Ziff Davis Internet
News & Resources for the IT Reseller
NewsReviewsTech AnalysisCommentarySecurityLinux/Unix
My Account |  
ADVERTISEMENT

Lenovo 3000 Line Targets SMBs
By John Hazard and John G. Spooner


Lenovo has unveiled its Lenovo 3000 series of desktops and notebooks with prices and popular features aimed at the small and midsize business users that its Think product line has missed.

As expected, the new Lenovo-brand machines, starting at $349, will come with functions such as one-button disaster recovery and one-button Wi-Fi connectivity. They will offer a selection of processors—Lenovo 3000 desktops will offer both Intel and Advanced Micro Devices chips— as well as prices and ease-of-use features that Lenovo executives said will differentiate them from the herd.

The 3000 series is aimed at addressing the small business end of the market, where Lenovo’s ThinkPad and ThinkCentre, primarily built for midmarket and enterprise businesses, have captured only 5 percent of the market, said Craig Merrigan, vice president of Lenovo’s Strategy, Market Intelligence and Design Division.

Overall, Lenovo grew 12 percent in the fourth quarter of 2005, but lagged behind the bulk of the market, which grew at 18 percent.

“We’re missing out on the biggest growth piece of the market—the SMB,” Merrigan said. “This addresses that missing piece, where growth is the fastest. The market is growing so fast [in the SMB] and has yet to consolidate, that there’s room for one more offering.”

PointerClick here to read more about the Lenovo’s 3000 series.

“The way to interpret this whole thing is it’s the debutant ball,” said Roger Kay, president of Endpoint Technology Associates, of Wayland, Mass. “It’s the coming out of the new brand. It’s coming through some new channels and it raises the profile of the company, polishes up the Lenovo brand a bit and from there they can branch out some.”

Much of winning in the SMB market involves getting products in front of buyers, analysts have said. To that end, Lenovo aims to reach out with a new two-tier channel program through distributors, including an effort to recruit thousands of new SMB VARs, Merrigan said.

As part of the new channel program, Lenovo will add new pricing structures, education, training programs and “soft” money for marketing. The organization also expects to reallocate personnel to build an in-house sales unit supporting the SMB channel, Merrigan said.

The company will use its channel program in China, where more than 6,000 storefront dealers sell the Lenovo SMB line and the company enjoys 55 percent market-share as the benchmark for the new effort.

Lenovo expects to reveal details on its new channel programs, including support, education, training, margins and requirements at IBM’s PartnerWorld conference, which runs between March 12-16.

Meanwhile, the company will market its Lenovo 3000 series via retail. It will be available at 1,000 Office Depot retail outlets in the United States.

But the company has not yet pursued other retail placement, Merrigan said. Office Depot has as sold Lenovo’s ThinkPad since November.

Aside from attempting to create a new delivery system for its products, Lenovo said it has tailored its 3000 series’ pricing and functionality to fit the needs and constraints of SMB customers, said Sam Dusi, vice president of Lenovo’s notebook division.

“If you’re a small business, I would encourage you to check the pricing of other companies,” he said. “Compare it on value and no one is offering you a better value.”

Next page: Lenovo turns up the competitive heat among SMB vendors.

     
1 | 2   next >

Email


TALKBACK

MICROSOFT RESOURCE CENTER
Free Hands-On Training Lab
Find out how key features of SBS 2003 can help you open up a new line of revenue. Register now >>


SBS 2003 Sales Reference Card
This handy reference card contains features at a glance, sales objection handling, pricing guidelines & more. Get it now >>


Microsoft Empower for ISVs rewards your big idea with big benefits and support.
Access key development tools at a low cost to help you develop that idea into an innovative application. Learn more >>




 
FREE WHITE PAPER
Changing Business for the Better: A Practical Guide to BPM


This paper provides an overview of the benefits of BPM technologies and identifies the characteristics of BPM solutions that lead to successful BPM process-centric integration projects.


Download this free white paper to learn more!


>> brought to you by IBM

Attention Microsoft Solution Providers!



Want to gain a competitive edge? Try Microsoft Watch – FREE!



Each week you receive:
  • Microsoft News and Insider Information
  • Expert Analysis
  • Code Names of Upcoming MS Products
  • Year-Ahead Calendar, updated monthly



    Click Here to sign up now for your FREE 14 Day Trial to Microsoft Watch.
  •  
  • Add up to $1,200 of value with the new BONUS PACKS.
  • HP PartnerONE: The key to increasing your margins.
  • HP Compaq nc6129 Business Notebook. $1149 Smart Buy
  • HP xw8200 workstation. Smart Buy price $1549.
  • ProLiant DL360G4p server: HP Smart Buy price $1647
  • Microsoft files new anti-piracy lawsuits. Learn more.
  • New offers with Windows Genuine Advantage.


  • POPULAR TOPICS
    CHANNEL INSIDER BUYER’S GUIDE
    •Catalog Publishing
    •Dealer Management
    •Order Configuration
    •Price Management
    •Sales Management

    View All >

    CAREER CENTER
    Search the jobs you want & get the info you need – post your resume here today!

    Powered by Dice
    SPECIAL REPORTS
    White Boxes
    MS vs. IBM
    Linux in the Channel
    Network
    CHANNEL RSS FEED
    Stay in the Zone
    Put The Channel Insider on your desktop.
    FREE NEWSLETTERS
    Subscribe to The Channel Insider: Channel News, Reviews, Resources and more.

    Make your selections below:


    Contract Watch

    The Channel Insider Update

    Preferred e-mail format:

    Enter your e-mail:


    view all newsletters >>
    Channel Insider Quick Links
    Ziff Davis Footer Logo