Sanjeev Aggarwal's Blog

February 24, 2015

SMB Spotlight: IBM’s Midmarket GM On New Partner Strategy and Programs for SMB and Midmarket Companies (Part 2)

Sanjeev: Hi, this Sanjeev Aggarwal from the SMB Group, and in today’s SMB Spotlight I’m speaking with John Mason, who is IBM’s General Manager for Midmarket. Hi John. Thanks for joining me in this two-part discussion about new IBM developments and solutions that are relevant for the midmarket and SMB space. Continuing our discussion in this second post, we focus on IBM’g go-to-market and channel strategy for SMBs and midmarket.

Sanjeev: How is IBM’s channel involved in marketing and selling some of these new solutions?

john_mason_edit

John: A couple of different ways. So for Verse, for example, we make that available to and through our business partners and they have an opportunity to develop recurring revenue model, annuity model and can also add their own consultative services, things like messaging migration or post-implementation support.

We’ve also introduced something called Watson Explorer for business partners. So, that really gives a very powerful cognitive search and analytics. And through this Explorer program, the business partner can identify high revenue potential and resale opportunities on Watson Explorer and then we continue to expand that obviously into other areas. So there’s are really significant joint market investments that we make together with our business partners.

I believe it’s in the order of 100 million dollar investment in co-marketing that we spend with our business partners together. We invest and they invest and then we jointly market to identify new opportunities.

One example is in the UK where we used a very interesting customer reference from Australia. The rugby team in Australia was using, in this case, SPSS to do predictive analytics on player injuries. The customer was called the Waratahs rugby team from Australia. They were using multiple data sources, looking at the players’ training program, their previous injuries, history of injuries, number of minutes they played in matches, that kind of thing to predict future injury probabilities.

The UK team took that customer reference, turned it into a marketing campaign, which was essentially a mock newspaper. That the UK IBM team together with specific, I think, two or three business partners sent this out to 97 different sports clubs in the UK, rugby teams, soccer teams, cricket teams, with a headline that said, you know something about that particular club’s lead player getting injured in three weeks’ time.

So, they sent, for example, to Manchester United such-and-such a player gets injured in three weeks. And then explained within the text how they could have used the IBM analytics tools working with the business partner to predict and effectively reduce the likelihood of injuries and therefore seen significant benefits to the team, which counts on having a full roster of players, etc.

We sent that to 97 different clubs and within a week we had 47 calls back into either IBM or the business partner asking for a follow-on meeting to see how they could actually take advantage of this same capability. And right now, we’re in the process of qualifying a number of those different opportunities into actual closed deals together with the business partners.

So what’s being indicated there is having an actual customer reference in the industry. Having a partner with the skillset, in this case analytics, and having that partner engaged early on in the joint demand generation efforts that we co-fund. That’s where we’ve seen very high response rates and then a much higher yield on the marketing activity.

Sanjeev: That is a great example, more specifically because small and midmarket would like to know how companies similar to theirs are using these solutions and what benefits they’re getting out of them.

John: Yeah, I think the key is you’re not just talking to the customer about technology but actually listening for their business challenge and in their language that’s relevant to them and their particular industry and turning that technology into a solution to that particular challenge.

So that’s where we’re also working programmatically with a number of our business partners to try to have that intersection point between industry expertise and technical know-how around specific cloud, analytics, mobile and social solution plays that can build on an existing customer reference in the same industry to find new opportunities.

Sanjeev: And I’m sure examples like these will open up new opportunities for IBM not only in accounts that have been familiar with IBM but also net new accounts.

John: Yes.

Sanjeev: Ease of use and the value they’re providing to SMBs.

John: Exactly. Yeah.

Sanjeev: So with IBM having so many products and solutions, how do SMBs find out about some of these new solutions that are innovative, ease to use, cloud-based?

John: A couple of different ways. One is obviously through our business partners. A lot of small and mid-sized businesses treat the business partner almost as their IT department whether it’s a cloud service provider or a more traditional business partner. So, quite often that is an inroad for a customer to start using IBM. In some cases, they may not even know they’re using IBM. It could be an embedded part of a cloud service provider solution that the SMB is buying and it’s actually IBM technology that’s provided there embedded in the solution. So, that’s one way.

Also, through traditional business partners with different solutions that we provide through them. But that is in some ways kind of a second-level connection. It was important for us to also establish a direct connection point for small and mid-sized businesses. In particular, to see what is available in terms of cloud services from IBM and from our business partners.

So, that led us to develop the IBM Cloud Marketplace, which brings together this very broad portfolio of offerings that IBM has itself but also third-party cloud services. And it’s organized, it’s a very simple, you can filter in ways, you can choose by self-identifying, if you like, as a developer or as an IT operations person or as a line of business decision maker. And within the line of business decision making you can choose by horizontal sort of functional area, marketing, human resources, finance, etc. or you can also sort by industry.

So, we’re really trying to use that as an on ramp for a customer to explore some of these solutions that they may not even realize IBM provides. And it could be solutions from third parties. In some cases, they even compete with IBM’s own offerings. We won’t exclude people who have a competing cloud service either. It’s important for us to demonstrate to customers and partners that we want to participate in an eco-system, which is open and allow customers to choose the solutions that best meet their needs, not necessarily force them to buy in the ways that we dictate. So it’s really about being a participant in an active but open eco-system of partners.

Sanjeev: Can SMBs if they go to this marketplace find out solutions that they can try before they buy?

John: Yeah, absolutely. One of the key requirements that we heard was the ability to get a free trial and to have limited free trial period or limited functionality for free for the customer to get a sense for whether this is a good fit. So we have a number of try before you buy type offerings. SoftLayer is one of them. You get a free month of virtual server from SoftLayer. IBM Verse, the communication offering that we mentioned before, has a 90-day free trial. Watson Analytics there’s a free version available, and then depending on which additional sources you want to use, then it steps up into a fee-based offering.

Sanjeev: How transparent is the marketplace for the users or SMBs to see not only the trial solutions but how much is the cloud solution going to cost them on a monthly basis if they do decide to go ahead and acquire that solution?

John: It varies a little bit, depending on the offerings. Obviously, some of the offerings are relatively simple, can be purchased with a credit card, in which case the pricing is clear, up-front on a per-seat, per-month basis which is the case for SoftLayer and some of the other offerings like FiberLink.

Sanjeev: How about like Watson Analytics?

John: Watson Analytics is free right now. We’re moving to additional tiers of fee-based offerings. So the switch should be coming out any time now.

