Top five IT channel lessons for the quarter

October 28, 2009

We all know the channel partners out there can be a critical component to the success our marketing efforts in the technology industry. Certainly, they have been loyal to your efforts over the years and have voiced their thoughts regarding the type of support and credibility needed to move your solutions into the end users enterprises.

As you continue to plan your 2010 activities, i thought i would share some recent channel feedback as comprised by the SearchITChannel.com Advisory Board. These are some of the key discussions about various topics the channels have been discussing, and it is a nice peek into their mindsets about various tech trends. Some insights may be useful for your message development or perhaps will create more opportunities to further measure the feasibility of your marketing plans.

Overall, VARs remain extremely cautious on public cloud computing and are obsessed with which vendor giants will remain standing after more expected M&A activity.

1: Fear the cloud: VARs said they spend a lot of time educating customers about when and if public cloud computing will really meet their needs. Vendor hype aside, board members said public cloud scenarios run counter to HIPAA and other compliance regulations.

The rule of thumb seems to be: Unless you, the customer,  control the data–encrypted across the wire and in storage–and you control physical access to the servers and storage, you will not be in compliance.

Well-publicized outages, including the recent Microsoft-T-mobile Sidekick personal data loss, should be a reality check for customers, said George Brown, president of Database Solutions. Customers and the VARs supporting them need to know where what liability issues are involved in cloud-based solutions

Make no mistake: They are all for co-location and other plans to defray costs, but when it comes to regulation, shared infrastructure remains a no-no.

2:  While you’re at it, fear Google: Google’s push into business apps should “make everyone nervous,” said Kevin McDonald, executive vice president of Alvaka Networks.

It’s difficult to tell how serious Google is in its myriad projects. “I see them putting up all sorts of windmills, and Microsoft is out there tilting at them all,” McDonald said. In that, Google is doing to Microsoft what Microsoft used to do to every other software maker: Distract competitors with promised but distant releases of software that will do everything better, faster, cheaper.

3: Watch Cisco like a hawk: The consensus is that the network hardware kingpin is the company to watch when it comes to future acquisitions and forays into new businesses. It is viewed as a competitive threat by many VARs. “I’m a lot more concerned about what John Chambers is up to than with whatever the Microsoft CEO is doing,” said one board member.

Several panelists said there is probably truth in the oft-revived rumor about Cisco buying EMC.

4: Keep your eye on M&A: Cisco isn’t the only potential suitor for EMC. Other VARs said Microsoft or HP could also do that deal even though Microsoft isn’t much in the way of a hardware company and HP has already bought LeftHand Networks and licenses a lot of other storage.

Brocade appears up for grabs, thanks to a recent Wall Street Journal story citing an unnamed source (probably the investment banker who really, really wants that deal to happen.)

One panelist said Chinese telcom giant Huawei, which tried and failed to buy 3Com, might also be a suitor for Brocade.

5: Don’t equate small with easy:

There is often an inverse relationship between the size of a customer and that customer’s need for IT help. In other words, don’t mistake a small shop with small technology needs. Companies with under 25 people often require the most handholding.

The customer who buys a $1,600 system usually takes up many times the service calls as a larger customer, said  Jill Steinberg, president of Value Computing, Inc.

Share


Technology Marketers, The U.S. High Tech Is Healthy

October 26, 2009

As a CMO in a technology company, I am sure you and your fellow senior leadership have been looking at the state of the technology industry and wondering if the paradigm shift to off shore outsourcing will ultimately bleed your business model dry. The potential impact of outsourcing seems to suggest that the U.S. High Tech industry is on a crash course for an unhealthy future, according to some.

But in a recent Harvard Business review article authored by Laura D’Andrea Tyson, she recommends to look at the macro data more carefully and suggests that the U.S. High tech industry is not as bad off as it may seem.  In her article she points out that the U.S. retains significant shares of global markets for high-tech products and services. And the reduction in costs and prices made possible by outsourcing upstream component production to low-cost foreign locations has helped U.S. companies maintain their competitiveness in high-value-added downstream products.

Between 1995 and 2005, the U.S. maintained about a 40% global share in knowledge-intensive services and about a 35% global share in high-tech industries, keeping the lead in four of them. In fact, The U.S. share in communications equipment increased by more than 20 percentage points as Japan’s share plummeted, and the U.S. doubled its share in computers and office equipment, although it was overtaken by China in 2003. These are the two sectors that encompass most of the products and companies that are the focus of the argument that outsourcing is hurting the U.S. Tech Industry.

