Why change? Dell is Direct.

SMB
2 Comments

I’m going to try something new. I am going to write an eloquent post, in much the same way that I run my business and project my values through it.

There is a lot of discussion again about Dell being the fire-breathing dragon setting the lives and careers of small business professionals on fire and burning down the “channel bridge” they so often talk about building.

For those of you not familiar with this business allow me to sum it up for you:

Dell is a computer manufacturer whose motto is to go direct and compete in a market with tight margins and plenty of substitutes. Small business IT consultants are by nature middlemen that profit from service and product markups along with the overall solution design and deployment.

Both crowds are competing for the direct relationship with the customer because in the entire equation that is the most profitable variable. It is all about the customer.

Dell wins when they are able to sell their entire solution stack to the customer. Small business IT consultants win when they can sell their preferred solution stack to the customer, either because it fits better or earns them bigger margins.

Both pretend to want to do business with each other but neither is willing to give up their ground of owning that direct financial relationship with the customer.

So they lie to one another. Dell lies to the partner community by telling everyone they are very focused on the channel, that the entire company history and culture of “going direct” is going to flip on its back for a handful of SMB IT consultants. SMB IT consultants in return go back to the villified vendor for their computer equipment because they are the cheaper and the easiest of the computer manufacturers to purchase from due to their direct nature and service delivery.

The two coexist when its convenient and fight when nobody is watching.

So why is it a surprise to some that Dell is not a channel friendly company, and why is it a surprise to Dell that its channel partners are not feeling the love from their partners as it offers one critical SMB IT Consultant service after another? Onsite delivery, onsite repairs, proactive managed services, cloud services, etc?

Why is everyone so surprised that people in business talk from both sides of their mouth?

Because in business the only thing that matters is money and where you can make more of it. Wise business people take Dell at its face value, understand the number of the beast, understand the conflict and find a profitable way to work around it. Others, for whatever self-deprecating reason, choose to think they can change the status quo that has been around for over a decade in a very profitable way.

SMB IT consultants like to talk about ethics, about the importance of staying small, about the importance of local commerce and doing business within your community but I can tell you that statistically speaking SMB IT Consultants would rather do business with anyone but one of their own. I had never set out to build OWN by contributing to the community, I did so because I wanted to help build on a movement that helped OWN break through and grow by learning from peers. All the while I was writing Vladville guides, video blogging, SBS Show, I got a lot of atta-boy but in equal measure I got a lot of recommendations not to do what I do for free. I was messing up the commercial life of selling advice to the SMB IT community. I didn’t stop. Want to know what finally made me quit?

“Several hundred people, by my best account, would call me having heard of our great products and services and instead of giving me the business they said: “I love what you do for the community, but business is business.” That’s life I suppose, and I just helped train and promote the very people that took their money and gave it to my competitors.”

SMB IT consultants chose to run their business without emotion or gratitude.

There are no hard feelings over that here, OWN has made a lot of friends, I have made a lot of personal friends and despite or maybe in spite of all that I chose that we were going to run a professional business no matter what.

Dell chose the same. They go direct.

Words are just words, marketing and empty promises don’t generate revenue or pay salaries or grow businesses. They just keep gullible going for a little while longer, always falling back to the culture of the company.

If we all could admit to ourselves what our strengths and competencies are and focused on them instead of portraying what we wish we could be, we’d all be a lot better off. If we could focus on improving ourselves instead of criticizing those that don’t appear to be what their marketing implies that would be even better.

Damn it feels good to be a gangster…

Microsoft
6 Comments

After over a decade of sending money to Redmond in dumptrucks it is finally starting to trickle back. Damn it feels good.. 

 Untitled

Now, I’m not going to lie, the first thing I thought of when I got this was to take it to the bank and get it all in as small of a coin as the mint will cut and reenacting “Ooo.. Aaa.. Kyle’s money.. it feels sooo good on my skin” from the South Park episode you can see here.

