.ChannelThinking

After announcing the ThinkPad T400s last week it got me thinking about the differences between corporate PC’s versus there consumer counterparts. Since 1992, the ThinkPad has represented the gold standard in Notebook quality, durability, security, and innovation. The most recent announcement added to the very successful T Series line of products aimed at corporate road warriors.

Business Week

The T400s borrowed some of its design cues from the X300 family of products that launched in 2008. BusinessWeek at the time ran a cover story naming the X300 the “Perfect Laptop”. This was right around the time that another PC vendor announced an ultra-thin product that fit in a manila envelope in their advertising. The conclusion of the article was that while ultra-thin and light is the goal of all Notebooks, it must be balanced with usability features as well as durability considerations. This is especially true in corporate environments where having optical drives and the appropriate ports available is necessary to be productive.

The T400s took the “Perfect Laptop” to the next level, first by offering a larger 14” (1440×900) WXGA+ LED display. It also includes an ultra-thin (9.5mm) optical drive which supports Blu Ray on select models. From a performance perspective, it includes high end Intel Standard Volt (SV) processors at 2.4 and 2.53GHz. Storage and Memory has been enhanced with the addition of SSD drive options and Turbo Memory.

Connectivity is robust with WAN, WLAN, WiMAX, Bluetooth and UWB. A new technology, Constant Connect, has been introduced which is a partnership between Lenovo and Research in Motion Blackberry, giving the user the ability to transmit email to and from the PC – even when it is turned off!

Security has been enhanced beyond Fingerprint Readers and encryption with the introduction of Constant Secure. This has a remote disable option for a lost or stolen laptop – rendering it unusable with an SMS text message!

Looking at the consumer market today, much of the pre-Windows 7 buzz is around multi-touch. While this feature has definite applications in photography and object manipulation, it doesn’t satisfy the core needs of the corporate PC user. Consistently, surveys of business users name security, connectivity, reliability and manageability as their key requirements in choosing a Notebook vendor. By the way, looking at enhancing the “Perfect Laptop” the T400s does support multi-touch.

Another innovation in the T400s is a slight change to the keyboard layout. Based on extensive end user research, the Escape and Delete keys have been enhanced based on usage patterns. A new Microphone Mute button has also been added based on the growth of video conferencing and Skype.

All of this fits into a package that is .83 inches thin and 3.9 pounds! This is the thinnest and lightest T Series product ever to come to market and truly takes the “Perfect Laptop” to the next level. Starting at $1,599 US for a strongly configured T400s, it is a game changer in the corporate space.

I believe we will see a greater differentiation in the future between Consumer and Corporate PC’s. One market is strictly driven on price and lowering the common denominator to a high level spec sheet, the other is driven by innovation in the areas of security, connectivity, usability, reliability and manageability.

For years I have been speaking about pervasive computing, the concept that technology will be ubiquitous in our everyday life. The debate has centered on whether we will focus on one powerful and flexible computing device to service all of our needs – from email, web surfing, gaming, managing personal finances to running our small business – or a myriad of devices that are optimized for our current location.

Watching people fumble with a 17” wide notebook on a regional flight or saving their work from a desktop computer onto a memory key remind us that a single device will never be optimized for all different uses. Our world has become increasingly connected, meaning that electronic devices are with us 24/7. It makes sense that these devices are becoming more web enabled and delivering more value than their intended use.

Today we are witnessing the explosion of Netbooks as a secondary device, either in the home or small business environment. These devices have changed the business model for the computer industry, for the first time offering “thin and light” for the lowest price. In the past, the thinner and lighter a Notebook was, the higher you would expect to pay. The other phenomenon behind the growth in Netbooks is price. Buying behavior research shows that the $300 price point, regardless of consumer electronics category, drives a product to be mass-market. Think of VCRs or DVD players, digital cameras, XBOX, cell phones, etc. When these devices hit $300, it seemed like everyone had them on the Christmas list. Lenovo’s S-10 models of Netbook offer strong value starting at only $309.

Another segment of computer that you will see very soon is Thinbook. These devices are very thin and light, stylish, have larger screens and longer battery life than Netbook. Powered by Ultra Low Voltage technology from Intel, these devices weigh around 3 pounds, are less than an inch thick and have all day computing ability. The price point will be between a Netbook and a full function Notebook. Lenovo has announced the IdeaPad U350 Thinbook which will be available this summer.

Looking at these growing segments from a screen size point of view, they fill the gap between smartphones and Notebooks. Thus, depending on your job or lifestyle, or simply depending on the activity you are planning, you may choose a 4-6” smartphone, an 8-12” Netbook, a 13” Thinbook, 14-17” Notebook, or 22”+ desktop to stay connected and add value.

