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ResultsoftheResearch-IBM,IBM-IBMGlobalServices(IGS),Network,Workgroup,UniversalMessaging,Source:IBMCorporation(July1999),IBM-Overviewofmessagingandcollaborationservicesofferings,IBMWorkgroupServices-PartofanorganizationwithinIGSthatwasestablishedafterthesaleoftheAT&TnetworkMarketingcombinationofIGSandLotusDomino/NotesManagedoperationsandhostingtechnologyfocusedonlargecustomersRunningentiredatacentersBuildingsystemsfromscratchDeployment,installation,developmentandprofessionaltrainingHostingenvironmentsforInternet,intranetandextranetcollaborationandapplications.Applicationhosting,replicationservices,andmessagingservicesareincluded.Thebrowseriscentrictotheseimplementations.TechnicalsupportforhelpdesksisstandardManagedofferingsincludedatanetworkservices,internetandintranetservices,electronictransactionservices,messagingandcollaborativeservices,networkoutsourcingservices,IBM-WorkgroupServices,RevenueIGSservicesrevenuesforyearendedDecember31,1998were$29billion(Source:IBM10KReport).IGSHeadcount116,000serviceemployeesworldwide(Dataquestestimate)WorkgroupServicesvalueofcontractsPublishedone-offseatprice:$36/month,$4000/monthminimumTargetcustomers:from300to15,000seatsGeneralapproachStartwithonedepartmentorgroup,thenmovetoothergroupswithintheenterprise.DifferentgroupsfromIGSarebroughtinandaprojectteamiscreatedManyclientsareestablishedNotesshopsneedingassistancewithrolloutandapplicationdevelopment.AnticipatedGrowthIBMbelievesthemessagingandcollaborationspace(whichincludesapplicationshosting,messaging,collaborationandKM)isgrowingat240percent/year.Theyintendtomatchorexceedthatgrowth.,IBM-WorkgroupServices-Pricingstrategiesandnewservicesdevelopment,WhenotherdivisionsofIGSareinvolved,theseatpriceissometimesincreased.Othertimes,theadditionalservicesarepricedseparately.Eachtimeacustomerasksforsomethingnew,themanagementteamofWorkgroupServicesdoesamarketsegmentanalysistodetermineifitissomethingthatshouldbeaddedtotheportfolioofrepeatablesolutionsorservices.Theoverallobjectiveistostandardizecustomsolutionssothatpricescanbeloweredforothercustomers.ValuepricingisnewtoIBM,andisthecauseofmuchinternaldebate.Seniormanagementisdrivingadoption.Pricingmethodology:Baseitonthe“areasofpain”thatareaddressedforthecustomerDeterminewhatthevalueistothecustomerofhavingNotesorExchangeseatsrolledoutquickly.Streamlinetheprocessofdeterminingwhatmessagingserverscost,andhowmanyadministratorsareneededProvidescalingservicestocustomers,thatis,helpthemdeterminewhenresourcesneedtobeaddedasasystemgrows,IBM-WorkgroupServices-Servicessalesanddelivery,WorkgroupServicesdeliverstheentirepackageintermsofserviceinfrastructure.Generallytheyputeverythinginplace,haveaconferencecall,outlinetheprocedureforusingtheapplicationandthecustomerisoffandrunning.Someend-userapplicationsupportisprovidedbypartners.OccasionallycustomersasktorentaNotesadministratororhavedirectaccesstooneatanIBMServiceCenter.Thisisacustombid,providedasneeded.NotableWorkgroupServicespartners:IntraLinks-indeliveryofanInternet-baseddocumentdistributionandtransactionmanagementsystemforthesyndicatedloanmarket.InternationalConsultingServices-atraditionalAS/400BusinessPartner.TheyhavedevelopedanapplicationcalledWorkfaceforsmallandmedium-sizedcompaniestofacilitateOSHAreporting.Today,approximately10-15percentofrevenuecomesfromindirectsalesthroughpartners.ThisisexpectedtogrowastheApplicationsServiceProvider(ASP)marketgrows.TherestissoldbyIBMaccountmanagersandexecutives.,IBM-NetfinityandExchange,IBMisagnosticintermsofthemessagingplatformtheywillimplement.ThechoicebetweenNotesandExchangeisdeterminedbythecustomer.IGSisfullyrampedupandpreparedtodeliverbothNotesandExchangesolutions.ThereisaverylargepracticededicatedtomanagedoperationsforExchange.Othercompaniesweinterviewed(WangandDell)havenotseenapushfromIBMonewayoranotherontheNetfinityissue.TherespondentfromWorkgroupServicesencountersthreemodelsformessagingservicesdelivery:ServicesaimedatenablingcustomerstodoitthemselvesManagedoperationsNewservicesthroughASPsNetfinityisviableandusedinallofthosemodels.,IBM-IGSandLotus,TherelationshipbetweenIGSandLotusbeganwiththeAT&TNetworkedNotesprogram.NetworkNotesevolvedintotheNotesPublicNetworkstrategy.IBMwasjustanotherNotesNetworkproviderintheearlydays.IBMdealtwithLotusonthesameplayingfieldastheotherPublicNetworkProviders.WhileLotusandIBMwerecompetingwitheachother,theyknewtheyhadtoworktogethertovalidatethemarketplace.WorkgroupServicesisasurvivingentityfromthatrelationship.IBMistryingtoleveragelessonslearned,movingforward.DominoInstantHostisstrategic.WorkgroupServiceshasbeenworkingwithLotustodeveloprentableapplicationsbasedonInstantHost.ItcarriestheIBMBusinessApplicationsCenterbrand.,IBM-IGS,LotusandServicesDelivery,IGSworkscloselywithLotusaspartofLotusstrategytoworkwithlargeservicesproviders.IGStargetstheenterprisesegment(globaltwoorthreethousand)andhasastrongholdinthisspace.Theconsultativesellisimportant.Lotushastheirownconsultinggroup,whichdeliverssimilarofferingstothoseprovidedbyIGS.TodaytheoverallshareofWorkgroupServicesbusinessinvolvingLotuswasratedbytheinterviewrespondentas“medium,butgrowing”.TherespondentbelievesasLotusrealizeshowsuccessfulIGSisintheWorkgroupServicesspace,theywillbecomeabiggerpartofthemix.,IBM-Dominovs.Exchange,ManyofIGSsenterprisecustomershavemadebroad-sweepingNotesdecisions.Mostofthesecustomersarelookingforservicessolutions.Thisisnotthemanagedoperationssituationwhereeightmonthsisspentonrollingout50,000seats.Customerswantaserviceunderwhichtheycanstartdeployingseats,onadepartment-by-departmentbasis.IGSandLotushavedeterminedthatthosewhodonotstrategicallyplanforcollaborationareusuallymoreinterestedina“standard”e-mailsolution.WorkgroupServicesisoverwhelmedwithdemandfromNotesshopstomovetocollaborationandrentableapplicationsmodels.Notesappearstobestrongestinbanking,finance,securities,manufacturingandprofessionalservices,inthatorder.Therespondentseesa“huge”opportunityintheASPspace.Particularlythesmallandmid-tiercustomers,whoarelookingforaready-madesolution.Therespondentbelieveswerebacktowherewewereinthelate80s,withdisenfranchisedgroups,swatteamsandsub-departmentswhosebossesaretellingthemtofindwaystogetprojectsmovingfaster.,IBM-IGSandWorkgroupServices-Lookingforward,IBMb
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