Channel Marker

January 28, 2008  8:57 PM

V-Day: VMware gets pounded, SWsoft becomes Parallels (finally)

badarrow Barbara Darrow Profile: badarrow

 Monday was  a big day in virtualization.

First, VMware said it  doubled its profits and boosted revenue by 80%  in its fourth quarter.  Wall Street rewarded it by sending the shares into an after-hours freefall.  Well, the fact that VMware president Diane Green said the company would hold steady on pricing in the face of Microsoft’s imminent Windows-Server-2008-and-Hyper-V onslaught had something to do with that. Nothing puts a scare into analysts more than Microsoft entering an entrenched player’s market. 

And it’s not just Microsoft: Oracle, Citrix and others are playing hardball in virtualization.

SWsoft, another of the virtualization gang, made news Monday as well when it  renamed itself Parallels Inc. SWsoft backed the popular Parallels software, you know, the Windows-runs-on-Mac people. One has to wonder what took so long.

The new-name tidbit was embedded in a press release touting availablity of Parallels Virtuozzo Containers Version 4.0

Barbara Darrow can be reached at

January 28, 2008  12:50 PM

VMware memo: Microsoft cutting out Citrix

Bcournoyer Brendan Cournoyer Profile: Bcournoyer

VMware is trying to drive a wedge between Microsoft and Citrix Systems, according to

The site says it has obtained a memo that VMware sent to its sales channel last week, on the same day Microsoft hyped its virtualization push in a press release. The memo gives these instructions to salespeople whose potential customers are considering Citrix: “Tell (them) that MSFT will soon cut Citrix out of the loop … and Citrix is allowing it to happen.”

 The memo also downplays Microsoft’s news as “a desperate attempt to make it look like (Microsoft) had a new, coherent vision and strategy for virtualization.”

Microsoft and Citrix are longtime virtualization partners, but VMware is using Microsoft’s own advances in the market to argue that the two companies are also becoming bigger competitors with each other — despite their recently announced plan to develop interoperability between Citrix XenServer and Windows Server 2008. As Microsoft prepares to launch Windows Server 2008 — featuring the Hyper-V hypervisor — next month, the battle for VMware’s server virtualization market share lead should grow even more intense.

January 25, 2008  2:03 PM

Microsoft ‘clarifies’ SQL Server 2008 slip

badarrow Barbara Darrow Profile: badarrow

The latest word on SQL Server 2008 is that final shipment is now on for Q3 2008 — basically a slip of a quarter.

 The company had said to expect the database in the first half of the year with a lot of noise to come out at the February triple “launch” of Windows Server 2008, Visual Studio 2008 and yes-SQL Server 2008. It plans to drop another Community Technical Preview (CTP)  of SQL Server 2008 for that Los Angeles event. 

The clarification is noted  — if you read down far enough — in this Microsoft blog. This blog is an excellent example of burying the lead. Kudos.

The company contends that the release, once known as “Katmai”  is still on track to ship within 36 months of SQL Server 2005. If memory serves, that was in the fall of  2005.

As usual, they’re cutting it close.

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January 22, 2008  1:12 PM

IBM-iPhone snafu examined

badarrow Barbara Darrow Profile: badarrow

Vendors, like seventh graders,  fall all over themselves to seem cool. And in the process they end up looking more out of it than ever. Witness this week’s IBM-Apple PR debacle.

The  AP reported a few days ago that IBM would announce Notes/Domino for the iPhone this week at Lotusphere.  The universe picked up that story.

Well, Lotusphere came and no word re. IPhone. Now IBM spokespeeps are backing s-l-o-o-o-o-o-w-l-y away from the story.

The technology isn’t ready, they say. Only problem with that is since when has IBM ever waited for something to be truly ready before announcing it?

It’s too bad for Domino partners for whom iPhone connectivity might be a much-needed boost.  The news was probably very welcome; the retraction of said news not so much. Gartner and other analysts have skewered Apple for not making the iPhone a good corporate citizen so a Domino tie-in could help there even if it did cost the handheld some of its cache.

A betting person would wager that this is what happened. IBM, always anxious to seem hip, cool and happening (witness its Second Life fixation) couldn’t resist playing up the iPhone link. Apple was probably aboard —  in theory. What Apple most notoriously does not suffer gladly, however, is being pre-empted or short-circuited by stodgier, less cool rivals. If there is noise to be made, it had better be made by — or at least be controlled by — Apple. At minimum it must be done professionally.

But the leak nuked all that.  Within a nanosecond of that AP story , the alarms started ringing at Infinity Loop. And the kibosh was on.