Looking into the future, it makes sense that other electronic devices from alarm clocks to fish finders to car radios become web enabled and serve as the appropriate device based on activity. This concept of “location based computing” will better fit technology into our busy lives and make it a more natural environment for communicating. You will likely own 20 or more computers within 10 years, they will just be integrated in the things you already buy.

This presents both an opportunity and a curse for our Business Partners. The opportunity to sell, integrate and manage these devices will be large, however, the complexity and security of this explosion in devices will be a challenge.

Unless you’ve been living under a rock (or just busy keeping the IT needs of your customers under control), you’ve probably heard the term ‘government stimulus funds’ about 1,000 times.  But I suspect many of you are wondering what that really means, and (more importantly) how you can benefit?  (I’ll tell you right now that we estimate the IT benefit of the stimulus funds in education alone is over $5 billion…!)

Lenovo started thinking about the government stimulus funds several months ago, and I was asked to be a part of the team to represent our business partners and your specific needs.  Last week, we unveiled a lot of great information on the stimulus program that I think you’ll benefit from.  Specifically, we’ve published the following information:

• Information about the Stimulus Opportunity, specifically for your education customers
• Details on why Lenovo products are a great solution for stimulus IT funds
• A BRAND NEW channel program which offers new incentives for your sales into Public Sector

Now for some of the details…
The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on Feb. 17, 2009, and is expected to jumpstart the economy with $787 billion over the next two year. More than $100 billion of these funds are earmarked for education at a time when many state education budgets are struggling for support.  There are several funding buckets with names like ‘State Fiscal Stabilization Fund’ (SFSF) and Broadband Stimulus Program for your education customers to consider when utilizing the funds.

Lenovo offers a host of innovative computing solutions for your customers.  Lenovo is proud of our strong commitment to Education and the development of students in preparation for the future. At Lenovo, we design innovative solutions to enhance 21st century learning skills like creativity, problem solving, communication, and analytical thinking so that students can compete in the increasingly digital world.  There are a number of Lenovo programs and initiatives in the education space you may not be aware of… and some pretty compelling reasons for choosing Lenovo for stimulus funds.  To name just a few:

ThinkPad 1:1 campuses-  With our ThinkPad University program, each student is provided with a device designed to withstand day-to-day wear and tear in a school environment. These award-winning laptops and netbooks, powered by Intel® processor technology and packed with industry-leading software and services, provide a capable, level playing field for students to engage in their own education, explore the world around them, and excel through collaboration with their peers.

TopSeller Education Models (available through distribution)- Each TopSeller education model we create is designed to deliver specific capabilities to support the targeted needs of individual teachers, students, educational goals and institutions.  Lenovo’s educational models are among the most durable and reliable notebooks in the industry. Preloads can include:

• Microsoft® Vista Ultimate
• Microsoft® Office Ultimate
• Microsoft® Office OneNote
• Adobe® Digital School Collection
• Broad Catalog of Academic Software

Mitigating the Funding Cliff-  Using the short term funds that the economic stimulus plan offers, school administrators need to invest efficiently for the long term.  Lenovo’s robust, reliable and durable ThinkPad, ThinkCentre and ThinkVision offerings have industry-leading low total costs of ownership that are supported by comprehensive services, highly certified green attributes, and built-in productivity tools from ThinkVantage Technologies.  Together, these solutions can save your customers up to $262 throughout the lifecycle of every PC you purchase – from deployment to disposal – all while helping them transition from the funding cutoff.  We have a host of information which can help you understand the opportunity and the Lenovo solutions.  Check out our business partner web portal (www.lenovopartnernetwork.com) for details and more info on the programs and resources available to help you sell.

The stimulus funds are already being distributed to the states, so the clock is ticking to take advantage.  Visit our business partner portal (www.lenovopartnernetwork.com) for more details on the stimulus funds and Lenovo opportunities.

Sure, customers across most market segments are cutting back their IT spending. With increased competition for this smaller opportunity, it is a critical time for technology resellers to focus on their core competencies. Many resellers traditionally specializing in hardware sales, including PCs, have diversified their offerings to include services like remote monitoring and software as a service (SaaS).  Other resellers are trying to define a niche in Managed Services and Consulting practices. Here’s how you can keep your profits flowing.

The economic downturn provides the impetus to assess current offerings and streamline them. This can concentrate areas of expertise providing higher customer value. If you’ve been to the grocery store lately, this concept will ring true. Look at how many food companies are driving less popular brands and flavors from their product lines and concentrating on merchandising the best-selling ones.

While VARs should consider consolidating their offerings, it’s important to remember that many customers are doing the same thing. They are pairing down on the amount of technology purchases and their points of purchase. Choosing only the most immediate and necessary equipment means resellers who offer a complete line of high-quality products with different levels of functionality will better be able to meet their customers’ needs.
Total Solutions

A customer who may want netbooks for connectivity purposes, laptops for their mobile workers, desktops for their call center and servers to power their operations can save on procurement costs by going to one reseller who offers a one-stop shopping experience.

Resellers should look to partner with vendors who offer them a full, diverse product lineup. For PCs, that starts with entry level products at sub-$400 prices all the way up to the highest performing PCs for graphics, intensive processing and niche applications. (Here’s a sampling of our own offerings, if you’re interested.)

Customers are looking for resellers as “trusted advisors” to steer them to the hardware purchases yielding the best bang for their buck. Resellers who do this well will be rewarded with loyal customers in any economic condition.

Value is the new standard for making decisions on IT hardware in today’s economy, and resellers can drive value through their technology recommendations, factoring in durability, reliability, energy efficiency and the latest technologies.
Extended Life Cycles

Some customers who have purchased high quality PCs have been able to use them up to five years. For customers who are not ready for replacement, resellers can help them extend the life of their existing fleet through PC tune-ups, like upgrading memory and hard drives, defragging hard drives, removing unnecessary applications, replacing batteries and adding a second monitor for increased productivity.

Resellers should educate customers about the total cost of PC ownership, realizing that more than 80 percent of the total cost comes from management and ongoing maintenance costs, not the PC purchase.

Resellers can help lower the ongoing costs through their value-added services, such as remote monitoring, patch management and backup services. Additionally, look for vendors who back up reseller partners with additional service offerings, such as 24/7 IT support. Customers can even receive credit toward future hardware purchases by using end of life recycling options from some vendors.
Money Matters

Finally, resellers should look for vendors who offer complete financing options to them as well as their customers. Plans such as 0 percent financing, leasing options and discounts increase flexibility, incenting customers to invest today instead of waiting for tomorrow. Governments are also offering technology stimulus packages, and resellers should understand them and the applicability to their customers.

The focus on fewer, higher quality vendor solutions, combined with enhanced services, lower total cost of ownership and financing options will drive greater customer value, increase loyalty and protect the reseller during unstable economic times. More importantly, these actions will position the reseller to emerge even stronger than before.

Hopefully by now you’ve heard of the newest member of the Lenovo notebook family… the G530.  Starting at just $429, the G530 makes an excellent solution for your customers who desire the convenience of a notebook computer with loads of specs and features (and a pretty attractive price point).

So how’d you like to win one for yourself?   This Monday, we launched the Lenovo Sizzling Summer Sweepstakes, sponsored by Intel, which offers business partners the opportunity to learn and earn a chance to win a Lenovo G530 notebook!  You can view videos featuring our latest Lenovo products powered by Intel technology, answer a few questions and be entered into the drawing!  It’s that simple.  We’ll be awarding one notebook per week, so be sure to come back eack every day to enter and increase your chances of winning.  Visit  www.lenovosizzles.com to learn more or enter

Welcome to Lenovo’s new Lenovo channel blog.  Most people have come to know blogs as a place where people freely speak what’s on their minds.  In a corporate environment, sometimes that gets compromised as companies hold back and only tell you what they want the reader to know, or hold back on the things they don’t.  

For those of you who know me from my 25+ years in the channel, I think you know which camp I fall into.  I’ve based my career on open dialog… on full disclosure… and I wouldn’t think of holding back here.  My channel team and I plan to use this blog to tell you what’s on our minds… be it programs or products, or general topics of interest.  We’ll also share feedback we’re hearing from other partners in an effort to stimulate conversation and allow the entire partner community to have your voices heard. 

Above all, we want and need your feedback.  This will be a two-way street.  From what I’ve seen with the partners I’ve met over the past 9 months, I know you won’t disappoint me!

It’s an exciting time for Lenovo.  We have a slew of new products and partner offerings which we believe set us apart in the industry.  We have reduced our product complexity and have concentrated a set of core offerings at our distribution partners.  We have re-launched our partner portal to communicate all the news and info you need to succeed.  And that’s just the start.  Over the coming months, you’ll see more changes in our channel programs, and some very exciting new products. 

Just this week, we announced a new partner sweepstakes (www.lenovosizzles.com) and a very compelling program for resellers to take advantage of the government economic stimulus funds (check it out at www.lenovopartnernetwork.com).

As always, I thank you for your consideration of Lenovo. Let the dialog begin!