Corporate IT tries to expand their small business market

Two new recent developments in corporate IT that I have found
interesting:

1. Microsoft announced at its annual partners conference in Denver last week that it plans to get into the hosted services business. This means that soon, the mother ship in Redmond WA will be able to host your website, your email, a SharePoint site, or even Microsoft office.

2. Dell's announcement of its Vostro line of computers targeting the small business community. In addition to the lack of crapware, or trialware as they call it, they offer support services and PC checkups remotely for small non server based networks.

A few of my observations:

1. The big boys continue to try and muscle into the $35B small business market. They recognize the huge growth area this represents, and want their slice of the pie.

2. The losers here will most likely be the regional support and hosting companies. Companies that are too small to carry the power of a national brand, but too large to offer the personalized service smaller local companies can offer.

3. The winners will be IT service providers that can leverage their partnerships with these corporations to make clients feel they are getting the best of both worlds. The power of a national brand, but the dedicated service from a dedicated company they know and trust.

4. What small business customers want is to speak to a person they know and trust. Like any market it's all about relationships. How much of a relationship can a small business owner develop with Dell or Microsoft?

The next 12 months will be a very interesting time in the small business technology industry. Vista will define itself as either the great upgrade to XP, or the reincarnation of ME. New server products and collaboration software will continue to improve collaboration and make the world a smaller place. It is really an exciting time to be in this industry.

Hope your having a great summer!!