Now IBM has some ‘splaining and groveling to do in Cupertino  before the iPhone connectivity hits. A very similar scenario played out last year over a Microsoft Exchange-to-iPhone connection. Microsoft leaked, Apple balked.

What’s your take? Send your thoughts to

January 21, 2008  1:56 PM

A tale of two stacks

badarrow Barbara Darrow Profile: badarrow

Microsoft — or at least part of Microsoft — continues its quest to persuade open-source developers that Windows should be on their short-list of platforms. You know, right up there with Linux.

Sam Ramji, the Microsoft guy whose job it is to mend fences and foster collaboration with open-source ISVs and other partners points to progress.  

Exhibit A: Ramji — his formal title is director of platform technology strategy — will keynote at this spring’s EclipseCon conference. Not traditionally a big venue for Microsoft execs.

Exhibit B: Nearly a third (30 percent) of SugarCRM’s business is now on Windows, he says. SugarCRM is the open-source CRM pioneer. Two years ago Microsoft and SugarCRM inked a technical collaboration pact.

Exhibit C: Of the 140,000-some-odd applications on the Sourceforge repository some 77,000 now run on Windows, Ramji says. Admittedly, a large number of that 140,000 are probably dead apps, but why quibble?

Ramji also points to the fact that IIS now supports PHP development. And the final release of a SQL Server driver that will let PHP talk to SQL Server 2005 and 2008 should be available for download alter this year.

Microsoft has made some good moves to soothe open sourcers’ qualms about the company and its occasional legal saber rattling. It hired Tom Hanrahan, former director of engineering at the Linux Foundation to direct Microsoft’s Linux Interoperability Labs.

Still there are gaping holes. Microsoft is pushing to get every app possible to run on Windows becuase that’s good for Microsoft. What it’s not saying is when Office will run on Linux. Ideas? Anyone? Is it really so outrageous to even ask the question?

Ramji and team may have their hearts in the right place about peaceful and fruitful coexistence of open source and Microsoft stacks. But the question is Microsoft overall and whether  its defense of intellectual property rights (aka patents)  is antithetical to open source.

In the real world people run both open-source and Microsoft stacks — and partners supporting them must know how to ensure the dual-stack works. So they have to watch what, Ramji’s team — as well as Microsoft writ large — are doing.

For more on open source and channel opportunities see  this story.

What’s your take? Send your thoughts to

January 18, 2008  2:09 PM

Beware ‘TMI’

badarrow Barbara Darrow Profile: badarrow

Too much information!

Warning customers against posting personal data to the Web is one of the most important services VARs can provide.

Many in the business community are enamored of social networking sites and appear to feel that more is more when it comes to “sharing” their lives on LinkedIn, Facebook, Myspace, insert-your-favorite-social-site here.

The problem with that is  cyber miscreants lurk just waiting to pounce on these nuggets. Something as innocuous-seeming as college affiliation, job history, names of family and friends can be used by social engineers to craft e-mail messages that will suck you in. That simple click will then unleash threats on your very own hard drive. Executables embedded in Word or Excel or PDF attachments will search your data to harvest -and secretly send out– passwords, account numbers, and other riches.

This online information trove is like a “playground for hackers,” says Yacov Wrocherinsky, CEO of Infinity Info Systems, a New York Sage Software and Microsoft partner specializing in business applications.

And for high-net-worth (ie. rich) executives who are  likely targets, it’s important that their wives, kids, friends also be careful about what personal details they divulge.

The beauty of LinkedIn is members can see who their associates know. “It’s great for making connections or for finding people if you’ve lost their business cards,” Wrocherinsky says. But that doesn’t mean you should bare any more than is absolutely necessary.

And on the less-business oriented of the social networking sites, say Facebook, people tend to put in way too much information-birthdays, anniversaries, travel plans, kids names, etc. All of that is gold for social engineers with evil intent.

George Brown, CEO of  Database Solutions, a Cherry Hill, N.J. solution provider tells his customers to keep their data zipped and not to post anything they are not required to do by law . As it is now with SEC filings for public companies, a lot of information about execs is already out there. No need to supplement that for the bad guys, Brown says.

Barbara Darrow can be reached at  

January 17, 2008  10:22 PM

Watch these channel women: They have an agenda

Heather Clancy Heather Clancy Profile: Heather Clancy

I am always highly conflicted when I do what I am about to do: Write about women in the channel in some sort of special way.

For the longest time, I debated whether or not I should make any big deal out of someone’s gender as a business attribute. But as I’ve reached some magic milestone birthdays, I’ve cared less what people really think. What’s more, there very definitely is a difference in the way that women manage. So, this blog is a tout for all you Channel Gals — whether you’re vendor executives or solution provider owners/principals.

