More Convergence Drives More Divergence in PC Industry

Jay McBain, Director of Small and Medium Business, Lenovo

2010 will be the year where online communications, entertainment and information converge to continue creating new, divergent types of mobile PC devices. 2008 was the year of the netbook, which impacted the industry in a big way by driving down prices and introducing the concept of “good enough” computing. Since its debut two years ago, the netbook category has expanded considerably with new sizes, features and technologies. If you remember, when netbooks first entered the market, they featured 8 and 9 inch screens. Today’s sweet spot is slightly larger at 10.6 inches, and we even see some 12 inch models being offered.

In 2009, all in one desktops and nettops took off following the success of netbooks. 2010 will bring even further expansion in these categories by incorporating technologies like multitouch, tablet functionality and enhanced graphics and processing performance. If netbooks and nettops weren’t enough, 2010 will bring even more devices to keep you connected and computing with the advent of smartbooks.

Smartbooks take the best of smartphones and netbooks to create a completely new device and category. If you’re looking for all day battery life and virtually continual wireless connectivity in a really thin and light package, a smartbook may be for you. While targeted at consumers primarily, this always on, always connected device may be a good fit for business users who need access to the Internet with a full browser and keyboard experience. With more and more devices being introduced to the market, more choice brings freedom, but it can also lead to indecision. That’s why it’s more important than ever before for VARs to understand the new PC technologies and to help their customers evaluate which PCs are right for their business.

These new trends and devices highlight an interesting phenomena happening in the industry right now. New and improved technologies are driving convergence for entertainment and online activities to handheld and small, portable PC devices. This convergence is magnified by the rise of cloud computing. Now you can check your email, instant message, download movies and music and stream live video on your mobile device choose whether to store your data on your PC or in the cloud.

At the same time as this convergence, the PC industry is diverging by creating new devices and form factors to serve an audience that increasingly wants customized PC technology to suit their specific purposes. For example, someone may use a smartbook as their personal connectivity device for entertainment, a laptop for work and a smartphone for voice communication throughout the day. Some of the new technologies driving convergence of entertainment and communications to mobile devices have largely centered on wireless connectivity with WiFi, 3G and WiMAX. Other technologies like ARM-based processors have enabled all-day battery life for devices like smartbooks. You’ll likely see this transfer into other PC devices in 2010. While Microsoft Windows 7 predominates traditional PCs and netbooks, operating systems on devices like smartbooks resemble smartphones where customer interfaces are layered over Linux.

While there are more technologies driving more choices than ever before, users must still choose which features are most important to them given their primary usage. Ultimately, the purpose behind a device, its design/ease of use and price will dictate its success. Will we continue to see expanded offerings with new devices or will consolidation happen? I’m confident the answer is a resounding “yes” for netbooks long term. Time will tell the next generation of mobility products are introduced.

Five Ways to Call Up a Crystal Clear PC VoIP Experience

Jay McBain, Director Small and Medium Business, Lenovo

VoIP (or voice over Internet protocol) calling has been around for awhile now, but with new advancements in PC hardware and software, more and more businesses are deciding now is the time to give VoIP a try. For customers, VoIP can bring reduced conferencing and travel costs, and for VARs, there’s the opportunity for installation, consultation and hardware purchases, which makes this technology worth exploring. The PC VoIP experience has improved dramatically in just the past two years. Now you may be surprised to see lifelike quality pictures and hear your conversations like you are in the same room with the other person. When choosing VoIP PC technology, here are five areas you should take into account:

• Optimized Hardware for Sight and Sound: Part of the best listening experience starts with the right microphones, speakers and web cameras. Pick PCs that offer high definition, dual array microphones that are two watts or higher. Noise suppression and echo cancellation software also help make a noticeable difference. Web cameras have come a long way and are now up to two megapixels for a high quality image. Look for cameras with a lower lux rating so you can use them in dim lighting. To make the PC as easy to use as a phone, some PC makers include separate speaker, mic and cameara on/off buttons, which can help ensure privacy.
• Specialized Communications Software: For businesses, Microsoft Office Communicator continues to be a standard for calls, faxes, emails, webconferences and more. MS Office Communicator certified PCs mean these PCs meet standards for a quality unified communications voice and video experience. Skype is another example of a popular software “softphone” application that continues to be adopted by businesses.
• It’s About the Connection: If you have the right hardware multimedia features, but a slow Internet connection, you will inevitably experience choppy and jittery calls. With the increasing expectation of constant connectivity, WiFi using the 802.11n standard is a must. VARs will need to evaluate based on customer need whether built-in 3G and/or 4G connectivity is required, however, I recommend customers future proof their PCs with at least 3G connectivity given the small incremental cost of including the technology.
• Keep Security in Mind: Like with any other remote networking tasks, address security around VoIP with measures including a firewall and antivirus software combined with strong user passwords. Fingerprint readers are helpful features that balance user convenience and IT department standards for security.
• Remember Basic Storage Applies: For businesses solely using VoIP communications and PCs as their “softphones,” make sure to have plenty of hard drive storage for archiving voicemails and other communications data. Solid state drive storage will offer even faster recall.

