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What If Yoda Ran IBM?
Esther Schindler writes to mention that one IT leader who came from big business found himself in quite another world when he transitioned into a smaller business, specifically with respect to the amount of attention from their vendors. He presents an amusing approach with a familiar twist. "Not only are the IBMs of the world leaving money on the table, they're also risking future sales. The IT leaders at small organizations will in many cases be employed by larger organizations someday. Why alienate them? Vendors could engage IT leaders in small organizations now and build brand loyalty. How could they make such a business model work? Let's imagine (with apologies to George Lucas) what Yoda might do if he were running a large consultancy."
I would take it a step further than "not always bad" and say for a companies like IBM it is probably perfectly logical and necessary in a lot of cases. With the sheer size in terms of resources and infrastructure of IBM the overhead costs must be enormous. The cost/benefit ratio probably starts to even out long before a project gets down to $25,000 (from TFA).
So it is not that the huge vendors are doing the little guys a favor by passing on small deals, it's that it just doesn't make any sense for them to pick them up. Small vendors fill a niche that large vendors can't afford to.
while [ 1 ]; do echo -n -e "\xe2\x95\xb$((($RANDOM&1)+1))"; done
Yod is a Jewish letter. Now, it's the first letter in the proper name of God (AKA the Tetragrammatron), but it's not the Divine Name itself. I don't know if it's used as a shorthand (because pious Jews even go so far as to write G-d instead of God), but I haven't seen it used that way.
This CIO is engaging the wrong type of firm for what he wants. I work for a "Premier IBM Business partner" in Lansing, MI and we do this type of work all the time. We put together HA/DR solutions and serve some surprisingly large customers despite our simple business partner status.
Big blue takes a pass on work that is "this small", but that's what the partner network is for. We don't have the resources for huge projects, but we are perfectly geared for projects of this scope. Not only that, but we are focused enough to deliver quality product and quality customer service where big blue cannot. Additionally, due to our having a small but long-serving tech staff, we are not "green" as the writer complains. An organization the size of IBM simply is ineffective at serving projects of this size.
He should have, or the IBM reps he was in discussion with, contacted an IBM business partner in his area that could have helped him. IBM Business partners have always been part of IBM's strategic vision and the author of this piece completely ignores them and the role they play.
Okay, look at the reality of what this guy is asking for:
Sales time. Believe it or not, good sales people cost a lot of money. You have the choice of hiring a bad salesperson, who doesn't know what he's talking about or doing, or a good one. So a salesperson will run you, even in a crappy small company, $60k per year (plus 20% for bennies and taxes). Now, IBM needs someone who is, shall we say, better than good. They have lots of products, and they have to be able to deal with everyone from an analyst to a CIO. Not only that, but they have team behind them, usually comprised of some inside people and a sales engineer or two, to answer questions.
So, realistically, you have about $500,000 in salaries, commissions, and benefits in a small sales team.
Let's divide that by $25k. 25/500 = 20. That means that the sales guy, just to cover his costs, has to sell 20 deals a year to small businesses to make a living. Oh, wait. That's not the case. He needs to make a decent profit, as well. Lets put it at 25% or so, conservatively. So we're up to $625,000, or 25 deals a year.
Oh, wait. That doesn't include the salaries of the engineer who does the work. Tack on an extra $150k or so for a top notch "Jedi Master". And that would be cheap. So were' up to $650k plus 25% margin, or $812,500. Or about 32.5 deals per year.
Now, we all know that even a lightsabre wielding Jedi Master sales guy won't close every deal. So lets say, which is a huge gimme, that he can close 50% of the deals he is given. So he must now, conservatively, talk to 65 customers a year, bare minimum, to earn back his money and make a little profit.
Oh, shit, we forgot expenses. You know, office space, cell phones, internet, computers, support, travel, lunches, dinners, visits to strip clubs.
Tack on another $50k per year for that. Or 2 more deals closed (we're up to 34.5, if you were paying attention) or 69 customers talked to if he was lucky.
That means we're averaging more than a deal closed per week, and, let me tell you, it doesn't happen that way.
And we haven't even scratched the surface of expenses, including things like marketing, customer acquisition costs, back end support costs.
The reason that IBM doesn't do this isn't because they don't want to. Its because they *CAN NOT*. This is not their business. They have a defined business plan. I can guarantee you that nowhere in that plan do they deal directly with SMB's for $25k deals.
Instead, they have a very established partner network to deal with this. And some of those partners are quite good, quite knowledgeable, and employ guys with as much if not more experience than some of those IBM engineers. Sure, there are bozos. But if you do due dilegence in selecting a partner, you should be able to eliminate those quickly and quietly, especially if you have big business experience.
Note: all of the big boys have a partner network. IBM, HP, EMC, Cisco. Plus all the others. Every single one. Some of them have gone to the extent of putting their top partners into their traditional stronghold space of Fortune 1000. Cisco is notable for having put partners into their Named Accounts many years ago.
As full disclosure, I work for a company that has, at one time or the other, partnered with every one of those guys. Some of those partnerships were great. Some were a disaster. In every single one, we had highly qualified engineers with decades of experience in multi-discipline IT skills supporting our customers. In fact, one of those partners (won't name them but their one of the biggest of the big) used to slip us business on the side when the customer was unwilling to pay their rates (~$350/hour, travel exclusive) because they knew we could do the same job at less than half the cost.
The point of being a small IT specialty business is to be able to provide a service to a completely different kind of customer. My company has ~25 full time employees in house. We have 450 or so on-sit
You must just have had a useless admin.
We use clearcase to store and replicate our source archive globally. Its flexible branching strategies allow us to work effectively on multiple releases of our codebase, and checking files in takes a few seconds.
I don't know what this "History explorer" you're talking about is, but the graphical version representation makes it very easy to see which version you're currently looking at and which you want.
It sounds like both your admin and yourself are totally incompetent.