Sanjeev: OK. Thanks. And what resources does IBM have to educate, train SMBs on the adoption of these new solutions? I think some of them you mentioned before. Are there any online videos, information content, online tutorials that can help them with a faster on ramp and different usage scenarios?

John: Yeah. Across every one of these solutions we have a wide range of video tutorials as well as user communities where users can pose questions, comments, share their own experiences as well as more structured tutorial content. Much of this, by the way, is accessible also through the IBM Cloud Marketplace. And so, if you start to explore one particular solution and are looking for more information we usually provide links within that same space to help the user identify more training, white papers and access to the community.

Similarly, by the way, for our business partners we also have a dedicated portal that we’ve just completely revamped called PartnerWorld where we have literally thousands of partners who have access to partner training materials and communities as well.

Sanjeev: OK, great. One last question. Does IBM and its partners have a program to help SMBs migrate from, say, Gmail to a Verse type of a solution?

John: We have several IBM Cloud Certified Business Partners who offer this type of migration, many of who are accessible through the Cloud Marketplace.

Sanjeev: Yeah, because sometimes the issue for SMBs is not only having new and innovative solutions, easy to use solutions available, they need to see how to move to adopt these new solutions based on what they have because in some cases they have lots of existing data.

John: That’s also an opportunity for our business partners to provide their value in the transition and migration type services as well. That’s something that we may not do directly. We, I know, are looking at tools that we could provide to help with that, but it’s also an area that a lot of our business partners have years of expertise in helping migrate from one platform to another.

Sanjeev: Yeah, definitely. I think if you can provide some of these tools to help the business partners make the life of SMBs easier in this migration I think it will go a long way to help both IBM and the partners. Great. Thank you.

John: Sanjeev, one other thing I forgot to mention is also on a cloud infrastructure approach with software, particularly for startups, we’ve also recently introduced a free cloud access On Ramp to help startups get started on using SoftLayer by providing up to $120,000 worth of free usage of SoftLayer for startups. That’s maybe something that they can also consider.

Sanjeev: How can startups can find out about the availability of these resources.

John: That was announced in November and you can view the press release on ibm.com: IBM Global Entrepreneur Program.

Sanjeev: Thanks for this very informative session. I think IBM, at least today, does have a really good roster of products to help SMBs be more productive in their journey to compete with the larger companies. I look forward to seeing the progress some of these solutions make in the upcoming months. Again, thanks for taking the time to talk to me.

John: Thanks, Sanjeev. Appreciate the time and I certainly look forward to continuing the discussion. Thank you.

This is the second of a two-part SMB Spotlight interview with John Mason, IBM’s General Manager for Midmarket. In the first post, we discuss new IBM developments and solutions that are relevant for the midmarket and SMB space. (link to first post)

January 10, 2012

Cisco OnPlus: IT Infrastructure Advisory and Management Services Solution For Small Businesses

Last month, Cisco introduced a new IT Infrastructure advisory and management service solution designed for VARs  to provide to small businesses with less than 100 employees. Delivered via Cisco’s value-added reseller (VAR) channel, Cisco OnPlus enables VARs to offload the mundane, time consuming tasks of managing a network environment from small businesses, and provide them with higher value advisory services.  In addition to monitoring and managing network infrastructure devices, such as switches, wireless access points and routers, OnPlus also monitors devices that are connected to the network (including smartphones and tablets).  VARs can deploy a small OnPlus Network Agent appliance at the customer site, and remotely monitor and manage it through the cloud via a secure web portal or mobile application..

Perspective

 Cisco’s OnPlus IT infrastructure advisory and management service solution is designed to meet the needs of small businesses. SMB Group’s 2011 SMB Routes to Market study indicates that small businesses’ top technology related challenges include: Gaining ‘peace of mind’ that IT is under control (40%), Containing IT costs (38%), Finding/hiring qualified IT staff(35%), Upgrading IT infrastructure(34%), Protecting business from IT related failures(32%), Getting more done with fewer/flat IT resources (26%). As illustrated in Figure 1, Cisco’s OnPlus with Assess, Manage, Advise, Maintain features helps directly address several of these technology challenges.

Several IT infrastructure monitoring and management solutions are available for small and medium businesses (SMBs) ,  but they are often cost-prohibitive for many small businesses. Cisco’s hybrid solution, consisting of an agent embedded in a small network appliance and a secure cloud service, is aimed squarely at VARs that provide managed services to small businesses. These companies often lack dedicated IT staff and tend to depend on part-time IT people or external contractors to manage IT. With scarce resources typically stretched thin, small businesses are often unable to keep up with the demands of routine technology management–let alone support growth goals with new technology solutions.

At the same time, many VARs are looking for ways to quickly and efficiently offer remote management services to their small business customers, and the ability to provide more proactive guidance and management advice.

Figure 1: Cisco OnPlus – Comprehensive IT Infrastructure Management for Small Businesses

Source: SMB Group, January 2012

 Cisco OnPlus gives VARs an efficient way to expand their managed service offerings through remote management and visibility into the customer  network and the devices attached to the network. VARs simply plug the OnPlus Network Agent appliance into a switch or router on the customer’s network, and the OnPlus Agent then transmits information about the customer’s network and all connected devices to a secure data center for access by the VAR (see figure 2). Native apps for Apple and Android mobile devices are available for free from those companies’ app stores. The VARs have the flexibility to define their own business model for using OnPlus.  Some  will add additional fees based on their coverage and response times. Others will use OnPlus to enhance their service capabilities without additional charges to their customers.  In addition, VARs can use OnPlus as a tool to accelerate pre-sale assessments with prospective customers.

Figure 2: Cisco OnPlus Solution Service Data and Communications Flow

Source: Cisco, 2011

Cisco OnPlus appliance discovers Cisco and third-party devices with an IP address connected to the network and displays them in topology and inventory views. Partners can access a real-time view of customer networks from anywhere, through a highly secure portal using a PC, tablet, or mobile device. VARs work with small businesses to define and customize alert thresholds. Through OnPlus, VARs can also provide small businesses with automated reports of all the activity and tasks performed on the network.

Pricing is $250 (approx.  $7 per month, after typical discounts), which includes a three-year OnPlus subscription and the network agent appliance that is installed at the customer site. The OnPlus service from Cisco is available now in U.S. and Canada, with a rollout in Europe and Asia planned for 2012.

