Feeds

Business is slow. Here's a good idea, let's compete with customers

Enterprise vendors: You really wanna become service providers?

Beginner's guide to SSL certificates

Storagebod Should enterprise vendors consider becoming service providers? When Rich Rogers of HDS tweeted this my initial response was:

This got me thinking. Why does everyone think that enterprise vendors shouldn’t become service providers? Is this a reasonable response or just a knee-jerk, “get out of my space and stick to doing what you're good at” reply?

It is often suggested that you should not compete with your customers. If enterprise vendors move into the service provider space, they compete with some of their largest customers: the service providers, and (potentially comprising all of their customers), the enterprise IT departments.

But the service providers are already beginning to compete with the enterprise vendors. More and more of them are looking at moving to a commodity model and not buying everything from the enterprise vendors. Larger IT departments are thinking the same. Some of this is due to cost, but much of it is because the Service Providers feel they can do a better job of meeting their business requirements by engineering solutions internally.

If the enterprise vendors find themselves squeezed by this, is it really fair that they should stay in their little boxes and watch their revenues dwindle away? They can compete in different ways. They can compete by moving their own products to more of a commodity model, which many are already beginning to do. They could also compete by building a Service Provider model and move into that space.

Many of the enterprise vendors have substantial internal IT functions. Some have large services organisations, some already play in the hosting/outsourcing space. So why shouldn’t they move into the service provider space? Why not leverage the skills that they already have?

Yes, they'll change their business model. Of course, they will have to ensure that they're competing on a level playing field, and look very carefully that they are not utilising their internal influence on pricing and development to drive themselves an unfair competitive advantage. But, if the Enterprise Vendors feel they can do a better job than the existing Service Providers by driving down costs and improving capability in this space, then more power to them, I say.

Indeed, if an online bookstore can do it, why shouldn’t the Enterprise Vendors? I don’t fear their entry into the market; in fact, history suggests they've made a hash of it so far…but, guys, as far I'm concerned, go ahead and fill your boots.

And potentially, it improves things for us all. As the vendors try to manage their kit at scale; as they try to maintain service availability; as they try to deploy and develop an agile service, we all get to benefit from the improvements. Service providers, enterprise vendors, end users … everyone benefits. ®

Remote control for virtualized desktops

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Do you spend ages wasting time because of a bulging rack?
No more cloud-latency tea breaks for you, users! Get a load of THIS
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.