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Neeraj Gupta
General Manager
SMB Channel, Dell India
As we look back at 2008, we see distinct trends that will continue to play a role in the IT landscape of 2009. Among these trends are the emphasis on mobility and personalization, the emergence of technologies such as virtualization and iSCSI as mainstream choices, and the accent on Green IT as enterprises realize that going green benefits both corporate conscience and corporate bottom-line.
Mobile computing remains among the fastest-growing trends, and we expect it to gain momentum. The professional and social use of the Internet, as well as tools for online collaboration, all encourage mobility.
Personalization continues to shape the laptop market since the corporate as well as consumer segment veers toward design aesthetics that do not compromise on performance and durability. Within the consumer segment, even though buyers can now look at, feel and browse through products, vendors must still find a way to meet the customer’s need for ever-greater personalization.
Every segment has developed into a definite niche with specific needs, and companies have to address each segment with a specific product while making sure they offer enough choice. Thus, while we at Dell worked to launch a range of laptops that addressed the consumer’s need for color, individual style and looks, we also added an entire portfolio of laptops, desktops and servers to cater to the needs of SMBs, with specific functional features that offered affordable reliability.
The SMB segment offers tremendous opportunity to IT vendors, and this year was special for Dell as we launched our channel program in India. The channel program is one of our moves to reach out to SMBs. The SMB segment is among the fastest growing, with an estimated IT spend of $5.85 billion even though, at present, just a fraction of this segment actually uses some kind of IT.
Technologies for 2009
Virtualization and storage consolidation will continue to grow in importance in the coming year. While many companies are launching virtualization products, it is imperative to offer a comprehensive strategy for virtualization, and work with customers to help them assess their needs for higher data center efficiencies.
Trends that will add value to customers in 2009 include iSCSI-based storage, embedded virtualization, more energy-efficient data-centers, and cloud computing. Virtualization is quickly moving beyond hypervisors and hardware consolidation as enterprises are looking for a broad range of servers, storage and services designed specifically for virtualized environments. An extension of this is the coming of the virtualization concept to client computing as thin clients begin to enter the market.
Green IT will gain further importance. India has been among the most expensive commercial energy costs, and the current environment will compel enterprises to look for effective energy management solutions, especially in data centers. However, pursuing a green policy cannot be done simply with one or two products marketed as green. Rather, green as a way of life has to be followed in all aspects, from offering products that are energy-efficient to the use of eco-friendly materials.
The SMB market
Worldwide, the growth of SMB IT spending has outpaced total corporate IT spending since 2002, and the trend is expected to continue till 2010, according to IDC.
SMBs need simple, affordable business computing, connectivity features, and access to technical services and support. They are looking for companies which can help them use technology effectively. This means a portfolio of products that meets their specific needs, as well as a support infrastructure to ensure that they do not have to compromise on performance or reliability in order to get something at an affordable price.
Since Internet penetration in India is still low, growth in Internet usage will be a key driver for higher PC usage, especially in the SMB segment. Many small businesses are beginning to recognize the growth possibilities offered by the Internet, including growth beyond geographic boundaries.
The year ahead
In the current business environment, companies big and small will look to do more with their IT spends. Partners will play a major role in building outreach and access for products across the country. As customers look for clear and tangible benefits from IT, Dell will offer strong support to partners to help them build serious volumes. It will be important to ensure that partners remain profitable.
Buying cycles will get longer in this environment, and every opportunity will require greater effort. Companies will need to work with partners to become trusted advisors to their customers even as customers look harder for value, for a lower total cost of ownership, and for good returns on their IT investments. Given the tough business environment, customer loyalty will stay with partners who add value, and offer flexible choices that address the customer’s needs and cash-flow concerns.
Our initiatives
For Dell, the channel focus will be to strengthen the partner program with the right solutions for different categories across enterprise products, desktops, notebooks, services and peripherals. Channel rebates and incentive programs will be important for partners, along with strong brand support to generate demand and build customer credibility.
Here are a few take-aways for channels so that they can make the most of available opportunities:
- Stay close to tech trends and ensure that you are able to offer true consultative value to your customers.
- Watch your cost structure, but invest in the right resources.
- Look at different models of doing business.
- Wherever possible, offer complete solutions.
- Look beyond traditional
customer bases and create new revenue streams from new customers.
- Work closely with strong vendors who can support long-term growth, and live through short-term stress.
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