Quick Take

Cisco OnPlus delivers cost-efficient scalable IT management and peace of mind that small businesses need without sacrificing the local VAR that many SMBs want to do business with. On the VAR side, it provides a fast, efficient way to onboard customers into a managed service practice, provide more proactive services, and provide more efficient service to more small businesses customers.  With the advantages, Cisco OnPlus should be very attractive to Cisco VARs and enable Cisco to make significant inroads in the small business segment.

That said, Cisco OnPlus can significantly strengthen its story by:

  • Offering additional functionality in the areas of IT asset utilization and management (both hardware and software) to support compliance
  • Providing additional performance management solutions
  • Making it an extensible solution so that VARs can easily add additional value-added solutions like remote backup, Infrastructure on-demand, and business continuity services
  • Help VARs position and demonstrate the value of OnPlus as a comprehensive IT infrastructure management solutions vs. a network management solution
  • Demand generation marketing to educate small businesses about the benefits of managed services

However, Cisco continues to invest in and develop solutions for small business, and OnPlus provides strong evidence that Cisco understands both small business pain points and how to create solutions that provide clear benefits to its partners. Cisco’s OnPlus should be a big step forward in helping Cisco VARs to move beyond the role of network product suppliers to become more strategic managed service providers.

December 28, 2011

2012 Top 10 SMB Technology Market Predictions

Here are the SMB Group’s Top 10 SMB Technology Predictions for 2012! A more detailed description of each follows below.

  1. Economic Anxiety Lowers SMB Revenue Expectations and Tightens Tech Wallets
  2. The SMB Progressive Class Gains Ground
  3. The SMB Social Media Divide Grows
  4. Cloud Becomes the New Normal
  5. Mobile Application Use Extends Beyond Email to Business Applications
  6. Increased SMB Business Intelligence (BI) and Analytics Investments Are Sparked by the Social-Mobile-Cloud Triumvirate
  7. Managed Services Meet Mobile
  8. The Accidental Entrepreneur Spikes Demand for No-Employee Small Business Solutions
  9. Increased Adoption of Collaboration and Communication Services in Integrated Suites
  10. The IT Channel Continues to Shape-Shift

