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									IBM Lotus Foundations Start
Tech Data Sales Enablement – August 27, 2008
France Loubier – WW Channel Sales Executive




                                          Licensed Materials – Property of IBM Corp.
Sales Enablement Agenda


       Welcome and introduction to IBM Lotus Foundations
       Market Positioning
       Partner & Customer
IBM SMB Announcement

 Earlier this year IBM announced expansion of its SMB strategy - focusing on serving
  companies with less than 500 employees, making its world-class expertise accessible to
  small businesses

 Net Integration has been acquired by IBM and is part of the Lotus software division of IBM
  SWG group led by Bob Picciano, General Manager, Lotus software.

 IBM will integrate Net Integration’s technology into the Lotus Foundations family of servers.
   – Allowing the Lotus software offerings with an affordable, simple and essential business
     solutions that will allow companies to focus on business instead of on IT.

   Sam Palmisano – “SMB market is poised to become IBM's biggest source of revenue”
Small business is still big business
  Businesses with under 1,000 employees:
   – account for 36$B in middleware opportunity in 2008 – 31% of all middleware
     opportunity*
   – outpace large enterprise opportunity growth 6.1% to 4.5%*

  Business with less than 100 employees:
   –   comprise 53% of the under 1,000 employee spend*
   –   represent a significant, untapped market segment
   –   require easy to install, easy to maintain, affordable solutions
   –   need quick integration and rapid deployment of applications
   –   are showing increased interest in appliance solutions
   –   are in need of alternatives to the current market solutions




                                                                   *Source: IBM GMV 1H08 Constant Currency Middleware Served
SMBs are not small companies with small problems – they require
increasing complex IT solutions, but rely on trusted advisors for assistance

  Increasing business complexity
     – Multi-location, Multi-vendor, Remote workforce

  Increasingly similar demands as larger companies
     – Meeting customer needs so they can increase sales and profits
     – Competing effectively against both large and small rivals
     – Increase efficiencies and thereby decrease costs

  Rely heavily on trusted advisers or business partners to help
   with IT
     – Partners who have experience with similar implementations, offer a
       complete solution, and really understand their business (vertical expertise)
     – Top preferred channel for SMBs is a local or regional VAR or SI




                                           Source: IBM Market Intelligence forecast for Total IT, Overview of the SMB Market, May 2008
IBM Commits to Businesses with 5 – 500 Employees
  With its recent acquisition of Net Integration Technologies, IBM announced its commitment to
  make its world-class expertise accessible to smaller businesses – affordably, and with ease.




     Innovation                                 Proven approach for SMB needs
     Collaboration leadership                   Innovative capabilities for customers
                                                  and partners
     Business Partner Network
                                                 Simple, reliable technology
     Global reach


                   =                   Foundations
        Invested in serving companies with 5 – 500 employees

        Devoted to enabling smaller businesses with the essential IT services they need to
         run their businesses

        Committed to providing a smart and affordable networking alternative that is
         simple to use and maintain
IBM Lotus Foundations is optimized for small
businesses
 The Lotus Foundations family is a series of on-premise software servers
  Provides the essential IT services to easily and efficiently run a business with 5 – 500
   employees
  Deploys in under 30 minutes
  Designed to accommodate growth
  Requires no in-house IT resources
  Self-managing, self-healing and self-configuring
  Provides advanced remote administration capabilities
  Delivered through business partners
  Compatible with both IBM and 3rd party hardware platforms



                                                                                              7
IBM Lotus Foundations Start is a complete first server – an out-of-
the-box solution for every small business

    Email and collaboration
    Choice of email clients: Notes, Webmail
    and support for MS Outlook

    Office tools: spreadsheets, presentations,
    documents

    Network infrastructure
    File management
    Firewall, VPN, secure remote access
    Backup, Disaster Recovery
    AntiVirus and AntiSpam
    Complete operating system: Self-
    managing, self-healing and self-configuring



                                                                      8
Lotus Foundations Start is designed to deliver a complete IT solution for
the small business
Who is our key competitor?