I personally have seen companies that have traded their landlines and regular phones to now rely on their PCs as their communications hub through VoIP. Improved PC calling features are continuing to improve and converge with the business need to optimize IT equipment costs and generally control expenses. Now is the time for customers and VARs to seriously consider a VoIP and PC combination.

Thinking About Adding Managed Services to Your Business’ Menu?

Thinking About Adding Managed Services to Your Business’ Menu? Here’s What You Need to Know About PCs

Jay McBain, Director of Small and Medium Business

The economic recession and lower PC prices are contributing to the growth in Managed Services Providers (MSP). It’s a natural progression as VARs look for new sources of reoccurring revenue beyond break/fix. A recent study by CompTIA found that already more than 40 percent of IT firms surveyed categorize themselves as MSPs. The same study cites a seven percent CAGR through 2012 for a $66 billion managed services market. The study also showed that upwards of 11% of all SMB IT spending will be in a monthly managed fee scenario.

So if you’re a VAR thinking about managed services, now’s the time for serious consideration. Before you do, do your homework. Spending time talking to current and potential customers, MSPs and hardware and software vendors, is invaluable to designing the right focus areas for your business. Joining an MSP community is also important, from education and training to mentoring and guidance from peers. Learn from their experiences.

From a PC perspective, here are some of my observations for success in providing managed services. They focus around a few key areas: remote management technology, security features and vendor partnerships and programs.

• Remote Management Technology - Customers choose MSPs because they are looking for always on technical support. MSPs are looking to provide that level of support while keeping costs down by avoiding having to deploy on-site technical support. PC remote management technologies help align both these goals. Look for servers, desktops and laptops that include Intel vPro and Active Management Technology. Some PC makers also include additional hardware/software productivity tools at no charge that can be easily managed and deployed across a fleet.
• Security Features – One of the most common IT requests is resetting user passwords. Since there is time and expense associated with this, look for features like fingerprint readers to minimize forgotten passwords and remote hardware password manager tools to help minimize time spent managing passwords. Full hard drive encryption can be a useful preventative measure to protect sensitive data, however it does require good password management. Also, to protect from loss or theft, choose PCs that support Computrace and Intel Anti-Theft Protection.
• MSP Software Platforms and Programs – As the managed services field continues to grow, PC makers are teaming up with managed services software vendors to optimize and integrate hardware and software. Companies such as Kaseya, Level Platforms, N-Able and ITControl Suite develop some of the most popular platforms for MSPs. With the double-digit growth of Managed Services, a few PC makers are coming up with new programs to incent Channel Partners new to managed services or those already growing.

MSPs are in a good position to capitalize on new PC refresh cycles this year. Many businesses are expected to upgrade their PCs to take advantage of Windows 7 and new Intel Core processors. This bodes well for MSPs looking to deploy and manage these PCs through their lifecycle.

A day in the life of a small business, Lenovo sells cupcakes for a day

Jay McBain, Director Small and Medium Business, Lenovo

March 23, 2010

I had a very interesting and informative day last Thursday with CupcakeStop.com in NYC. Leading up to the ThinkPad Edge 14 and 15 inch launch on March 23, Lenovo wanted to spend some time with small business to see how the technology integrates into their business. The Edge was built from the ground up as a small and medium business optimized device, so seeing it in action was important. We also had the chance to give away 4 of them and the winners are announced below!

Let me first paint the picture on CupcakeStop. An entrepreneurial law student who is graduating in the top percentile of his class in early 2009 decides that an opportunity exists for selling premium cupcakes in New York. After deep market research, Lev Ekster decides that a mobile business is more practical than bricks and mortar and that social media would be at the core of its operation. Fast forward to 2010 and you have a growing business that is adding more trucks and locations, installing e-commerce with international distribution, and is in constant real-time communication with its 11,300+ followers on Twitter.