2012 Top 10 SMB Technology Market Predictions in Detail

  1. Economic Anxiety Lowers SMB Revenue Expectations and Tightens Tech Wallets. After the Great Recession officially      ended in 2009, the U.S. economy resumed moderate economic growth in 2010—and the SMB outlook for 2011 became fairly bullish. But new economic worries and uncertainties are dampening some SMB outlook. Our 2011 SMB Routes to Market Study indicated that SMBs are less confident about their revenue prospects for 2012: 56%  of small and 63% of medium businesses are forecasting revenue growth for  2012, compared to the 77% of both small and medium businesses that forecasted growth for 2011. And many SMBs are tightening their tech wallets: More are forecasting flat or decreased IT spending for 2012 compared to 2011. To loosen the purse strings, tech vendors must deliver a rock-solid case for how their solutions help address top SMB challenges—which are to attract new customers, grow revenues and maintain profitability. In addition to broadening subscription-based cloud solution options (which offload big upfront investments), more vendors will offer flexible, alternative financing to help ease the financial burden—and gain a leg up on competitors.
  1. The SMB Progressive Class Gains Ground. That said, we also see a distinct category of SMBs that we are terming      “Progressive SMBs.” Despite economic uncertainties, Progressive SMBs plan to increase IT spending. These SMBs see technology as a vital tool for business transformation, a mechanism to create market advantage and a way to level the playing field against bigger companies. Although price is still a key factor for Progressive SMBs, they are more likely to rate other factors—such as easier to customize for my business, strong reputation and brand, and ability to provide local service and support—higher than other SMBs when making technology decisions, according to our 2011 SMB Routes to Market Study. Progressive SMBs invest more in technology and see the results in terms of higher revenue expectations. For instance, 73% of medium businesses that are investing more in technology anticipate revenue increases in 2012, compared to just 17% among those decreasing IT spending. Technology      vendors need to develop different marketing campaigns and more sophisticated solutions for Progressive SMBs than for their counterparts to win in this very important segment.
  1. The SMB Social Media Divide Grows. SMB use      of social media is rising. According to our 2011 Impact of Social Business in Small and Medium Business Study, about 50% of SMBs already use social media, and another 25% plan to do so within the next 12 months. The study revealed that about half of SMBs take a strategic and structured approach with social media. These      “strategically social” companies use social media for more activities, use more channels and are more satisfied with the business results than the other half of SMBs that are still throwing spaghetti on the Facebook wall.  These more informal, ad hoc users say that they don’t have enough time to use social media effectively; they can’t decide what social media strategies and tools will work best; it’s too difficult to integrate      social media with sales, marketing, service and other business processes; and they are unable to measure value from social media. As new social media tools—from crowd-sourced pricing to video commerce—take shape, SMB      social media “haves” will gain business ground on the “have-nots” in an exponential manner. As the have-nots lose ground, they will clamor for better social media guidance and easier-to-use, better integrated and more affordable social media management solutions.
  1. Cloud Becomes the New Normal. Is the      cloud perfect? No. Is it right for every solution and every business? No.  But that said, the rate and pace of technological change are in overdrive, and the need for businesses to harness new technology-based      solutions—social, mobile, analytics, etc.—to maintain a business edge is rising. Our 2011 SMB Routes to Market Study results      reveal that demand for cloud-based solutions is accelerating in almost all solution areas. For instance, in the past 24 months, only 7% of small businesses purchased or upgraded cloud accounting/ERP solutions, compared with 13% that plan to purchase them in the next 12 months. Areas that show the biggest potential for cloud gains in 2012 are marketing automation, business intelligence/analytics, and desktop virtualization solutions and services. Most SMBs simply don’t have the staff, expertise or capital budgets needed for do-it-yourself IT—and they can’t afford the time it takes to get business payback from a solution that they need to vet, buy,  install and deploy in-house. This makes the arguments for cloud computing—reduced capital costs, speed to deploy, and real-time collaboration and visibility—compelling. Demand for anytime, anywhere, any-device mobile access to applications will also accelerate cloud adoption, as many SMBs will want to offload management of mobile applications to a cloud solutions provider too. Enterprise players such as Oracle (with RightNow) and SAP (with SuccessFactors) have already begun their cloud shopping sprees. Look for traditional SMB vendors (Intuit, Microsoft, Sage, etc.) to join in the fun.
  1. Mobile Application Use Extends Beyond Email to Business Applications. In a custom study we completed this summer,  SMBs indicated that they plan to significantly increase spending on mobile devices and services in the next 12 months, with the highest jump in the 5-to-49–employee size band. The study revealed that with mobile use of collaboration apps (email, calendar, etc.) now mainstream, SMBs are  mobilizing business applications. Some of the strongest categories for SMB  current and planned mobile app use are mobile payments (52%), time management (59%), field service (59%), and customer information management (69%). This rapid uptake will also include more vertical apps that are a perfect fit for industry-specific needs, especially given the choice of both smart phone and tablet (read: iPad) form factors. Unfortunately, our crystal ball is cloudy when it comes to predicting if another vendor will be able to give Apple a run for its money in the business-use tablet market.
  1. Increased SMB Business Intelligence (BI) and Analytics Investments Are Sparked by the Social-Mobile-Cloud Triumvirate. According to our 2011 SMB Routes to Market Study, 16% of small and 29% of medium businesses purchased/upgraded a BI solution within the past 24 months, and 16% and 28%, respectively, plan to do so in the next 12 months. The social-mobile-cloud triumvirate will fuel new and increased SMB investments in this area as businesses try to plow through the growing data avalanche to get to the insights they need to grow their businesses. As SMBs try to get a better handle on customers’      and prospects’ opinions and influence networks, interest in sentiment analysis and social graphing solutions will grow. New mobile access capabilities and applications from BI vendors designed to provide SMBs with just the information they need, when and where they need it, will spur interest as well. Finally, our study indicated that roughly a third of SMBs use or plan to use cloud-based BI and analytics solutions. An expanding array of cloud options in this area will make it easier and more affordable for more SMBs to deploy these solutions.
  1. Managed Services Meet Mobile. Despite momentum toward the cloud, it will continue to be a hybrid world for a very long time. Many SMBs will continue to use existing on-premises apps  and choose on-premises deployment as security, regulatory or other needs dictate. So most SMBs will continue to grapple with IT infrastructure management—even as new mobile device management and governance challenges  grow. SMB adoption of mobile phones and tablets is now on par with that of traditional landline phones, according to our 2011 SMB Collaboration and Communication Study. With employees more likely to lose a smart phone than a laptop, security issues abound and will only increase. The “bring your own device” (BYOD) phenomenon creates additional concerns, not least of which is to create a firewall between personal and business data. These SMB challenges provide ample opportunity for wireless carriers, networking vendors, MSPs and others that can provide integrated and automated managed services. These are likely to include services that encompass management of cloud-based infrastructure and all end-point devices, from desktop PCs, tablets and smart phones to purpose-built mobile devices; network services to reduce downtime and help optimize the network that mobile access relies on; and support for cloud-based dual-persona solutions on personal mobile      devices.
  1. The Accidental Entrepreneur Spikes Demand for No-Employee Small Business Solutions. As unemployment has increased, so has the number of freelancers, contractors, independent consultants and others choosing to go it alone. According to      the U.S. Census Bureau, small businesses without a payroll make up more than 70% of America’s 27 million companies, with annual sales of $887 billion. Many entrepreneurs never intended to take this path, but stay solo because they prefer it to going back to the corporate payroll. Others      stick it out due to limited employment options. Either way, more accidental entrepreneurs view what they’re doing as a long-term business venture instead of a short-term stopgap. As a result, they see themselves more as business owners than as freelancers or contractors. But many have no intention or desire to hire employees. This will spike demand for—and growth of—applications and services that help them to achieve their business goals without adding employees. Traditional small business powerhouses (Intuit, Sage, etc.), pioneers in the SOHO space (FreshBooks,      Shoebox, Zoho, etc.), new start-ups and others will increasingly cater to their needs with solutions that make it easier for them to fly solo—whether from a home office or on the go.
  1. Increased Adoption of Collaboration and Communication Services in Integrated Suites. As evidenced in our 2011 SMB Collaboration and Communication Study, the SMB pendulum is swinging from point solutions for voice, communications, social media and collaboration solutions to integrated suites. Medium      businesses are leading the charge, with 28% currently using an integrated collaboration suite, and 35% planning to do so in the next 12 months. Small businesses are slower to make this leap, but a transition is under way here too. By moving from disparate point solutions to an integrated offering, SMBs can avoid the hassles of learning to use multiple user interfaces, going to different sites to login and remembering different passwords—in short, things that waste time and frustrate users. They also can lower costs and improve their ability to collaborate effectively. A  growing roster of low-cost (or free), easy-to-use integrated collaboration suites (Google Apps, Microsoft Office 365, IBM LotusLive and HyperOffice, to name a few) are adding fuel to the convergence fire—although vendors will still need to address the obstacle of user resistance to learning  something new.
  2. The IT Channel Continues to Shape-Shift. The trend triumvirate—cloud, social and mobile—is also reshaping the IT channel. These trends are moving the goal posts and changing the ways in which channel partners add value. Cloud computing reduces the need for hardware, software and infrastructure deployment skills, and ups the ante for educational guidance, business process transformation and integration skills. Re-imagined channel partner programs from vendors such as Intacct and IBM’s Software Group have blossomed as they shift partner rewards to focus more on value-add and renewals. Meanwhile, non-traditional IT partners, such as creative and marketing agencies, have stepped in to fill a gap by providing social media and digital marketing services for solutions such as Radian6 and HubSpot. In the mobile domain, partners will need to bring more value to help SMBs develop and implement mobile strategies, and offer solutions to manage mobile devices and applications and provide better network performance, reliability and redundancy. As with any significant inflection point, the cloud-social-mobile trend necessitates that older partner models continue to move aside as new, more relevant ones take shape.

July 31, 2011

Dell KACE M300 Appliance Enables Small Businesses to Take a Proactive Approach to IT Asset Management

Filed under: Blogs - Sanjeev Aggarwal, Infrastructure, Small Business, SMB, TCO — Tags: , , , , , — sanjeevaggarwal @ 12:49 pm

Dell KACE recently introduced a new series of System Management Appliances targeted at small businesses with 20-200 employees. The Dell KACE M300 Asset Management Appliance is designed to deliver an affordable, plug-and-play IT asset management solution that reduces the repetitive, time consuming task of managing PC inventory and software licenses. The KACE M300 provides a robust yet easy-to-use asset management solution—saving these businesses time and money, while at the same time addressing their compliance and inventory management issues.

