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4. Targeting The Windows Client
================================
Customer Profile
----------------
Windows Client customers will have some or all of the
following attributes:
Desire to add functionality
Potential Windows Client customers should be sensitive to
needs in the user community for enhanced functionality on
the users desktop. A well qualified Windows Client
opportunity would be one where there was a strong desire to
add PC or client/server applications, multi-session
capability, multi-host access, color, Windows GUI, or other
Windows Client capabilities.
Management, security and control
Prospective Windows Client customers should be sensitive to
system management, security, and control. Customers with
terminals can move to the functionality traditionally
provided by PCs without losing control. Customers currently
using PCs can regain control by moving to the Windows
Client. The security and control advantages of the Windows
Client will particularly appeal to customers planning to
move mission critical OLTP applications from a terminal to a
client/server paradigm.
Price Sensitivity
A Windows Client candidate will have enough budget to move
away from the lowest cost-per-seat attribute of the terminal
while still remaining cost sensitive. If they have a "price
is no object" budget, they will probably buy a traditional
PC to gain as much power and functionality as available.
MIS influence
One key attribute that must be in place for the Windows
Client sale to be successful is a strong degree of influence
by MIS over the planning and acquisition process. MIS will
be able to position the Windows Client in the context of the
entire organizations' needs and the overall MIS strategy,
thereby helping to sell it internally.
Appropriate fit
Windows Client employs a focused design to make it a better
fit and a better value for terminal alternative
environments. The "Qualification Checklist" below lists
specific requirements for a qualified Windows Client
environment.
Table 4.1. Qualification Checklist
Network installed or planned
o Ethernet
o Physical LAN infrastructure (hubs,, wiring,, etc.)
o NetWarel or LAN Manager
Configuration requirements
o No local hard disk
o No local floppy drive
o No I/O expandability
o No co-processor support
Budget
o Supports higher cost/seat than terminals
o Price sensitive
Terminal Alternative Opportunities
----------------------------------
Terminal alternative for new systems
Your primary opportunity for selling the Windows Client is
to customers installing new systems. In this sales
situation, you can offer your customers all the functional
advantages of the Windows Client without compromising the
security, control, and ease of management typified by a
terminal. Because these customers are already qualified as
willing to spend a significant amount of money (for a new
system), you are in a good position to "sell them up" to a
Windows Client. These customers currently use terminals
(not PC clients), and therefore their users will not have
the expectation for traditional PC functionality (hard disk,
floppy, etc.). However, you will need to qualify these
customers' willingness to go with a networked environment.
Terminal Upgrades
Some customers with installed terminals may wish to upgrade
to the Windows Client either to provide terminal users
access to PC or client/server applications or to move to a
superior terminal interface such as multi-session, multi-
host, Windows, and color. These customers need to be
qualified as to their price sensitivity and ability to move
to a networked environment. A strong motivation to upgrade
is required to justify the investment of $1000 (or more) for
each Windows Client.
Networked PC alternative/upgrade
In selected situations, the Windows Client makes an
attractive alternative solution for customers using or
planning to use networked PCs. A near term opportunity
exists with customers that have 286 (or earlier) that need
to be upgraded in order to move to a Windows GUI. Your
primary selling proposition is the Windows Client's lower
solution cost and simplified system management. Because
these customers are today using PCs, you need to carefully
qualify these opportunities to insure the customer does not
need PC features that are not provided by the Windows Client
(e.g., integrated mass storage or I/O expansion).
Figure 4.1. Windows Client Opportunities
Focusing The Sale
-----------------
Major accounts
o Focus on MIS: The benefits of the Windows Client play
best with the MIS community. This is where the value
proposition of the Windows Client is best understood. MIS
will value the benefits of system management and centralized
administration. They will also have the understanding and
the methodologies required to evaluate system sizing, system
implementation requirements and the foundation needed for
future client/server growth.
Once MIS has adopted the benefits of the Windows Client, the
MIS community will be able to effectively "sell" the Windows
Client to the user community because they can offer a
solution that doesn't compromise the users needs.
o Financial decision maker: The financial decision maker is
also important in the Windows Client selling process. A
significant part of the value proposition is the savings
that can be realized by taking advantage of the Windows
Client solution.
As an example of the savings that will drive a financial
interest in the Windows Client, look at the numbers in a
100 unit Windows Client sale. With savings of up to 40
percent over comparably configured PCs, a 100 unit sale
could save as much as $800 x 100 units = $80K.
o Contract leverage: The Windows Client will be on Exhibit
A2000, column II (9 to 22 percent). Customers will
receive full contract leverage for their Windows Client
purchases.
VARs
o Business potential: Because traditional PCs are over
distributed and aggressively priced, your VAR's customers
may be going to an alternate source to purchase their PC
clients. Windows Client pricing will allow VARs to
recapture some of that lost revenue, which could total as
much as 1/2 of the value of the system portion of the
sale.
o Better margin for VARs: The higher margins offered to
VARs make the Windows Client a more attractive solution
to sell than PCs. Windows Client will be available to
them on the A2001 exhibit (column I) at 15 to 28 percent
discount (US). This is much higher than the 16 to 18
percent discount offered to CPO VARs for Vectra PCs
(U.S.). This will allow VARs to realize greater profit
on their existing business or more aggressively structure
their solution pricing.
o Contract leverage: VARs will receive full contract
leverage and milestone credit for Windows Client sales.
In addition, VARs will receive IMPACT program funds.
Distributors
o CSO Distributors and Windows Client: CSO distributors
will be able to re-sell the Windows Client to their DARs.
Windows Client will be available on Exhibit A2T05,
column I.
Sales Guide
July 1993
For Internal Use Only
HP Windows Client
Model 425SX
Chapter 4
Technical information in this document is subject to change
without notice.
(c)Copyright
Hewlett-Packard Company 1993
All Rights Reserved. Reproduction, adaptation, or
translation without prior written permission is prohibited
except as allowed under the copyright laws.
Printed in USA RO0693
5091-7451E