ChannelThinking

Jay McBain, Director of Small and Medium Business, Lenovo

Listening to a group of Channel Partners with Unified Communication (UC) expertise today was fascinating.  Questions ranged from when it will become ubiquitous in small and medium business to the industry players that are going to make it a reality.

As always, my thoughts turned to the hardware side of the equation.   While there is general consensus that the amount of information will continue to grow exponentially, our ability to access and comprehend it will be highly reliant on the right devices being available at the right time and place.  These devices will continue to evolve with a move towards more natural and relevant presence in our everyday environment.  I write often about pervasive computing and our basic needs to communicate and keep up with the pace of change will be a key driver of the hardware evolution.

Nostalgia.

I remember buying my first PC webcam in the 90’s and having the grandparents see and talk to the grandkids was exciting at the time.  I would be remiss if I didn’t dial it back further….including concepts dating back to 1878 (only 2 years after the phone was patented in the US) called the telephonoscope.  It seems that every generation since then improved the technology including quality of audio and video.  It also morphed from a personal communication device, which society has never been truly ready for, to a business device.  Videoconferencing dates back to the 1930’s but was analog and very expensive.  With improvements to bandwidth, including digital and public broadband have spawned dozens of low cost, low quality solutions such as Skype, MSN Messenger, etc.

Today, when most small businesses are presented with Videoconferencing, Telepresence, or other cost saving measures, many conjure up images of choppy, low quality grainy images with monotone audio cutting in and out and delayed by a few seconds.  It is usually surprising to them when they demo today’s technology and the feeling that you are not only communicating effectively, but could be mistaken for being in the same room as the other individuals.  The key hurdle is cost – high quality communication comes with hardware, software and services that, while cheaper than travel, seem beyond the budget resources.

Enter the PC.

PC’s have had a wonderful history of stepping into many different uses because of the decisions made by IBM and others in 1981.  Keeping the product open, industry standard, and infinitely expandable, has allowed forward-looking entrepreneurs and companies to expand upon the basic idea and solve real business issues.  Lenovo has had a long history of working with UC firms in bundling technologies and features to assist in communications and bring it mainstream.  For example, a unique agreement with Avaya in  May of 2007 to turn the PC into a “softphone”.

Several things have happened in the past few years that make a PC a more viable UC device:

1. Stereo digital high-definition speakers with 10 band equalization and dynamic range compression improve sound to audiophile levels
2. Digital array microphone technology including the placement on either side of the camera providing for a more natural environment producing balanced sound input.
3. High Definition light adaptive camera’s including digital zoom and HD LED displays improving the visual size and quality.
4. OC tools allowing switching between MIC, headphones and speakers seamlessly.

Working with industry leaders to optimize the technology has been the largest benefit.  In fact, Microsoft has recognized Lenovo this year as the only PC Manufacturer to build to these new ultra-high quality standards and awarded a certification of “Optimized for Microsoft Office Communicator” to several products including the ThinkPad T400, T500, T400s and X301.   This is a broad array of affordable Notebook products that enable business to deploy advanced communications on the same products they are rolling in for their everyday computing needs.

Now the interesting part….

If one of the major objections to UC and videoconferencing include cost and complexity, and now you have an affordable, certified Notebook (that you are buying anyway), a unique opportunity for Channel Partners arises to counter those objections.

Blending the Mobility message into UC is another huge opportunity.  How many times are business people travelling and need to reach back to the team back home?  Whether from a hotel room or a customer or suppliers boardroom, they can bring on the extended team with that 4 pound Notebook under their arm.   With WWAN mobile broadband, WiMAX, or simply any 802.11 access point, the possibilities are endless where UC can be used.   Again, high definition video and audio output, enabling communication anywhere in the world;  Without the need for additional expensive hardware.

Stay tuned for more exciting announcements to come out of this space…..it may not be the final frontier of communications, but it is indeed the next frontier.

Jay McBain, Director of Small and Medium Business, Lenovo

I was doing quite a bit of thinking on the plane coming back from Las Vegas over the weekend from SMB Nation.  Managed Services is quickly maturing as a business model as well as a Channel community.  Much of the focus, deservedly so, was on the cloud, Saas, RMM and PSA tools.  There are, however,  key things that hardware vendors can bring to the table to enable Managed Service Providers (MSPs) to:

A)  Make current recurring revenue model more profitable and

B)  Drive incremental managed opportunities at each client

The buzz around Intel vPro was very strong at the event, and many MSP’s have been successful in recommending the technology as a requirement for supported hardware.  I even heard an example of a dual-pricing model for managing PC’s – one with vPro enabled and one without.

The challenge to MSP’s is that new SMB clients will likely not have the technology in house as it predominantly sells to large enterprise and public sector.  This means that the potential pricing and service levels will be less aggressive at the beginning – exactly the opposite of what you need to win a new client!

It was reported that Lenovo sold more vPro world-wide than any other PC manufacturer.  It is not surprising, given the focus on manageability and security dating back to the mid-1990’s.  Given this history, the question becomes:  How can Lenovo enable this technology to all clients?  From 5 employees to 500, there are key benefits of rolling out this technology and we need to help make it happen.

Intel vPro is a combination of processor technologies, hardware enhancements, management and security technologies that allow remote access to the PC.  Lenovo has worked closely with Intel since the beginning in all areas of the technology, most notably around Trusted Platform Module and Wake on LAN.  ThinkVantage Technologies by Lenovo extend and enhance the technology even further by focusing on the entire lifecycle of the PC from deployment thru disposal.

The ability to intercept the boot cycle of a PC remotely is the cornerstone to a successful MSP business.  Accessing a PC regardless of the state of the operating system can significantly reduce truck rolls and give the management and security options necessary to stay on top of anticipated or reported problems.  The proactive options available allow monitoring tools to predict errors, reduce downtime, and elevate security of the client.

Now, back to how Lenovo can help.   First are the products themselves.  The majority of SMB’s buy products in price cells much lower than vPro is positioned at today.  Here are some Channel-only specials we are running from now until end of December, 2009:

These products are at the lowest vPro prices we have ever offered, over 30% lower in some cases.  This should help MSP’s position the products, not only for the obvious benefits I talked about above, but for the attractive prices available specifically to SMB clients.  Beyond price, Lenovo has also worked hard on making sure the programs and incentives are relevant and profitable for MSP’s.   This includes taking away reporting requirements and dropping minimum clip levels to participate.  Feel free to explore lenovopartnernetwork.com for further information.    The products above can be purchased at any of our authorized Distribution partners:  D&H, Ingram, Synnex and Tech Data in the US.

It is incumbent among the hardware manufacturers, or the “edge” of the cloud, to ensure that technologies are enabled and merchandised to SMB clients.  Stay tuned for more news from Lenovo over the next few months…

It seems as though desktops have become the red headed stepchild of the PC Industry.  For years, desktops ruled the PC world, providing rock solid business productivity at one end and the ultimate customizable home PC on the other.

With all of the recent industry buzz around Netbooks, Smartbooks, Thinbooks and, of course, traditional Notebooks, it would appear the desktop category has become somewhat forgotten.  Well, perhaps forgotten everywhere except Lenovo!

The level of investment into desktop technology has not diminished at Lenovo.  Still representing about half of all PC sales, desktops run some of the most critical business and government applications today.  The ability to secure, manage and virtualize a desktop is unparalleled in these environments.

The three attributes that Lenovo focuses on in delivering a better desktop is Rock Solid build quality, Thoughtful Design and the Lowest Total Cost of Ownership.  This investment consistently ranks the ThinkCentre desktop brand as #1 in Customer Satisfaction by TBR.  In fact, Lenovo earned six competitive strengths extending across almost every category, according to Julie Perron at TBR.  Gartner reports that Lenovo desktops have a warranty repair rate 27% better than the industry.  Focusing on areas such as green technologies, thermals, acoustics, ease of use, tool-less designs, and industry-leading torture testing, ensures that leadership will continue.

Lenovo has accomplished several industry firsts in the area of security.  From a robust Hardware Password Manager, to individual port management from BIOS, to a Trusted Platform Module with full encryption, these desktops have the capability to be fully locked down.  This protection extends to Client Security Solutions, biometric access, and third party enablement with leaders such as Computrace.

The one thing that surprises many Channel Partners is the price.  Consistently $50 to $100 less than our lead competitor, Lenovo desktops can be purchased for as little as $379 with Microsoft Windows XP Professional or Vista – ready for business.

