I’d like to introduce myself as a product line manager at Intel who has spent almost a decade ensuring we are creating the best servers to solve small business challenges. Part of my role is to influence future generation products and I’d like to learn more about your challenges, needs and desires so I can ensure we address them in our next generation products.

Here is a story I have heard in the past: “Ah geez, What Now? A customer just called to tell me they tried to enter an online order for my product and my web site is nowhere to be found.  I am lucky they called, but so much for spending a Saturday at my kid’s baseball tournament! Now I need to drive an hour to my downtown office to restart and possibly fumble with my server.  You would think that the desktop system that I am using as a server would just work so I can spend my free time with my family and my work time growing my business.”  

I can’t count the number of times I have heard a similar story from customers and colleagues that are trying to grow a small business, manage their own computers and have a personal life.  The answer to their problem is simple, buy a real server based on Intel®Xeon® Processors that is designed to keep your business running 24/7.   Our latest Xeon processors and chipsets are not only validated to run 24/7, but include features such as support for error correcting code memory and RAID for server operating systems that ensure dependability and differentiate a real server from desktop system used as a server.  However, a small business should not care about all this technical jargon.   I believe they only care that their server runs 24/7 without failure, enabling them to focus on business growth and life.

What are your small business challenges?  I’m all ears.

Sunsets can last a while, but in the end the sun will go down.  I talk to a lot of companies and listen to a lot of data center managers.  Customers trust their AIX-Power and Solaris-Sparc platforms.  These are solid platforms and deliver good features and reliability, but, if these managers could get the sense of security, performance, and reliability with Linux / Intel Xeon platforms, they would move tomorrow.  It is simple economics.

The reality is that customers are making this move, and being successful.  The hardware reliability on Intel platforms today is amazing.  Intel recently announced that their next generation of Xeon(Nehalem) EX based servers will support Machine Check Architecture.  This brings high end Xeon X86 servers into the RAS family previously reserved to proprietary RISC & mainframe platforms.  Intel Xeon already eclipses the performance of proprietary RISC processors both on a per processor basis and a per dollar basis.  It is reasonable to say Xeon can deliver better performance, better value, and equal or better reliability.  The only hurdle left is the software.

Linux has come a long ways.  It is no longer a university OS, run by geeky dudes in black T-shirts emblazoned with the quadratic formula.  It is mainstream and solidly supported.  Linux is the primary development and delivery platform for Oracle.  Other OS environments are ports, delaying support and innovation.  Linux is used by major financial companies.  Linux is available in solid and well supported distributions with a 20 year history of enterprise business.  Linux experts are broad community, worldwide, and growing in number.  Linux is economical vs proprietary RISC.

In an era of big budgets and conservative (don’t make any changes) philosophies, businesses will always stick to their proprietary RISC systems.  That era is over.  Sticking to your RISC systems may seem like the safe move, but failing to examine the opportunities for better performance and lower cost with Linux on Intel Xeon platforms is business negligence.  Business negligence is seldom rewarded. 

Performance, Price, Infrastructure, Ecosystem, TCO, RAS – when the decision factors are examined it becomes clear -  we are in the RISC twilight and the sun will set on Sparc-Solaris and Power-AIX.

In my blog titled top 10 reasons to buy in a recession ,I discussed generic reasons to invest.  While small businesses (and to some extent medium businesses) don’t have the scale to take advantage of some of the consolidation and cost savings gains discussed in my “why buy for the big guy” blog, the benefits of replacing older servers remains a strong value for smaller businesses also. 

For those business owners who don’t have dedicated IT staff, your technology is depended on for reliable, efficient operation of the business. Technology is depended on to support daily operations and services ... like website operation, email communication, customer management, purchasing and record retention among other things.  If not … then you (as business owner) must turn your attention away from customers and towards your technology platform – not something a you have the time or resources to do.

Before reading, you need to know that I’m not a small business owner but I do have a family (in many ways that is my business) and as such I have several computers at home to support the operation of my family.  Recently, I experienced some issues with my existing computers that have put me in the market for replacement technology.  Specifically, when doing my taxes this year and when trying to load TurboTax*, my computer did not have sufficient memory to support the new 2008 software version.  Additionally, my wife and I track our finances with Quicken* and recently the slow performance on our computer has resulted in us spending too much time doing data entry on a slow computer.  In essence, our technology now is limiting us from doing the things we need to do .. so time to upgrade .. and I am shopping for a new desktop.

These challenges are similar to what I foresee from small businesses when it comes to technology upgrades.  Here are two examples of customers who, as a result of a growing demands and slowing performance of existing technology, turned to a Xeon-based server to streamline operations, boost reliabiilty, improve customer service, improve competitiveness and open up business possibilities for themselves.

ð       Yellow River i-café.  See How this small i-café went from a situation where a demanding workload caused hardware failures, leading to down time, loss of revenue, and frustrated customers to a situation where Yellow River saw performance gains and head room for growth by upgrading to an new Intel Xeon based server.

ð       Lampworks. Read how Jason Harper of Lampworks went from “We knew that we’d hit the wall with our desktop-based server; it couldn’t bear the extra load. Our computer was suddenly a barrier to our growth, rather than a business enabler” ... to ... “We’re extremely excited about the growth possibilities that our new server gives us.”

As your technology ages, you have a choice.  Typically standard OEM manufacturer warranties are supported for 3 years with purchase of a new server.  Before you extend the warranty (for $800-1200 per server for additional two more years), evaluate the enhanced performance, improved energy efficiency and capability to replace many servers (either desktop or true server technology) with fewer new servers.  If you are already at the end of your extended warranty, can you run the risk of server failure inside your business or can you afford the unexpected expense of a service call. 

Additionally there are some government incentive programs, like the American Recovery and Reinvestment Act  that offer businesses accelerated depreciation (60% first year vs standard 20%) on new computer hardware which can lower you 2009 tax burden and accelerate ROI.

Is your current technology holding you back or in your way? ... If so, consider a new server.

Chris