News
Comdex Wrap-up – Reporter’s Notebook
Steve
Cross and ChannelMedia Staff
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Well,
it’s certainly small…and in trade shows, size
does matter. Folks, this Comdex was small. Many of our readers
will remember when Comdex covered both sides of the Main Hall,
plus the South Hall, Sands Expo center, Hilton Ballrooms,
and even some of the hotels. Comdex 2003 was about half of
the Main Hall. That’s it. Lots of analysts, journalists,
trade show organizers and etc were all taking the public position
that small means focused, but frankly, this was as unfocused
as any Comdex in recent (since 1982) memory. The focus was
supposedly B2B IT, and there were areas of concentration on
the floor: wireless innovation, mobility, web services, and
Microsoft. Yeah, the Microsoft area had about 15% of the total
space on the floor.
MediaLive
is the new organizer, raised from the ashes of Key3’s
bankruptcy with mostly the same folks on hand to run it. They
were selling this whole B2B IT concept pretty hard to anyone
who would listen, but we saw a lot of consumer-ish stuff and
a bunch of real low-budget and unexciting add-ons: cell-phone
faceplates, cell-phone do-dads, etc, mostly from Asian countries.
Our staff
covered the floor, paying special attention the unwired world.
In fact, we had our best and worst experiences of the show
in the unwired world. A very neat pre-assembled hotspot from
Zyxel, a Swedish company made its debut. This is a very neat
idea for small retailers (coffee shops, mail-stations, etc)
who want to compete with the Starbucks of the world without
investing in a complete T-Mobile program. This is a low-cost,
and a very slick solution. Stuff like this will get the US
to 100,000 hotspots in three years, we predict. There was
also, some peer-to-peer wireless stuff. Interesting, ands
we can’t quite figure out yet how it will play in business.
IM stuff, IM security is an issue. Wireless security is an
issue.
In fact,
like many Comdex shows the big boys didn’t have a lot
of pizzazz except Microsoft, who leveraged their smaller developers
into a maze of neat applications and solutions. We found ourselves
spending more time there than anyplace.
Security
was a big focus of the show, just like in real life. We saw
hardware firewalls, software firewalls, and lots of anti-spam
products. We’ve written in a sister publication about
Ironport, and it just seems like they have a great solution:
one box with firewall, anti-spam, anti-virus, etc. Affordable,
scalable. Nice solution. Our folks were tracking every manner
of similar products, from companies like Global Hauri, a Korean
software company with a very slick approach to anti-virus
detection and live repair.
The multi-product,
or suite approach was much in evidence, as shown by the folks
from Zone Alarm, who have a sweeping approach to the field,
across channels and products. Both Zone Alarm and Panda Software
had a similar approach, but with a different orientation….Zone
starts with a firewall and adds ancillary modules; whereas
Panda starts with an anti-virus and adds from there. Both
promise a complete suite of firewall, anti-virus, pop-up blocking,
and anti-spam.
As you
all know, anti-spam is a huge topic, and just about every
anti-spam guy and gal was in attendance, displaying their
wares. Every approach to anti-spam was being shown; server
side, client side, filters, challenge-based, ASP model, subscription,
and peer-to-peer. Some of the companies we saw were Aladdin,
Cloudmark, Firetrust, and the afore-mentioned Zone Alarm and
Panda. Who will be left standing? After talking with each
of these companies, they all feel like they’re the “one”.
Somebody should tell Neo.
Another
big area of focus seemed to be VoIP, or Voice Over IP. A couple
different approaches; some companies going straight for the
infrastructure with scalable solutions, like Entel. We like
the consumer-ish stuff though, and saw tons of products around
including a nice little suite of hardware products from Octiv.
Called OctivVox. Old pal Saul Freedman is bringing them to
market. Nice stuff. I wish him (and them) luck.
A couple
private media-only events had the most exciting products at
Comdex. At the Lunch @ Piero’s (we didn’t eat;
the food looked too heavy for early afternoon) we saw the
coolest thing….a radio station in a box for around $2500.
Just think about the potential clients; universities, schools,
museums, public buildings, stadiums, etc. Absolutely self-contained,
and complete. Just plug it in and start broadcasting.
Also some
monster video stuff. Gateway, Linksys (Cisco), and others
have stuff that will broadcast video and music wirelessly
from a computer to a TV, and there were a couple neat products
in that nascent market. Not here yet, but when it does arrive,
the wired (wireless?) home will be a very neat place.
ShowStoppers
was great as always. Held on the first night of the show,
this media-only event features a number of smaller companies
not found on the show floor, who have very neat technologies.
Sometimes they’re just previews, but often these are
full-on market introductions. The food is always great, and
the technology is always interesting. We saw a spiffy new
desktop organizer that is just ideal for the budding Tablet
PC market – Optimal Desktop. Could use a slicker name,
but we got a free download, and it’s sorta’ neat.
Griffin
doesn’t make it to a lot of shows, but with the iPod
now driving Apple’s entire marketing thrust, expect
to see these folks, with their complete line of iPod accessories
and add-ons at the forefront of this very exciting niche.
Now that iTunes is shipping for Windows, expect the best player
on the market (yeah, we’ve seen them all, and the iPod
is hands-down the best) to dominate. And the Griffin folks
seem to be along for the ride. Often, interesting products
arrive with little fanfare. Sightspeed has one. With some
sort of proprietary software compression, they take regular
web cams and plain vanilla broadband (now in 37% of all homes
and businesses) like DSL, Cable, etc and pump out full-motion
30 fps video conferencing with sound. Could this be the real
thing for home and small business videoconferencing? We’ll
see.
And some
old dependables were around too. Lexmark had the most beautiful
line of printers on the market. Great innards, too. And the
folks at Iomega were around, with their complete lineup of
storage solutions. But we missed some other folks; no digital
imaging (which will be a big focus at CES), no screens (they’ll
all be at CES, too), few laptop manufacturers (yep, CES),
and small PDA booths (the big ones will be at CES).
Comdex
was smaller this year, much smaller. Did that make it better?
We think not. Can it survive with this focus? We’re
not sure. Networld-Interop has a similar focus, and it’s
really on the ropes after this year. Shows are rebounding
with the economy. CES is expected to draw in excess of 125,000
to Vegas. Our thought: CES adds a B2B IT area for January
2005, and that kills Comdex for good. We’ll miss it.
News
Sponsored by:
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News
A Different View of Comdex
By
Dennis Masella, VP, Gartner Vision Events
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Sponsored
by:
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Everyone
has an opinion about Comdex. I’ve seen articles saying
that it’s dead, dying, reviving, or reinventing itself
(see Steve Cross’s article this issue). My own opinion
falls somewhere along the Mark Twain expression: "to
paraphrase, news of its death has been greatly exaggerated."
Having just returned from this year’s Comdex in Las
Vegas, I certainly experienced a show that has changed in
some fundamental ways. I’m sure no one missed the two
hour taxi lines, or going from convention center to hotel
to hotel to see everything. Other features – the presence
of virtually every big industry player, lots of exciting product
launches, and the kind of buzz that used to define Comdex
– were conspicuous by their absence.
But I
believe the real question about Comdex is not the issue of
size, but of purpose. I had quite a few significant meetings,
which is what Comdex has always been about for me. This Comdex,
as in years past, was a central meeting place for a wide range
of vendors, resellers and service providers. This has always
been an important function of Comdex, and the industry would
be poorer without it. Gartner held a reception during Comdex
for past and future clients to thank them for their business,
discuss new opportunities and give them a peek into the future
according to Gartner analysts. We were looking for 100 attendees,
and had well over 100 show up. We knew many of our customers
were going to be in Las Vegas, so we wanted to be there too.
It’s
true that Gartner Vision Events is in the same business as
the producers of Comdex. We both stage technology events.
But we have never viewed Comdex as a competitor. What we deliver
and what Comdex delivers are considerably different. The Vision
model is about executive-level audiences and facilitating
seller-buyer face time in intensive environments such as Boardroom
Appointments and One-on-One meetings. The Comdex model, even
modified, is more about quantity and providing a much broader
backdrop. That’s not about to change. But there’s
a reason, and a need, for different event models to succeed.
In the case of Comdex, the IT industry will always need common
ground for different parts of the technology community to
come together. The Comdex “Vision” may be different
than ours, but we see its survival and even revival as a positive
sign for all of us.
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NEWS
Intel’s
Next Step
By
ChannelMedia Staff
Intel
is taking steps to become the provider of wireless access
points for the consumer and small business market. The company
is not planning on developing the small gateway and routers
that are becoming increasingly popular as a solution to create
a wireless network in a home, but rather will include software
with its next generation chipset, code-named Grantsdale, that
will enable the computer to act as the access point. President
and chief operating officer Paul Otellini revealed the information
at the company's annual analyst conference. The chipset, which
is slated for release in the first half of 2004, a release
that will coincide with the company's debut of its next generation
Pentium 4 processors, code-named Prescott, is expected to
be a major upgrade for the company. Not only will it feature
wireless technology but it will be the first from Intel that
supports the emerging PCI Express interconnect that should
enable faster graphics.
