Everyone has been seeing the economic slowdown and the effects it’s having on industry and commerce in general. I’m sure you’re as sick of hearing the sensationalist headlines and sob stories as I am but we do need to take stock of it and understand how it affects the Telecommunications market.
Due to my proximity to various Carriers and Vendors I’m starting to get a clearer picture on how this “slowdown” is manifesting itself in the Telecom Market. Now, this is not a comprehensive study of the purchasing processes of Carriers and their Customers, but rather a cursory observation from someone who simultaneously touches many sides of the issue.
There are two observations that specify what I am seeing:
“Carriers are running their networks hotter.”
and
“The same number of ports are being sold but they are selling for a much lower price”
If we consider both of these and try to understand them from a Vendor point of view I think we need to put ourselves in the Carrier’s shoes. It seems to me that most of the Carriers are considering their purchasing decisions like this:
Strategic Decision – “We will not purchase any new networks or take advantage of any new technologies because we want to squeeze every last bit of value out of our last Strategic Purchasing Decision”
Tactical Decision - “The demand for Broadband Services is still high and we are seeing more and more competition for the same Enterprise Customers. The only meaningful differentiation to Enterprise Customers is Price. Therefore we will take the lowest cost option that meets our (and our Customers’) requirements.”
What do you think? I would love to hear your comments on this one!
{ 2 comments… read them below or add one }
Interesting site! I like what you've done with the Thesis Sharp skin here!
Thanks for the complement!
Your domain tells me that you are part of the Thesis Theme development. If so can we establish email communications? I have a few questions about some of the features and about compensation
John