Perspective

Dell’s KACE systems management and deployment appliances are designed to meet systems management needs from initial computer deployment to ongoing management and retirement. Dell acquired KACE, which designs and builds systems management and deployment appliances, in February 2010. KACE solutions are available both as physical appliances (delivered as a pre-packaged hardware and software appliance) and as software-only virtual appliances, which customers can buy and load onto servers they already own.

Higher-end products available from Dell KACE (K1000 and K2000) have been available for some time. Since Dell acquired KACE, sales have spiked considerably year-over-year. However, the existing KACE offerings are designed for companies with 100 to 10,000 employees, and cost more than most small businesses are willing to spend in this area.

With the introduction of the M300, Dell is making a play in the true small business market, targeting customers that want a simple plug-and-play appliance to meet their asset management (both hardware and software) needs. The solution is designed for smaller businesses that often have a part-time IT manager, typically overloaded with installing software and keeping systems and client devices up and running, and frequently unable to keep up with the detail-oriented task of tracking hardware and software assets.

Many small business IT managers are still trying to manage assets and software licenses in a manual manner with spreadsheets. While manual tools provide a point in time snapshot of a network, the information rapidly becomes obsolete as computers are added or additional software is installed on existing computers. IT managers either end up spending too much time trying to keep this up-to-date, or end up with outdated asset inventories. Offloading the labor-intensive minutia involved in this job can free them up to focus on more important things.

Although there are some free and small business oriented solutions in the market, Dell’s strong market footprint in the market and direct relationships with existing small business customers provide it with a significant go-to-market advantage, and the opportunity to educate small businesses about the benefits of investing in IT asset management (Figure 1).

Figure 1: Benefits of IT Asset Management

Strategic Benefits
  • Reduce over-spending on IT hardware and software assets by increasing asset utilization
  • Reduce IT resources (and time) required to routinely manage and maintain IT hardware and software assets and related annual operational costs
  • Increase useful life of IT assets through ongoing configuration and upgrade monitoring
  • Increase utilization of assets by optimizing performance of IT assets
  • Reduce downtime by optimizing configurations and timely upgrades of assets
  • Reduce break-fix costs by maintaining proper asset warranty information
  • Support audit and compliance requirements and mitigate risk of non-compliance and costly legal/financial risks
  • Records and reports when new devices are connected to the network
  • Detects hazardous software packages across the network
IT Hardware Asset Management Benefits IT Software Asset Management Benefits
  • Reduce server and PC procurement, upgrade and ongoing management costs
  • Extend the useful life of these hardware assets
  • Reduce costs by redeploying unused or under-utilized hardware systems
  • Keep track of licenses and upgrades for PCs migrating to Windows7 and identify PCs that are configured adequately for upgrade
  • Easily identify PCs that need replacement or upgrades


  • Maintain an accurate inventory of installed applications to ensure legality and that software is up to date
  • Maintain a centralized report of license purchases and maintenance to ensure license compliance
  • Reduce operating system, middleware and application procurement, patching, upgrade and ongoing management costs
  • Reduce costs related to un-used or under-utilized middleware and application software licenses (for both on-premise and on-line software)
  • Optimize software assets by redeploying unused software licenses
Source: SMB Group, 2011

In line with small business requirements to keep it simple, the M300—features easy set up. The IT manager plugs the M300 into the network, and the device automatically scans and discovers all the devices on the network, obtaining information like system names, IP addresses, vendor, models numbers, memory and disk space, etc. In addition to the hardware configuration, the M300 keeps track of all the software licenses, what systems the software is installed, version of the software and level of patch updates, etc.

The M300 continuously tracks computers and software, and can report accurate information in real-time and for compliance purposes at a specific point-in-time. The web-based intuitive user interface of the appliance shows real-time information on all of the monitored parameters. It can match the installed software with the number of software licenses purchased and also authorized users who can use the software. It shows online or sends out reports and/or alerts on any of the monitored parameters. For example, an alert will be issued if an unapproved application is downloaded and installed on a monitored PC or if a new PC is connected to the network.

Priced at $2498, the M300 includes a one year warranty and supports a maximum of 200 nodes. Assuming the useful life of the M300 to be 3 years, we estimate the cost to monitor each node (desktops and servers) on the network at approximately $0.49 per month per node in a company with 200 nodes. Figure 2 shows the cost per node in smaller companies (with less than 200 notes?). Given the cost of a full time IT manager to be approximately $75,000 per year, the M300 will pay for itself in about 1 month. In addition, the M300 can relieve the pressure and any additional costs related to non-compliance in terms of number of software licenses, etc.

Figure 2: Tracking Cost Per Node, Per Month with the M300
Source: SMB Group


The M300 is compact–measuring just 1.52 x 5.79 x 5.79 inches, connects to the network via a single gigabit Ethernet port, and is currently available in the U.S. only.

Sales are both direct from Dell and via Dell partners. KACE has added about 100 new certified partners since Dell acquired it and currently has 143 channel partners in North America. KACE is aggressively recruiting new partners to help it expand its footprint and reach Dell’s large customer base in the small business segment.

Dell’s future plans include additional appliances that can be stacked on top of the M300 and will address time consuming IT management functions like OS installs, remote management, mobile devices, service desk, etc. as the systems management needs of these small businesses expand, without the need to rip and replace their current solutions and investments.

Quick Take

Cost-efficiency, productivity benefits, ease of installation and peace of mind benefits—aided by Dell’s strong clout in the market—should enable Dell to make significant inroads with KACE in the lower end of the SMB space. And, Dell’s plans to incrementally build on the current M300 offerings with additional appliances for other repetitive tasks such as installing network operating systems, imaging and data backup make sense. However, Dell can significantly strengthen its story–and sales–by:

  • Offering small businesses the option to add at least some new functionality via software upgrades to the M300 appliance. Although the small business KACE appliances have a small form factor, some companies will balk at buying additional boxes (not to mention that Dell wants to move away from its “box-provider” image!)
  • The M300 is a first in the M-series line of appliances from KACE. The M-series is designed to deliver system management technologies to small businesses that they previously were unable to gain access to due to cost or complexity of solutions.
  • Incorporating capabilities to manage non windows based clients and networked storage devices.
  • Enabling remote management features to enable channel partners to offer incremental value-added IT infrastructure management services. This would not only have appeal for customers, who like to have a one-stop shop, but for partners, that can build higher margin services on top of the M300.