A key
feature will be missing from the equation when Grantsdale
emerges, and that is the actual WiFi radio that will transmit
and receive the wireless signals. Consumers will still be
required to purchase an add-in card to make a computer fully
functional, at least in the near term. However wireless technology
is one of the key market sectors that Intel has targeted as
a key market for growth and the company has said that it is
working to integrate the radio portion into its chips at some
time in the future.
The overall
affect of the move will be to place Intel into a direct competition
with companies such as Netgear and Linksys that already develop
router and gateway products for the home market. However they
have some advantages. Lower power consumption and so lower
energy bills to start. If the PC needs to be turned off or
rebooted, the network will also go down. So it will need to
be on at all times. However the technology does seem to be
another selling point in Intel's drive to get consumers to
upgrade their PCs on a regular basis, and for users that would
not have considered creating a wireless network in a home,
an impetus to develop one, and possibly buy additional peripherals
that support the various WiFi technologies as well.
|
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NEWS
Get
Ready for the Next VARVision and System Builder Summit Event!
Mark Your Calendar: March 14-17 Hyatt Regency, Dallas
Plan to Meet Senior-Level System Builders and VARs
Why are
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and invite only North America's leading System Builders and
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Decision-Makers you simply can't reach through traditional
sales and marketing vehicles. You'll also have access to top
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the authority and the buying power to change your bottom line.
Plan to Meet One-on-One, It's How Business Gets Done
How will
you do business with these Reseller executives? In pre-arranged,
strategic business meetings - the kind you just don't find
at other technology events.
- Private
Boardroom Appointments enable you to present your products,
programs, and solutions to targeted groups of Resellers
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- One-on-One
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Plan
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603-471-4227
mary.fogarty@gartner.com
|
NEWS
Collaborative
Partnering to Drive Success
Online Conference – Tools and Practical Steps for Developing
Effective Partnerships
What are
the secrets for building successful strategic partnerships
and channel relationships that grow the business and drive
competitive advantage? How do you gain commitment from partners
who have their own
agendas and priorities? How can you best leverage technology
to increase channel-driven sales?
Join iCohere
for the Partner Relationship Management 2004 online conference,
January 26-28, 2004. This completely online (virtual) professional
event focuses on dynamic ways to engage your partners, enhance
your relationship, and drive revenue.
Through
interactive, mixed media presentations, real-time teleconferences,
online meeting rooms with hosted discussion topics, and instant
messaging, you'll interact with presenters who are thought
leaders from across the field and your colleagues who are
an international group of partner and channel management professionals.
We’ll explore key conference themes from diverse perspectives!
Conference
Highlights:
- New
Strategies for Selling with Partners
- Enabling
Relationship Management through Technology
- Value
Creation Model for Partnership Management
- Measuring
the Value of Partnering - The Metrics of Relationships
- System
and Methods for Generating, Optimizing, and Evaluating Business
Partner Alliances
- Building
Profitable Partnerships
- Partner
Adoption: The Key to ROI for Channel Investments
- Cleaning
House
For More
information go to: www.icohere.com/prm2004
|
RESEARCH
Sales
Metrics -
IT Services Sales Organizations Need to Gear Up for
Improved Accountability
By Michael Haines, IT Services Business Strategies
Group
|
Sponsored
by:
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Sales
organizations, especially in the world of IT services and
solutions, are undergoing significant changes and are under
pressure from executive leadership to produce increased results.
Buyer profiles are changing as business unit executives become
more involved in the decision making process for IT solutions.
Sales forces are becoming more mobile and agile, creating
a more client-facing, virtual sales organization. Competition
is changing as new providers emerge in a converged world.
IT solutions providers are increasingly looking to leverage
partners (and their sales teams) for expanded sales reach
into target markets. All of these issues are contributing
to the need for IT services companies to improve the measurement
of key sales activities and results if they expect to have
the information and insight needed to make decisions that
will lead to needed improvements and successful results. In
many cases, these dynamics are forcing sales executives to
measure different issues and to measure in different ways
than they did in the past.
In an
effort to identify the current state of sales measurement
issues and specific metrics being realized in the IT services
and solutions market, Gartner recently conducted a two-phase
research study with IT services and solutions companies. This
research identified at the corporate, sales management, and
sales person level, both the issues and activities that are
being measured, as well as actual average metrics being realized
in a significant number of these categories.
What
Should You Be Doing?
Based
on the findings from this research, Gartner recommends the
following: Every IT services and solutions company has a unique
combination of service portfolio and target market. Thus,
the specific sales activities and results that need to be
captured and measured will be unique to each company. Gartner
recommends that IT solutions companies carefully consider
a finite set of metrics that is applicable and most useful
to them as a foundation for sales success measurement. Time
and resources wasted on collecting and analyzing irrelevant
sales results cannot be afforded. In other words, “measure
smarter, not harder.” Too often, sales management within
a specific business unit establishes a set of sales activities
and objectives to be measured within their own silo and without
consideration of the “bigger picture.” Gartner
recommends that sales managers and executives take the additional
step to insure that the sales activities and results that
they are capturing and measuring align closely with the objectives
and strategy of the company. To do otherwise may lead to actions
and results that are at cross-purposes with the intended direction
of the company. In conjunction with the above recommendation,
corporate and sales executives need to insure that sales metrics
that are captured at the corporate, sales management, and
sales person level are carefully aligned and coordinated.
IT solutions companies need to clearly identify at which level
each specific metric can best be captured and take steps to
avoid redundant sales measurement efforts.
Most sales
executives and managers are diligent in regards to measuring
quantitative sales results. In most cases, the results are
readily available and are the foundation for what these managers
are being tasked to do … drive numbers. In many cases,
though, these same sales managers are less than attentive
to qualitative sales measurement. Therefore, Gartner recommends
that sales management increase focus on the qualitative issues
that lead to sales success. In particular, focus should be
placed on measuring such qualitative issues as business acumen,
team management skills, and consultative and strategic selling
skills.
The tendency to avoid change is human nature. Sales managers
tend to focus on traditional sales metrics and are less likely
to aggressively consider new areas of results measurement.
Yet, the sales environment and competitive landscape are constantly
changing and require new perspectives and insight in order
to successfully react to this change. Thus, Gartner recommends
that sales executives regularly review the set of metrics
that they capture and measure and revise and/or expand this
list as required by the changing business landscape.
Business partners (channels and alliances) are increasingly
contributing to the go-to-market strategies and sales results
of most IT solutions companies. Yet, over half of the companies
that participated in this research do not measure sales production
generated by each of their partners. Gartner strongly recommends
that IT solutions companies establish key sales metrics to
measure the sales results of partners and develop specific
actions to be taken based on the results. This process should
be a collaborative effort with the partner community in general
and with individual partners specifically. These actions should
also be incorporated into the overall framework (terms and
conditions) of the partner programs of these companies.
Provide timely access to critical information to people throughout
the sales organization: this is an essential success factor
for effective decision making. Technology advancements have
enabled managers to gain timely access to an enormous amount
of information (some relevant and some not). Thus, dashboards
have emerged that consolidate relevant information in a timely
manner to make the access process more efficient. However,
many sales organizations have not developed and implemented
the usage of sales dashboards. Gartner recommends that IT
services and solutions companies that have not implemented
sales dashboards do so immediately.
Research
Sponsored by:
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RESEARCH
Will
Business Inkjet Printers Ever Get Respect In The Office?
By:
Betsy Huntingdon, ARS Printers Industry Analyst
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HP launched
the Business Inkjet 2300 at Comdex in November. The BIJ2300
replaces the BIJ2280 series and uses the same supplies, but
has a faster processor (256MHz vs. 133MHz), more memory (64Mb
vs. 32Mb), comes standard with 2 paper trays for a total of
400 sheets of input capacity, and has enhanced resolution
(4800x1200 vs. 1200x1200). Three configurations are available:
a base model, the 2300N, and the 2300DTN. E-commerce street
prices are averaging $482, $750, and $806, respectively. The
BIJ2300 can print up to 26ppm in mono and 22ppm in color.
The "laser quality" (benchmarked to the Color LaserJet
4600) print speed is 9ppm mono, 5ppm color.
Sounds
like a great printer, right? Laser quality color at 5ppm for
under $500 - will your office run out and buy one? Probably
not -- after all, who would buy an inkjet printer for office
use when everyone uses laser? And besides, aren't inkjets
horrendously expensive to operate? Now that the 16ppm mono
/ 4ppm color Minolta-QMS 2300W color laser is down under $500,
for most offices, it will not be a difficult decision as to
what color printer to buy. The office color market is thorny
for business inkjets because of the firmly entrenched laser
bias. Laser printers have long been the standard for business
documents and users can't imagine paying anywhere from $200
to $1500 for a business inkjet (!). Consumers think of inkjet
printers as the cheap $49 machine they often get bundled with
their PC and because there are cheap inkjet machines on the
market, the prestige of the inkjet segment is cheapened. Additionally,
there is a pervasive perception that inkjets are wet, unreliable,
expensive to print color, and not durable.
These
perceptions stem from current experiences with those aforementioned
$49 inkjets or past dealings with inkjet printers of several
years ago. Even though business inkjet printers have made
great strides in the last couple years, the assumptions remain
and as all marketers know, perception is reality. As long
as office workers believe that inkjets are inferior to lasers,
they will never be considered business class machines.
The truth
is: these perceived flaws are rapidly being addressed with
each subsequent inkjet printer, and very soon text quality
and durability will be indistinguishable from lasers. Cost,
reliability, and standard features already surpass those of
comparable color lasers. For the money, business inkjets are
a better deal than color laser printers.
Where
Color Laser Printers Win
Plain
paper print quality: Laser has always had the advantage of
looking good on all media, while print quality varies by paper
type for inkjets. Older inkjets were completely pale and washed
out on plain paper and while even now, plain paper prints
might not have the pop and sharpness of a laser print, they
still look reasonably good. Besides, if a laser user wants
to print a presentation quality job, he will not use the standard
16 or 20lb paper - he'll upgrade the paper quality. Same for
an inkjet user - better paper quality leads to better prints.
Durability:
Again, these are not your father's inkjets. They don't smudge
when you look funny at the prints. Yes, if a customer licked
his finger and dragged it across the print or left it out
in the rain, it might smear, but who normally does that to
an office document? Smearing during highlighting is still
a valid concern that is constantly being addressed by HP's
plethora of chemists. In time, highlighter durability will
be on equal footing with lasers. And, don't forget laser's
occasional tendency to "block" or transfer toner
to another surface, like the paper above it or the plastic
sleeve of a 3-ring binder, under heat and/or pressure.
Duplexing:
Duplexing may be difficult because of the image "strikethrough"
and the "cockle." Strikethrough is when the image
from one side bleeds through to the other and cockle is the
bumpiness caused by paper fibers being wetted by ink. Using
a heavier, more expensive paper can often solve strikethrough
and cockle. However, do users really want duplexing? HP does
not even offer duplexing on its low-end lasers: 1500, 2500,
and 3500 series. It's an expensive option on the Minolta-QMS
and Oki Data machines. HP does offer standard duplexing on
its entry-level business inkjet, the 1100d.
Where
Business Inkjet Wins
Cost -
Printing a black and white page on a color laser or a color
business inkjet will always be more expensive than printing
the same page on a monochrome laser printer. However, printing
color pages is where business inkjet shines. As shown in the
graph below, the color cost/copy for two HP Business Inkjets
is lower than eight of the leading color laser printers (using
high yield supplies when available).
Additionally, the box purchase price for the standard feature
set is also very attractive for business inkjet printers.
Total cost of ownership (TCO) is a metric that companies are
just starting to measure. In the past, companies typically
had no idea of how much they spend each year on printing,
but new evaluation services from several of the printer manufacturers
are trying to demonstrate costs and potential savings. TCO,
including purchase price, supplies, and warranty costs, is
lower for business inkjet.
Reliability
- HP tracks reliability through customer calls and warranty
returns. It may surprise the laser faithful out there, but
business inkjet reliability rates are consistently better
than color lasers and nearly identical to monochrome lasers.
Depending on the printer model, there are several non-user-replaceable
moving parts in a laser system (the laser itself, the mirror,
the fuser, the charging station) that can fail or go out of
whack while the "writing system" of an inkjet printer
is completely replaced every time a user changes out a printhead.
The extended warranty price for a business inkjet is much
lower than for a color laser - indicating that the manufacturer
expects to pay more out for fixing the color laser.
Features
- In order to hit these new low price points, color laser
printers have had to strip out features like Postscript support
and robust networking solutions. For instance, during a color
laser benchmarking study recently, an IT department tried
to set up the Minolta-QMS 2300DL, and they had a very difficult
time getting the printer on the network. Similarly, with the
Oki 5100n, the printer driver had to be installed on the user's
PC because it would not install properly on the network. The
more expensive HP, Lexmark, and Xerox laser machines installed
easily. Basically, the cheaper color lasers get, the less
robust they become. The value proposition for business inkjet
is to provide more features at the same or lower box price.
For example, the sub $500 business inkjet 2300 has postscript
capability while many of the low-end color lasers do not.
Image
Quality -The print quality of laser is constantly held up
as the gold standard, and yes, the text is usually quite sharp.
However, lasers sometimes have trouble with solid area-fills
(like slide backgrounds) because the electrostatic charge
cannot hold evenly over a large area. Photos are typically
quite grainy because the laser toner particle size is much
bigger than the inkjet drop volume. Inkjets often produce
a much wider color gamut - the more colors available, the
better the image quality. Additionally, inkjets have the unsurpassed
ability to print fantastic images on special papers, such
as photo. That could be considered a downside, however, as
most offices don't want photo quality machines around for
employees to suck up ink printing vacation pictures.
Comparing
the Business Inkjet to Color Lasers
HP has
three tiers of Business Inkjets at the moment: the entry-level
is the 1100d series (starting at $199-$299), the mid-range
is the new 2300 series (starting at $499-$899), and the higher-end
segment is covered by the BIJ3000 series (starting at $599-$1099).
