Disrupting the status quo

THIS IS an economy in transition. Buyers are seeking more value, and it is fair to assume that every major IT purchase will be made with scrutiny from finance and purchasing.

DEREK WIGGILL

There has also been a shift in ways of working: this is a world that depends on IP network connectivity. Consistent with the globalisation and "flattening" of the world, work today is performed with the IP network at its core, increasing dependency on business connectivity.

All this turns IT into a customer-driven market. The IT vendor landscape has undergone a major shift over the past five years, with vendors displaced by newer technology and value models. Organisations now buy only what they need, and they require low cost, high levels of service, and technological innovation from every supplier. There has never been a better time to consider IT upgrades and refreshes; customers have more choice and more leverage than ever before, and they are keen to explore new ideas for saving cost and increasing the return on their investment.

Historically, industry "disruptors" have often succeeded during a period of recession when customers were most open to new ideas. Previous downturns gave transformation leaders like Dell, Samsung, LG and Toyota the opportunity to overturn traditional norms by delivering a new standard for cost of ownership, a better customer relationship, and a young, advanced technology to drive faster innovation.

In many industries, disruptors have come from Asia, using their home-market advantage to build a strong local position based on the design, manufacture and sales of large-scale, high-volume deployments in Asia which are then proven, mature products ready for global markets.

Customers are already demanding no-compromise networking. The crucial criteria driving customer decisions are low cost, high levels of service and technological innovation. The network must not only cost less to acquire, but also to power, operate, manage and secure. It must offer a full range of interoperable, future-proof products and solutions backed by global stability and service. That can only be delivered by changing the traditional norms and following a different, proven business model.

We see the networking industry as ripe for this kind of disruption and transformation

About the author: Derek Wiggill is regional sales director, 3Com Africa