One of the solution provider executives I most admire, Angela Trillhaase, senior vice president of business development for the big Illinois-based VAR Meridian Group, tarted agitating about the Women in Channels group last summer. She didn’t just pay her idea lip service. She actually went out, got about 110 women interested and is now planning the organization’s first board meeting for Jan. 28-29.

Trillhaase says Women in Channels is working on creating a set of value propositions for its memberships, ones that enrich their careers and personal lives. Two big things are encouraging diversity throughout the channel and, of course, helping to speed the advancement of women who are pursuing channel careers. It’s likely that the group will hold a conference sometime this year, but that’s not on the calendar yet. Stay tuned for more information about this and their mission in a couple of weeks.

Aside from Trillhaase, there are four other Women in Channels board members. They are Penny Arvantes, marketing manager for SoftwareOne; Dee Dee Lear, a director of sales with Arrow Enterprise Computing Solutions; Gina Morkel, senior vice president of marketing and corporate communications for MSI System Integrators; and Cathy Cook Pursell, channel services manager with IBM.

January 15, 2008  1:39 PM

Microsoft deal, exec exits: Coincidence or conspiracy?

badarrow Barbara Darrow Profile: badarrow

Sometimes it takes a few days for the obvious to occur. Up here in the snowy northeast we call that “dawn breaking on Marblehead.”

Example: Ran into an old bud (to be known as Buddy) today who, as it happens, works for Fast Search & Transfer. That’s the little enterprise search  outfit Microsoft is buying for  a cool $1.2 BILLION to combat Google’s inside-the-firewall search incursion.

Buddy pointed out that within days  of that announcement– presided over by Microsoft Business Division president Jeff Raikes — Raikes himself announced  retirement plans.

And,  Microsoft’s top M&A guy, Bruce Jaffe, announced his  personal exit strategy as well. Jaffe will be gone next month, Raikes is hanging around till September.

But still.

Those bombshells dropped a day after the Fast deal became public.

Kinda makes you wonder, don’t it?

January 11, 2008  9:50 AM

Business planning: Should you or shouldn’t you? Yes, you should

Heather Clancy Heather Clancy Profile: Heather Clancy

First, a disclosure. I’ve been thinking about business planning lately for two big reasons: First, because it’s the sort of thing I’ve been doing for myself to get ready for 2008 and, second, because my new employer, SWOT Management Group, advocates business planning between vendor and channel partner as a means of improving field execution on both sides.

I’m a pretty anal person, generally, which means I get anxious when I don’t have my list of to-do items all figured out every morning. But, here’s the thing. I almost always diverge from that list, handling the really important real-time priorities that crop up during my day.

Does that my planning exercise is a waste of time?

Absolutely not.

In my instance, planning helps me visualize my ultimate goal (actually, goals). How I get there will be guided by my ability to switch directions as dictated by real-life conditions around me not by sticking to some check-off list (in this case dictated by myself).

I was debating this issue with Keith Norbie, director of the storage operations at reseller Nexus Information Systems, earlier this week. His frustration with business planning is that some of his vendors are so focused on propping up some individual product forecast that’s been mandated by their CFO that they don’t stop to understand what’s good for HIS business. It gets worse when he represents several different product lines for the same vendor.

Indeed, that’s what makes business planning tough. If both sides don’t stop to understand each other’s goals, it IS a waste of time.

So, if business planning is something one or more of your vendors requires, here are a couple of tips to help you get the most out of it without ceding your own independent business goals:

  1. Listen, and disclose. I think there’s a tendency on the part of many solution providers to withhold information from their vendor partners. I “get” why you do this. But the act of serious business planning will require you to share as much about your business objectives as legally possible.
  2. Insist on the same access to pipeline information and sales process training as your field sales representatives on the vendor side. Pretty self-explanatory, but sharing of knowledge goes both ways. If your vendor isn’t telling you something, then it’s time to think seriously about why and assess whether your commitment is worth it.
  3. Set measurable, realistic goals. Don’t let yourself get bullied into a goal you think you can’t reach. Make sure you stay on track by insisting on regular updates from both sides.
  4. Make someone accountable. Again, this goes for both sides. If someone on the vendor’s team isn’t invested in the success of the plan, you’ve gotta wonder about whether you should commit.
  5. Be willing to take a detour or two. Like I mentioned before, the best thing about having a goal is being able to focus on a certain outcome. Your preconception of how to get there may different from reality, so you need to be willing to course-correct.