Let's pick the new BIJ2300 to compare against its closest
color laser competitors. Looking at the specification table
below and thinking back to where business inkjets win, one
could argue that there are some compelling reasons, such as
cost/copy, reliability, processor speed, paper capacity, and
postscript capability, for offices to look at business inkjets
again.
The $64K question: will offices look at business inkjets
if they know about the advantages?
Salesmen
have reported that when they place a business inkjet in an
office, the users love it, but it is tough getting past that
laser bias hurdle. Research has shown that when blindly comparing
specifications, business inkjets stack up very well against
comparably priced and featured laser printers. Customers are
even more willing to buy "printer A" because of
its lower price and higher print speeds. However, when customers
learn that "printer A" is a business inkjet, a customer's
propensity for buying the machine declines significantly.
Even after being shown that the durability, cost, and quality
are very similar to laser, the buying desire increases, but
not up to the same level it was before learning the printer
was an inkjet.
Despite
the frustrating resistance, HP will continue to produce business
inkjets. HP virtually has the business inkjet market to itself
and it prides itself in offering customers technology and
product choices. Margin-wise, HP makes a lot more money off
of business inkjets than it does off of lasers because it
owns the technology, whereas Canon gets a cut of the laser
business. Canon did dabble in this market with the N1000 and
N2000 printers, but decided that the business inkjet market
wasn't big enough to continue designing new products. Likewise,
Lexmark beat a hasty retreat from the business inkjet market
with its J110 "liquid laser" printer.
It's a
natural progression: business inkjet will continue to improve
to laser level and color lasers will continue to get cheaper.
Who wins in the end? Some users will always buy a laser, while
some will become more open to looking at business inkjet.
Business inkjet will maintain its strategy of offering a lower
color cost/copy, a lower total cost of ownership, and a stronger
feature set to entice users to try it out. When users begin
to realize that they can actually get laser quality, durability,
reliability, and lower color costs with inkjet, the business
inkjet will finally get the respect it deserves. Until that
time, the laser printer rules the office.
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| FROM
THE COMMUNITY
Retaining
the Channel Workforce
By
Dean Lane
|
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So many
accounts, so little time. Or money. Or resources. Managers in
today’s IT channel share a number of challenges with their
counterparts in the corporate world. Both are tasked with doing
more with less. Both must be able to find new ways to address
critical business issues. And both must keep a watchful eye
on the bottom line. But for channel managers, there’s
another challenge. They must understand a seemingly unending
range of business processes, their particular application at
any customer site, and the ever-changing, sophisticated, and
complex technologies available to address their customer’s
needs.
These unique requirements make channel professionals
a breed apart from other organizations. Their knowledge and
expertise is invaluable, and their ability to correlate business
issues with technology-based solutions is exceptional. For
channel managers, finding such highly skilled and remarkable
channel professionals is just the tip of the iceberg. Retaining
them is where the real challenges lie. And it’s not
all about the money.
Appropriate monetary compensation aside, channel
managers can look in a variety of areas to ensure low turnover
and high job satisfaction. These fundamental areas include
training, communication, leadership, environment, and motivation.
Training is one of the most influential retention tools available
for IT channel managers. This simply cannot be overstated.
For many professionals, training is the primary factor in
deciding whether to stay with their organization or move on.
That training is so highly valued is understandable.
Resellers, system integrators, distributors, and consultants
must be first not only to identify new technologies to meet
their customers’ needs but also to master those new
technologies and their application.
Channel managers who want to retain their skilled IT channel
personnel can increase their chances by providing an actual
training plan—one that is tailored to meet the particular
individual’s professional needs.
So, how does a manager know which training
courses to offer an individual? First, pinpoint what that
individual should be able to contribute as part of the organization,
then ask the channel professional which training programs
he or she considers necessary to develop the necessary skill
set. Then, once the plan is set and authorized, make sure
it happens. Without clear communication, channel organizations
founder and channel professionals jump ship. After all, the
channel is a dynamic, vibrant, and constantly changing environment,
and continual information exchange is the key to keeping it
alive.
Communication must be constant, multi-directional,
open, and honest. Channel managers can lead by example by
incorporating best communication practices such as holding
regularly scheduled staff meetings, recognizing employee accomplishments
or anniversaries and birthdays, and simply making the rounds
throughout the day to make contact with employees. Leaders
and followers have many things in common, including respect.
There must be respect in order to have a leader. There must
also be respect in order to have a follower. Channel professionals
are bright, educated, driven, and highly capable individuals;
to succeed as their manager, then, requires leadership rather
than authoritarianism.
One of the most valuable contributions a channel
manager can make to his or her organization is to help channel
professionals better understand how they fit into the company’s
overall plan. This doesn’t have to be complex or time-consuming.