It will unfortunately go to something far more boring than that after the receivables crunches it into some bank account. But not before I scan it into a clock from Cafe Press and wear it around my neck at WWPC…

flavaflav11“Pimpin’ so strong I sold software to Microsoft.”

Flavor flaaaaaaaaaaaaaaaaaaaav..

Hacking OWN support

OwnWebNow, Shockey Monkey
2 Comments

For the past two days I have been working on hacking OWN support, or to put it more specifically, trying to do proactive technical support for questions you haven’t asked yet.

While this problem is easily fixed by saying “RTFM” we find that doesn’t reflect too well on our customer satisfaction. Saying it politely doesn’t work either “Could you please, please, please read the documentation?” and the bloat of trying to reach people in the way that they expect the information to be presented is starting to grow. There are videos, whitepapers, frequently asked questions, blog posts, wikis.. the reality behind this approach (as disorganized as it may seem) is that it’s as such by design because both of our customers that read the documentation don’t actually read it but scan the page for the content they are looking for. So jamming everything in a single place, single location leads to information overload and effective shutdown of the nervous system which then leads to a support request anyhow. While we have built a templated response system of canned responses, its pretty demotivating for the support staff to work on problems that have already been solved a thousand times. It also reflects very poorly on my organization because it kills the problem solving skills:

“If you don’t feel stupider by the end of the day you aren’t doing your job.” –Vlad Mazek, June 12th, 2008

Who would want to work under those circumstances? It takes me about 10 minutes to get back to the complex things I generally work on after I’ve had to explain to someone how the Internet works in their lingo and technical competence. And people ask why OWN doesn’t do retail work or answer sales calls – it’s a filtering mechanism folks – it separates people that can read and click on things from the people that need the following:

DRaaS

I am calling it Documentation Reading as a Service. Basically once a new order is processed by Shockey Monkey the system will look to see if this is the first order of this type. If it is, the system will generate an appointment request in the partner account managers system and shoot a copy to the customer as well to negotiate a time for DRaaS to be rendered. In addition to the email coming out with all the documentation, FAQs, PDFs and other filler nobody will ever read, we’ll now have an appointment for the OWN drone to call the client and render DRaaS:

OWN: Hi, this is _____ from Own Web Now, you just signed up for ____ and I wanted to give you a call and thank you for your business.

Client: Wow, you’re not an Indian?

OWN: Thank you very much so kindly. Now listen, I wanted to give you a ring and introduce myself and just go over a few things with the service that might save you a lot of time and a lot of grief as you go along. Do you have maybe 3 minutes?

Client: No, but I know you’re going to call me back so I’d rather talk to you now than dodge the callerid for the next month. Shoot.

OWN: Ok, so you signed up for ___. Now just like with all of our products, the support is free and unlimited, you can open as many tickets as you want and we’ll respond within two hours. If its urgent you can set a higher priority for a few $ more and we’ll work on it immediately. Now, I see that you got _______ service, are you familiar with it?

Client: Yes, I’ve been in IT for 200 years, actually Pascal stole my idea for a calculator and the queen saw right through him when he tried to show it off.

OWN: Wow, that is fantastic! Amazing story. Ok, well, I won’t take up too much of your time, just remember when you’re doing ______ – read the entire FAQ title section in a hyper exciting voice.

Client: (God, I hope she didn’t call my toll free number)

OWN: So thats pretty much it, you’re now an expert at ______.

The big idea with DRaaS is to answer the support questions we know we’re going to get and also give them an idea of how the whole system works so that they at least have a starting point when it comes to documentation. When people see a 30 page document they do what every 8 year old does – there are no pictures in this book! So if the DRaaS gives them a jumping point to at least realize how the system works they can look up details on their own. You can read more about it in my upcoming book, DRaaS Encyclopedia, available as a preorder at $49.99; Just one page, for the busy professional on the go! But since you’re reading my blog I am going to give it to you for free:

draas

The other aspect hidden behind DRaaS is that it sets expectations right away. If we’re about to lose a customer because they didn’t know what they were getting into or they sold something we don’t make its probably better for both of us to pull out before we end up in a nightmare scenario of trying to do something custom (expensive) and both losing.

