DQCI-IBM PANEL DISCUSSION: Exploring The Right Server Infrastructure

The next time you approach your customer for providing him the right server
infrastructure, don’t limit yourself with just one client-interface. Talk
about server cost to the purchase department, technology to the CTO and its
business criticality to the CFO. Panelists at the DQCI-IBM panel discussion on
‘Exploring the right server infrastructure’ had this to share and more.

Pitch your sales at the right person in the organization going for the server
infrastructure,’ was the primary message the panelists gave at the DQCI-IBM
panel discussion on ‘Exploring the right server infrastructure’, held in
Mumbai on 16th December.

"If manageability is an important criteria, then rack-mounted servers are a resource-saving product, as a engineer need not monitor the system" Jyothi Satyanathan, Country Manager-xSeries and Intellisations, IBM India

The panel comprised Jyothi Satyanathan, Country Manager-xSeries and
Intellisations, IBM India, Bimal Raj, CEO, Allied Digital Services, Chetan Shah,
MD, Xpress Computers and Cherian Thomas, Director-Marketing, Wysetek Systems
Technologists. Sylvester Lobo, Executive Editor, DQCI, moderated the discussion.

MAKING THE RIGHT PITCH

Jyothi observes that solution providers have to understand the customer’s
business, analyze what his mission-critical needs are and then educate him on
solutions that best suit his requirements.

But he points out that a sales pitch was often made to the customer’s
purchase department. Bimal suggests that the engagement must be with several
people in the client organization.

"A partner should talk about server cost to the purchase department,
technology to the CTO and its business criticality to the CEO. This is where the
partner’s value-addition as a consultant comes into play," he adds.

Mahesh Khatri of Kaytek Computer Services, a member of the audience finds
this suggestion very valuable. "Often we have lost business because we take
our proposal to the purchase department, which rejects it, because it does not
fit the budget," he adds.

CONVINCE WITH CONVICTION

With server solutions becoming more complex, it is not an
easy task for partners to convince customers about investing in the right server
infrastructure. Cherian of Wysetek opines that this problem is encountered when
customers have budget constraints. In such a scenario, he notes, a partner
should decide how a particular server infrastructure will help the customer’s
business and what his RoI will be.

Xpress’ Chetan seconds this opinion and says that a
solutions provider should also provide other 

"Partners should decide how a particular server infrastructure will help their customer’s business and boost his RoI" Cherian Thomas, Director-Marketing, Wysetek Systems Technologists

value-additions like IT
consultancy, educating customers on the best type of server for their needs, and
manageability of the system. "Tell your customers about the real value of
the product they are going for in terms of scalability and uptime," he
adds.

Bimal recalls how Allied changed its approach and focussed
more on educating the customer with an in-depth analysis about the the kind of
applications that need to be ported and the machine’s stability.

"Though this does elongate the sales cycle, the chances
of convincing the customer increases," he remarks.

While most panelists feel that tower servers are on their way
out, Bimal says that there are still SMEs who use it for simple applications.
He, however, notes that the future belongs to blade servers, especially for
large enterprises, who use multiple applications.

Adds Jyothi, "If manageability is an important criteria,
then rack-mounted servers are the best option. This is a resource-saving
product, as the customer does not need a engineer to monitor the system."
He notes that the migration from tower to rack-mounted servers was 35% last
year.

IS BRANDED ALWAYS THE BEST?

The argument between branded machines and unbranded ones
rages on. Rajiv Sethi of Liberty Automation asks the panel what differentiates
Intel-based servers of different brands and how branded servers are superior to
assembled machines.

"Provide value-additions like IT consultancy, educating customers on the best type of server for their needs, and manageability of the system" Chetan Shah, MD, Xpress Computers

Jyothi’s emphatic reply to this question was that parters
sell a brand and not just a machine. Branded machines are always better as there
is a lot of unsaid service expectations that a vendor has to fulfill.

He also notes that assembled servers have less than 3%
marketshare, which shows that price is not all that matters while customers buy
servers. "A large number of applications are tested on a branded server
before it is launched. This itself demonstrates the value such servers carry for
the customers," he states.

Bimal says that there is not much value-addition required in
the low-end servers. But in high-end machines, where mission-critical
applications come into picture, opportunity for value-addition is very high. He
adds that a solutions provider who sells branded servers is also in a better
position to offer pre- and post-sales service. "This is because of the
knowledge base that one builds up installing these systems across different
regions, in different environments," he points out.

SMILING CURVE

Talking about how solutions providers should position their
server business, Jyothi demonstrates the ‘smiling curve’. The curve has
technology, research, component manufacture and systems manufacture on one end,
and installation, warranty support, systems integration, application and
solution providing on the other end. Sales and distribution is the lowest ebb of
this curve.

"A solutions provider who sells branded servers is also in a better position to offer pre- and post-sales service" Bimal Raj,  CEO, Allied Digital Services

Jyothi points out that technology, research and manufacture
was the core competency of vendors and partners should concentrate on the
integration and support part of the business, which will only help them upscale
the smiling curve.

Partners who attended the discussion took several learnings
home with them. Says Pratiksha Pandit of Edge Integrators, "This discussion
has boosted my confidence on how to convince a customer to buy branded
servers." Suresh Ramani of TechGyan felt that regular discussions like
these are required. "Jyothi’s example of the smiling curve is an
intrinsic part of business that we all know, but sometimes oversee. Having a
vendor point it out specifically helps us in giving more thought to it," he
says.



VINITA BHATIA