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What If Yoda Ran IBM?
Esther Schindler writes to mention that one IT leader who came from big business found himself in quite another world when he transitioned into a smaller business, specifically with respect to the amount of attention from their vendors. He presents an amusing approach with a familiar twist. "Not only are the IBMs of the world leaving money on the table, they're also risking future sales. The IT leaders at small organizations will in many cases be employed by larger organizations someday. Why alienate them? Vendors could engage IT leaders in small organizations now and build brand loyalty. How could they make such a business model work? Let's imagine (with apologies to George Lucas) what Yoda might do if he were running a large consultancy."
Which might be a Good Thing.
Engineering is the art of compromise.
Every quarter, each publicly traded corporation must feed JabbaTheStockAnalysts, who will deem them more, or less capitalized by their whimsy, the weather, and other important factors.
Yoda doesn't have a chance.
---- Teach Peace. It's Cheaper Than War.
Tag: stillsuckitwould :-)
These build a healthy industry in which you can play. Complete dominance of an industry is unhealthy (look at Old IBM or M$). Having competition gives you feedback which is vital for the long term success of a company. Trying to be all things to all people dilutes your business strategy too. Far better to leave some opportunites unexploited.
Engineering is the art of compromise.
All Yoda would have to do is look at any company and just say: "No, too old"
Some of the companies would then get really bent out of shape and turn evil later, while other ones would just annoy Yoda until he gave up and threw them a support contract he never has to fulfill since he dies!
AntiFA: An abbreviation for Anti First Amendment.
Well, let's see. If Yoda ran IBM of the 1980's like he ran the Jedi Counsel, he'd probably remain fixed in his devotion to the old ways, overlook some growing threat and then watch helplessly as the order he watched over was overcome and twisted into an empire of unimaginable might.
Wow. Thank goodness that didn't happen.
Your courageous and selfless spelling corrections have made me a better person.
The company would be called Machines Business International, Yes.
The CEO would be Steve Ballmer, the company would be run out of Redmond, WA, and it would market the dominant desktop OS in the world. But Yoda would think he was still in control running things out of Yarmonk.
On the other hand, their servers would run quite well in damp conditions.
Edith Keeler Must Die
"During my first year at Sequoia I concentrated on improving the processes that affect operational excellence." ... I annoyed the F*&%( out of the people who did the real work.
"With these processes largely working, I must now spend my time providing a technological vision" .. when they started ignoring me, I came up with lots of useless documents, to pretend that I was actually worth the ridiculous sum I was paid.
But once our mighty Vista of Death is completed ... no one will be able to stand up against
Emperor Gates ...
We will find and finally destroy iRebels!
I have been saying this same thing for years with regards to IBM's AS/400 platform. Anybody who has every worked with one of these machines will tell you that they are absolutely, hands-down, the greatest database box available today.
But.
The only people running Os/400 are huge financial institutions who's annual I.T. budget ranges in the Millions of dollars. I can't get a copy of OS/400 to play with. Just can't do it. Not unless i want to spend a month's salary on it. Even then, i can't really DO anything with it (maybe have one connection to the database at a time).
Now take linux/mysql. I use this combo ALL OVER THE PLACE. Any time i need to throw a database down, its a linux box with Mysql. Every. Single. Time.
Why?
Because i grew up playing around in redhat, suse, mandrake, and gentoo boxes and I feel like i know linux inside and out (although i'm sure i don't). I have complete confidence in myself to order some hardware, install a distro on it, and have a database up and crunching within a day.
I have NEVER tried this with an IBM product because i simply CAN'T! I can't risk that significant of a portion of my budget for a toy that I may or may not be able to get working in time.
I guess it works the same as what happened to my beloved coke machine today. They upped the price to $1.25. Nobody drinks coke anymore except the people who are REALLY addicted to it.
Bastards.
NewslilySocial News. No lolcats allowed.
Learning to identify your core competencies so you can leverage your resources in an effort to devlop effective intra-deparmental synergy
thus allowing you to devote time to identifying emerging paradigms is what being an MBA is all about
Belthize
Actually, I think he could do it equally well in C++, following some special guidelines. Within a given program, either all loops would either begin with "do", or none of them would. In addition, Yoda's code would never use exception handling.
