Helping growing companies

Helping Growing
Companies Use IT
Solutions To Work
Smarter

Sponsored by IBM

Sanjeev Aggarwal, Partner

Laurie McCabe, Partner

February 2011

1 © SMB Group, Inc.

Helping Growing Companies Use IT Solutions to Work Smarter

HELPING GROWING COMPANIES USE IT SOLUTIONS TO WORK SMARTER

EXECUTIVE SUMMARY

Growing and midsize businesses want to take advantage of technology solutions that
can help them streamline operations, cut costs and improve the bottom line. But, since
IT resources and budgets are usually limited, businesses often struggle to implement,
manage, upgrade and support the IT solutions they need.

New technologies and delivery models, such as cloud computing, virtualization and
appliances, can help remove cost and complexity from the IT equation for growing
businesses with limited IT staff. IBM has developed the Solutions for Smart Business
platform to take advantage of all of these technologies and the benefits they can supply.
Using the Solutions for Smart Business platform, IBM packaged selected applications
into streamlined offerings that give growing companies the solutions they need, while
shielding them from many underlying operating system, middleware and application
complexities. As a result, Solutions for Smart Business provide midsize businesses with:

 A unified offering that knits together proven applications, a web interface,
integration capabilities, the operating system, self-management autonomics,
directory services, backup and other resources.

 An easier on-ramp to more powerful and sophisticated solutions. Solutions for
Smart Business are delivered as one package, with one part number, in a usage-
based pricing model, available through a choice of deployment options.

 Lower administrative and management costs and fewer headaches, and reduced
likelihood of problems down the road because everything is pre-configured and
pre-tested.

 The benefits of local partner know-how and guidance, and IBM’s comprehensive,
enterprise-class expertise, management and support capabilities.

IBM’s strategy for Solutions for Smart Business is responsive to the requirements,
constraints and budgets of growing businesses, and warrants a close look from
companies that need proven infrastructure and business solutions.

2 © SMB Group, Inc. February 2011


HELPING GROWING COMPANIES USE IT SOLUTIONS TO WORK SMARTER

If you’re like most business and IT decision makers, you want to work smarter, not
harder. You want to take advantage of technology solutions that can help you streamline
operations, cut costs and improve the bottom line. But in growing and midsize
businesses, reality often gets in the way of reaching this goal. While requirements are
often quite complex, IT resources and budgets are usually limited. As a result, finding,
buying, deploying and managing applications that best fit the business can be a
frustrating exercise.

But what if you could drastically reduce the cost and complexity of implementing and
managing proven business and infrastructure solutions, and at the same time also
increase solution performance and reliability? What if you could have proactive remote
services to perform management and updating chores before problems arose? What if
you could have the choice of deploying these solutions through an on-premises software
appliance, a virtual appliance or as a hosted service? Most important, what if you could
devote more of your resources toward helping your company achieve strategic business
goals, instead of on day-to-day IT block-and-tackle exercises?

Over the past several years, IT vendors have been applying new technologies and
delivery models, such as cloud computing, virtualization and appliances, to help remove
cost and complexity from the IT equation with the goal of making more sophisticated
solutions affordable and digestible for growing businesses with limited IT staffs. In this
paper, we look at how IBM is addressing these requirements with its new Solutions for
Smart Business initiative.

We start by assessing the challenges that have prevented many businesses from taking
full advantage of IT solutions. Then, we examine Solutions for Smart Business, and
IBM’s plans to provide proven, capable IT solutions in a turnkey, affordable and low-
maintenance manner. We discuss the kinds of solutions that IBM is bringing to the Smart
Business platform today, and the types of solutions that it plans to deliver in the future.
We wrap up with our perspective on this important area.

SECTION 1: THE IT CHALLENGE FOR GROWING COMPANIES WITH LIMITED IT
STAFF AND BUDGETS

SMB Group research findings consistently underscore the fact that growing and midsize
companies are in a tough spot when it comes to applying IT solutions to help move their
businesses forward.