Looking at the larger picture, the KACE M300 provides further evidence of Dell’s deepening commitment to small businesses. Dell continues to invest in and build innovative yet practical solutions that address real small business pain points without breaking the bank. Small businesses increasingly rely on technology to run their businesses, and Dell’s focus on supplying them with easy-to-use solutions such as the KACE M300 to help manage this technology is on the mark.

November 29, 2010

Dell Vostro V130 – A Great Fit For Small Business Entrepreneurs, Executives And Mobile Professionals

Filed under: Blogs - Sanjeev Aggarwal, Infrastructure, Small Business, SMB, SMB strategy, video — Tags: , , , , , — sanjeevaggarwal @ 9:33 pm

 

As a entrepreneur and a CEO of a small business who travels frequently, I have been looking for a business-class notebook that is sleek, lightweight, provides good performance and security, and is also affordable. Dell’s Vostro V130 meets these requirements and provides enhanced performance over the previous V13.

 

Figure 1: Mobile Workers (employees that travel more than 20% of their time on business)

Source: Small and Medium Business Mobility Study, SMB Group

Small Businesses Are Becoming More Mobile

Mobility is a key consideration for most small businesses (companies with less than 100
employees) when purchasing technology solutions. Overall, about 81 percent of small
businesses (Figure 1) have mobile workers that travel more than 20% of the time for business related activities.

Breaking this down a bit, we see some other interesting data points:

  • The larger a small business becomes, the more important mobility becomes: 86% of companies with 50-99 employees have mobile workers.
  • A larger percentage of employees travel in companies with fewer employees. In those with 1-19 employees, 22 percent of the employees travel more than 20% of their time on business.

Many of the mobile business executives in these small businesses no longer have desktop PCs in their offices. They want an all-purpose, ultra-portable mobile device that they can rely on to run their business applications and most likely their personal applications as well. Key considerations for small business entrepreneurs and C-level management include:

  • Ultra portable laptops that can fit in the smallest carry-on bag and weigh almost nothing. They also need to be sturdy to withstand all the beating the laptops encounter during airport security inspections. Successful entrepreneurs–and those that would like to be–also want a sleek and stylish device that helps them put their best foot forward in client meetings.
  • Although small businesses are using more web-based solutions, most still rely on several tried and true packaged applications, such as Intuit QuickBooks and Microsoft Office, excluding netbooks from consideration.
  • Data security is a key concern for travelling executives because these systems usually store sensitive company and customer information.
  • Executives never have time to backup their laptops, they need a secure automated online backup service that works in the background.
  • Wireless connectivity in the office(Wife) and while travelling (mobile broadband).
  • Strong battery life for long trips, client meetings and conferences.
  • Onsite support to provide peace of mind should anything go wrong and the device can’t be fixed remotely.
  • Affordable pricing because technology and capital purchase budgets continue to be tight.

How the Dell Vostro Stacks Up

  • Fresh and sturdy design. The Vostro V130 offers CEOs and entrepreneurs sleek and ultra portable functionality. But it’s also tough, built with an anodized aluminum scratch-resistant shell in either Aberdeen Silver or Lucerne Red (Figure 2). Having a full-featured laptop that weighs in at 3.5 pounds, and measures a skinny 0.65 inches a full featured laptop gives the Vostro a touch of the wow factor that will get it noticed.

Figure 2: Dell Vostro V130


  • Strong multimedia capabilities. The V130 features a 2.0-megapixel webcam and microphones for web and video conferencing. HDMI output enables high definition streaming to an HDTV that is very useful for making presentations. In fact, these features are becoming a must have for the executive laptop, and I see myself using most of these as they make for a richer collaboration experience and higher quality presentations.
  • Affordable pricing. The V130 line up ranges from the Intel Celeron system running Linux and priced at a competitive $499 up to Intel i5 ULV processor running the Windows7 operating system for $849.
    Details on the 3 models include:

 

  • Intel® Celeron™ Processor ULV U3400: 2M Cache, 1.06GHz, 800 MHz FSB with Linux for $499 and the same system with Windows7 Home Premium for $549.
  • Intel® Core™ Processor ULV i3-380UM: 3M Cache, 1.33GHz, 800 MHz FSB with 4GB memory and 320GB hard drive and Windows7 Home Premium for $689.
  • Intel® Core™ Processor ULV i5-470UM : 3M Cache, 1.33GHz, 800 MHz FSB with 4GB memory and 500GB hard drive and Windows7 Home Premium for $849.
  • Performance. With the latest Intel Core iCULV processor, the Vostro V130 offers up to 40% overall performance improvement over the previous V13 with a duo core processor The performance range between V130 models is significant, as shown in Figure 3. Because I create a lot of PowerPoint presentations and Excel documents, my preference is to go with the best performance processor. Those with less process intensive requirements may not need as much horsepower. Most entrepreneurs will want to add available security, backup and onsite support options to safeguard their data and ensure peace of mind.

 

Figure 3: V130 Relative Performance with Different Processors and Windows7 Operating System

Source: SMB Group, November 2010

  • Battery life. Since I travel frequently, I like the fact that the
    V130 features a sealed 6-cell 30WHr battery that provides up to 4 hours and 21 minutes of mobile productivity —almost long enough for a cross country U.S. flight.
  • Mobile Connectivity. Many very small businesses only use a wireless network in the office and home office. The Vostro V130 laptops support a full range of connectivity options, including 802.11 a/b/g/n wireless LAN, Bluetooth 3.0, and mobile broadband. These options make it easy for the mobile executive to connect to the network in the office, while travelling, at clients’ offices or at home.
  • Data protection. Since I have all of my company’s financial, banking and customer information on my laptop and shudder to think what would happen should it get dropped, lost or stolen. Freefall sensors are standard on the V130. These sensors detect if the laptop is in a state of free fall, and park the head of the disk drive to prevent a head crash and resulting data loss upon impact on the ground.
  • Data backup. When was the last time you backed-up your laptop? Though many of us are loathe to admit it, most small business executives fail to back up their laptops regularly. Viruses, accidental file deletion, disk crashes, etc. can irreparably compromise data and information that cannot be easily re-created. Dell’s DataSafe online backup is an easy way to ensure mission critical laptop data will get backed up.
  • Flexible service and support
    options. If a key executive’s laptop is down, the business suffers. Most small businesses lack dedicated internal IT staff, and need to rely on third parties when a problem arises. Dell provides a range of service solutions, from phone support to ProSupport, which includes a dedicated, single point of contact and next day onsite support in most instances. A 3-year ProSupport agreement with next day onsite support is $190 – money well spent to gain peace of mind. Based on my own personal experience with Dell ProSupport service, I would rate it as an industry best and would not hesitate to recommend it for mission critical executive support.

 

Summary

The new Dell Vostro V130 is primarily intended for small businesses entrepreneurs and executives that are highly mobile and need a thin, light, full featured notebook–and have a tight technology budget. Having the opportunity to review an early model, I believe that the Vostro V130 will be very appealing choice for mobile professionals looking for a sleek, highly capable and professional looking executive laptop.


April 16, 2010

Highlights from Iron Mountain Digital 2.0 Industry Analyst Meeting

Highlights: The overall annual growth in data volumes is beings driven by an increase in unstructured data created by social media and collaboration solutions, mobile solutions and rich media which is leading to much higher costs for information storage and management. This problem is further exasperated as the information creation moves from customer on-premises sources, to now include mobile edge devices and the cloud. SMBs and mid-market enterprises now need to take a much more holistic approach to information management. Driven by the need to support compliance, litigation, business continuity and disaster recovery requirements – SMBs need to carefully consider who they partner with as their trusted guardian of their information considering their need to store, protect, manage and retrieve this information in a virtual world anytime, anywhere, and anyplace.

Quick Take: I’ve been following Iron Mountain for a while, and this was their 3rd. analyst event that I attended. Everyone recognizes Salesforce.com as a cloud solution market leader; I would venture to say that the 2nd biggest cloud solution and services provider is Iron Mountain Digital. Key insights from the conference are:

  • Shift in company focus from Storage-as-a-Service to ‘Integrated Information Management Solutions‘ that is based on a location agnostic strategy – from on-premise to edge to cloud

  • Key Value Propositions to address the customers Total Cost of Ownership/Total Cost of Management of Information include:
    • Help customers reduce their spend and risk in owning / storing their rapidly growing information through policy-based intelligent information storage and access
    • Help customers improve operational efficiencies and reduce their spend in managing their information for use
    • Trusted partner in information management for both physical and electronic records and information, and in bridging from one to the other in terms of document conversion, data restoration, scanning, etc. 

What makes Iron Mountain different?

  • Information management platform with intelligence-driven and policy-enabled applications. This has been enabled through internal development and innovation (Digital Record Center for Compliant Messaging, for example), partnering (Total Email Management Suite, powered by Mimecast), and a carefully crafted acquisition strategy that started with Connected® and LiveVault® for backup to recent acquisitions that include Stratify® for eDiscovery and Mimosa for archiving.
  • Unique capabilities
    to “look into” and “look across” information
    . This will help with categorization of data – even at the point of creation – to enable intelligent access, compliance (including risk management), discovery, recovery, destruction and other potential use cases

  • Trusted partner who is financially strong. There are several companies offering remote backup solutions, and hosted email archiving, including you local VAR. But will these companies be around when you need the information 10-20 years from now for compliance purposes or to support litigation?
     What is still missing? Iron Mountain is accumulating a good war chest for location-agnostic information management solutions. They do have global relationships with large enterprise and upper mid-market companies – developed as the dominant leader in the physical information management services business that includes the storage of paper documents and magnetic tape storage media for backup and archiving purposes. They serve the SMB market through some core services, through direct and indirect channels. However, in my opinion, there is a larger opportunity in the SMB and core mid-market that includes:

    • Backup and archiving to support daily operations for desktops, servers and mobile devices
    • Backup and archiving to support business continuity and disaster recovery
    • Information management to support risk and compliance management
    • Virtualization of servers and desktops, and cloud computing is creating new and unique information creation and management opportunities which need to be addressed. The vendors that address these solutions (on public clouds based solutions) will be in the unique position to provide the services that Iron Mountain Digital 2.0 is seeking to provide. 

The first mover vendors will gain tremendous benefits, as these solution partnerships are now easy to replace – Iron Mountain can attest to this with their decade-long relationships with a large percentage of their customers. Iron Mountain needs to craft an SMB and core mid-market strategy with a more aggressive go-to-market plan than what I see at present.


 

March 18, 2010

Dell’s New Vostro 3000 Laptops: Designed for Small Businesses

Filed under: Blogs - Sanjeev Aggarwal, Channels, Infrastructure, mid-market, Small Business, SMB — Tags: , , — sanjeevaggarwal @ 5:04 pm

The realities of a lingering recession and a do-it-yourself (DIY) ethos continue to frame today’s economic climate. As entrepreneurs and small businesses went into financial shock beginning in mid-2008, they hunkered down and made do with older laptops (the dominant computing platform for these businesses) and other hardware instead of spending precious cash on new equipment. But with hints of a slow recovery in the offing, these older, over-extended laptops may not be up to the task of helping to support these businesses as they prepare for new business opportunities,

Consequently, Dell’s introduction of its new Vostro 3000 family could not be more timely. As credit markets begin to thaw, and business prospects look more encouraging, small business interest in taking advantage of the power of Microsoft Windows 7 and Intel’s next generation i5 and i7 processors is growing. With the 3000 series, Dell has put a lot of energy into meeting the needs of small businesses.

The Dell’s Vostro 3000 line offers:

  • Affordable pricing. Prices for smaller-sized systems begin under $649, while the larger 17″ systems start at $798, making them affordable for small businesses on tight budgets.
  • Flexible service and support
    options. Small businesses lack the IT resources to service and support these systems. If even one key executive’s laptop is down, the business suffers. Dell provides a range of service solutions, from phone support to ProSupport, which includes a dedicated, single point of contact, and next day onsite support in most instances. Based on my own personal experience with Dell ProSupport service, I would rate it as an industry best and would not hesitate to recommend it to small businesses for mission critical executive and power user laptops.
  • Data and access security. Freefall sensors are standard on all Vostro laptops. These sensors detect if the laptop is in a state of free fall, and park the head of the disk drive to prevent a head crash and resulting data loss upon impact on the ground. Businesses can also select optional features such as fingerprint readers and hard drive encryption for added protection. These security features help protect loss of business critical data in the event of accidents, loss, theft or unauthorized system access.
  • Data backup. When was the last time you backed-up your laptop? Though many of us are loathe to admit it, most small businesses fail to back up their laptops consistently and regularly. Viruses, accidental file deletion, disk crashes, etc. can irreparably compromise data. Dell’s DataSafe online backup is an easy way to ensure mission critical laptops will get backed up.
  • Connectivity. Many very small businesses only use a wireless network in the office and home office. The Vostro 3000 family laptops support a full range of connectivity options, including 802.11g/n wireless LAN, Bluetooth, and mobile broadband.
  • Fresh design and features. The Vostro 3000 series offers entrepreneurs sleek yet rugged styling, with aluminum shells in an updated choice of colors. The line-up also features webcams and microphones for videoconferencing in all models, and strong graphics capabilities.

