Who'll Win the Convergence Battle?
If the battle for the desktop was the story of the 90s, the story now is without question the battle for convergence. It's a far bigger battle, obviously, because this just isn't about productivity apps anymore or portals or stove pipe ERP-style integration. This is about everything, from what you watch on TV at night, to how you spend time while you're driving to work, to what you do once you get there.
CIOs are therefore much more likely to view IT firms, not networks suppliers, as trusted solution partnersSo, I'm sitting here reading another telecom business plan about attacking yet another aspect of the convergence challenge -- in this case how to provide managed security of all those disparate online assets. I'm also thinking that telecom (as in carriers) may not be the best place to place your bets. Here's why:
CIOs traditionally get their IT outsourcing from IT outsourcers, not carriers -- who, by the way, are probably ranked somewhere below cable companies in the area of customer service. IT outsources already run the data centers, supply the business applications, and manage the desktops. CIOs are therefore much more likely to view IT firms, not networks suppliers, as trusted solution partners whose input and support is valued.
It's also probably easier for IT outsourcers to move into the carriers' traditional markets than it is for carriers to move into the IT space. This is particulars true because CIOs and IT managers consider traditional network services as utilities. Little differentiates suppliers, except price; and as long as manager's get a great price, they are indifferent about which company supplies them. As a result, carriers have more to lose if they do not achieve share in high-value applications markets. They will face further commoditization and some will not survive. On the other hand, few believe IBM risks its survival should it fail to achieve a share of network services (although perhaps they should).