To achieve growth, these companies typically have acquired other companies,
expanded into new geographies, broadened distribution channels, developed new
business models and/or launched new lines of business. At some point, the applications
that worked just fine when the company was smaller are no longer up to the challenges
that their now more complex operations require. To better manage growth, increase
profitability and maintain a competitive edge, these companies need to streamline
business and IT operations, reduce costs, improve customer service, increase
productivity and find new ways to reach customers.

Data from the SMB Group’s 2010 SMB Routes to Market Study indicate that more
than 60% of midsize businesses (100 to 1,000 employees) expect to increase their IT
spending over the next year. Many plan to add or upgrade to more modern, capable IT
infrastructure and business solutions that can improve productivity and efficiency both
day-to-day and over the long term (Figure 1). Increasingly, these companies are looking
for alternatives to increase the agility of their computing environment, and ways to
access the best possible applications while keeping IT costs and staffing requirements in
check.

Figure 1: U.S. Medium Businesses’ Purchase Plans for New and Upgraded
Technology Solutions in the Next 12 Months
(100 to 1,000 employees)

Source: SMB Group 2010 Small and Medium Business Routes to Market Study



However, most midsize businesses must accomplish this without the luxury of large IT
staffs and budgets. More often than not, IT is stretched thin just taking care of the day-
to-day tasks necessary to keep systems up and running—and responding to fire drills
when problems arise. This makes it challenging to sort through the ever-expanding array
of solutions available, and to figure out what will truly provide business value. Many
businesses struggle to get solutions implemented and upgraded, and get the insights
and value they need from these solutions (Figure 2). At the same time, they’re wrestling
with how to integrate new social media solutions with existing online marketing
initiatives. Consequently, while the need and desire to use IT more strategically are
strong, many growing and midsize businesses simply lack the IT horsepower to
accomplish this goal.

Figure 2: U.S. Medium Businesses’ Top Technology Challenges
(100 to 1,000 employees)

Source: SMB Group 2010 Small and Medium Business Routes to Market Study



SECTION 2: WHAT ARE SOLUTIONS FOR SMART BUSINESS?

In response to this dilemma, IT vendors have tried slimming enterprise applications
down to make them more affordable and digestible. More recently, vendors have
introduced infrastructure and business applications based on virtualization, cloud
computing and software appliance technologies to create solutions that are easier to
deploy and manage.

IBM has developed the Solutions for Smart Business platform to take advantage of all of
these technologies, and give growing businesses an easier on-ramp to more powerful
and sophisticated solutions. The Solutions for Smart Business platform knits together
proven applications, a web interface, integration capabilities, the operating system, self-
management autonomics, directory services, backup and other resources into a unified
offering (Figure 3). Instead of sourcing and integrating piece parts, customers get a
complete solution that’s easier to consume and manage, and can evolve as business
requirements change.

Figure 3: Solutions for Smart Business Overview

Source: IBM



We see a few factors that combine to differentiate IBM’s approach in the market:

1. Pre-integrated, pre-configured applications that reduce deployment time and
hassles. Solutions for Smart Business provides a platform that makes it easy for
application developers to knit together all of the necessary software, middleware
and applications into pre-integrated, pre-configured turnkey applications. All of the
necessary components are wrapped up in one compact package so that the
solution can be implemented with minimal time and IT expertise.

2. A choice of delivery options. IBM has architected the Solutions for Smart
Business platform so that software developers and their customers have a choice
of delivery models—as a virtual image that can be run on a dedicated “bare metal”
server, provided as a hosted service, or packaged with required hardware to run as
a server appliance.

3. Cutting-edge autonomic capabilities. These autonomic capabilities make the
system “smarter”—enabling it to automatically perform functions such as backup,
patches and upgrades, and remotely heal itself should a problem occur. This “self-
management” makes ongoing application management simpler and more
affordable, and helps reduce the risk of data loss.

