IBM Lotus Foundations

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IBM Lotus Foundations
Start

Tech Data Sales Enablement


August 27, 2008

France Loubier


WW Channel Sales Executive

Sales Enablement Agenda



Welcome and introduction to IBM Lotus Foundations


Market Positioning


Partner & Customer

IBM SMB Announcement


Earlier this year
IBM announced expansion of its SMB strategy

-

focusing on serving
companies with less than 500 employees, making its world
-
class expertise accessible to
small businesses



Net Integration has been acquired by IBM

and is part of the Lotus software division of IBM
SWG group led by Bob Picciano, General Manager, Lotus software.



IBM will integrate Net Integration’s technology into the
Lotus Foundations family of servers.



Allowing the Lotus software offerings with an affordable, simple and essential business
solutions that will allow companies to focus on business instead of on IT.


Sam Palmisano



“SMB market is poised to become IBM's biggest source of revenue”

Small business is still big business


Businesses with under 1,000 employees:


account for 36$B in middleware opportunity in 2008


31% of all middleware
opportunity*


outpace large enterprise opportunity growth 6.1% to 4.5%*



Business with less than 100 employees:



comprise 53% of the under 1,000 employee spend*


represent a significant, untapped market segment


require easy to install, easy to maintain, affordable solutions


need quick integration and rapid deployment of applications


are showing increased interest in appliance solutions


are in need of alternatives to the current market solutions


*Source: IBM GMV 1H08 Constant Currency Middleware Served


SMBs are not small companies with small problems


they require
increasing complex IT solutions, but rely on trusted advisors for assistance


Increasing business complexity


Multi
-
location, Multi
-
vendor, Remote workforce



Increasingly similar demands as larger companies


Meeting customer needs so they can increase sales and profits


Competing effectively against both large and small rivals


Increase efficiencies and thereby decrease costs



Rely heavily on trusted advisers or business partners to help
with IT


Partners who have experience with similar implementations, offer a
complete solution, and really understand their business (vertical expertise)


Top preferred channel for SMBs is a local or regional VAR or SI


Source: IBM Market Intelligence forecast for Total IT, Overview of the SMB Market, May 2008




Innovation



Collaboration leadership



Business Partner Network



Global reach

With its recent acquisition of Net Integration Technologies, IBM announced its commitment to
make its world
-
class expertise accessible to smaller businesses


affordably, and with ease.





Proven approach for SMB needs



Innovative capabilities for customers


and partners



Simple, reliable technology

IBM Commits to Businesses with 5


500 Employees





Invested in serving companies with 5


500 employees




Devoted to enabling smaller businesses with the essential IT services they need to


run their businesses




Committed to providing a smart and affordable networking alternative that is


simple to use and maintain


Foundations

=

7

IBM Lotus Foundations is optimized for small
businesses

The Lotus Foundations family is a series of
on
-
premise

software servers


Provides the essential IT services to easily and efficiently run a business with 5


500
employees


Deploys in under 30 minutes


Designed to accommodate growth


Requires no in
-
house IT resources


Self
-
managing, self
-
healing and self
-
configuring


Provides advanced remote administration capabilities


Delivered through business partners


Compatible with both IBM and 3
rd

party hardware platforms



8

IBM Lotus Foundations
Start

is a complete first server


an out
-
of
-
the
-
box solution for every small business

Email and collaboration

Choice of email clients:
Notes, Webmail
and support for MS Outlook

Office tools:
spreadsheets, presentations,
documents

Network infrastructure

File management

Firewall, VPN, secure remote access

Backup, Disaster Recovery

AntiVirus and AntiSpam

Complete operating system:
Self
-
managing, self
-
healing and self
-
configuring




Lotus Foundations
Start

is designed to deliver a complete IT solution for
the small business

Who is our key competitor?


Microsoft



Small Business Server (SBS)


Established market leader in this space


80% market share


Lack of any other strong competitor


Partnership with leading hardware vendors



Lotus Foundation Start offers several advantages over the
competition


it’s designed to alter the status
-
quo


Runs atop Linux for a proven, robust, yet compact server Operating System
environment.


Without the need for Linux skills



Autonomic capabilities reduce the need for on
-
site IT skills


Automates key tasks such as installation, configuration and updates



Small footprint allows the OS and configuration files to be stored on a CD
-
ROM,
hard disk or solid state chip.


Start measures complete system recovery in minutes


without the need for IT
assistance.



Integrated disk backup technology provided as standard



Anti
-
virus, anti
-
spam and a self
-
configuring firewall provided as standard


Complemented by the fact that Linux OS is less targeted to malicious attacks



Office productivity tools are included as standard



Integrated vs. Layered Approach

Operating system

Back
-
up

Administration

D/R

Email, File

Operating system

Email, File storage


3
rd

party security

3
rd

party back
-
up


MS
-

SBS

In summary


Customer comparison

Top 3 priorities for SMB


1.
Simplicity



Autonomics, administration

2.
Functionality



Domino strength, all
-
in
-
one

3.
Value

-

$ implementation, $ management, $ up
-
front


“Our customers experience on average 30
-
50% savings using
Foundations”
Smart Technology Enablers




Partner Profile


Clear strategy around providing IT services to customers in the 5
-
500
space


Corporate and/or global resellers should be the first focus


Sweet Spot has been small VARs with 5
-
15 employees


Expertise in meeting the demands of small business


IT services such as network infrastructure, software design, security,
connectivity, communication, and managed services



DNA of a top partner

1.
Business partners that have established a vertical based expertise.

Reason



They fully understand the nuances of the customer vertical

2.
Business partners that have carved out a niche from a geographical
perspective i.e. small community

Reason



Word of mouth and reputation are very powerful in the
small business community




Value to You


IBM solution for a fast growing market


Tremendous services revenue opportunity


Remote management capabilities
(BP can support 3 times as many servers as
competitive products)


Overall labor required is 1/3 of other comparable products



Solution that maximize their time and value



Low up
-
front costs (ie. Enablement


hours not days)



Low touch, simple solution = short sales cycles



Easy to install, non
-
complex, and autonomic



Lightweight Linux OS, but no Linux skills required



Rich online and extensive phone
-
based technical product support



Reliable and security
-
rich = customer satisfaction

Example: Managed Services and Support Revenue Opportunity

Services may Include:


Highest Priority Service


All Lotus Foundations Server problems are covered


Hardware replacement if optional hw warranty is
purchased


Network, Server Management & Monitoring


Same
-
Day Response or better


Remote Support available


Application Support


Online Help Desk Trouble Ticket Submission System


Limited Helpdesk email support for all users


Monthly IT Status reports & recommendations


Cold Stand
-
by Hardware Availability Plan




ISP & email management



Backup management



Network management



Firewall management



VPN management



Disaster recovery incidents



Security management**


Users

Per Foundations
Server ($/Month)

Per Foundations
User ($/Month)

Scheduled On
-
Site
Visit

5


25

$120
-

$150

$15
-

$30

Twice/Year

25


100

$150
-

$250

$15
-

$25

Quarterly

100


500

$250
-

$350

$10
-

$20

Monthly

How Business Partners Find Target Customers




Community Involvement i.e. local chamber of commerce



Industry/Trade Associations



Local Advertisement




References & Endorsements




Vertical expertise





Target Market

Companies with up to 500 users


Ideal first server for:


Any business or a branch office



Companies in industries pressured with regulatory compliance or
those dealing with confidential client data


Companies looking for a server that can also provide reliable
data backup of electronic information


Ideal replacement server for:



Small businesses struggling with outdated and unreliable
systems


Growing businesses whose existing server cannot handle
growing server loads


Companies that want to move toward a more "electronic or
paperless" office


Companies looking for a small
-
business server that can also
provide reliable data backup of electronic information


Target Market Analysis

First Server Purchase

(5
-
50 employees)


Business Needs:



Document sharing


Networked applications (accounting,
timesheets)


File and records backup


e
-
mail management


Data and Network Security


Mobile access to mail, files, data


LAN (faster network)


Low maintenance solution


Cost $$ conscious



Simplicity


No “IT “in
-
house

Connecting the Business

(50
-
100 employees)


Business Needs:



Wider use of productivity and
business applications


First Enterprise Applications (ERP,
CRM) Records management


EDI


Intranets / portals


Networked storage


WAN


branch offices


Establish processes and standards

Extending the Business

(100
-
500 employees)



Business Needs:



Enterprise Application Integration


CRM, SFA, ERP…


Extensive customization


Deep interdependencies with supply
chain


IT department organized between
infrastructure and applications

New customers who have
not yet purchased first
server

Companies upgrading
obsolete servers or adding
additional capacity

Branch offices wanting
connectivity/infrastructure
that’s easy to administer

Customer Opportunity
-

Legal Firm

Legal firm specializing in technology and intellectual property law:



Two offices with 12 employees (no IT staff)



When their server went down, they lost a week of data and


billable hours trying to restore from backup tapes



Business problems:



Reliable and complete backup and restore



Document management and storage



Security, anti
-
virus, anti
-
spam



Two offices need to be able to share data

Customer Opportunity


Dental Office

Dental office specializing in families and children:



One location with several patient rooms and complicated dental


IT equipment
-

7 employees (with and IT point of contact)


rely completely on their IT service provider, to deal with the


computers. “He needs to be there for me so I can keep doing my


real work.”



Business problems:



A lot of IT equipment in the office, but when the server goes


down the office cannot get anything done as they have to


revert to paper.



Increasingly frustrated with the cost and distraction of


dealing with viruses, spam and server crashes.



Although the system has a backup tape drive they have had


problems in the past when the receptionist has forgotten to


change the tapes on schedule, and the tapes they use are


starting to look damaged
-

he’s concerned that he’s not


protected.

Objection Handling



IBM/Domino/Notes is an enterprise product & company


Domino/Notes is too complex


My customers are not asking for Notes


I don’t have any Linux experience


Lotus Foundations Channel Strategy And Programs


IBM building a set of tactics targeted at the end users market


Designing a series of webcasts, short videos and thought leadership pieces


Convey message that IBM is committed to the small business space


Position IBM’s partners as trusted advisers in delivering simplified, yet comprehensive
solution that is easy for small businesses to deploy, maintain and use


Show end users that IBM is working to demystify IT and make it simple for small
businesses


Build awareness and gain mindshare around the Lotus Foundations offering


Drive end
-
users to local solution providers




Lead passing program starting in Q4



Lotus Foundations partner program


Will leverage IBM’s PartnerWorld program with special profile for Foundations
partners


Easy access to get information on Foundations and small business market


Access to knowledge database, online training, Campaign in the box material,
etc…


Embrace a new alternative today!



Get Started Now



Talk to your customers about Foundations



Participate in our training sessions:


One Day Sales & Technical sessions only open to Tech Data partners:


Sept. 15


NY



590 Madison Avenue
-

midtown Manhattan
-

RSA
-
0289
-
12
-
1218
classroom


Sept. 16


Cincinnati



IBM facility at 4600 McAuley Place
-

ADI
-
6299
-
02
-
TJ Watson
Classroom


Philadelphia
-

Date and location tbd



Two 2 days Deep Dive technical enablement sessions :


Sept. 9


10


Virtual workshop


Sept 29 & 30


Waltham, Massachusetts


Oct. 7 & 8


Toronto, Canada


Nov. 4 & 5


Virtual workshop