“Educate them. But don’t OVER-educate them,” that was a former boss’s direction before pitching my former company’s solution to a client. He was afraid that if a prospect truly understood the economics of Cisco third party maintenance (“TPM”), they would choose to do it themselves rather than buying maintenance from us. My goal today is to “OVER-educate” you by opening the kimono on the economics of the industry.
Some years ago, game maker Zynga tried to do its own data center, they invested a considerable amount of money. But as the time passed, they realized that costs for data center maintenance increased appreciably as the data center expanded.
In the not so far distant past the world was roaring, and “rolling in the dough” so to speak; and third party IT maintenance was not very high up on the food chain. But lately, there hasn’t been as much “dough rolling,” and many organizations are turning to 3rd party IT maintenance to accommodate severe budget constraints and reductions in capital expenditures. Companies have been forced to retain equipment for longer periods of time, and organizations are doing more with less. What they are finding out is with third-party IT maintenance they can actually limit their service expenditures without compromising uptime or performance.
It seems to be a major industry trend over the last year as one company after the next announces more and more lay offs. Just more proof that our economy is still down in the dumps. Juniper Networks announced Tuesday, October 2nd, that they will be cutting 500 workers from their workforce. Sure it seems like a mere grain of salt in a big shaker when you compare it to HP’s 29,000 or Cisco’s 1,300 this year plus the 10,000 they announced last year. But, when you consider that Juniper only employs 9,373 workers this layoff will make up 5.3 percent of Juniper’s workforce.