4. Simplified ordering, pricing and fulfillment. Solutions for Smart Business
effectively wrap all the software, operating system, middleware, tools and services
necessary for a particular application into one package, with one part number.
Regardless of the delivery option customers select, pricing is usage-based, which
minimizes upfront capital expenditures and provides predictable annual costs.

5. Sold and supported by IBM’s local business partners, backed by IBM.
Solutions for Smart Business are sold via IBM Business Partners. Local Business
Partners can provide growing businesses with personal attention and expertise,
and go the last mile to help them select and optimize business and IT solutions.
Meanwhile, IBM backs up its Business Partners and customers with its 24/7
industrial strength expertise and support.



SECTION 3: WHAT MAKES SOLUTIONS FOR SMART BUSINESS SMART?

IBM’s Solutions for Smart Business is a flexible, standards-based platform that has all of
the tools, components and services needed to wrap applications into streamlined,
turnkey solutions. This provides growing companies the solutions they need, while
shielding them from underlying operating system, middleware and application
complexities (Figure 4).

Figure 4: What Makes Solutions for Smart Business Smart?

Source: IBM

Because the architecture is portable across different delivery options, developers can
offer customers a choice of how they want to consume the solution:

 As a complete software package. IBM offers the choice of a single server
package and a virtual software image.



 As a software package combined with the appropriate server configuration to
run the solution. IBM and its partners specify small, medium, large and extra-
large configurations for each application, and distributors package it based on
these instructions.

 As a cloud solution, hosted by an IBM Business Partner.

This choice is important because cloud computing isn’t always the right choice for all
customers or for all applications. Customers may consider an on-premises deployment
more suitable in some situations. Having a choice also gives customers the flexibility to
change to another delivery model if economic and/or workload requirements change.

Across delivery models, Solutions for Smart Business provide consistent capabilities and
self-management features, while protecting customers from many underlying
complexities. Some of the key benefits include:

 Fast sourcing, setup and configuration time. Customers order one part number
and get everything necessary to run and manage the solution, delivered in one fell
swoop. The automated, wizard-driven installation process can cut deployment
times significantly.

 Decreased support requirements and costs. Autonomic management and self-
healing capabilities are built into the solution. Once the solution is deployed, it just
runs—doing its job without a lot of care and feeding from specialized IT staff.
Partners can remotely host, manage, update and support the solution as required
by the customer.

 Greater solution consistency, reliability and stability. Pre-configured, pre-
integrated and pre-tested solutions ensure that each implementation is done
correctly, every time. This also decreases the likelihood of encountering problems
down the road due to configuration errors.

 Predictable costs. Solutions for Smart Business are sold via a Fixed Term
License (FTL), in which customers license software products on an annual basis,
eliminating the need for upfront capital expenditures and making budgeting more
predictable. Customers can choose automatic renewal options to continuously
renew at the anniversary date, unless the customer chooses to cancel the
subscription.


IIBIB


IBM Virtual Desktop for Smart Business
with VERDE from Virtual Bridges

The cost of managing desktops can be as much as 10 times the cost of acquiring them—leading to strong
customer interest in desktop virtualization. But the cost and complexity associated with deploying first-
generation virtual desktop infrastructure (VDI)—including expensive shared storage, high-speed
interconnects and additional servers—have put them out of reach for many companies.

IBM’s Virtual Desktop for Smart Business (VDSB) is a next-generation virtual desktop offering that removes
these barriers to give growing companies the desktop flexibility they need, simply and cost-effectively.
VDSB is an offering that allows customers to procure the IBM Smart Business infrastructure coupled with
Virtual Bridges’ VERDE virtualization product. Currently offered at $150 per user per year, VDSB provisions
virtual Windows or a choice of Linux desktops, and is accessible from most desktop and mobile devices. The
solution also supports integrated VDI for offline use, and provides unified management and reporting.
Because it’s built on IBM’s Solutions for Smart Business platform, VDSB can be deployed quickly—typically
in less than a day—and takes advantage of the platform’s self-management and automated backup and
recovery capabilities.