   Microsoft
     – Small Business Server (SBS)
   Established market leader in this space
     – 80% market share
     – Lack of any other strong competitor
     – Partnership with leading hardware vendors
Lotus Foundation Start offers several advantages over the
competition – it’s designed to alter the status-quo
  Runs atop Linux for a proven, robust, yet compact server Operating System
   environment.
      –   Without the need for Linux skills

  Autonomic capabilities reduce the need for on-site IT skills
      –   Automates key tasks such as installation, configuration and updates

  Small footprint allows the OS and configuration files to be stored on a CD-ROM,
   hard disk or solid state chip.
      –   Start measures complete system recovery in minutes – without the need for IT
          assistance.

  Integrated disk backup technology provided as standard

  Anti-virus, anti-spam and a self-configuring firewall provided as standard
      –   Complemented by the fact that Linux OS is less targeted to malicious attacks

  Office productivity tools are included as standard
Integrated vs. Layered Approach
                                           MS - SBS


                                          3rd party back-up
                           Email, File

      Operating system                    3rd party security


                                          Email, File storage
          Back-up
                         Administration
                                          Operating system
            D/R
In summary – Customer comparison

Top 3 priorities for SMB

1. Simplicity – Autonomics, administration
2. Functionality – Domino strength, all-in-one
3. Value - $ implementation, $ management, $ up-front

“Our customers experience on average 30-50% savings using
   Foundations” Smart Technology Enablers
Partner Profile
 Clear strategy around providing IT services to customers in the 5-500
  space
   – Corporate and/or global resellers should be the first focus
   – Sweet Spot has been small VARs with 5-15 employees
 Expertise in meeting the demands of small business
 IT services such as network infrastructure, software design, security,
  connectivity, communication, and managed services

 DNA of a top partner
  1. Business partners that have established a vertical based expertise.
      Reason – They fully understand the nuances of the customer vertical
  2. Business partners that have carved out a niche from a geographical
     perspective i.e. small community
      Reason – Word of mouth and reputation are very powerful in the
        small business community
 Value to You

 IBM solution for a fast growing market
   Tremendous services revenue opportunity
   Remote management capabilities (BP can support 3 times as many servers as
    competitive products)
   Overall labor required is 1/3 of other comparable products


 Solution that maximize their time and value
    Low up-front costs (ie. Enablement – hours not days)
    Low touch, simple solution = short sales cycles
    Easy to install, non-complex, and autonomic
    Lightweight Linux OS, but no Linux skills required
    Rich online and extensive phone-based technical product support
    Reliable and security-rich = customer satisfaction
Example: Managed Services and Support Revenue Opportunity
   Users          Per Foundations             Per Foundations          Scheduled On-Site
                  Server ($/Month)            User ($/Month)                 Visit
   5 – 25            $120 - $150                  $15 - $30                 Twice/Year
  25 – 100           $150 - $250                  $15 - $25                  Quarterly
 100 – 500           $250 - $350                  $10 - $20                   Monthly


Services may Include:
 Highest Priority Service                               ISP & email management
 All Lotus Foundations Server problems are covered      Backup management
 Hardware replacement if optional hw warranty is        Network management
  purchased                                              Firewall management
 Network, Server Management & Monitoring                VPN management
 Same-Day Response or better                            Disaster recovery incidents
                                                         Security management**
 Remote Support available
 Application Support
 Online Help Desk Trouble Ticket Submission System
 Limited Helpdesk email support for all users
 Monthly IT Status reports & recommendations
 Cold Stand-by Hardware Availability Plan
How Business Partners Find Target Customers




   Community Involvement i.e. local chamber of commerce

   Industry/Trade Associations

   Local Advertisement

   References & Endorsements

   Vertical expertise
Target Market
Companies with up to 500 users

Ideal first server for:
 Any business or a branch office

   Companies in industries pressured with regulatory compliance or
    those dealing with confidential client data
   Companies looking for a server that can also provide reliable
    data backup of electronic information

Ideal replacement server for:

