Telco providers as services players - WIll they crack the code?

In the light of Commander and Volante, and Telstra and Kaz, someone mentioned to me the best way to make a small IT Services company was to sell to a mid sized firm to a telco and wait 1-2 years.
It seems to have a ring of truth to it across the region and globally, it is one of those things, and when that capability is extended to Application Services, telco providers struggle even more significantly.
11. December 2007 14:14 by Phil | Comments (0) | Permalink

Infrastructure outsourcing - Actions not words will make the CIO happy

I have seen some recent output looking at the competitive environment for Infrastructure Outsourcing in Australia and the broader Asia Pacific region. What was rather surprising to me was the level of acceptance that some industry watchers are placing on ideas and commitments to undertake infrastructure outsourcing in the region rather than actual 'real world' experience. An organisation typically lives and breathes on the infrastructure core. Therefore, when looking at the providers in the market I tend to be more comfortable with those providers who actually have had depth of experience and capability in the local market, not those who have talked about it loudly. That is why the Indian based providers (as much as I hate the generalization implied by the term), as well as Accenture need local proof points locally before they can be considered actual or potential leaders in the infrastructure outsourcing market in Asia Pacific. Infrastructure is no applications, nor by the same token is infrastructure capabilities transferable to the applications space (just ask a Telco). Talk is not enough. Running a data center in Europe or the US is different to running one in Asia Pacific. Just as the large outsourcers made the mistake of assuming a heterogeneous market in US, was transferable to the UK, then Australia and then Asia in the 90's and early 00's it will be disappointing to see the same mistakes again. Any entry needs to be measured, incremental and structured, the challenge for this is the high cost of infrastructure, and the need to spread costs through scale. Providers such as Infosys, Accenture and Wipro will likely provide this over time, but they need to get the customers who have the profile to run with their offerings before it becomes more mainstream, particularly for the enterprise audience.
11. December 2007 14:13 by Phil | Comments (0) | Permalink

Telstra Signs Significant Logistics BPO deal with IBM

IBM and Telstra are currently announcing to analysts a massive deal in terms of Logistics outsourcing, making Sam Palmisano's recent trip quite lucrative for them. Telstra is continuing to be an extremely lucrative account for IBM, although there have been some setbacks and a lot of competition around the application integration layer with Accenture. The level of IBM revenue from Telstra is increasing at a strong rate, one thing that is driving this of course is the strong relationship between the two CEO's, (something also shared by Accenture and Telstra), the challenge for IBM will be to get this level of relationship to permeate through the organisation where there is less reluctance to embrace IBM at a sub management level. In addition once the current management leaves Telstra it will be critical for IBM to ensure continuity in the relationships, particularly in some of the less friendly parts of Telstra (from an IBM perspective).
7. December 2007 09:20 by Phil | Comments (0) | Permalink

Is HP going to look at Symantec again

There have been long rumours and recommendations that HP acquire Symantec. From a portfolio point of view, it makes sense, it blends consumer and enterprise as well as infrastructure and the desktop. The price is also good for HP, Symantec is about 10% above the 12 month low, and in relative terms the stock has languished.

It would also give HP some comfort having missed out to date on the BI consolidation that it can make the big software plays. Microsoft may not be so impressed and Symantec's services partnerships disrupted, but it would put HP in the software big league and push it strongly from an integration infrastructure perspective.

The other possibility is that Symantec has largely taken the end to end security, risk and storage roadmap to completion. Would they look to middleware as a potential bridge for the applications, and perhaps consider BEA if Oracle does not win out.

As ever the world is always everchanging in software and the hunter maybe the hunted

6. December 2007 18:50 by Phil | Comments (0) | Permalink

Consulting firms are back again

I am seeing increased presence, capability and recruitment from the traditional consulting firms such as KPMG and PwC, this is most notable around risk management and sourcing strategies, but also in security and other advisory areas. I have of course touched on this before, but this year most will grow at double digit growth and are starting to approach a material impact on Accenture and other firms.

I expect this to only strengthen next year. Lets see what it means.

6. December 2007 18:47 by Phil | Comments (0) | Permalink


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