The ‘Stock and Sell’ model is based on selling large number of devices stocked and sold at a fixed rate.IBM calls this ‘Runrate’ where 400-500 servers are sold at a fixed price fetching them Rs 4-5 crore per month. The process of selling is much easier as the price is non-negotiable both in terms of volume and pricing.
“IBM wants to push its volume server business since the advantage
to the end customer is more,” says Sameer Chaudhary,
Senior Vice President Sales, IRIS Computers.
He said, “As there is large number of ready stock at one place, a SI or a dealer can come and pick up as many servers from IRIS’ s warehouse and supply it to the end consumers swiftly. The ready stock gives fast paced transaction, security and surety.”
For IBM the Runrate business is an important since it pulls in a lot of marketing activities around these servers for their availability which creates much required buzz regarding the brand.
A recent industry report by IDC claimed that IBM servers in the world have regained the number one position. Even though IBM’s server revenue projection in the second quarter has its factory revenue down by 10 per cent but is regaining its top market share position with over 27 per cent share.