You are currently browsing the VicBlog weblog archives for November, 2008.
21. November 2008 by Vic.
We are undergoing a terrible period world wide. Countries, like ours, that were previously the envy of the rest of the world, are experiencing crisis after crisis. Industries - like telecommunications- are vital to the infra structure that makes our world run. What we are seeing is a shift in the dynamic tension that keeps the economy afloat. Credit - used to pay for infrastructure improvements and efficiency- is dried up.
I find that the back bone of the economy - well run small and medium businesses- do not have access to capital. They are struggling to improve efficiencies to stay afloat. I think all of us will see that as more and more of these businesses discover that efficiencies can be expensed - “no need to own the cow to drink a glass of milk”- hosted servers, hosted applications, hosted IP telephony will be the most prevalent solutions.
The repercussions? They will be felt by the large manufacturers whose economies of scale are still based in production. Why should a 60 person office spend $60,000 on a system, when they can expense 100% of that by going with a hosted provider? I think that a cursory look at the downward spiral of Nortel stock price is a bell whether of what is to come- Avaya, Cisco and others- will fall in short order. I think that effective smaller manufacturers - like Shoretel-be stable. The winners? Hosted Providers!
Take a look at SNET (http://snetcommunications.net) and IfbyPhone (http://ifbyphone.com) and you’ll see what I am talking about. Specialized applications, small providers with great service and a small monthly fees. End users will be looking for the expertise to set the right suite of services and they will reap the benefits. The losers - will be the current titans. Large enterprises that are too heavily invested in technology.
But then again, that’s just this fat bald guy’s opinion.
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