Watching a day in the life of Lev running his business using the new ThinkPad Edge 14” laptop was very cool. First of all, Lev never put down the ThinkPad Edge. His thousands of customers are following him closely and the level of intimacy with social media is something I have never seen before. From posting menu’s on Facebook the night before, to constant real-time updates on location of the truck as well as inventory remaining with Twitter, Lev uses the Edge as a lifeline to the business.

Here are 10 things that blew me away:

1. Being in a mobile business, CupCakeStop needs constant connectivity 24/7. This means seeking out WiFi hotspots during the day is not an option. Using ThinkVantage Access Connections with the embedded broadband allows access everywhere and anytime to the Internet through an AT&T connection. It also allows easy switching to the home network as well as secure access to public WiFi when available.

2. Security is very important to CupCakeStop. With over 75 varieties of cupcakes, the recipes are key intellectual capital that cannot fall into the wrong hands. Combined with employee payroll data and supplier contracts, Lev uses the fingerprint reader to access the machine and encrypt the data. Also, not having to remember passwords to all of the social media sites was a huge productivity boost.

3. With an Internet run business, including hundreds of Twitter and Facebook updates a day from customers, Lev runs the risk of clicking a bad link and getting a virus. With the Edge being his lifeline, he cannot risk being down for a few days (even an hour would hurt the business). Knowing that ThinkVantage Rescue and Recovery is installed means that by the touch of a button, he can boot into a separate and protected operating system and restore to a point just prior to the virus in minutes.

4. Lev made a great quote: “EVERYTHING in this truck breaks”. A mobile business with high activity level in a tight space, it became very apparent that a robustly designed laptop was critical to the business. The large hinges and legendary Lenovo ThinkPad build quality was very important to his business continuity. Again, waiting for the machine to get serviced is not an option.

5. The power limitations of the truck. Lev made a funny comment that to plug in the ThinkPad Edge would mean he would have to unplug the cash register which isn’t good for business! All day battery life was critical.

6. On the same subject as limited power, the always powered USB port allows Lev to keep his smartphone charged and ready throughout the day – saving another outlet.

7. The high quality light adaptive camera is used to publish new menu items to Facebook and Twitter. For example, the prior day to us being there was St. Paddy’s day which had new and unique Irish offerings. Being connected 24/7 (#1) also allows Skype access with customers and suppliers with the camera.

8. Lev uses the ThinkPad Edge as his personal machine as well. With the investments into new trucks, bricks and e-commerce solutions, he doesn’t want to invest money in an additional laptop for personal use. With the High Definition screen, audio, HDMI port as well as Blu -ray drive all built-in, the Edge handles all of his personal needs with ease.

9. With a new Intel Core i5 processor, 4GB of memory and a 500GB hard drive running Windows 7 Professional, Lev can power through his day with multiple applications running concurrently. Previously to his ThinkPad Edge he ran the business from a BlackBerry which started to be a limitation as the business grew in size and scope. An example was a redesign of the website to e-commerce functionality which involved hundreds of prototype back-and-forths with the developer. Having real-time access to the color-palette and sizings, Lev didn’t have to wait till 10pm to view on his home computer.

10. Probably the thing that blew me away the most was the design attributes of ThinkPad Edge. Lev represents the future of social and traditional media entrepreneurs. He was clear about his tools having design elements that represent his company as well as himself. The bold statement that a bright red ThinkPad Edge makes is important as he promotes his business. Ironically, thelaptop is the same color as the stop sign in CupCakeStop.com’s logo….a perfect fit!

Since ThinkPad Edge is a new brand, we added an element of fun to the day to get people excited about the new products with a giveaway…

The lucky winners of the random drawing are:

Pateel Yenikomshian

Bryan Meyerovich

Brooke Brestel

Ronny Walton Jr.

Congratulations!

The media hook of a mobile, profitable business run on top of social media is what started the day. The immersion of ThinkPad Edge in the very core of the business is what made the day. The observation of how each feature and function are used in real-time provided Lenovo with the insight around product development for the future.

For Lenovo, a close connection with businesses using our products is very important. Looking beyond cupcakes, we are observing doctors in ambulatory practices work with ThinkPad Edge, as well as accountants, students, and many other industries. Products do not improve in the boardroom. They improve in the real-world.