The increase in China’s share in computers and office machinery — from 2% in 1995 to 46% in 2005 — was remarkable, but it is not a sign that China has gained on the U.S. in innovative capacity in this sector or others. China’s exports of high-tech products turn out to be not very high tech and not very Chinese: 80%-90% of China’s high-tech exports come from firms that are partially or wholly foreign-owned — in many cases by American Multi-National Companies. Moreover, the evidence suggests that the off-shoring of activity by U.S. MNCs — either to reduce the costs of their supply chain or to serve foreign customers — increases rather than decreases their U.S. activities. According to a recent study by Mihir A. Desai and C. Fritz Foley of Harvard Business School and James R. Hines Jr. of the University of Michigan at Ann Arbor Law School, both the domestic and foreign investment and the domestic and foreign employment of U.S. MNCs move together.

As Laura points out, overall, the data do not indicate that the U.S. has lost its innovative capacity or that the outsourcing of production to low-cost locations has undermined the global competitiveness of U.S. high-tech companies — at least not yet.

Share


Tech Marketers: Only 1/3 of Marketers Achieve Integrated Marketing Success

October 22, 2009

Most technology marketing folks strive to plan and develop an integrated marketing approach while planning their annual strategies. The theory of IMC certainly makes sense and has proven to deliver successful results for many organizations. But achieving this integrated approach is harder than it seems. At a recent DMA conference, Dave Frankland, a senior analyst with Forrester suggested that 45 % of marketing leaders are committed to an integrated marketing approach as the core of their customer centric marketing activities, while only 1/3 of them actually deliver against this goal.

Achieving a customer-centric integrated approach to marketing has been a desire of marketers in the technology community for years.  Back in the nineties, the term integrated marketing typically described public relations, advertising, direct marketing, and promotions working together to deliver a consistent message to a target audience across multiple communications channels. With more resources, technology and tools available today, the modern definition of “fully integrated marketing” is far more expansive and emphasizes structured collaboration among most, if not all, other departments. With shared language, metrics, and strategy, the entire enterprise is able to work together toward the common goal of achieving maximum customer value from each relationship.

This new modern definition simply makes sense. Today, key trends make marketing integration a financial requirement, and the availability of technology, data, and analytic know-how has finally made establishing a customer-centric organization realistic and practical. But implementing the theory has been quite difficult for many technology organizations.

Some of the major obstacles that have prevented a customer-centric integrated approach include:
• A lack of executive support
• Organizational designs
• Compensation and incentive systems
• Measurement constraints
• Business models
• Data capture capabilities
• Analytic capabilities
• Perceived high cost
• Focus on short-term results

In a 2009 study of more than 400 CMOs and 20 business and academic leaders the CMO Council found that global marketers are seeking stable operational platforms to contend with unstable market dynamics. Their goal: “To achieve substantive performance gains that drive top-line revenues and sustainable corporate growth.”  Among the actionable key insights uncovered in the study was that inadequate data-sharing across the enterprise consistently hindered the ability to effect process and operational changes. According to the report, “Integration of platforms and processes is critical.”

As marketers, we all understand that data drives much of our activity and access to data is imperative to ensuring an integrated marketing effort drives results. These are big operational issues and should be discussed with senior leadership as you draft your strategies for 2010.

Share


Tech CMO’s trends for 2010

October 20, 2009

If you are working on developing your 2010 marketing plan, you would not be alone if you included “Attempt to forget the year 2009″ as an objective.

Within the IT world, CMOs have had a hell of a year dealing with reduced budgets, lower head count, increased scrutiny of their marketing spend and of course  a longer drawn out buying process among their targeted audiences. It simply has not been pretty and I am sure all of you are a bit exhausted. But from this year, there are opportunities in the midst and smart planning should help you drive your organization towards them.

Michael Gerard from IDG recently identified a few best practices among CMOs in tech companies as it relates to the developing your marketing plans for 2010.

  • CMOs and senior marketers need to withstand potential organization changes by making sure that they maintain reporting control and/or budget control over the entire marketing organization: the full scope of corporate marketing, product marketing, and field marketing.
  • Even as the recovery “emerges”…be prepared for further organizational changes in the marketing department. The most prevalent trend is change that will help in the unification of marketing and sales. There is opportunity in this change: marketer’s can introduce and lead significant Sales Enablement practices, for example. have in place for the up-turn to come? Are you prepared to answer this question when your boss asks you?
  • Be prepared for an economic recovery. What marketing plans and initiatives do you have in place for the up-turn to come? Are you prepared to answer this question when the CEO or CFO asks you?
  • For marketing staff positions that need to be filled or that may be the first candidates to fill when hiring freezes are lifted: there is some great marketing talent “on the street” right now and the best ones will not be there forever.
  • Every new marketing initiative that you propose should be “bundled” within a cost-savings idea. Think about re-deploying and re-directing existing budgets, versus asking for new-new monies. The IDC CMO Advisory area has many case studies for budget re-directs and re-deploys. Clients should refer to IDC Best Practice Studies on Sales Enablement, Shared Services, and Campaign Management.
  • Expand your operational proficiency for Digital Marketing. This would include a look at the sophistication of processes, infrastructure, and people. (e.g., refer to IDC’s recent telebriefing on key success factors for BtoB social media strategies)

Share


Your 2010 Marketing Plan for Technology Should focus on Content

October 2, 2009

As you begin to build your marketing plans for 2010, focus on the content of your efforts before dividing up your budget against the tactical efforts.

