| When it comes to storing their data, midsize
companies want it all: specially designed solutions at affordable prices,
centralized management, scalability, and well-trained, support-intensive
solution providers to design, implement and maintain this critical part
of their business.
The good news is the recent slew of storage products from EMC, Hewlett-
Packard, Hitachi Data Systems, Quantum and others designed to meet these
requirements. After all, there are hundreds of thousands of U.S. companies
with between 99 and 1,000 employees, many of which are growing rapidly
and therefore require more storage and storage services. Dissatisfied
with watered-down versions of enterprise offerings or soupedup small-business
systems, midsize customers are excellent prospects for market-specific
solutions.
"What we hear from midsize companies is, 'We don't want downsized
enterprise data centers,'" says Frank Rauch, vice president in HP's
Solution Partners Organization. "The Global 500,000 is a momentum
play for us and a momentum play for our partners."
A Broad Target
Midsize organizations are using the gamut of technologies -- including
external disk arrays, network-attached storage, storage area networks,
tape, blade storage and virtualization -- to solve their storage dilemmas.
And they're using a lot of them. Midsize enterprises are expected to spend
about $6 billion on external disk storage alone by 2011, according to
IDC, representing compound annual growth of 11 percent.
"The midtier has been on a migration path for the past two years
from direct-attached storage to networked storage," says Darren Patoni,
president of The I.T. Workshop, which provides network, telephony and
storage solutions to both small and midsize companies. "We never
thought midsize companies would have to store and back up terabytes of
data -- but today, they routinely do."
This surfeit of data presents a huge opportunity -- and the market is
quite broad. "Obviously, within the 'M' of SMB there are firms at
the high end that look like small enterprises, and some at the low end
that look like smaller companies," says Pete Koliopoulos, vice president
of global channel marketing at EMC. For both types of accounts, the most
successful solution providers often act as the customer's outsourced IT
department, melding their technical prowess with deep knowledge of the
customer's operations and key business and technology concerns.
What the 'M' Wants
When considering a storage purchase, midsize customers typically home
in on the following issues:
- Return on investment
- Technological obsolescence
- Ease of deployment and use
- Scalability
- Business continuity
Midsize corporations may have a few more IT dollars to spend than their
small-business cousins do, but they are still cost-conscious and want
to invest wisely. That means evaluating purchases in terms of whether
they can save time and/or money by increasing productivity of users and
IT staff. It also means planning for future growth by purchasing scalable,
open storage solutions that don't chain them to a particular vendor.
"One of the biggest mistakes smaller businesses make -- and they
only make it once -- is thinking they have to go cheap," Patoni says.
"If they make a bad choice at the beginning, they have to replace
almost everything. They then realize they should have done it right the
first time."
Concerns about future growth make scalability and nonproprietary technologies
critical issues, ensuring that customers "won't outgrow their storage
system and require a heavy replacement," Patoni says. After all,
no business wants to lose its existing investment when it needs to add
storage capacity or change technologies. Midsize companies also expect
storage solutions to be easy to install and use. "They are sensitive
to the fact that they don't have extensive IT resources, so they want
something that's very easy to deploy and optimize," Rauch of HP says.
And they are concerned about business continuity issues such as backup
and data replication, both on- and off-site. This helps account for the
move away from direct-attached storage toward centralized, networked solutions.
"Centralized storage results in better efficiency and is much easier
to manage and protect," says Koliopoulos of EMC.
| Ingram
Micro Empowers the Midmarket |
To help solution providers sell and support midmarket infrastructure
solutions, including storage, blade servers, software and services,
Ingram Micro has formed the Infrastructure Technology Solutions
(ITS) Division. The division is investing in technology consultants,
channel account managers, inside sales, marketing and sales operations,
as well as leveraging Ingram Micro's services division and marketing
execution engine, for a total of more than 100 dedicated resources.
"The ITS Division is vendor-focused, and field-based professionals
will help our partners with technical issues and demand generation,"
says Scott Look, vice president, ITS Division, Ingram Micro North
America. "Our goal is to help get our partners in front of
the end customers and help them feel comfortable with the technology."
Participating manufacturers include EMC, Hewlett-Packard, Hitachi
Data Systems, IBM and Quantum, with additional relationships expected
in the future.
"Each of these vendors has a hot technology or solution that
will meet a customer's needs," Look says. "Over time,
we'll integrate complementary products into this portfolio. Ingram
Micro has a strong software portfolio, and we are working with that
group as we refine ITS' strategy." ITS has also tapped the
expertise of some of its channel partners to create specialized
training and education resources, and to identify best practices
for sales, marketing and technical support.
"The success of our partners and our suppliers will determine
our success," says Look. "Everyone will benefit as we
develop a new breed of partners that demonstrate a midmarket competency
and prove they can take an opportunity from beginning to end." |
New Product Plays
In the past year, manufacturers have unveiled a range of storage systems
designed to address midmarket storage needs.
In September, for example, HP took the wraps off HP StorageWorks All-in-
One (AiO) SB600c Storage Blade, which works in both its new "Shorty"
BladeSystem c3000 and the existing BladeSystem c7000. The blade storage
concept benefits midsize customers, HP believes, due to its flexibility,
ease of use and modest cost. The new unit provides shared storage for
application servers and enhanced storage for file serving, along with
application-centric software for storage management -- while fitting into
an energy and space efficient blade enclosure.
"HP has listened well, and Shorty will be the answer for our midsize
customers," says Valerie Reamer, president of GekkoTek Adaptive IT
Solutions, an HP-only solution provider.
For its part, Hitachi Data Systems (HDS) released a portfolio of enhancements
across its midrange storage line to address concerns about rising energy
costs and the need for heightened security. A new Power Savings capability
for the AMS and WMS midrange lineup enables customers to power down volumes
or disks when they are not being accessed by a business application. The
volumes can then be powered up quickly when the application requires them,
HDS reports. The company has also unveiled an entry-level storage system
called Simple Modular Storage that delivers consumer-quality levels of
usability for secure, reliable storage of data.
Earlier this year, EMC introduced its CLARiiON CX3-10 UltraScale networked
storage system and EMC RecoverPoint/SE software for networkbased asynchronous
replication in midtier storage environments. To meet the needs of companies
deploying network storage for the first time, EMC reports, the system
includes iSCSI SAN connectivity for applications such as Microsoft Exchange,
and Fibre Channel for more bandwidth-intensive applications. EMC also
offers three solutions designed to help midsize businesses consolidate,
back up, archive and protect Microsoft SQL Server 2005, Microsoft Exchange
2003 and Oracle RAC 10g environments.
On the backup front, Quantum has introduced the Scalar 50 entry-level
tape library, said to simplify backup processes so that small and midsize
customers can focus their attention on driving their businesses, not worrying
about backups. Designed for seamless integration with disk systems, the
Scalar 50 also supports disk-todisk- to-tape backup strategies. The unit
accommodates data growth by scaling from 38 slots to 76 slots simply by
adding a module.
With manufacturers expected to continue to invest in midmarketspecific
storage, solution providers' ability to deliver customized yet affordable
solutions will only increase over the near term and the long term.
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