Day well spent.

How do you bring vPro into mainstream computing?

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…

When it Comes to PCs for the SMB: One Size Doesn’t Fit All

Jay McBain, Director of Small and Medium Business

When it comes to PCs, small to medium businesses (SMBs) are in the driver’s seat. Over the past two years, this segment of the market has exploded. While large enterprises largely put the brakes on PC spending, SMBs and consumers are still driving growth. The most recent forecasts from IDC predict sales to SMBs to grow double digits next year. PC makers and Channel partners are responding to this demand with new hardware, software and services solutions.

SMB’s comprise a large and diverse category. There’s no one all encompassing definition. Some have IT departments. Some don’t. Some behave more like consumers. Others like corporations. Some buy from retailers. Others buy from value added resellers. They all have varying needs that are largely dependent upon their total number of employees. However, they share more similarities than differences. Across the board, they value reliability, price and performance utmost. Compatibility with software applications, cooling/power, service capability, speed/ease, portfolio breadth, packaged solutions and hardware design are also important.

PC makers are fully embracing the SMB market, and as a result, you’re seeing new PCs developed especially for this segment - from laptops to desktops to servers. Typically, these offerings balance a more modern and eye-catching design which is more like true consumer PCs, with a blend of performance and security features that are more typical of the PC designed for the traditional large enterprise customer. Price forms the third point of this pyramid. Most SMBs are willing to pay between $499 and $799 per PC. Within that range, there are many choices of features. For example, more entry-level models may be equipped with security features like fingerprint readers while more expensive, full-featured PCs may offer Intel vPro technology and encrypted hard drives.

We’re seeing new form factors for SMB’s too. Netbooks, nettops, thinbooks, and even “all in one” PCs have made the jump from consumers to SMBs. Fueled by their attractive price points, most under $500, made many businesses turn their heads and give them a try. Now we’re seeing these “good enough” computing products being refined and developed specifically for these customers. Besides their affordability, another advantage of these types of PCs is space savings for those crowded offices! Many businesses are now using more than one device, and the price of these new categories of products have introduced the concept of “companion” devices.

Channel partners can capture long term opportunity as a trusted advisor from planning to initial point of purchase to deployment and ongoing IT management. When it comes to choosing the right mix of PC solutions, SMBs will rely on business partners to help them see the big picture and evaluate the purchase in terms of long term ROI – not just the sticker price. That’s especially true to ensure lower priced offerings meet the performance needs of growing SMBs. Evaluating quality, reliability, security and manageability software as a total package will also help build confidence with the customer for providing future services. Many of these customers without IT departments are looking for specific managed services like remote monitoring, patch management and managed security that channel partners can provide.

What will the next hot products be for SMBs? I expect the evolution of these new form factors with more business features to drive interest and sales. For example, netbooks with higher level business-grade computing features to continue to gain traction in this market as companion devices to a desktop that is left in the office. The choice of form factors will continue to expand, covering ultra-small devices right up to large screen desktop optimized devices. Channel partners will be front and center in recommending these new products, as well as ensuring that they can be integrated into the customer’s infrastructure and properly managed throughout their lifecycle.

Is your PC secure? Check the following list to make sure

Jay McBain, Director of Small and Medium Business, Lenovo

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.

Why Corporate PC’s Still Matter

Jay McBain, Director of Small and Medium Business, Lenovo

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.

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” (1440x900) WXGA+ LED display. It also includes an ultra-thin (9.5mm) optical drive which supports Blue 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.

The Rise of Managed Services

Jay McBain, Director of Small and Medium Business, Lenovo

There has always been one constant in the technology industry. During every major economic downturn, opportunities emerge for Channel Partners to transform their businesses and increase their value to their customers. It is clear that this round is about Managed Services.

What are Managed Services?

The term Managed Services is very broad in its definition. In fact, Wikipedia shows over 30 different major categories of services that fit under the umbrella. Simply, it is the practice of customers transferring day-to-day IT management responsibility as a method to improve the effectiveness and efficiency of operations. To a Managed Service Provider (MSP), it is the evolution from break/fix to Professional Services to fully remote monitoring and control of a client’s IT. Many MSP’s bill a fixed monthly fee and use sophisticated dashboards and reporting tools for providing a defined set of services.

What are the benefits?