"Begun, this clone war has".
(in reference to the emergence of Compaq)
Use 'slashdot stuff' in the subject line in any email you send me if you want to get past the spam filter.
Big Co. pays more attention to potential customers who actually have money to spend with them. Also, some products are out of reach of small companies.
Wah. If you don't know that a 17 year old, dressed scruffily, who hasn't shaved for 5 days, will receive less attention at a Mercedes dealership than the nattily dressed 40-ish man, you just don't live in the real world. Sure: the 17 year old could be Bill freaking Gates, or a rockstar. Or might become one some day, but will have been so soured on the treatment received that they vow never to buy a Mercedes.
But frankly, almost all of the time, talking to the 17 year old is a waste of time at best, and at worst you lose the customer that is really ready and willing to spend money with you because you've ignored them.
Y, it sucks. So it goes. You might argue that one of the ways that Microsoft got as popular as they did with CIO types is because everyone uses them at home, so 17 year olds that get their start troubleshooting home computers go on to CIO jobs and stick with Microsoft because they know it. But, frankly, if that was all of the answer Apple would rule the world--everyone in a certain generation used them at school, but it did not help their adoption in enterprise.
btw: can we stop linking to CIO mag, please? It has the absolute worst S/N ratio of any online mag out there, and the article content generally isn't that good either.
--
$tar -xvf
"With such a small shop I have to spend a great deal of my time maintaining operational excellence." ...plugged out the the kettle from the UPS and plugged the server back in.
"During my first year at Sequoia I concentrated on improving the processes that affect operational excellence." ...stopped answering user queries with "Have you tried turning it off and turning it on again?"
"With these processes largely working, I must now spend my time providing a technological vision for Sequoia." ... 1 week surfin' = 3 slide vision Powerpoint.
"As you can imagine, creating a fully functional disaster recovery plan requires an enormous amount of time--and, as I noted above, I've been focused on operational excellence, not long-term strategic planning." ... No, we have never tested restoring from the backups.
You know what happened? IBM consultants met someone a bovine coprologist even mightier than them, and that scared them.
${YEAR+1} is going to be the year of Linux on the desktop!
Have you seen Yoda's hands? He'd have to use the Force just to type all those parentheses!
This CIO is engaging the wrong type of firm for what he wants. I work for a "Premier IBM Business partner" in Lansing, MI and we do this type of work all the time. We put together HA/DR solutions and serve some surprisingly large customers despite our simple business partner status.
Big blue takes a pass on work that is "this small", but that's what the partner network is for. We don't have the resources for huge projects, but we are perfectly geared for projects of this scope. Not only that, but we are focused enough to deliver quality product and quality customer service where big blue cannot. Additionally, due to our having a small but long-serving tech staff, we are not "green" as the writer complains. An organization the size of IBM simply is ineffective at serving projects of this size.
He should have, or the IBM reps he was in discussion with, contacted an IBM business partner in his area that could have helped him. IBM Business partners have always been part of IBM's strategic vision and the author of this piece completely ignores them and the role they play.
Methinks the author of TFA isn't as experienced as he would have us think he is. $25,000 will only buy about 120 hours of any reputable senior consultant. The big firms will need about $400/hr. IBM properly realizes that they can't deliver any value for the budget, and is not wasting the author's time or theirs.
The economics of consulting firms are such that you have to charge about 3 times the payroll cost of your staff to cover your costs and make some money. So, if you have a reasonably experienced consultant, who makes $120k a year (which is lowish in the bigger markets), you need to bill that person at $360k a year. Figure 70% utilization, or about 1400 hours a year, and you have to bill the guy at at least $250/hr. That's the economics of the big firms. The only ecosystems in which those firms can deliver value commensurate with their cost are the large client organizations. Hence, they quite rationally focus on them. I won't offer an opinion as to whether they can in fact deliver to that value - that depends on the team, the people, and the problem.
