How Will Lotus Foundations Do?

IBM Lotus recently announced Lotus Foundations. The goal is to provide an extremely low-IT-overhead server in which Lotus applications can run, and thus increase sales to smaller organizations.

Will this offering be a success?

The argument against is simple: Lotus just doesn’t sell much to smaller organizations. The great majority of seats are in organizations with at least 500 employees (see Ferris Report here).

The arguments for are:

  • Plenty of Lotus customers have smaller regional offices, which would gain from the low support efforts of Foundations.
  • Perhaps the technology will open new markets for Lotus.

Overall, we agree with Kevin Cavanaugh, Lotus VP, Messaging and Collaboration: It’s an interesting offering and well worth a shot.

P.S., here’s a snap of Nick Shelness and Kevin Cavanaugh, taken at Lotusphere 2008. Kevin’s on the left.

David Ferris

One Comment

  1. Posted February 19, 2008 at 12:53 PM | Permalink

    It would be better to ask “all” the business partners (not just the premiers) on what it takes to get an install base at the SMB level. They have the feet-on-the-street in the small business sector. But there has to be incentive. Also, it would be worth the effort to get Lotus Notes into the community college “comp sci” programs. Community Colleges offer great 2-year programs and are becoming utilized more to offset the 4-year degree cost. This area is just flooded with Microsoft “for everything” because they focus teaching on VB, .net (not SOA) and networking. Of course, outlook comes preinstalled… not Lotus. So guess what favored email is installed/maintained when these folks get a job. When you mention Lotus to a college administrator they think you are talking about a spreadsheet.

    Rick MacGuigan – Metro NY Notes User Group
    http://www.lotususergroup.org/mnynug

  2. Posted March 6, 2008 at 3:38 PM | Permalink

    Well, this lotus foundations platform has been in the marketplace for over 6-7 years as “NITIX”. I think it will provide Lotus guys a serious leverage to compete in the SMB market. I am currently developing the channel for the upcoming Lotus Foundations launch, if anyone is interested in finding out more on how this will work.

    Feel free to give me a call at 1-866-384-8324 x320 or via email at bjaffery@ca.ibm.com.

    Regards,

    Bilal Jaffery

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