Microsoft and Linux Rivals Refocus on SMB Servers, Channel Initiatives
The Small Business Server (SBS) upgrade recently went to manufacturing and will officially be launched at Microsoft's annual partner summit in July but general availability isn't expected until later this summer.
As SBS 2003 R2 nears delivery, Linux rivals have lined up new SMB servers and channel incentives. In May, Novell shipped its new Linux-based Open Workgroup Suite. Xandros and Collax also stepped up to the plate last month with a new SMB server and new channel initiatives, respectively, that target SMB customers and VARs in the United States.
One Microsoft partner said Linux is quietly taking root in the SMB space—and in the channel.
"The basis of the SMB market has been and continues to be the trust relationship between a small business and its technology vendors," said James Fogg, owner of JD Fogg Technology Consulting, Wilmot, N.H. "I know businesses that do brisk sales of Linux to SMBs, and I know businesses that only sell Microsoft solutions to SMBs."
Despite Linux's success in the enterprise-server space, it has yet to make a dent against Windows SBS 2003 in the SMB market, several other partners say. "Microsoft has this segment completely wrapped up, and SBS has no competition from what we have seen. There are other small-business server offerings out there, but they do not compare," said Jason Harrison, president of Harrison Technology Consulting, Nashville, N.C.
It won't be an easy hurdle to overcome. Microsoft has strong brand recognition, a well integrated, easy-to-use server and loyal, channel-necessary ingredients to break into the SMB space, Harrison said.
"Demand in this market is driven by our recommendations," Harrison said. "Most small-business owners are so disconnected from the tech tools available to them and don't know what is possible without our help."
Harrison advised Linux rivals to abandon the grassroots marketing approach that succeeded in the enterprise space and focus on building a channel. Novell, Xandros and Collax appear to be heeding that message.
All of those vendors recently launched new products and channel initiatives to make solution providers aware of their alternatives to SBS, especially as Microsoft prepares to ship SBS 2003 R2 and the next-generation SBS, code-named Cougar, in the 2007-2008 time frame. And they all developed products that are compatible with Windows and are easy to install and manage.
Novell is on its third attempt to steal market share from SBS. In early May, Novell rolled out its Linux Workgroup Suite, which replaces its legacy Small Business Suite and Novell Linux Small Business Suite.
The suite integrates Novell's Open Enterprise Server including SUSE Linux Enterprise Server, GroupWise, ZenWorks, Novell Linux Desktop and OpenOffice.org for Windows and Linux at an attractive price point. Novell also launched a number of channel incentives to drive sales of the suite.
Xandros, the New York-based firm that bought Corel's Linux business five years ago, recently unveiled an easy-to-administer Linux SMB suite for about $450. Xandros Server offers a management console, compatibility with Windows and support for 64-bit extended processors from Intel and AMD.
And Collax, the German firm whose popular Open-Xchange collaboration suite is sold by 600 partners worldwide, recently opened an office in the Boston area and launched a major channel program to sell both Open-Xchange and Collax Business Server more aggressively in the U.S.
Collax Business Server is targeted at SMB customers with little or no Linux experience. It incorporates security, networking and communication features. There may be hope for these Linux companies. One Microsoft SBS solution provider said he sees Linux trickling into SMB shops.
"I do see Linux making inroads in SMB in the storage space. There are lots of NAS devices out there running on Linux, and customers are storing more and more data on Linux boxes integrated into Windows environments," said Michael Cocanower, president of itSynergy, Phoenix. "It scares me, frankly, because I don't want my customers' data on a Linux box. I'd rather see it on a Microsoft box just to keep the integration story strong."
Another partner said Linux rivals should worry less about the 800-lb. gorilla they are competing with and focus on making customers aware of their products and their benefits.
"The smallest companies with one to 20 employees often don't understand the benefits of server technology or don't trust the ROI projections," Fogg said. "Those companies often elect to stay with peer-to-peer networks."