IBM Aims For The Mid-Market

IBM used its PartnerWorld event in New Orleans this week to confirm a strong commitment to its partners – ISVs, distributors, resellers, systems integrators, and consultants – and a deepening interest in the SMB (small and medium business) market. 

The emphasis starts with what IBM refers to as the mid-market – customers with hundreds (but less than 1,000) employees.  This is a market with a much higher growth rate than IBM’s traditional Global 2000 market (which has a flat-to-low single digits growth rate).  At PartnerWorld, IBM noted that 54% of IT spending comes from businesses with fewer than 1,000 employees.

To further these efforts, IBM is continuing its program of providing its middleware (infrastructure software that sits between the operating system and customers’ applications) in configurations and at prices targeted to the mid-market. 

IBM already offered WebSphere Application Server and WebSphere Portal in Express versions, suitable for medium-sized organizations.  They will now be joined by similarly featured products for data base (DB2 Express), systems management (Tivoli), and collaboration (Lotus).

DB2 Express will be priced at less than $1,000 and will be available in the 2nd Quarter.  ISVs will be able to embed it in applications so that users can install it as part of an application.  It will be offered on the Linux and Windows platforms.  

IBM Tivoli Storage Resource Manager Express manages small and medium sized businesses storage environments, installs quickly (in as little as 15 minutes) and helps improve ROI on storage hardware through increased capacity utilization, simplified administration, lower costs, and reduced risk of application downtime  and will .   It will be available in the second quarter  

Lotus will offer several Express bundles for mid-market organizations with unlimited access to collaborative applications via a web browser or a separately purchased Notes client.   Both offerings deliver the same enterprise grade messaging, group calendaring and off-the-shelf or custom application support provided by standard Lotus Domino products.

In this market, customers demand that products be easy to integrate and implement, so these products are designed to work together.  As part of extended families of enterprise class products, customers can move up to more advanced versions of the products if their computing needs increase in volume or complexity.

The offerings are designed to appeal to the SMB market in a variety of other ways:

Leverage existing investments  

Be part of solutions in typical areas such as accounting, customer relationship management, and supply chain management  

Employ IBM’s autonomic computing features to provide self-configuring, self-healing, self-protecting, and self-optimizing systems

IBM has already received strong support for initial WebSphere Express offerings from mid-market partners, with over 1,000 partners already participating in Linux and Windows offerings.  IBM is now adding an i-Series (AS/400) offering and will offer AIX, Solaris, and HP-UX support by mid-year.   

New Technology

In addition to dazzling PartnerWorld attendees with Cirque de Soleil showmanship (IBM Is now a sponsor) and economic predictions from pundit Stewart Varney, IBM also showed off a new piece of not-yet-productized technology. 

The Meta Pad is a 9-ounce highly portable miniature personal computer, designed to move from a phone or PDA to a laptop or desktop, using the keyboard, display and other facilities of its host.  It’s not a computer on its own, but rather a tiny systems unit that allows a user to take all his data with him.  The device can automatically synch with desktops or servers.

Researcher Ken Ocheltree pointed out that the device could be used to build servers where each user had his own highly personal device.

IBM has no plans to market or productize the technology, but may license it.  

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