Tata Communications has emerged from its role as an incumbent Indian service provider to become a globally recognized provider of network connectivity services such as MPLS, Ethernet and IP transit as well as managed hosting in data centers, voice, data, and video.
Tata Communications is starting to measure up to global carriers. I’ve received a number of inquiries on Tata Communications’ regional and global carrier wholesale strategy, as well as its market focus. This increased interest among Forrester clients is a sign that Tata Communications is getting some things right in its carrier business, as the aforementioned global MPLS report makes clear. Its continual network and cable investments are paying off for the service provider.
with Brownlee Thomas, Ph.D., Henning Dransfeld, Ph.D., Bryan Wang, Clement Teo, Fred Giron, Michele Pelino, Ed Ferrara, Chris Sherman, Jennifer Belissent, Ph.D.
Orange Business Services (Orange) recently hosted its annual analyst event in Paris. Our main observations are:
Orange accelerates programmes to get through tough market conditions. Orange’s’ vision in 2013 is essentially the same as the one communicated last year. However, new CEO Thierry Bonhomme is accelerating cost saving and cloud initiatives in light of tough global market conditions. The core portfolio was presented as connectivity, cloud services, communication-enable applications, as well as new workspace (i.e., mobile management and communication apps).
Orange proves its capability in network-based services and business continuity. Key assets are its global IP network and its network-based communications services capabilities. In this space, Orange remains a global leader. These assets form the basis for Orange taking on the role of orchestrator for network and comms services, capabilities that have (literally) weathered the storm, proving its strength in business continuity.
I attended my fifth Cisco Worldwide Partner Summit in Boston the first week of June. As always, the first day’s keynote presentation by John Chambers was impressive and covered market transitions, opportunities, future big bets, and how Cisco can work better with its partners. John also stressed the need for partners to embrace change and move to a new business model.
Building on this presentation, Cisco made three key announcements at its partner summit, which I’m highlighting below because I believe they are especially important for partners that operate in Asia Pacific (AP) markets:
Cisco has committed to doubling its investment in the mid-market space globally from US$75 million to US$150 million in FY2014: Typically perceived as a large enterprise-focused company by partners and mid-sized businesses alike, Cisco’s announcement that it would double its investment in demand generation activities, building its mid-market portfolio through new products (e.g., the low-cost router developed in India) and through acquisitions (e.g., Meraki), and incentivizing sales people is very timely. With a large mid-sized business population in Asia Pacific, proactive efforts toward creating a mid-market brand will help establish Cisco more firmly in the space.
Cisco dCloud, a cloud-based demonstration service for partners, is now available: One of the major challenges for AP-based partners is their inability to invest in costly demo equipment or visit vendor demo solution centers. The availability of Cisco dCloud will not only help partners increase their chances of winning a deal, but also potentially help them reduce the sales cycle, making it a profitable deal.
Today's re-org at Microsoft comes amidst mixed success as they straddle the gap between capricious individual consumers and the cash-strapped, risk-averse needs of enterprise IT buyers who find themselves years behind the demands of their own capricious workers, who are also consumers when they go home. Windows 8 shows us that Microsoft has more learning to do about where to place those bets, but we also think their work on server, cloud and hybrid cloud is excellent, and that their longer-term strategy is viable. We see this organizational re-alignment as very positive.
The Server and Tools Business becomes Cloud and Enterprise Engineering Group
Satya Nadella and Scott Guthrie both have done a great job of driving Agile development and continuous delivery into every team in STB and that is resulting in faster moving and more compelling products and services. They deserve a lot of credit for this and so putting even more under them seems a good thing. The key is whether it is the right things.
For perspective: one of Microsoft's greatest strengths is that they give smart people development tools that are extremely easy to use and deceptively powerful. So much so that generations of developers will commit themselves and careers to mastery of Visual Studio, for example. Microsoft democratizes software development by lowering the barriers to entry like no other company. The shift to cloud gives them the chance to do it again, and the improvements in Visual Studio 2013 shown at BUILD in San Francisco are superb and stretch smoothly from the datacenter to the cloud.
Sourcing professionals already understand the importance of monitoring financial performance to assess risk in their key suppliers’ ability to deliver commitments. Sometimes sourcing professionals can also find valuable negotiation leverage in the financial results of their key suppliers, as is the case with Oracle’s Q4 2013 numbers . In my opinion, the revealing aspects that you can use to increase your bargaining power over the next couple of quarters, include: