IBM Strategizes To Lure HP, Oracle-Sun Customers


5 Aug 2011
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IBM is replicating its global strategy of luring HP and Oracle-Sun customers into its fold, in India.

IBM announced a new finance program including buyback of used equipment, lease terms and no payments until April 2011 to help current credit-qualified Oracle-Sun and HP customers in India to migrate to its new Power family of servers and storage offerings.

"Cash back opportunities with competitive leasing rates and deferrals will make it easy for Indian businesses to migrate to the new IBM's systems," said Sapan Jain, Country Executive, IBM Global Financing, India and South Asia.

"At our recycling and refurbishment sites in India, we are prepared to take back several models of HP and Sun equipment," said Jain. "The money can be applied to IBM systems, software and services. Financing can smooth out up-front transition costs, helping to better match costs with expected benefits."

In the first half of 2010, IBM claims to have concluded over 500 competitive migrations to Power systems globally. More than 2,600 companies have switched from other vendor platforms since IBM established its migration program four years ago.

Despite such lofty claims, IBM has not been able to reveal how many Oracle-Sun and HP customers have migrated on its platform in the last one month in US. Back home, the company has been offering finance options to Indian users.

"Oracle has also been luring IBM customers, and in business, such practices are not new," said Asheesh Raina, Principal Research Analyst at Gartner. "One has to also consider that HP has no overlapping technologies with IBM except for servers, and that Oracle and IBM are neck-to-neck in the database and middleware markets. But while Oracle is strong in applications, IBM's strength is in infrastructure. A real migration from an Oracle-Sun platform on to IBM looks difficult at this stage."

source : crn
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