ChannelTrends: The iPhone, Microsoft & Other Notable News

Typically the week after the Consumer Electronics Show is rather mild for IT channel news, with the vendors and many VARs returning home and getting back to their day jobs. This year was different with a rather unusual timing for a consumer-oriented, but business-beneficial iPhone/Verizon announcement. While that news started a firestorm of blog and social media posts, several other notable topics hit the wires as well.   

iPhone Rumors Come to an End (Finally!)

It was the announcement many have been waiting for since the first version of the iPhone launched in January of 2007; Verizon will be getting their own version of the mobile device on February 4^th. Despite the popularity of the Apple phone, the AT&T exclusivity was a deal-breaker for some; especially in areas where coverage was not up to par (count me in that crowd). After years of rumors, the Verizon iPhone will likely spur a large sales increase for the company, as well as demand for apps.    

Though not considered a true “resale-channel” product by most, I can’t think of any other computing tool that’s as heavily used by VARs, vendors and industry experts. While every iPhone development seems to generate a tremendous amount of blog and social media discussions, this week’s announcement took on a life of its own. Even the VAR Guy got into the act, debating the benefits and limitations of Verizon’s version of the iPhone 4. 

Apple hit pay dirt when they reinvented the mobile phone, in the same way VARs and MSPs have shifted their customer approach—focusing on solving business problems. Whether you download the Siri personal assistant to find the nearest gas station or sushi restaurant or Evernote, which allows you to take capture and organize notes while at a client site, there’s an app for that. The iPhone is more than a communication device, it’s was the first business-improvement computer with an easy-to-use interface.  Come February 4^th, I expect to see a plethora of Facebook posts announcing the latest converts.  

Microsoft Executives

Yet another change was announced this week at Microsoft, with the president of its Tool and Server Business (TSB) unit becoming the latest high-profile departure. Robert Muglia will leave the software giant later this year, following in the footsteps of Ray Ozzie, chief software architect; Robbie Bach, president of the Entertainment and Devices Division; and Stephen Elop, president of the Microsoft Business Division.  

This latest change doesn’t signify a “doom and gloom” scenario at Microsoft. The TSB unit has consistently demonstrated good financial growth, but that may not be enough for a market leader that needs to position itself for future development. CEO Steve Ballmer stated his reasoning for a change in an e-mail to Microsoft employees, “The best time to think about change is when you are in a position of strength, and that’s where we are today with TSB – leading the server business, successful with our developer tools, and poised to lead the rapidly emerging cloud future.”

CompTIA Installs New Board of Directors

In the current political climate, it’s nice to see the smooth transition of power that occurred at CompTIA, with the announcement of a new board of directors for 2011. Bob Godgart, chairman and chief visionary officer at Autotask, assumed the role of CompTIA Board Chairman, succeeding Bob O’Malley, chief executive officer and president of InFocus Corporation. Godgart will be backed by two vice chairman this year: Chuck Lennon, president of TeamLogic IT, and Robert Stegner, senior vice president of marketing, North America, at SYNNEX Corporation. Each of the board leaders is well known in the IT channel, being named as CompTIA Ambassadors in 2010 and involved in a number of industry initiatives.

The new board is a mix of solution provider and vendor executives, representing the association’s continued dedication to improve IT channel communication, educational programs, credentials, public advocacy and philanthropy.     

Study Confirms Most SMBs Not Prepared for Disaster

According to Symantec’s 2011 SMB Disaster Preparedness Survey, the average one-day downtime cost for a small business is $12,500. That’s a significant outlay for most companies, and the statistic provides a good reference point for solution provider to use when pitching back-up and disaster recovery (DR) solutions to their clients. The impact and associated costs of downtime isn’t top-of-mind with many SMB organizations, as illustrated in the survey, with half indicating they have no DR plan in place.

Using reference data, such as the information found in this latest Symantec release, allows a VAR or MSP to create a dialogue with prospects and customers. It’s a chance to discuss the business repercussions from not having backup systems and DR plans in place, and creates a great consultation opportunity. For example, if business critical data isn’t properly protected from a fire, flood or other disaster, the cost of replacing or retracing lost information could go way beyond $12,500 for most companies. A one-day power outage, without access to the server (and the data) may not be nearly as damaging, but visualizing that situation is likely to make an SMB executive cringe.

For those that thrive on the consulting aspect, the Symantec survey found that only 28 percent of companies tested their DR plans and very few actually revise them over time. If the SMB is required to follow Sarbanes-Oxley, PCI-DSS, HIPAA or similar regulations, audits of information protection programs can be a critical process. This consulting service presents another great opportunity for solution providers, with the proper research and training.  

Tech Hiring Gains

In a week that saw an increase in new U.S. unemployment claims, the jobs and wages picture is looking up for technology workers, with several positive trends continuing to encourage industry observers.  According to a recent Computerworld article, the IT workforce has climbed back to 3.9 million workers, down from 4.0 million two years ago but up 2.6 percent since December 2009. The true tech employment is likely far greater than the numbers stated, since independent consultants and freelance skilled professionals may not be properly factored in. Despite that minor detail, as unemployment decreases and the reported jobs increase, wages will likely see an upturn as well.

Professionals with the most desired skills and experience will gain more bargaining power as demand for their services returns to previous levels. For solution providers experiencing good growth and trying to recruit new techs, it may be time to reevaluate current salary and benefits packages and pay extra attention to employee satisfaction.