InformationWeek: The Business Value of Technology

InformationWeek: The Business Value of Technology
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November 15, 1999

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Windows 2000:
Windows Support

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llustration by Robin Jareaux
Related links from our sister publications:
  • Computer Reseller News Minimal Training Required For Windows 2000 Variants

  • Computer Reseller News Up-front Planning For Windows 2000 Is Key
  • Banyan last month officially closed the books on its software development business and intends to make its living selling directory migration services. The vendor has developed a suite of Active Directory services that includes cost and risk analysis, applications testing, design, and deployment. According to Banyan's estimates, small companies may require two or three months to move their domains to Active Directory, while larger businesses are looking at something more like a six- to nine-month job.

    Inacom Corp. more than tripled its ranks of Microsoft-certified consultants to nearly 700 with its acquisition of Vanstar Corp. earlier this year. The company estimates its consulting revenue will increase by two-thirds this year, to more than $260 million. Most of that will come from Microsoft-related business, says senior VP Chris Howard.

    Barring any more delays, there are only a few months remaining before Windows 2000 becomes available, meaning the time to start planning is now. Three editions of Windows 2000--Professional for PCs, Windows 2000 Server for departmental computing, and Advanced Server for line-of-business application and Web serving--are scheduled to ship in February. DataCenter Server, designed for the most computing-intensive data modeling and analytical functions, is due three to four months later.

    What's Microsoft doing to prepare customers, partners--and itself--for the support that will be needed to make it work? The company has taken knocks for releasing products with a dearth of support and concedes that in the past it hasn't provided enough training for customers or systems integrators. "When we shipped NT 4.0, the only training was courseware through the channel," says VP Connors. "If you look at the technology we're going to ship in the next three years, what we've heard loud and clear from customers and partners is, 'Give us more prescriptive guidance on how to implement the products,' because they're being installed in environments more complex than the desktop."

    Microsoft is adopting the same approach it uses for software development--standard packages for high-volume distribution--for its technical services and support. Connors says it's critical the vendor share its expertise "in a consistent, predictable way." The company is investing $50 million this year in a program that consists of three components: deployment guides and field notes to assist with planning and building Windows 2000 systems; a Readiness Framework for certifying IT staff; and an Operations Framework to assist with daily systems management. The latter is "analogous to what mainframe and Unix vendors have done for years," says Connors. Another $40 million will provide discounted training for channel partners.

    On top of that, Microsoft has trained nearly 1,500 of its own technicians and more than 1,000 outside consultants on Active Directory. By next June, Microsoft Consulting Services is scheduled to comprise more than 3,200 engineers and technicians, an increase of about 30% over current levels. "Microsoft has 10,000 enterprise customers and 2,500 consultants, so we need to do more," says Ian Rogoff, general manager of enterprise services. The vendor won't disclose its services revenue, which it says is immaterial, except to note that the business is expanding faster than the companywide sales growth of 28% last quarter.

    Gregor BailarPhoto by Roy Karten Microsoft's service offerings for business users range from pay-per-incident telephone support packages for small and midsize companies, to dedicated service teams, 24-hour phone support, and on-site emergency technical help for its largest accounts. Enterprise customers may also choose packages that include part-time technical account managers. This summer, Microsoft formed a new IT Audience Management group to help customers cut through various product groups when they have a problem. The group includes TechNet, Microsoft's online resource for IT managers, which is currently stocked with Windows 2000 upgrade tips.

    The developer is putting its best service-and-support foot forward for customers such as the National Association of Securities Dealers, Boeing, and Costco Wholesale, all reference accounts. "It's helpful when you can have a big, brand-name company say, 'I moved to Windows 2000 and had a positive experience,'" says Deborah Willingham, VP of marketing in Microsoft's business and enterprise division. Microsoft's partners praise the early-adopter strategy, attributing Windows NT's lack of acceptance in data centers at least in part to the vendor's past focus on getting small companies migrated first.

    So far, so good, says Gregor Bailar, executive VP and CIO of NASD. "In the past, Microsoft's entry into the glass house wasn't so much limited by service as it was by support," says Bailar. "Now, if we have serious problems, everybody but Steve [Ballmer] and Bill [Gates] are on the phone. For us, that's a big difference, because if our Web sites are down, that's money pouring through the walls."

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    llustration by Robin Jareaux
    Photo of Bailar by Roy Karten


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