Summary

Overall, Dell’s Vostro 3000 family provides a stylish, sturdy and affordable choice of laptops that address key small business requirements, affordability, service and support, security, data backup and connectivity.

However, Vostro 3000 products are currently available only from the Dell.com website. While Dell regularly emails and snail mails Dell Small Business newsletters and product brochures, and Internet research can provide a lot of good information, this doesn’t meet the needs of small business owners that like to physically see and touch products before they buy them. These customers—and there are many of them–are more comfortable shopping at retail stores like BestBuy and Staples, where Dell’s consumer laptops are available—but no Vostros.

To reach a broader small business market, Dell needs to supplement its direct model with a strong presence for its small business solutions at the retail outlets that small business owners and office managers frequent.

July 9, 2009

Business Intelligence (BI) – Does it have a place in the SMB and Mid-Market Enterprises?

The recent demise of LucidEra has brought forward the discussion of the need for BI in the SMB and Mid-Market enterprises (companies with 1-999 employees and revenues usually less than $1 billion). My take is that this was based on the limited BI value LuidEra offered and the current difficult economic conditions vs. their SaaS based business model. With the explosion of BI solution targeted at the SMB & mid-market, the BI industry is inundated with newer solutions and scaled-down versions of existing enterprise solution targeted at this segment. I have also seen several discussions on the potential increase in adoption of BI solution based on these solutions being delivered in a SaaS model to address the IT resources and infrastructure in the SMB and mid-market companies.

Business Intelligence is all about gaining 360 degree insight into a company’s business, and helping company executive make decisions based on the facts as opposed to information in Excel spreadsheets or gut feel. Business intelligence can offer significant benefits to small and mid-sized organizations. The problem becomes sifting through the plethora of solutions to select offerings that meet the SMB’s needs. SMBs don’t have the required resources or time to do this.

The key question that needs to be addressed is – what are the BI related need of the SMB and mid-market companies and weather these needs are being met by these BI solutions? The solution delivery model is secondary to the key question. This segment of companies is realizing that business decisions need to be made on more than excel spreadsheets and gut instinct.

SMBs don’t understand data warehouses and BI, as it is applied to large enterprises as they do not have staff that can make sense out of the reporting provided by these standalone BI tools nor do they have IT resources/budgets to integrate standalone BI applications to data from various business applications and business processes. SMBs understand BI in the form of dashboards and reports with drill down capabilities. They need solutions that can provide quick real-time insights and ROI that can have measurable business results. How can the use information from the past to more accurately predict the future or to look at real-time data to more efficiently utilize the existing resources or inventory; make changes to enhance business process or operational efficiencies?

In my recent interaction with business solution vendors that focus on the SMB and mid-market, BI solutions are now available and embedded as part of a larger business solution – integrated business solution like NetSuite; SAP (based on Business Objects acquisition) – Businessone, Business-by-Design, Business All-in-One; Oracle Business Intelligence Standard Edition; other ERP and CRM solutions (Salesforce.com) .

SMB and mid-market companies need to first investigate the BI capabilities that are already provided by these applications or modules that are already integrated and can be easily add-on to their business application solutions. It does not matter whether these solutions are cloud-based (SaaS), hosted or on-premise; utilizing these exiting BI functionality will provide much easier implementation and ROI compared to bringing in new vendors. Most of the vendors mentioned provide easy to use dashboards with BI analytics capabilities to enhance operational efficiencies, analytical and predictive analysis, risk analysis, forecasting, etc. Business application vendors need to increase their focus on their BI solutions as a key value proposition to the SMB and mid-market.


 

July 7, 2009

The Compelling TCO Case for Cloud-based business applications in SMB and Mid-Market Enterprises

A 4-year total cost of ownership (TCO) perspective comparing cloud and on-premise business application deployment

Small and medium businesses (SMBs) face a tricky dilemma in today’s tough economic climate. It’s no longer business as usual; companies need to figure out how to survive through the current downturn, and get on track to capitalize on new opportunities that will emerge as the economy starts to grow again. They need business solutions to help them to manage more efficiently day-to-day, and also the intelligence they need to move the business forward.

As SMBs weather through turbulent economic storms, total cost of ownership (TCO) is often top of mind when evaluating new business applications. Many customers have become interested in how cloud computing or software-as-a-service (SaaS) can help lower their costs by eliminating upfront capital investments and ongoing maintenance costs associated with on-premise solutions.

Hurwitz & Associates recently completed an in-depth study comparing TCO of cloud-based business application and equivalent on-premise solutions.

Cloud computing essentially eliminates the need for customers to buy, deploy and maintain IT infrastructure or application software individually. Regardless of the application, the cloud computing vendor takes responsibility for all of the infrastructure required to run the solution–servers, backup, software, operating systems, databases, updates, migration, power and cooling, facility space, etc., and associated internal and third-party staffing costs. Because cloud computing vendors manage all of their customers on a single instance of the software, they can amortize costs over thousands of customers. This yields substantial economies of scale and skill, and lowers TCO.

Key findings from our analysis include:

  • Overall TCO for cloud-based integrated solution suite is significantly lower than a comparable on-premise solution. This holds true for both SMB and mid-market firms.
  • IT Infrastructure costs (hardware, software and maintenance) account for about 10% of the total cost of deploying on-premise business applications.
  • The cost advantages of cloud computing slowly taper off as the number of users increases beyond mid-market to larger enterprise companies.
  • Application subscription costs account for two-thirds of the total solution cost in the cloud computing model, where the subscription fee encompasses underlying IT infrastructure and personnel costs required to manage business solution. In comparison, business application costs comprise about 27% of total cost in an on-premise situation.
  • Costs for internal IT staff and/or value-added reseller (VAR), consultant or systems integrator (SI) resources required for application implementation and support represent a significantly higher percentage of total cost for on-premise solutions than for cloud-based business solutions.
  • Pre-integrated front and back office functionality in the integrated business application offering contributes to reducing integration complexity and lowers application implementation costs.

Blog at WordPress.com.