This leaves a significant market out there which can be served by sole proprietor consultants for $100-150/hr. The author needs to go find himself one of those folks, and quit whining. If he had a business head on his shoulders, as he insists that he does, he'd be able to figure that out. Since he can't, I'm not sure I'd view him as likely to move up in the world to those larger firms, and I suspect that the vendors have figured him out as a weak player. I have never had trouble getting vendor focus when working in small firms, so it isn't impossible.
I was taught to respect my elders. The trouble is, it's getting harder and harder to find some.
Why is the parent modded informative? All it does is sling mud.
What better products do you have to offer than rational?
Bonus points if it's something that comes with guarantees on reliability and support.
Who else makes a system as powerful and capable as z?
Extra credit - who designed the chips in all of the next gen consoles and is raking in the cash as a result?
I'm not any of those things you mention, but your rant is terribly shortsighted.
Okay, look at the reality of what this guy is asking for:
Sales time. Believe it or not, good sales people cost a lot of money. You have the choice of hiring a bad salesperson, who doesn't know what he's talking about or doing, or a good one. So a salesperson will run you, even in a crappy small company, $60k per year (plus 20% for bennies and taxes). Now, IBM needs someone who is, shall we say, better than good. They have lots of products, and they have to be able to deal with everyone from an analyst to a CIO. Not only that, but they have team behind them, usually comprised of some inside people and a sales engineer or two, to answer questions.
So, realistically, you have about $500,000 in salaries, commissions, and benefits in a small sales team.
Let's divide that by $25k. 25/500 = 20. That means that the sales guy, just to cover his costs, has to sell 20 deals a year to small businesses to make a living. Oh, wait. That's not the case. He needs to make a decent profit, as well. Lets put it at 25% or so, conservatively. So we're up to $625,000, or 25 deals a year.
Oh, wait. That doesn't include the salaries of the engineer who does the work. Tack on an extra $150k or so for a top notch "Jedi Master". And that would be cheap. So were' up to $650k plus 25% margin, or $812,500. Or about 32.5 deals per year.
Now, we all know that even a lightsabre wielding Jedi Master sales guy won't close every deal. So lets say, which is a huge gimme, that he can close 50% of the deals he is given. So he must now, conservatively, talk to 65 customers a year, bare minimum, to earn back his money and make a little profit.
Oh, shit, we forgot expenses. You know, office space, cell phones, internet, computers, support, travel, lunches, dinners, visits to strip clubs.
Tack on another $50k per year for that. Or 2 more deals closed (we're up to 34.5, if you were paying attention) or 69 customers talked to if he was lucky.
That means we're averaging more than a deal closed per week, and, let me tell you, it doesn't happen that way.
And we haven't even scratched the surface of expenses, including things like marketing, customer acquisition costs, back end support costs.
The reason that IBM doesn't do this isn't because they don't want to. Its because they *CAN NOT*. This is not their business. They have a defined business plan. I can guarantee you that nowhere in that plan do they deal directly with SMB's for $25k deals.
Instead, they have a very established partner network to deal with this. And some of those partners are quite good, quite knowledgeable, and employ guys with as much if not more experience than some of those IBM engineers. Sure, there are bozos. But if you do due dilegence in selecting a partner, you should be able to eliminate those quickly and quietly, especially if you have big business experience.
Note: all of the big boys have a partner network. IBM, HP, EMC, Cisco. Plus all the others. Every single one. Some of them have gone to the extent of putting their top partners into their traditional stronghold space of Fortune 1000. Cisco is notable for having put partners into their Named Accounts many years ago.
As full disclosure, I work for a company that has, at one time or the other, partnered with every one of those guys. Some of those partnerships were great. Some were a disaster. In every single one, we had highly qualified engineers with decades of experience in multi-discipline IT skills supporting our customers. In fact, one of those partners (won't name them but their one of the biggest of the big) used to slip us business on the side when the customer was unwilling to pay their rates (~$350/hour, travel exclusive) because they knew we could do the same job at less than half the cost.
The point of being a small IT specialty business is to be able to provide a service to a completely different kind of customer. My company has ~25 full time employees in house. We have 450 or so on-sit
Desks, lower would they be.
AT&ROFLMAO