Great article by a Microsoft-Watch.com site on Lotus Foundations,
IBM is doing what I’ve been saying Microsoft should do more of: Software plus hardware plus services . Hardware is the crucially missing component to Microsoft’s Software plus Services strategy. Microsoft presumes that partners must do the hardware—that it can’t cut them out. IBM’s strategy relies heavily on partners, just in a different way.
I’m conceptually impressed with IBM’s approach here. I say conceptually, having not used the server appliance. IBM tells a compelling story about the combined benefits of its nearly-new Lotus Foundations Server software and hardware appliance. How those benefits pan out—and how well the server-software-services package competes with Small Business Server 2008—is a story with no ending. Yet.
That said, competitively, Microsoft should watch IBM’s small business server appliance package because:
- Office alternative Symphony is bundled along with Lotus Notes.
- IBM cut a virtualization deal with VMware—for businesses needing to run Windows applications.
- A single appliance can be provisioned up to 500 clients, whereas Microsoft’s Small Business Server caps at 75 users and Essential Business Server at 300.
- The business model is more subscription-like, which should appeal to channel partners and customers, particularly in these times of economic uncertainty.
- IBM claims low-touch setup and supporting services (such as domain management and ISV software updates); the server software dials up every 12 hours for these.
It’s the software plus hardware plus services approach that really differentiates IBM’s Foundations appliance—and Microsoft and its partners should really, really learn from Big Blue.
