SMB markets more stable in today’s economy

While we’re watching big corporations cut back – postponing IT purchases and projects – the SMB market is, by comparison, much more stable. Vendors are recognizing this, but they can’t do it on their own.

The channel will play a significant role here, but margins have to be enticing enough to make it worth their while. Vendors have been trying to get a foothold in the SMB market for years, but now even more so, as enterprise sales start to slow down. PC sales, for example, are still fairly stable with smaller businesses.

So PC makers like Lenovo, Toshiba and Dell are going after the SMB customer with lower-cost products sold through the channel.

Lenovo is attempting to bridge the gap between enterprise and consumer notebooks with a new line – yet to be named – targeted at SMBs with 10 to 500 employees. This line, expected to launch before the summer, will be sold through resellers and office retailers via distribution partners, including Ingram Micro, Tech Data, Synnex and D&H.

The price point, of course, will be a compelling factor for SMB customers who perhaps can’t afford the higher-end enterprise ThinkPad notebooks. But Lenovo says the SMB-focused notebooks will also be more rugged and durable than the average consumer notebook, and it will offer comprehensive support behind the product line.

Toshiba has already dropped prices on its Satellite Pro X300 notebooks for SMBs, which are sold through the channel. Toshiba says that rather than tweaking its consumer notebooks for the SMB market, it’s redesigned the system altogether, with features aimed specifically at small businesses.

This includes Easy Guard shock absorption, as well as a cleaner load (without a bunch of annoying preloaded consumer applications) and a two-year warranty.

Panasonic, however, is taking a different approach by beefing up its $3,000-plus Toughbooks with extended battery life, improved security and integrated Qualcomm wireless and management features. Its approach is to target verticals – such as military and health care – where IT cuts aren’t as drastic as the enterprise market.

Security is another area where SMB customers may be willing to spend. SonicWall, a secure network infrastructure company, has teamed up with D&H to extend its reach to SMBs in North America.

The distie will be offering SonicWall’s SMB-focused network security solutions, including its line of Internet security appliances, as well as secure content management and end-to-end backup and recovery technology. As part of a revamped Medallion Partner Program, SonicWall will offer tiered product discounts on products sold through D&H.

So, at least for the time being, SMB might be where it’s at.

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Jim Love, Chief Content Officer, IT World Canada

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Vawn Himmelsbach
Vawn Himmelsbach
Is a Toronto-based journalist and regular contributor to IT World Canada's publications.

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