For example, a five-minute face-to-face conversation can be
extremely effective in providing this context. The channel
manager uses this as an opportunity to outline what’s
in store for the next few months or year, highlighting the
role of the particular individual. The channel professional,
in turn, uses this as an opportunity to acknowledge and clarify
his or her role. Five minutes later, both have solidified
their respectful relationship and are likely more ready and
willing to move forward.
Managerial style can be another significant
contribution to the organization’s operating environment.
Not surprisingly, in the ebb and flow that characterizes the
channel, managerial style must change and adapt according
to circumstances and projects.
That said, not all managerial styles are effective,
and some are useful only when they align with certain situations.
In most cases, a balance must be kept between valuing people
and valuing the accomplishment of a given task. If the scale
is tipped in either direction, the organization becomes less
functional. For example, an authoritarian who cares little
about people will likely see high turnover and low morale,
which translates to high costs. On the other hand, a cruise-ship
director-type manager who just wants everyone to be happy
will probably see some but not all organizational goals reached
simply because employees don’t understand their roles.
In contrast, a balanced management style recognizes
the interrelationship between people and tasks and continuously
works to maintain the right balance at the right time. Qualitatively
and quantitatively different from all these is a high-performance
team management style. Here, the high-performance manager
operates with the philosophy that if people are involved in
making decisions about strategies and conditions of their
work, then both the organization’s and the team’s
needs will be met. This environment is where IT channel professionals
thrive.
If work weren’t work, it would be called
play. But for channel professionals, work can also be enjoyable.
That’s because it provides a rare operating forum for
savvy individuals who enjoy the challenges of finding solutions
to complex customer problems under deadline and under budget.
The challenge for channel managers is to help
channel professionals stay motivated. And, in general, people
are motivated by what they enjoy or value. For some, that
might mean periodically receiving honest recognition of their
accomplishments. Others might be driven by healthy competition.
Still others might simply want to be sure that their work
makes a difference to the organization. Whatever the underlying
motivation is, professionals who value what they’re
doing, have opportunities to learn and grow professionally,
and work in a respectful, high-performance environment that
keeps communication open and honest will stay and contribute
to their channel organization’s success into the future.
Channel managers can bank on it.
Dean
Lane is senior director of Information Technology at Symantec.
A former CIO, he recently co-wrote CIO Wisdom which includes
best practices from Silicon Valley’s leading IT experts.
|

 |
FROM
THE COMMUNITY
“Did
you pitch 27 clients and prospects today?”
By: Casey Hughes
|
Profile
of a successful web meeting…
-
Needs assessment defines purpose and outcomes
desired
-
Meeting Profile produced with registration process
enabled
-
Web meeting room set up and conference bridgelines
reserved
-
Invitations created and distributed (via email)
-
Registration confirmations sent
-
Reminders distributed
-
Meeting content produced integrating audience interaction
(Q&A, Survey)
-
Training/Dress Rehearsal prepares the presenter
-
LIVE meeting conducted
-
Follow-up reports created and distributed
-
Meeting is authored for rebroadcast
-
Sales team follow-up with attendees
|
You might
be thinking that my article title is an unfair question to
ask? After all, most sales professionals struggle to meet
with even 3 clients or prospects in a single day. 27 would
seem unreasonable and even impossible should you add the realities
that a “real meeting” requires time, logistics
coordination and adequate preparation. Still I’d suggest
that if you are not connecting with your clients and prospects
daily, somebody else might be.
Recently I completed a project with Alvaka Networks, a network
security VAR in California, which enabled them to conduct
a successful sales meeting with 27 clients and prospects in
a single day. And from their own desktops using our ChannelMatch
web meeting service.
Given the proliferation of virus’, Trojan horses and
the ever present need for real-time network security, Alvaka
leveraged the opportunity (and urgency) to motivate clients
and prospects to participate in their first web meeting. From
inception to completion, the entire process took only 3 weeks
and resulted in significant sales opportunities for Alvaka
Networks. Of the 27 companies that participated, 60% found
the experience to be “extremely valuable”, 40%
expressed their satisfaction as “valuable”. All
expressed an interest in attending future web meetings with
Alvaka (50% said “it was a great use of their time”!).
The purpose of the event was made very clear:
- To
raise awareness of the growing importance of Patch Management
within the overall corporate IT security management practice.
- To
communicate to clients and prospective clients the availability
of their new Patch Management service.
- To
sell more new services to existing clients and as a vehicle
to garner the attention and business of prospective clients.
Oli Thordarson, CEO of Alvaka Networks had this to say regarding
the whole experience: “ChannelMatch was essential in
guiding us through process of hosting an on-line meeting.
Everything was provided by ChannelMatch, from the beginning
planning process, to putting together the invitation and publishing
the meeting profile on the ChannelMatch Portal, to the preparation
of our meeting content and coaching for delivery, ChannelMatch
confidently lead us through a successful process. After the
event, valuable sales and marketing feedback was collected
for us to make follow-up sales. A real plus is the recording
of the event. We had several clients who could not attend,
but are already asking us to send the link to the recorded
presentation. ChannelMatch helped us cost effectively touch
many of our clients and several new prospects and prepared
them to become consumers of our newest service offering.”
Imagine… you pitch 27 clients and prospects in a single
day. If you don’t someone else might be.
ABOUT CASEY
Casey Hughes is the Director of Channel Business Development
for Gartner Vision Events Online. He has 27 years of channel
management experience including senior vice president roles
at KayPro, Tandon and Merisel. Since the Internet era began
in the mid 1990’s, he has architected numerous platforms
for online collaboration, most recently a web meeting and
online events portal called ChannelMatch. As a senior associate
of the CoWorking Institute and an active facilitator for Hewlett
Packard’s Media Solutions, Casey has unprecedented experience
in helping organizations leverage technology and the requisite
social processes for effective web meetings and online events.
Casey can be reached at casey@channelmatch.com
or by calling his Malibu office at 310-457-2146.
|

| FROM
THE COMMUNITY
NPD
Research
Business Software Top 10 |
|
Rank |
Title |
Publisher |
ASP |
1 |
MS
Office 2003 Student/Teacher Ed |
Microsoft |
$149 |
2 |
MS
Office XP Student & Teacher Ed Acad |
Microsoft |
$140 |
3 |
QuickBooks
2003 Pro |
Intuit |
$264 |
4 |
MS
Visual Studio.NET Entpr Architect 2003 Upgr |
Microsoft |
$29 |
5 |
QuickBooks
2003 |
Intuit |
$197 |
6 |
MS
Office 2003 Pro Upgr |
Microsoft |
$322 |
7 |
Norton
AntiSpam 2004 |
Symantec |
$40 |
8 |
Pop-up
Stopper Companion 3.0 |
Panicware |
$30 |
9 |
MS
Office 2003 SBE Upgr |
Microsoft |
$274 |
10 |
MS
Office 2003 Upgr |
Microsoft |
$237 |
|

 |
FROM
THE COMMUNITY
Changing
Channels
Are
we becoming Japan? – Part 3
By
Steve Cross |
|
For a
while I’ve been looking at changes in the distribution
model to get insights for clients, and help them position
for the future. Some of that insight I’ve shared (remember,
I save the best stuff for paying clients). A couple columns
addressed how the consolidation of outlets, diminishing numbers
of channel jobs, and growth of mega- and hybrid- distribution/firms
is affecting the way products go to market in North America.
That was contrasted with how products go to market (through
channels) in Japan.
In Japan
there are “front-end” distributors who localize
package, republish, and prepare software and hardware products
for launch. They sell the stuff off to bigger “box-mover”
distributors. Then the box movers sell to an ever-decreasing
series of resellers. Sounds familiar, huh?
Allow
me to briefly continue to refresh your memory. It seems like
republishers and hybrid reps with distribution agreements
and pre-assigned/reserved SKUs have made a huge dent in the
previous models. Much of that is fueled by the inability to
the big distributors to add and manage new small; products.
You may ask why this would be a bad scenario. Well, it keeps
little guys away from the market, and raises the bar too high
for new players. Is that bad? Yes, indeed. As most of the
innovation in our industry comes from the bottom, rather than
the top, if these new products don’t see the light of
day, all of futures in the business will be diminished.
There
is an old story about AT&T before the break-up 20+ years
ago. AT&T was planning to introduce broadband sometime
in the 2020’s, another 15 or so years from now. Only
by breaking the monopoly up and allowing the little companies
to fight it out were we able to build this great Internet
infrastructure that allows 37% (as of last month) broadband
access.
We’ve
seen the growth of these hybrid people to fill the niche of
bringing new products top the distributors while still managing
the products on hybrid side of the fence, sort of unburdening
the transaction for the distributors. One more level of intermediation
that really makes sense and allows the system to function
at perhaps a higher level. Look for more. And at each step
of the intermediation, a small amount of margin gets drained
off.
These
are not bad things. If products are managed better before
they hit the disty, if products and companies are prepared
better for the market, if new technologies continue to flow,
is that bad? Heck no. That’s good stuff and it will
keep us all working. I like that.
Contact
Steve Cross at steve@crosschannel.com,
702-492-7472.
Editor's
Note: Steve is a channel consultant who helps fine-tune channel
programs, and prepare companies for multi-channel launch.
|
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