How does one become such an important strategic vendor? Certainly having vast portfolio breadth gives a vendor the opportunity to sprinkle its products throughout a customer's IT infrastructure. And given the heartburn and switch-out costs of a rip-and-replace primary vendor change in IT infrastructure management, becoming that key strategic partner early on pays huge dividends for both vendor and customer.
Therein lies a substantial amount of the motivation behind Tivoli's mid-market offerings. Spinning out new delivery mechanisms and creating new sales channels to reach this market comes with costs, and the average deal size of engagements in the mid-market certainly isn't what Tivoli sellers are used to with larger enterprise customers. However, thinking strategically, we know that many of these mid-market customers will grow, and making our enterprise-class IT infrastructure management products accessible now gives us a head start on becoming those customers' indispensable strategic partner of the future, so it's a wise investment.
Establishing that foundation is also behind the decision not to create new, watered-down products for the mid-market, but instead to create new, more consumable delivery vehicles for Tivoli's enterprise-class products. By finding a way to make our enterprise offerings fit into the budget and IT skill sets of mid-market customers, we're establishing ourselves as the partner that can grow as the customer grows, without the prospect of costly rip-and-replace scenarios or having to learn how to use new IT tools. As we grapple with the challenges of meeting the needs of mid-market customers, we remind ourselves every day that our first sale with a new mid-market customer is not the end of an engagement, but the beginning of a long, prosperous partnership with a future enterprise customer.