There’s no doubt that the small-to-medium business (SMB) market is hot right now, not only in the U.S., but globally. It’s possible that the SMB will even outpace the enterprise in overall spending on technology in the next few years. That makes SMBs critical for laptop manufacturers, which have created a market with a variety of options. “If you really want to conquer the market, you have to target the SMB specifically,” said Yankee Group SMB analyst Gary Chen.
 

Manufacturers such as Dell and Lenovo have taken pains to add new products and services that cater to SMBs. While laptop manufacturers have realized that the SMB market is important, it has to be approached differently than other segments. And that is something vendors are only just beginning to understand.
 

“They are doing an okay job of approaching the SMB,” said Chen. “Lenovo and all the major OEMs have identified this as important and have pilot lines and special sections on their Web sites. But they can do better. Dell has a little bit of a head start, and I think they are really starting to get the SMB market.”

There are a number of factors that separate the SMB from the enterprise market. Among them are different educational needs, different purchasing cycles, and vastly different requirements for post-sale services. SMBs often require more hand-holding when it comes time to purchase new equipment. Because they typically don’t have IT staffs, the owners or purchasers sometimes have to be educated to understand what they need in order to navigate the selection process more successfully. SMBs can’t be force-fit into an enterprise or consumer model--even though they tend to purchase like consumers do. They simply want to run their businesses effectively.
 

Once SMBs know what they want, they will purchase more quickly than the enterprise. “Small businesses purchase as they need to. It’s not uncommon for an SMB to buy two new notebooks when they hire two new people,” said Robert Thompson, senior product marketing manager with Dell. “In contrast, enterprise customers spend a lot more time testing and evaluating notebooks. The testing cycle might take three months, and then the enterprise will deploy the same notebook across the entire organization over a 12- to 18-month period.”
 

SMBs often want the latest and greatest technology just like everyone else, but at the end of the day, they are most interested in value. Because they’re more cost-sensitive, SMBs would rather spend any extra money on the services that come with their new hardware than on the hardware itself. This means SMBs need to be able to rely on their hardware manufacturer to provide support after the sale, which becomes the biggest differentiating factor for laptop manufacturers.

Dell has already figured this out and recently launched its Vostro line of SMB-focused products (laptops and desktops) and services. Vostro offers a host of features that SMBs can use after the sale to keep their systems up and running. These include a 10GB online backup service, a one-year PC tuneup, and access to trained technicians who are available 24/7. “When you look at the small business,” said Dell’s Thompson, “the kind of IT ability ranges across the continuum. Even talented, tech-oriented small businesses shouldn’t have to spend time maintaining their systems. We do it for them.”
 

Dell isn’t alone. Lenovo has taken a number of steps to better reach the SMB customer. Thomas Ribble, director of ThinkPad product marketing, said that Lenovo recently completed a massive recruiting campaign targeted at resellers in the SMB space and has implemented a number of channel programs and incentives specifically geared to the SMB reseller. For example, Lenovo partnered with D&H Distributing in August 2006 to reach about 1,000 resellers in this space.
 

Then there’s the Lenovo 3000 line of notebooks and desktops, which is designed specifically for the SMB user. These PCs feature services such as Lenovo Care Tools, which help with password resets, one-button recovery, automatic updates, and simple network connectivity and management. Users can also take advantage of Lenovo’s fee-based technical support, Lenovo Experts Live, for questions and issues beyond the scope of warranty.

HP is tackling the SMB market with its own set of targeted products. “While an SMB customer can buy across our business notebook portfolio, and they do, we specifically gear our S-series products toward SMB customers,” said Carol Hess-Nickels, director of HP’s worldwide business notebook marketing. Examples of these products include the 6720s and the 6820s notebooks, which have business-geared features that fall into three key areas: Security (Disk Sanitizer), Ease of Use (integrated SD Card reader), and Reliability (HP DriveGuard). “These three pillars make these notebook PCs more appropriate for SMB customers than consumer-designed notebooks that focus more on entertainment features.”

“The ultimate goal,” said Yankee’s Gary Chen, “is to produce a good product and satisfy your customers with the service. What that really means for the SMB is to have the appropriate channels for them to reach you.”
 

Most of the first-tier notebook vendors are doing this. It’s important to have an infrastructure in place that trains and organizes people so they’ll deliver fast and responsive service. In many ways, the laptop manufacturer becomes an extension of the SMB’s IT staff. Having a dedicated point of contact and making SMBs feel like they matter when they have questions is key.

In the end it boils down to performance. “It’s the basics,” said Chen. “You have to execute. But it’s not that easy to accomplish.”