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 Channel Futures

Channel Programs


Microsoft Partners Running to IBM Lotus?

  • Written by The VAR Guy 1
  • June 4, 2009
The VAR Guy is rather enjoying his ringside seat at this week's IT prize fights. Cisco Systems started things off by attacking Hewlett-Packard and Microsoft. And now, IBM is jumping into the mix with a press release alleging channel partners face "waning demand for Microsoft products." But that's not all.

The VAR Guy is rather enjoying his ringside seat at this week’s IT prize fights. Cisco Systems started things off by attacking Hewlett-Packard and Microsoft. And now, IBM is jumping into the mix with a press release alleging channel partners face “waning demand for Microsoft products.” But that’s not all.

In the press release, IBM says 200+ Microsoft partners per month are “flocking to sell” the IBM Lotus Foundations Appliance. More than 1,000 Microsoft partners embraced Lotus Foundations in the first five months of 2009, IBM says.

The rather aggressive IBM press release goes on to say:

“According to Microsoft Business Partners, sales of Microsoft’s Small Business Server (SBS) software bundle have stagnated due to lack of innovation and partner dissatisfaction with their inability to add solutions and services. Microsoft partners are looking for an alternative that provides SMBs with more collaboration computing power for less money and more reliability in these challenging economic times.

The attack doesn’t end there. IBM adds:

“In addition, some Microsoft partners have expressed disenchantment with Microsoft’s new strategy of battling Linux encroachment in the SMB market by offering a skeletal version of Windows Server.  Named “Microsoft Foundation Windows Server,” it can be positioned as a loss leader to up-sell customers a variety of other Microsoft products.   Seeing rising customer demand for lower cost, more secure and open source alternatives, many Microsoft partners are looking to sell Linux-based solutions.”

Calling for Answers?

Hmmm. The VAR Guy would give Microsoft equal time … but he’s getting a bit frustrated with the software giant — which has failed to return multiple phone calls about the uncertain future of Microsoft Response Point, a small business VoIP solution. Still, The VAR Guy has an  email into Microsoft PR regarding the IBM assertions.

Yes, The VAR Guy has heard rumors that Windows Small Business Server 2008 suffers from a difficult upgrade path. However, let’s be clear: Thousands of partners remain loyal to Small Business Server. In fact, The VAR Guy plans to post a blog later today about a rather successful VAR that’s profiting from Small Business Server.

In the meantime, IBM, Cisco Systems, and a growing list of technology vendors smell blood in the water. And they’re all seeking to take a bite out of Microsoft.

Follow The VAR Guy via RSS; Facebook; Identi.ca; Twitter; and via his Newsletter; Webcasts and Resource Center.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Programs

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14 comments

  1. Avatar The VAR Guy June 4, 2009 @ 1:21 pm
    Reply

    Update: Microsoft’s PR team is taking a look at IBM’s claims and may offer a response to The VAR Guy. Stay tuned.

  2. Avatar Michael Freudman June 4, 2009 @ 4:15 pm
    Reply

    Hey VAR GUY – I bet I can setup a Lotus Foundations server faster than Microsoft will return your call 🙂 Only takes about 30 min

  3. Avatar The VAR Guy June 4, 2009 @ 4:32 pm
    Reply

    Michael: You won that bet. But The VAR Guy is hopeful MSFT will eventually offer a response to his inquiry.

    Tick, tick, tick…

    Kidding aside The VAR Guy needs to cut Microsoft some slack. IBM’s press release was a bit of a surprise attack against Redmond. Surely, Microsoft deserves ample time to consider IBM’s claims and prepare a response.

  4. Avatar Brett June 4, 2009 @ 6:31 pm
    Reply

    Gee, I certainly don’t remember anyone being so “nice” to IBM/Lotus when Microsoft repeatedly attacked them with gross innacuracies and FUD…

    Hmmm, I smell “double standards” in the water.

  5. Avatar The VAR Guy June 4, 2009 @ 6:34 pm
    Reply

    So Brett: Do you think The VAR Guy is being too soft on MSFT? Our resident blogger isn’t sure he follows your point… Tell us more.

  6. Avatar Brett June 4, 2009 @ 8:21 pm
    Reply

    Wow Var guy thanks for engaging on this!

    I’ve found many times, that when IBM/Lotus is being attacked by MS does anyone patiently wait around for them to respond? Generally no, the pundits pretty much join in lock-step with MS and condemn IBM/Lotus as a “has-been” without really looking any deeper into the technical superiority of their products. Often, even if they do acknowledge it, it’s done in a very back-handed way.

    IBM has almost always taken “the high road” in their marketing, but one can only turn one’s cheek so many times before striking back. The Lotus business partners have been clamouring for IBM to be more agressive in their marketing of Lotus products, here is the result.

  7. Avatar The VAR Guy June 4, 2009 @ 10:38 pm
    Reply

    Hey Brett,

    No need to “thank” The VAR Guy. IBM attacking MSFT is news… even if Big Blue took some creative liberty with the press release.

  8. Avatar Donald Swauger June 5, 2009 @ 5:10 am
    Reply

    Hum, don’t see what all the Hoopla is. Took a look IBM/Lotus and we didn’t even add 1-Page to our Site about it.
    Not Impressed. Only IBM we sell is Lenovo.

    Signed,
    Long time Microsoft/Mac Fan.

  9. Avatar Art June 5, 2009 @ 11:47 am
    Reply

    This is interesting gossip about two tech gaints fighting, but the real question is which one of these companies’ SMB solutions are CUSTOMERS choosing to meet their needs. The amount of partners signed up on either side is only part of the story, where are the number of servers actually sold data?

  10. Avatar The VAR Guy June 5, 2009 @ 4:32 pm
    Reply

    Art: Great point. The VAR Guy doesn’t have the data you request. But he’ll look around for it.

  11. Avatar Jack Dausman June 5, 2009 @ 5:55 pm
    Reply

    Maybe Lotus Foundations deserves more than blood-sport coverage. What about checking it out ? The OS is bullet-proof firmware. It’s not sold by IBM, but ONLY by Business Partners. Some big companies (e.g., Xerox) have built impressive vertical-apps for it. It represents a different business model for what it delivers, and how it is delivered.

  12. Avatar The VAR Guy June 5, 2009 @ 9:01 pm
    Reply

    Jack: Yes, The VAR Guy needs to take a closer look at Lotus Foundations. Give our resident blogger a few days on that.

  13. Avatar The VAR Guy June 11, 2009 @ 6:15 pm
    Reply

    Update: Microsoft on June 11, 2009, responded to IBM’s claims. Here’s what Microsoft had to say.

  14. Avatar brad barnes July 5, 2009 @ 6:45 pm
    Reply

    I always point to the “naked emperor” on this issue Microsoft clearly defined what they thought of the Lotus product when Bill hired Ray Ozzie (Lotus inventor/founder) to take his throne. They thought it was so incredibly strong that they had better get the guy that invented it in the event that he invented something better.

    Never underestimate peoples ability to be deceived.

    Lotus has ALWAYS been a better development and collaborative platform and Microsoft has always been a more powerful and successful company.

    For all the Microsoft fans who chant the “Lotus sucks” mantra, sorry but Bill thinks otherwise.

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