Lenovo desktops have gained over 4% share in Distribution in the past few months (according to NPD) and is well positioned for future growth.  The programs, pricing and promotional offers from Lenovo were developed around Partner feedback and appear to be hitting the mark!

The one thing that hasn’t gone down during this economic downturn is the threat of data theft and information security.  If you scan the marketplace there are hundreds of products, including hardware, software and services that promise to reduce these threats.

Almost every survey that is conducted with small and medium business customers ranks security in the top few issues that keep them up at night.  Lenovo, along with our trusted partners, have been investing in building secure, rock solid, PC devices for over 20 years.

Here is a list of key attributes for PC security:

1. Fingerprint Reader – It all starts with physical access to your data.  The ability on both ThinkPads and ThinkCentre desktops, workstations and servers to use biometrics for entry greatly reduces the risk of data or identity theft.  Did you know that 40% of Helpdesk calls are for password resets?  Lenovo Password Manager software links up with the fingerprint reader to provide easy access to protected applications and websites.
2. Encryption – combining biometrics with encryption is a great one-two punch that locks down access to data even if the drive is removed from the system and the physical platters are searched for information.  You can buy special drives now called FDE or Full Disk Encryption drives that have built in hardware to run as fast with encryption as normal drives do without.
3. Anti-theft and Theft Recovery – with 92% of companies of all sizes reporting laptop theft, combined with 42% of non-encrypted drives, the need to protect assets has never been greater.  Working with Intel and Absolute Software, Lenovo offers several layers of protection including “poison pill” deactivation, “theft mode” timers with login protection, and emergency remote data deletion.  Lenovo has an exclusive with embedded Computrace software on select models.
4. Wireless Security – Making sure wireless connections are secure is sometimes difficult for the end user.  They don’t tend to understand firewalls, ports, and vulnerabilities and need the PC to be smart enough.  Lenovo includes “Access Connections” with the PC which simplifies connections and ensures an extra layer of security.
5. Physical Security – from locking the mobile PC and related components with a key lock, to blocking out prying eyes on an airplane with a privacy filter, there are several hardware options that decrease the risk of assets being stolen or data being compromised.  Another example is the new Lenovo password enabled hard drive which offers encryption.
6. Secure Data Backup and Recovery – storing a backup of data is a good practice for everyone, the risk associated with having data on external drives or CD-ROMs is high.  Lenovo offers backup and recovery scenarios that use hidden secured partitions on the hard drive.  Lenovo also offers an Online Data Backup service that is very secure and cost effective.

It can seem overwhelming the amount of hardware, software and services in the market to protect asset and data security as well as personal/business identity.  Focusing on just a couple of the steps above will go along way to ensure that you do not end up in next years statistics for a security breach.

Lenovo has invested heavily in this area and there are some great new innovations coming out every year.

In the annals of history, lots of significant events have taken place on October 22.  To name a few (with thanks to Wikipedia):

362 – The temple of Apollo at Daphne, outside of Antioch, is destroyed in a mysterious fire.
1746 – The College of New Jersey (later renamed Princeton University) receives its charter.
1962 – Cuban Missile Crisis: US President John F. Kennedy, after internal counsel from Dwight D. Eisenhower, announces that American spy planes have discovered Soviet nuclear weapons in Cuba, and that he has ordered a naval “quarantine” of the island nation.

On this October 22, 2009, the tech industry will have quite possibly the most important October 22 of all time- the release date for Microsoft’s long-awaited operating system, Windows7.

But if your customers tell you they’re waiting until October 22 to refresh their PC’s to wait for Win7, there’s no need to delay.  There are several compelling reasons for you to sell PC’s today:

Customers can buy and enjoy their new PC now and then easily upgrade to Windows7 when it becomes available
Lenovo has tailored its upgrade program to meet the needs of businesses and consumers with upgrade options across all of Lenovo’s product lines
Lenovo PCs along with Windows7 give you the best computing experience possible with Lenovo’s facial recognition, thin and light designs, one key recovery and Windows7’s enhanced entertainment, media streaming and faster boot and connection times.

Any PC’s purchased between June 26, 2009 and January 1, 2010 will be eligible for an upgrade through March 31, 2010.

You can get more details on the upgrade program at www.lenovo.com/windows7

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