SECTION 4: THE SOLUTIONS FOR SMART BUSINESS PORTFOLIO

Formally launched in 2011, the Solutions for Smart Business portfolio initially rolls out
with a core group of infrastructure offerings, including:

 Application Manager for Smart Business. Many growing businesses find it
difficult to manage and monitor an evolving combination of older, legacy
applications and newer solutions effectively and efficiently. Application Manager for
Smart Business provides comprehensive monitoring, alerting and reporting on
IT infrastructure performance and availability across network devices, servers,
middleware and application components to improve the quality of service delivery.
The solution delivers both real-time and historical views of IT operations to help IT
to improve service quality.

 Service Manager for Smart Business. As businesses grow and become more
dependent on IT, they need to automate management and response for IT service
requests, incidents and planned changes. Service Manager for Smart Business
gives companies a single point of contact to automate these processes, including a
pre-defined set of best practice features to help companies streamline service and
support operations, improve operational efficiencies and resolve problems more
quickly.



 Virtual Desktop for Smart Business. This next-generation desktop virtualization
offering helps customers manage their desktops more easily and cost-effectively,
and is discussed in more detail in Section 3.

Initially, Solutions for Smart Business are available as single server software packages,
as virtual software images, and as combined software and hardware solutions.
Customers can also choose to have Solutions for Smart Business hosted by IBM
partners.

Figure 5: Midsize Businesses’ Most Critical IT Focus Areas for 2011

Source: IBM Mid-Market IT Trends Study

Across the board, the goals of Solutions for Smart Business remain the same—to take
complexity out of the application deployment and management process, and help
customers control costs.

SUMMARY AND SMB GROUP PERSPECTIVE



Growing businesses have a lot on their plates. In most cases, IT budgets and resources
haven’t kept pace with expansion and complexity, and these businesses are hard-
pressed to keep up with the demand for the more sophisticated solutions that they
require.

Solutions for Smart Business offer a streamlined and flexible approach that removes
many of the sourcing, resource and complexity issues from the equation, enabling
customers to get more business value from their IT dollars. By pre-configuring all of the
solution and self-management components in a single, ready-to-run package on top of a
portable architecture, businesses gain some significant advantages, including:

 Dramatic decrease in the amount of time required to get the application up, running
and productive
 Lower administrative and management costs, and fewer headaches
 Reduced likelihood of problems down the road
 Choice and flexibility as to how the application is deployed

Customers also benefit from local partner know-how and guidance, coupled with IBM’s
comprehensive, enterprise-class expertise, management and support capabilities.

IBM’s strategy for Solutions for Smart Business is responsive to the requirements,
constraints and budgets of growing businesses. The debut applications in the Solutions
for Smart Business lineup hit the mark when it comes to simplifying one of the areas that
growing businesses deem as a top priority—infrastructure management—and warrant a
close look from growing companies that need proven solutions in these areas. Going
forward, IBM’s plans to expand the Solutions for Smart Business portfolio should help
midsize businesses gain similar benefits in other critical infrastructure and business
application areas.

To learn more, visit: http://www.ibm.com/smartbusiness.



SMB GROUP, INC.

The SMB Group focuses exclusively on researching and analyzing the highly
fragmented “SMB market”—which is comprised of many smaller, more discrete markets.
Within the SMB market, SMB Group areas of focus include: Emerging Technologies,
Cloud Computing, Managed Services, Business and Marketing Applications,
Collaboration and Social Media Solutions, IT Infrastructure Management and Services
and Green IT. Read our 2011 Top Ten SMB Predictions for our views on game-
changers in these and other areas of the SMB market.

BAL03003-USEN-01


Helping growing companies

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