Wednesday 19 March 2008

Technology as a service

Terry doesn't sell services, he sells technology. This leads to a proliferation of service specific platforms, a migration nightmare for Terry's customers and additional costs for Terry as it makes platform closure more difficult than it should be.

What customers want is service, they don't (generally) care what the underlying technology is as long as their service requirements and SLAs are met.

Services should be decoupled from the technology used to deliver them. This has a number of advantages including:

- The ability to deliver the same service over a range of delivery technologies/networks (including ones that Terry does not own).
- The ability to change the delivery technology/network without having to change the service definition.
- The ability to offer converged services even if the underlying technology/network platforms aren't converged.
- Etc.

Terry is trying to decouple his services from the delivery technology but it requires a holistic approach and this is a new concept for Terry and one he is struggling with. By the time he gets there will it be too late?

3 comments:

Roark said...

Correction: Terry thinks he sells technology. He puts a wrapper on “modern” technology with ancient concept and out-dated business model, and turns around demanding extra from his customers.

Tell me the conceptual difference between IMS and SS7. By introducing SIP in IMS as the means to exchanges call messages, does it make it more advanced in terms of technology and/or service? While voice packets can be transmitted freely in the Internet between peers, why do we need yet another centralized server?

Terry needs to wake up and see the ever changing world fueled by the open Internet. In the old days, Terry can make money through the bundling of data delivery and services. To get any service, consumers have no choice but to pay Terry. Nowadays, data delivery is becoming cheap commodity. Services can be offered by anyone from anywhere.

So, Terry, don’t tell me that, since data delivery uses technology XYZ, I need to pay you extra for any new service.

Antiterry said...

Exactly, that's why I liken Terry to Reginald Perrin. Terry would like to think he is dead as he has embraced packet switching, IP & NGN etc. but really he is still alive and kicking and just using IP etc. as a disguise.

Terry needs to learn that he does not have to be a control freak and 'own' his customers at every layer. Rather Terry should embrace open platforms and allow anyone to delver service off his platforms and look to deliver his services over his competitors' platforms too. One great side-effect of Terry opening is platforms is that it leaves the regulator with nothing to regulate as Terry is being completely pen and letting anyone have access to his infrastructure to deliver their services.

There's more money to be made in selling services than infrastructure but if you are selling infrastructure you want as many people paying to use it as possible.

Roark said...

Absolutely.

Network infrastructure is cheap commodity nowadays. The trick is not to hold something that decreases in value, but to create as much circulation as possible.

So Terry needs to build out high-speed network access to each home, and embrace as many new application as possible. In the process, it will discover the most lucrative services, and can then focus itself to be "a player".

Isolating itself and dreaming up new services are not the way to create useful and profitable services.