Jokes aside…

Looking at the statistics, it’s painfully obvious that most support requests are not just originated out of the clients ignorance but our own inability to communicate and set the expectations. The documentation sucks because the clients don’t read it and expect it in both encyclopedia that can be Googled and the short FAQ form that they will not comprehend because they have 101 level understanding of the underlying concepts which are supposed to be answered by the documentation originated by the dude that wrote the software and was translated into plain English by someone that drank too much in college. It’s a cycle of incompetence in which everyone loses money – we answer questions over and over again, client base is frustrated that it has to ask them to begin with, the end customer is getting billed for it all along and nobody gets to prosper because the system is broken by design.

I’m sure people would love using our software far more if they didn’t have to learn how to use it first.

Let’s hope DRaaS can fix that. I’ll give you an update a few months from now and let you know how it goes. If someone can think of a better name than DRaaS please post it in the comments.

Now off to monster.com to find someone with a sultry voice that men and women would want to listen to.

Today we all got a little richer

Microsoft
4 Comments

Today Yahoo announced that they have ended talks with Microsoft over the possible takeover. They adopted a strategy of teaming up with Google which makes them unattractive for any other takeover speculation which may put lawsuits that wanted Microsoft’s bank account to rest.

Who won in all this mess? Well, we all won a little. Some more so than others.

Yahoo! won.

Yahoo! will not be burried in the big blue monster that many other startups went under to never be heard from again. This means the awesome technology Yahoo still has will have the chance to grow up in the silicon valley. With many senior staffers leaving new people will step into the roles and do big things. Yahoo is just fine.

Microsoft won.

Microsoft won on two fronts: financial and emotional. Financial is easy point at, they won’t be overpaying for a portal like other big companies did. Remember that AOL transaction, how did that pan out for Time Warner? So Microsoft saves a little money.

Microsoft won in a really big way, and has an opportunity for a slam dunk if they can find the people and empower them in a way to work like a startup that doesn’t have to worry about VC funding.

For the first time outside of Office and Windows family, Microsoft has a chance to prove that it can actually build a technology instead of buying, acquiring, disemboweling, castrating and crippling innovative solutions others put together.

If Microsoft can embrace this opportunity and go into the build mode – with the kind of resources and platform they have available – they will be unstoppable. Microsoft got a gift here, what will it do with it?

We won.

Most of all, we all won.

We won because Microsoft will not be able to continue business as usual and acquire the biggest kid on the block to smash into the mass market as they have done with virtually everything they do. This means Microsoft will have to think smarter, faster and focus on quality – something that most of us would love to get from Redmond.

We won because Microsoft will not be able to extinguish the technologies that compete with them for the 2nd and 3rd tier – blogging and social platforms, chat, webmail – you name it, we will still have a number of choices and when there is no clear winner there are always a lot of players.

We won because Microsoft didn’t get its hands on Zimbra – the only legitimate contender with Microsoft Exchange IMHO. This means Exchange gets to flourish, as does Zimbra. Nobody gets to rest, so we all win.

We won because nothing has to die. Yahoo stays Yahoo. Microsoft stays Microsoft. Google stays Google. There is no “synergy” in this equation, meaning your del.icio.us will not have to migrate into Live.com crapware, flickr won’t have to become part of Google Picassa, etc.

Whoever becomes the dominant solution will now have to do it because of the work they put into their business…. and isn’t that really the triumph of American capitalism, that you get to fight for what you want?

Preferences, Choice and the value of No

Misc
1 Comment

One of the personality faults I am still trying to work out of my engineering brain is that not all problems need a solution. Making a transition from a purely technical problem-solving personality to a CEO and someone that motivates the organization to get things done and remain agile is challenging, even more so as the number of cooks in the kitchen grows and number of problems to deal with grows exponentially.