   Small businesses struggling with outdated and unreliable
    systems
   Growing businesses whose existing server cannot handle
    growing server loads
   Companies that want to move toward a more "electronic or
    paperless" office
   Companies looking for a small-business server that can also
    provide reliable data backup of electronic information
Target Market Analysis
     First Server Purchase                      Connecting the Business                        Extending the Business
        (5-50 employees)                          (50-100 employees)                            (100-500 employees)
 Business Needs:                            Business Needs:                                Business Needs:

     Document sharing                          Wider use of productivity and
     Networked applications (accounting,        business applications                        Enterprise Application Integration
      timesheets)                               First Enterprise Applications (ERP,          CRM, SFA, ERP…
     File and records backup                    CRM) Records management
                                                                                              Extensive customization
     e-mail management                         EDI
                                                Intranets / portals                          Deep interdependencies with supply
     Data and Network Security
                                                Networked storage                             chain
     Mobile access to mail, files, data
     LAN (faster network)                      WAN – branch offices                         IT department organized between
     Low maintenance solution                  Establish processes and standards             infrastructure and applications
     Cost $$ conscious
     Simplicity – No “IT “in-house




New customers who have                      Companies upgrading                              Branch offices wanting
not yet purchased first                     obsolete servers or adding                       connectivity/infrastructure
server                                      additional capacity                              that’s easy to administer
Customer Opportunity - Legal Firm

    Legal firm specializing in technology and intellectual property law:
        •     Two offices with 12 employees (no IT staff)
        •     When their server went down, they lost a week of data and
              billable hours trying to restore from backup tapes

        • Business problems:
            • Reliable and complete backup and restore
            • Document management and storage
            • Security, anti-virus, anti-spam
            • Two offices need to be able to share data
Customer Opportunity – Dental Office

    Dental office specializing in families and children:
        •     One location with several patient rooms and complicated dental
              IT equipment - 7 employees (with and IT point of contact)
              rely completely on their IT service provider, to deal with the
              computers. “He needs to be there for me so I can keep doing my
              real work.”

        • Business problems:
            • A lot of IT equipment in the office, but when the server goes
                down the office cannot get anything done as they have to
                revert to paper.
            • Increasingly frustrated with the cost and distraction of
                dealing with viruses, spam and server crashes.
            • Although the system has a backup tape drive they have had
                problems in the past when the receptionist has forgotten to
                change the tapes on schedule, and the tapes they use are
                starting to look damaged - he’s concerned that he’s not
                protected.
Objection Handling

    IBM/Domino/Notes is an enterprise product & company
    Domino/Notes is too complex
    My customers are not asking for Notes
    I don’t have any Linux experience
Lotus Foundations Channel Strategy And Programs
  IBM building a set of tactics targeted at the end users market
   – Designing a series of webcasts, short videos and thought leadership pieces
     • Convey message that IBM is committed to the small business space
     • Position IBM’s partners as trusted advisers in delivering simplified, yet comprehensive
       solution that is easy for small businesses to deploy, maintain and use
     • Show end users that IBM is working to demystify IT and make it simple for small
       businesses
     • Build awareness and gain mindshare around the Lotus Foundations offering
     • Drive end-users to local solution providers

  Lead passing program starting in Q4

  Lotus Foundations partner program
   – Will leverage IBM’s PartnerWorld program with special profile for Foundations
     partners
   – Easy access to get information on Foundations and small business market
   – Access to knowledge database, online training, Campaign in the box material,
     etc…
Embrace a new alternative today!
   Get Started Now

   Talk to your customers about Foundations

   Participate in our training sessions:
     – One Day Sales & Technical sessions only open to Tech Data partners:
          • Sept. 15 – NY
               – 590 Madison Avenue - midtown Manhattan - RSA-0289-12-1218
                  classroom
          • Sept. 16 – Cincinnati
               – IBM facility at 4600 McAuley Place - ADI-6299-02-TJ Watson
                  Classroom
          • Philadelphia - Date and location tbd

     – Two 2 days Deep Dive technical enablement sessions :
        • Sept. 9 – 10 – Virtual workshop
        • Sept 29 & 30 – Waltham, Massachusetts
        • Oct. 7 & 8 – Toronto, Canada
        • Nov. 4 & 5 – Virtual workshop

								
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