Like Keith Norbie reminded me during our debate: A great plan with flawed execution makes for a flawed outcome. It’s the execution on your business plan objectives that really counts.
Heather Clancy is an award-winning business journalist and a strategic channel communications consultant for SWOT Management Group. You can reach her at

December 31, 2007  12:17 PM

From sleepers to jeepers! 5 trends that will sneak up on the high-tech channel in 2008

Heather Clancy Heather Clancy Profile: Heather Clancy

My old, er long-time, colleague Barbara Darrow beat me to the punch about a week ago by posing 10 questions that are likely to define the businesses of every VAR, reseller, systems integrator, IT solution provider—whatever you choose to call yourself and your company—in 2008.

She was wise in taking this approach. Because if there’s one thing I’ve learned in my more than 18 years covering this complicated business organism called the channel, it’s that most predictions any of us outsiders make will be wrong. But that won’t stop me from putting my neck out anyway. So, here goes nothing. Except I’m not going for the more obvious things I believe will be big—such as wide area wireless access and unified communications solutions. Rather, here are five trends I believe will creep up on your business in 2008. Are you planning to be surprised?

Sleeper Trend #1: Your clients will turn green-er.
Groan. I can hear you now, calling me a despicable treehugger, like my father sometimes does, and laughing at me for bringing this up. But here’s the thing: Contrary to popular belief, being green can actually save your customers money. Proof point #1: Electricity costs. There isn’t a single business in existence that isn’t worried about escalating facilities costs. The fact is, the right technology and the right technology management can help companies be more energy-efficient. So, even if you’re cynical about whether or not global warming is a myth, embrace the ethos of energy-efficiency. It’ll impact all sorts of things you represent—from virtualization technology to storage to unified communications.

Sleeper Trend #2: Software as a service will quietly gain more converts, especially among small businesses.
Sometimes I think solution providers don’t channel their own experiences as small-business owners into ideas that could serve their own clients. I talk to enough entrepreneurs to know that one thing in particular colors how they look at technology: their need to work from anywhere at any time. What does that mean? For one thing, data synchronization is ultracritical for small-business owners. That is, they want to get to the latest revisions of files from home, from hotels and from their office. They don’t so much care whether their spreadsheet lives on their computer or off on a server somewhere just so long as the information they need is always available. I won’t even pretend to have market statistics on this, but I’d be willing to bet that pretty much any business that is willing to host its e-mail service elsewhere will look at hosted versions of their other applications, especially if it’s less expensive. Small businesses care less about hype and more about whether or not something works. So, do I think all the software as a service companies will come up with channel programs? I DO think that and NetSuite will continue to flirt with partners, but they’ve got a long way to go. What it DOES mean is that the case for big software upgrades from established software developers, including Vista, will continue to be hard to make.

Sleeper Trend #3: Apple technology will continue to backdoor its way into the business world.
I’ve been reading all sorts of articles and analysis reports lately about the iPhone and its effectiveness as a business tool. I can tell you firsthand that it wasn’t designed to be all that easy to use with corporate e-mail and calendaring accounts, but there are workarounds. Here’s another telling stat: During the third quarter, Apple was expected to ship about 1.34 million Macintosh PCs, or about 8.1 percent of all systems shipped in the quarter. There is still a substantial gap between Apple, and Dell and Hewlett-Packard in this regard. However, Apple’s shipments grew more than 37 percent year-over-year. And, it’s worth noting that its shipments during the quarter were higher than Toshiba, which just introduced a series of new notebooks. Certainly, corporate accounts still frown on Apple, but small businesses and midsize companies are more willing than ever to consider the alternative.

Sleeper Trend #4: People will get smarter about what data and files they store.
The more I learn about storage software, the more I marvel about its potential to make our life easier—if we would only use it properly. I believe that data deduplication will become a mantra that is used as often in 2008 as compliance was 18 months ago. Both humans and storage systems could stand to be more efficient about what data is kept and how it is catalogued. There’s something to be said for librarians. Heck, maybe the field of library science can jump in here and help us.

Sleeper Trend #5: Someone, somewhere WILL find a way to solve the ridiculous spam deluge that wastes so much of our collective time.
It’s one thing to manage incoming e-mail on a high-speed corporate network. It’s another thing, entirely, to have to wade through dozens of junk messages on a wireless handheld device just to get what you need. While I don’t know who has the answer right now, you can bet that the second someone comes up with a truly effective spam filter that lets all the right stuff through and prioritizes it, we’ll hear about it. Better yet, why don’t YOU come up with the solution and please let ME know about it as quickly as possible.

What do you think will creep up on you in the New Year? Share your thoughts and comments via e-mail at

Heather Clancy is a business journalist and communications consultant who has been covering the high-tech channel for more than 18 years.

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