Small business is big again for IBM

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Small business is big again. IBM has introduced a slew of new NetVista desktop PCs aimed at small and midsized businesses, making it the latest PC maker to renew an effort to gain customers in the so-called SMB market. IBM's new systems, including 10 NetVista A22p models ranging in price from about $750 to $1,900, refresh an effort Big Blue started several years ago to target the market. IBM sells the NetVista line mainly direct to customers. Though the SMB market, defined by most as companies with less than 1,000 employees, saw the same slowdown as corporate and consumer sales during 2001, it remains an attractive target for PC makers. SMB customers tend to buy fewer PCs each than corporations, but the segment will consume about 8.6 million units in the United States in 2002, according to IDC. "For years there was a temptation to ignore the space and say that these guys don't buy a lot," said Ray Boggs, an analyst with IDC. "It can be a challenge to reach. But (PC makers) are recognising that they need to make a concerted effort to reach these customers." IBM's NetVista revamp mirrors efforts by other PC makers, including Compaq Computer, Dell Computer, Gateway and Hewlett-Packard, to tap the market. Compaq and Dell, for example, have been running promotions aimed at attracting SMB sales since last year. Last October, Compaq launched Business Tuesday, a weekly promotion that typically offers an Evo PC or server at a discount or in a bundle with free shipping and discounted accessories and service plans. Dell also regularly offers promotions, ranging from free shipping and rebates to zero percent financing. This month it is running a promotion that allows customers to double the RAM allotment on any Dimension or OptiPlex desktop purchased. Another promotion offers rebates between $50 and $200 on desktops. "What we're seeing is a resurgence of PC makers trying to appeal to a broader audience, which includes SMB," said Toni Duboise, desktop PC analyst with ARS. "The large businesses, of course, are the bread and butter, but small businesses are a growing population. Because it is always growing, the SMB is very important." Dell has developed dedicated small-business product lines. A customer could, for example, set up an office computer network using low-price PowerEdge SC servers -- designed for a smaller business -- and a PowerConnect switch for less than $1,000. Small business is "a huge part of the (PC) market," said Phil Bryant, marketing director for Dell's SMB Group. "If anything...we're going to intensify the focus around that." Meanwhile, IBM's new NetVistas include several SMB-specific features not always offered to consumers or large corporations. The new NetVista A22p models include special lease terms as well as the company's PC data migration tools and a three-year warranty. The SMB PC market contracted with the overall PC market in 2001, shrinking by 9.9 percent in the United States. However, IDC predicts the U.S. SMB market will bounce back in 2002, growing by about 7.4 percent for the year. "We're looking for a very strong half in 2002 from SMB," Boggs said.
For the latest small-business news, see the Small Business Section. Have your say instantly, and see what others have said. Go to the ZDNet news forum. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

47 minutes ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

6 hours ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

9 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

9 hours ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

10 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

11 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

12 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

12 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

12 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

13 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

13 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

13 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

14 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

14 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

17 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

18 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

18 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

19 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

20 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

22 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule