy around price hikes by IBM since September when IBM told us that price rises in the UK would be eight percent.
IBM partners are incandescent with rage with some even saying IBM’s communication was “appalling” and its timing was terrible.
Many partners are close to year-end, and we’ve ultimately got a week and a half of working time for most people between now and when these prices take place many companies plan for budgets for the following financial year in September.
This has left IBM partners having a window of less than two weeks to negotiate and agree to new ELAs before the year is out.
They fear that Big Blue’s decision could backfire and send customers elsewhere, which was something they were already planning after IBM’s 24 per cent price hike announcement.
One of IBM’s sale’s pitches were its stability. Price increases always came out in September, and it was all fairly standard. Now, they outfit is getting harder to predict.
