Last week IBM launched its System i Express, a low-cost, all-in-one IT hardware package for small businesses with five to 40 employees. It will allow entrepreneurs to purchase servers from IBM and run business applications on a per-user basis starting at $7,995 for the initial five users.
Most small businesses have traditionally opted for the inexpensive Microsoft Windows-based servers. IBM is hoping to change this by reducing their i Express costs. They also claim that their servers are less vulnerable to viruses and more reliable.
According to System i general manager, Mark Shearer: "This is probably the boldest move we've made in the small-business space in a decade."
The key to IBM's success, however, will not be in the hardware but in the software applications that will run on it. Few small business owners will call up asking for a System i server but they will want to run the latest manufacturing, financial, or medical applications and their software vendor will advise them on which server to purchase to run the applications.
Windows has a dominant presence and switching costs are high enough that most SMBs will not move over but IBM does present a compelling enough case to be considered as a serious alternative for new purchasing decisions. To that end IBM is hoping to triple the number of new customers in the first year of the new promotion.
Most small businesses have traditionally opted for the inexpensive Microsoft Windows-based servers. IBM is hoping to change this by reducing their i Express costs. They also claim that their servers are less vulnerable to viruses and more reliable.
According to System i general manager, Mark Shearer: "This is probably the boldest move we've made in the small-business space in a decade."
The key to IBM's success, however, will not be in the hardware but in the software applications that will run on it. Few small business owners will call up asking for a System i server but they will want to run the latest manufacturing, financial, or medical applications and their software vendor will advise them on which server to purchase to run the applications.
Windows has a dominant presence and switching costs are high enough that most SMBs will not move over but IBM does present a compelling enough case to be considered as a serious alternative for new purchasing decisions. To that end IBM is hoping to triple the number of new customers in the first year of the new promotion.
Labels: IBM, Mark Shearer, Microsoft, new promotion, software vendor, switching costs, System i, Windows