If you have been reading my blog, you may be picking up that I am a strong proponent of good content. I believe strategically developed content drives everything.  Many of my thoughts have recently been confirmed by the results of a recent survey among tech buyers by Eccolo Media.  For the second year in a row, these tech buyers—your customers—stated in no uncertain terms that they regularly consume a broad range of content when making purchasing decisions.  What’s more, a significant proportion of them find this content “very” or “highly” influential when making purchasing decisions.

The survey of more than 500 technology-purchasing decision makers and influencers also found that sales materials of any kind—white papers, case studies/sale sheets, podcasts, videos, product brochures and data sheets—are most frequently consumed at the beginning of the sales cycle—before a company ever invites vendors to participate in an RFP.  Collateral subsequently is used less frequently as sales relationships evolve, the survey said.

Among this year’s key findings:

-77% of respondents said they’d read at least one white paper in the last six months, with 84% of them rating white papers as moderately to extremely influential when making technology-purchasing decisions.

-49% of respondents said they had watched a vendor’s video while considering a technology purchase, up from 1 in 5 in 2008.

-89% of respondents said they share white papers with others, while 85% share case studies, 81% share brochures or data sheets, 80% share podcasts, and 79% share video.

-Tech buyers prefer to consume collateral from their desktop – in fact, only 1 in 4 surveyed even print out an online document.

-Although  data sheets and brochures were considered the least influential written collateral, they were also the most consumed type, indicating they are still valuable “table stakes” in helping solidify a brand’s product messages with potential buyers.

-Good writing matters: 86% of respondents felt that high-quality writing was at least moderately influential; 51% ranked good writing as either very or extremely influential. By contrast, poor quality writing was the most frequent reason respondents gave for decreasing the influence of a white paper.

A downloadable version of the full survey report is available at:
http://www.eccolomedia.com/download.php

Share


Online video can be effective for marketing technology

September 2, 2009

Still not sure the time and effort to produce videos as a part of your marketing mix?

Consider the results of a Marketing Sherpa report, probably the most comprehensive video marketing report released to date.  The “Marketing with Video Report: Online, TV, and Mobile.” Research presented in this report strongly suggests marketers

95% of those surveyed, who have utilized online video as a marketing tool, were satisfied with online video marketing and expect to use it in the future. This number is a resounding confirmation that on line video should be a part of your marketing mix.

sherpa-satisfaction-500x378

57% of those that were surveyed indicated that they were “Satisfied” with the performance of their video marketing efforts.  

29% responded that they were “not sure” and only a small portion of those surveyed.

9%, indicated that the results were not as positive as they had expected.

Even with some of those that were still unsure of the effectiveness, these  same respondents indicated that they would continue to utilize video marketing and felt optimistic that with a few modifications, future online video campaigns would perform better.

Only a very small percentage, 5%, said they were NOT satisfied with online video marketing.

online video marketing

Of course, this makes sense when you consider a recently released survey from PermissionTV which stated that more than 2/3rds of senior marketing and media executives identified online video as a primary focus of their 2009 digital marketing campaigns and budgets.  More than 50% stated that they plan to  launch online video projects in the first half of this year.

Bottom line, I truly believe Video can be an effective tool for tech marketers and should be considered in your planning efforts.


Share


Tech Marketers: Video continues to gain acceptance

August 27, 2009

Regulated in years past as an internal or trade show communication tool for employee meetings and larger forum presentations, the power of the video is earning a place in the marketing mix. Video gives technology companies an effective vehicle to tell their story and the ability of video to impact business objectives is the reason why it is rapidly becoming a critical component of business communications. There are some solid marketing benefits to using video:

  • Embeds your brand in significant content
  • Creates compelling and immersive experiences
  • Motivates prospects to buy
  • Communicates what makes business different
  • Demonstrates how products work
  • Educates the audience

Recently, Forbes Insights, in association with Google, announced the release of a new study today called, “The Rise of the Digital C-Suite: How Executives Locate and Filter Business Information.”  The study is of 354 C-level and top executives at major US companies with annual sales in excess of $1B and is designed to shed insight into how these executives discover and share business information.  As one would expect, the findings show that clearly the internet is the major source of information above that or network contacts, trade publications, etc…

Textual information is still king, but online video is growing in importance.