For customers, there are several benefits. Probably most important is having IT as a predictable variable expense that can be funded with OpEx vs. CapEx. It allows for reduced IT staffing requirements while tapping into an expert pool of professionals. It also allows the customer to effectively level the playing field with larger competitors and access skills and resources that they would be unable to do on their own.

For MSPs, the benefit is a profitable, recurring revenue stream. This “base” of revenue allows for better planning and growth strategies. As well, Managed Services buffers the margin erosion in many hardware and software products over the past number of years. An increase in customer ownership and retention, as well as more efficient use of technicians makes this model more attractive to traditional break/fix resellers.

Is it too late to get on board?

Absolutely not! While the growth of MSP’s in North America is rapidly increasing, we are still in the infancy stage of this market segment. A couple of years ago, there were roughly 400 MSP’s as compared to over 4,000 today. However, a June survey by Kaseya shows that only 18% of current VARs describe their business as “fully outsourced IT”. Almost 80% of VARs are still operating in a break/fix or project based IT model.

The MSP model has primarily grown in the Small and Medium Business space. In fact, the same survey noted that 90% of VARs have less than 1,000 PC’s under management. In roundtables conducted by Lenovo and Intel, MSPs relayed a “sweet spot” of about 20-30 computers per client or the “2 person IT shop”.

How does Lenovo add value to MSP’s?

Lenovo (and previously IBM), has spent over 15 years investing in key MSP related technologies such as remote management, security and durability. With a strong legacy of supporting large customers with complex IT departments, Lenovo has built a robust set of tools and technologies called “ThinkVantage”. Many of these tools, almost 15 in total, come included at no charge with ThinkPad, ThinkCentre and ThinkServer products and are designed to lower costs from deployment to disposal.

For example, on the security front, Lenovo was the first company to incorporate a security chip in its products, later to become known as the Trusted Platform Module. Lenovo was also first to market with a fingerprint reader as well as robust bios and hard drive passwords, and external port control. Looking forward, a “poison pill” technology allowing MSP’s to send a simple text message to a PC to disable it after it is stolen will be available.

The goal of all MSP’s is to eliminate “truck rolls”, the unprofitable deployment of technicians for software related issues which make up over 80% of helpdesk calls. With Intel’s vPro technology, combined with Lenovo’s ThinkVantage Technologies, an MSP can wake up a system that is turned off and remotely take it over with the same access as being right in front of the unit.

To protect against hardware failure related truck rolls, Lenovo has incorporated durability design attributes into Notebooks such as protective “roll cages” for the screen and motherboard, “air bag” technology for the hard drives that sense a drop and brace for impact, and spill resistance including dual drainage holes in the bottom of the unit. This is in addition to the quality materials protecting against cracks, broken hinges, and cracked screens. In fact, Think products are the only certified PCs by NASA to travel into space!

Finally, Lenovo understands the importance of MSP’s being able to run their businesses from proactive IT management tools such as Kaseya, Level Platforms, N-able and Zenith Infotech. In addition, reporting tools such as ConnectWise or Autotask are important for billing and reporting purposes. Lenovo understands the importance of integration and is working with these firms to incorporate our ThinkVantage tools into their dashboards and tools.

Lenovo has programs and incentives to help MSP’s acquire demo products as well as increasing margins on hardware sales to their customers. A full suite of services and financing are also offered which can be used for Hardware as a Service (HaaS) type of environments.

Again, this is an opportune time for Channel Partners to understand the Managed Services model and choose the right vendors to build or further develop their practice.

Have we Reached the Age of Pervasive Computing?

Jay McBain, Director, Small and Medium Business, Lenovo

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.

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.

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.

CES….A game changing moment for Lenovo

Jay McBain, Director of Small and Medium Business

January 18, 2010

There are key moments that define companies.

The buzz leading up to Consumer Electronics Show 2010 was about the world leading PC Companies not being on the show floor. It was reminiscent of the old COMDEX shows that ran from 1979 to 2003. If you remember, that show grew too large after admitting the general public and major sponsors dropped out forcing the cancellation of the 2004 show. The final nail in the coffin is when they limited the press engagement to only a handful of the top periodicals, effectively censoring new products and innovation.

With the convergence of consumer electronics and computing early in the new millennium, the CES show took over the spotlight in 2004 for major product announcements and became the platform for companies to establish themselves as innovation leaders.

