Originating Author: Peter Burris
A fierce commitment to a systems approach. A focus on providing specific returns. Excellent design. Superior packaging. A deep integration of channel attributes into value propositions. These are the core elements of Apple's renewed success in consumer markets. They also are the core elements of IBM's BladeCenter S server and go-to market strategy, the most impressive product demonstration seen at IBM's recent industry analyst conference. While one product does not a successful strategy make, IBM has put in place the resources required to make simplicity a strategic centerpiece of the IT infrastructure business. IBM's push will start in the SMB (small-medium business) space, where simplicity is the only item in short supply. A new business unit controls most aspects of IBM's renewed SMB push for IT infrastructure, which includes not only new products like the BladeCenter S, but also new programs for streamlining channel interaction, new systems for enfranchising partner collaboration, and new capabilities for factoring market change into operations. Any success simplifying IT infrastructure offerings is likely to pay dividends to IBM in multiple ways. Not only will the company's market share in the SMB space grow (probably dramatically), but the experience gained by emphasizing simplicity is likely to generate major returns in the enterprise market (e.g., branch computing), as well. We've seen IBM -- and others -- introduce major SMB forays, but this one seems especially credible and off to an especially impressive start.
Action Item: The long-standing tradition in the IT infrastructure market is to push high-end technology to "petit enterprises" at "SMB price points." IBM seems to have veered from that tradition. SMB users should evaluate IBM's evolved approach to solving IT infrastructure problems; enterprise customers should expect IBM to push lower-end business practices up; and competitors better start taking the pressing need to simplify IT infrastructure seriously.
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