(24%) of those C-level respondents (vs. 16% non-C-suite) indicated a preference for retrieving business information via video.

online-video-source-information

The Age of the person  can also be considered

(33%) of those under the age of 50 stated that they view work-related videos daily; compared to a little more than 1/10th (11%) of those over 50 yrs.

(23%) responded that they visit YouTube daily for work-related videos while only 5% of those over 50 do.

The Bottom Line:

Video is changing the way top level executives access and share information.  This will affect purchasing decisions and audience comprehension against highly complex or even simple technology solutions.  And, as newer generations continue to move up in the business world, online video will only become more widespread as a prominent source of information.

As a tech marketer, you might want to consider using video as a key component in your marketing mix sooner rather than later.

Share


Social-Media: 70% of companies are not adequately measuring

August 20, 2009

Social media is all the rage in the marketing industry and certainly in tech marketing. But a recent MarketingProfs.com  social media study suggests that 70% of responding companies believe they are not adequately measuring their social media efforts.

social-media-measurement-adequacy-marketingprofs-august-2009

The study suggests that the biggest hurdle to social-media measurement is, apparently, finding the personnel to do the measurement and analysis: Asked to select the most-applicable measurement obstacle from several listed…

  • 30% of the respondents pointed to “dedicated resources.”
  • 25% selected “don’t know what to measure.”
  • 20% selected “social media measurement isn’t primarily about ROI.”

If your actively participating in social media, your first step should be a plan based on business objectives and criteria for how you will judge the success of these efforts.  Technology marketers have been adopting these social media approaches quickly for fear that if they don’t, they will be behind their competitors. In many cases these quick to react scenarios leave little time for properly setting up the approach.

Can you imagine if you were to go to market with an extensive lead generation direct mail or email campaign that has no back end metrics planned, how does a marketing group justify the expense when questioned?

No soap box here, but a word of advice. As you would plan and execute any other media effort, apply the same planning and metrics to social media. The social media option can play an effective role in your marketing mix, if you measure the activity and adjust accordingly.

Share


IT budget update for technology marketers: CIOs reduce budgets but there are signs of stabilization

June 18, 2009

SuperStock_1538R-40029A recent study among 900 CIOs by Gartner Executive Programs  from  March 1 to April 30 2009  suggests that the IT budgets are beginning to stabilize.

If you are a technology marketer the implication is you need to be there – and be ready – so you can be top of mind when these It departments start realizing that it’s ok to start spending. Waiting for them to call or only “popping in” on occasion, or relying on old tactics like networking and referrals simply won’t work as well as they used to. Today you need to be aggressive, you need to have a plan, you need to differentiate your messaging, and you need to be out there with consistency!

The survey found that CIOs expect the economy to recover between the first and third quarter of 2010.  CIOs plan to increase IT investment projects and workforce levels as their first investments in such a recovery.

Software, hardware and infrastructure investments are also high on the CIO’s agenda on the path to economic recovery.

The details of the Gartner study are referenced in this article “Q1 2009 IT budget update – CIOs reduce budgets but there are signs of stabilization”

Share


Marketing Your Technology to the C-Suite

June 12, 2009

Marketing your technology solutions beyond the IT audience is an effective strategy to start conversations within a current or prospective target company.

I am certain you have experienced that the buying process has involved various departments outside of IT as well into the C-Suite. I would suggest that the c-suite has gained more influence towards technology buying to ensure technology investments are aligned with corporate business objectives. Having  a strategically led marketing plan in place to approach this audience on-line is an effective means to penetrating these customers and encouraging conversation.images

According to new research among 500 executives at companies with sales of $1 billion or higher and conducted by Google and Forbes, the c-suite audience, although assumed to be a passive influencer, is inserting themselves in the exploration phase of technology buying.

Sam Sebastian, director-local and b to b markets at Google suggested “They’re not delegating, They prefer to do a lot of this stuff on their own.”

Among the findings from the research, which will be formally released in the coming weeks include:

74% of C-suite executives are using the Internet daily.

73% of the C-suite is using the Internet for information verification and vendor selection.

64% of C-level execs conduct six or more searches per day to locate business information.

Video and podcast content usage is growing in importance.

Interestingly, 1 in 5 said they preferred to watch video rather than read text. Focusing on the impact of video, Sebastian said there are “1.5 million business searches daily on YouTube,” making it the second-most-visited destination for business searches, behind Google.

Along with video, mobile search will see an “explosion,” Sebastian said, as devices such as Apple’s iPhone become more pervasive and U.S. cellular networks upgrade to the faster wireless standards common elsewhere in the world. Mobile devices are already impacting search volume, which is up 60% in the past two years, he said.

Share


Follow

Get every new post delivered to your Inbox.