Lenovo decided to rent out a high-end restaurant in the Venetian hotel, just steps away from the conference. This allowed customers, partners and the press exclusive access without the crowds and mayhem of the CES trade show floor. It was the right decision. From blogger nights, to heavily attended press releases, Lenovo generated more buzz than most other companies in the industry.

Lenovo became the star of the show for two reasons: 1) Announcing several new innovative product categories, and 2) Establishing what the post-Legend, post-IBM, company would look like.

1. The introduction of the first Smartbook (Skylight) and Hybrid Notebook (IdeaPad U1) were groundbreaking for several reasons. Breaking away from the traditional PC desktop and notebook design, technology, and usage is important as individuals and companies start to view computers as ubiquitous in their everyday lives. With the rise of all-day mobility, pervasive connectivity and cloud based applications, users will be looking for devices that better integrate with how they want to access and consume information. We need to stop thinking about one device that will do everything, and start thinking about the 20 or so devices that are optimized based on where you are and what you are doing. Lenovo has established itself as an innovator looking at these different usage scenarios. The introduction of the new ThinkPad X100e and ThinkPad Edge are further examples of where businesses may optimize their user experience either by a companion device, or a thin and light alternative. Finally, the array of new all-in-one desktops, including the ThinkCentre A70z, show that even the traditional 30 year-old desktop world is innovating. With power and space savings, these new devices could become your base unit paired with a companion X100e for mobility.

2. Lenovo also introduced a dozen other IdeaPad and IdeaCentre designs including 3D gaming, and an innovative phone for the Chinese market. The buzz following the show, including 8 “best in shows”, have firmly established Lenovo as a design leader both in Commercial and Consumer technology.

What does this mean for the channel?

Lenovo has been known for decades for building durable, manageable and secure business class PCs. With the emergence of cloud computing, all-day battery life and connectivity, Lenovo is creating devices that take advantage of this new world.

For example, most channel partners have been asked by customers about the Netbook phenomenon and their business application (or lack thereof). With the announcement of the ThinkPad X100e, Lenovo has created an ultraportable device with a more usable screen, keyboard, higher build quality and ThinkVantage technologies to satisfy strict business requirements.

The pace of technology change on the hardware side will not let up. Channel partners can trust Lenovo to be researching the business relevance of these technologies, and developing hardware, software and services that lower costs, drive productivity and optimize profitability.

Lifestreaming meets the PC

Jay McBain, Director, Small and Medium Business, Lenovo Americas

November 3, 2009

The PC has played a very important role over the past 30 years in ushering in new and interesting changes to the way people communicate. When Web 1.0 hit mainstream in the mid-90’s, people became accustomed to writing email, instant messaging, and for some, buying things electronically. With Web 2.0, these technologies were enhanced with social networking tools such as Facebook, YouTube, Twitter and blogging widening the aperture of digital life.

One of the interesting concepts coming in Web 3.0 will be something called “lifestreaming”. The term was coined by Eric Freeman and David Gelernter at Yale University in the mid-90’s. It is basically a time-ordered stream of documents and electronic media that functions as a diary of your life.

Personally, I have been using Quicken (or its predecessors), scanning all of my papers, and categorizing all of my digital pictures since I was in elementary school. It has become a huge directory tree of tens of thousands of documents sorted by year and month, chronicling my life day by day. The ability to look back and find where and when I spent money, including scanned receipts, and digital pictures allows me to triangulate every day of my life, both personally as well as professionally.

Perhaps a negative effect is that I have become a “go to” guy for finding old documents. It goes something like: “Hey Jay, remember that Gartner study from 1994 on total cost of ownership?” As the years have passed, I have added different technologies to the stream. For example, voicemails, instant messages, Facebook, Twitter and LinkedIn information is now included.

I believe that PC technology will be the key enabler to lifestreaming.

For example:

1. Recording day to day life: Lenovo PC’s are the only Microsoft certified unified communication PC’s on the market today, including:

a. Stereo digital high-definition speakers with 10 band equalization and dynamic range compression improve sound to audiophile levels

b. Digital array microphone technology including the placement on either side of the camera providing for a more natural environment producing balanced sound input

c. High definition light adaptive camera’s including digital zoom and HD LED displays improving the visual size and quality

d. Tools allowing switching between MIC, headphones and speakers seamlessly.

2. Staying securely connected everywhere and anywhere with Wide Area networking (3G cellular integration), WiMax, WLAN 802.11, and Bluetooth. Importantly, this is enabled by Lenovo’s Access Connections tool allowing seamless and secure connections from location to location.

3. Bullet proof security. Can you imagine streaming your entire life and having that stolen? This takes the risk of identity theft to the next level. Windows 7 has improved security from previous versions and Lenovo has enhanced it with:

a. Fully encrypted hard drives – managed from a separate security chip that can’t be hacked.

b. Biometric fingerprint reader ensuring secure access to the machine – no risk of lost or hacked passwords.

c. “Poison pill” technology allowing the user to disable a ThinkPad with a simple SMS text message – even if the unit is turned off!

d. Secure data backup options such as Rescue and Recovery tool, Online Data Backup as well as a password protected, secure external drive.

4. Data protection. Lenovo offers several hardware and software advantages protecting the data on the hard drive from physical damage or failures from viruses or operating system. From a revolutionary “air bag” system that senses when a PC will be dropped to an innovative packaging of the hard disk inside the machine, to specially designed rubber feet that absorb impact, ThinkPad products are designed to protect the lifestream.

5. Data migration. When it comes time to transition to a new PC down the road, Lenovo includes a migration utility for the lifestream, including all personality settings, and even offers a military grade data disposal tool before the PC is handed down, recycled, or hits a landfill.

Thus, from enablement of the lifestream, to managing it over time, right through to migrating to new technology, Lenovo has the tools available today for the technology of tomorrow.

Blending Mobility with Unified Communications….the final frontier?

Jay McBain, Director of Small and Medium Business, Lenovo

Jan 1, 2010

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 recognized Lenovo earlier 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.

Looking Ahead to 2010

Jay McBain, Director, Small and Medium Business, Lenovo Americas

December 15, 2009

This is the season for spending time with family, being thankful for our many blessings, and, of course, predicting what will come in the upcoming year. The technology world is always moving and key trends that are interesting one year become game changing the following year.

Looking ahead to 2010, I see 4 macro themes that will emerge as potential game changers for the entire industry, from hardware, software, to services:

1. Connectivity
The concept of having wireless access in select areas such as home, work and coffee shops will finally become a thing of the past. With WiMax deploying to dozens of cities providing everywhere access, to more affordable and easier to adopt 3G/4G type networks available by major carriers, consumers and businesses will likely begin thinking about converting their home network to a city or country wide solution. The next generation of devices will all be enabled with GPS technology as well, making location-based computing a reality. Imagine every picture being geo-tagged, localized advertising, and location relevant Google searches.

2. Pervasive Computing
With the ability to connect everywhere and anytime, users will demand a greater availability of use-specific devices to optimize to their lifestyle. Traditionally, people would use a computer at home or work, and then augment with a smart phone in-between the two. The Netbook gained popularity in 2009 as a companion device and several dozen more examples of computing form factors will be brought to market in 2010. Users will also demand today’s electronic devices grow in function to include wireless access and basic computing ability (think car radios, TVs, even refrigerators). It is conceivable that a person would have a dozen internet ready devices in the next few years.

3. Cloud Computing
Businesses and consumers are becoming more aware and comfortable with working and storing information out on the network. With Microsoft making major Office announcements, Google maturing its product offering, as well as countless others building capabilities, the traditional use of computing offline and storing locally will turn the corner. With technology accessible everywhere, whether on personal devices or publically available multi-touch kiosks, access to data and applications will be ubiquitous. The growth of connectivity and pervasive computing above will be a direct driver of cloud computing.

4. Communication
With significant changes in technology and internet access on the horizon, the very core of human interaction will continue to evolve. Looking back, from writing letters to phone to email to instant messaging to real-time “tweets”, communication has become faster, shorter and instantaneous. We have even seen major corporations such as Microsoft and Intel dump traditional phone landlines for VOIP through ThinkPads.
A new concept dubbed “nowism” will sweep into everyday life as instant communication around everyday activities such as listening to music, watching movies, visiting restaurants will be reviewed and reported in real-time. In 2009, it was well documented the positive or negative effect that text messaging can have on movies on their opening weekend. Looking forward, Services such as TripAdvisor, Midomi, imdb, and of course traditional social networking sites, will be instrumental in whether a product, brand, or even a company survives - all in real-time.

Lenovo is excited about these changes and will kick off at CES in Las Vegas a vision on what kind of devices and tools that will enable these macro trends.