IBM offers its resource pool to start-ups

It’s an initiative that will help the global tech company IBM serve its customers better and make it more competitive in terms of efficiency of its business solutions and pricing.

On Tuesday, the Big Blue launched its global entrepreneurship programme that will bring tech start-ups into its Smarter Planet strategy by giving them access to industry-specific technologies in a cloud computing environment to capture emerging business opportunities in industries like energy and utilities, healthcare, telecommunication and government.

What IBM will do under the new initiative is help fledging companies working on new technology solutions
to overcome challenges in the areas of capital efficiency, marketing and sales, product validation and differentiation by opening up its resources at no charge.

Those enrolling into programme, they would also get access to IBM’s research community but will be able to still own their intellectual properties (IPs). The software major invests more than $6billion per year in research with 3000 people across eight labs around the world.

With over 4,914 new patents in 2009 alone, the start-ups would be able to use its expertise in taking innovative technologies to market.

And once the product is ready to go to market, the start-ups would also be able to tap into the global technology major’s customer-base by jointly marketing solutions with IBM.

“Start-ups will be able to speed up IPs they are working on (by joining our programme). We will help overcome the initial hump they want to get over,” said James M Corgel, general manager, IBM ISV and Developer Relations, IBM.

He said the criteria for start-ups to be part of the programme are they would have to be “0-3 year old, privately owned and have understanding of IBM’s Smarter Planet agenda.”

These candidates would eventually become part of IBM ecosystem and could also be acquired.

Corgel said even though the company’s primary aim was not acquisition, all its successful partners have been acquired except one.

“IBM is acquisitive but this programme is about partnering with start-ups to serve customers better,” he said.

Pramod Haque, managing partner, Norwest Venture Partners, said those ventures that would be incubated with the IBM would get the benefit of IBM brand, and therefore would cross the hurdle of credibility by virtue of just being part of its eco-system.

“One of biggest challenge for start-up is credibility when they have to work with large enterprises. Under this programme, they will fit into bigger solution (of IBM and gain credibility),” said the venture capitalist.

Claudia Fan Munce, vice president of corporate strategy and managing director of IBM Venture Capital Group, said the company can also draw from its internal pool of innovation but said it was looking outwards to tap into other innovations to improve the efficiency of business solutions.

“The world of innovation is everywhere and much broader and valuable than what a single company can do it for itself,” she said.
Munce said Indian start-ups would gain from the IBM’s understanding of customer needs as they were trying to address global market unlike Chinese entrepreneurs, which were looking at local markets.

“We are best at marketing business solution. We will share our marketing and sales expertise with the start-ups,” she said.

On Thursday, over 40 venture capital firms, along with 173 entrepreneurs will assemble in Bangalore to be screened for the programme.