Today I was calling in to place an order, a generic good that I can get anywhere. I struggled through the accent with someone that must have washed up on the coast of California yesterday and I wanted to pay with an Amex. They only took Visa and MasterCard.

Now, a few years ago I might have let that bother me, I might have asked if there was an alternate form of payment, if they had a discount if I gave them a less “consumer-friendly” card, etc. Today, I just politely thanked her and went to the next number on the list.

The beauty of choice, commodity and global markets is that you have a lot of choices. You have the right to have a preference, as much as they have a right to say “No, we will not do business with you under those circumstances” and you can either make things easy and capture every possible sale or draw a line in the sand and only do the kind do of business that you want to do.

In the end, I didn’t get upset, I got exactly what I wanted under the terms that I wanted and it didn’t distract me from the mission I set for myself today.

Hakuna Matata.

Monkey Knowledge

Shockey Monkey
1 Comment

One of the most challenging tasks in running Own Web Now is the information sharing. While we’ve really worked hard to get together with our partners on a number of fronts in terms of activity and service notification, our ability to offer the documentation and knowhow is still lacking mostly because it sucks internally as much as it sucks externally. We have no fewer than four places in which we keep our KB data (between SharePoint, internal blog, www.ownwebnow.com/help support wiki and our development PF). Having this KB data out there in a way that people could count on would save a ton of support requests if we could just update our documents in the same location. So:

Enter Monkey Knowledge Base

I shot a 5 minute video to explain this to you.

What is hilarious about this is that it took less than two hours to develop the feature and tie it into all the other systems we currently use. Features:

  • Organization-wide knowledge base accessible through the portal
  • Company restrictions, allowing you to mark certain KB articles as private to a given company if you’ve written specific documentation for them
  • Rich HTML KB article editor, which allows cut and paste from Microsoft Word
  • RSS feed for external syndication with your public web site, SharePoint
  • Support ticket to Knowledge Base article conversion is a one checkbox click process.

And it’s fully integrated into the portal so its in a place where your clients are already logging in to review invoices, pay bills, request support, manage contacts.

What I didn’t say, and what you’ll have to read between the lines for, is what we can do if features like this are doable in less than two hours. If all the clients are used to this portal, which now includes free integrated email-to-ticket creation and updates, and it’s already used to order, bill and report for services, what more could it possibly do in the hands of Own Web Now? 🙂

Keeping it simple… So everyone can figure it out. By the way, there is another cool way to keep up with Shockey Monkey, check out our Twitter page at www.twitter.com/shockeymonkey

Nobody ever reads asterisks anyhow..

Apple
1 Comment

attiphone3gsv1

What would help your virtualization efforts?

Microsoft, Mobility
Comments Off on What would help your virtualization efforts?

Dave Sobel, cohost of the SBS Show, wants to know.

Dave is putting together some content around virtualization with the SMB focus and is taking on all advice you wish to pass on.

I cannot stress this enough. It is ALL about the tshirt!

Microsoft
7 Comments

Man, it sucks when Vlad is right. The tribe is lighting the torch and this time going after Kevin Beares, possibly the nicest person working at Microsoft. What did Kevin do wrong? He didn’t offer a free tshirt or $10 for a survey and is stuck at 250 responses in two weeks.

So, ‘let’s see if we can beat that: FILL OUT THIS SURVEY AND WIN A FREE TSHIRT.

Is this the beginning of the end?

Apple, Microsoft
7 Comments

Apple is coming on strong. Read the live coverage of the WWDC Keynote. Most paralyzing thing for me as a Microsoft Partner?

“You’re witnessing the birth of a third major computer platform: Windows, Mac OS X, iPhone”

According to the new business at Own Web Now that’s very true. Microsoft is definitely losing their grip on the dominance and the app space is opening up. Microsoft PDC can’t come soon enough.

F me running, now we’re going to have to support Entourage instead of treating it like Outlook’s retarded half-cousin.