...by Daniel Szego
"On a long enough timeline we will all become Satoshi Nakamoto.."
Daniel Szego

Thursday, July 16, 2015

Notes on IT markets and partner markets

Perhaps it is surprising but a market growth or a market change of a big software vendor like Microsoft does not necessarily means market opportunity for the partner companies. Partner companies concentrating on the technology of big vendor usually make profit from the following sources:
  -  Reselling Product.
  -  Consulting services of the given technology.
  -  Project business: delivering changes or new functionalities for a customer.
  -  Product business: delivering products based on the technology for many customers.
  -  Training.

As some new innovative technology from a big vendor like Microsoft certainly produces a business growth for the vendor itself, it is not so sure how it produces business for the partner network. Examples are the followings:
  -  Innovating the basic technology very often implies that the partner products have to re implemented pretty often, It is certainly a question if it can be done profitable and if the end-customers accept the increased maintenance cost. 
  -  Setting up self-service functionalities certainly implies a decline in the consulting or the reselling market of the partners,
  -  Making only cloud services implies that the infrastructure consulting and services of the partner companies are being vanished.
  -   Focusing on products instead of frameworks implies that the project business of the partners will be decreased.
  -  New functionality or new user interface means increased training business possibilities for the partner companies.

Certainly there is chance to reinvent the partner business itself. Like one example might be to create disposable applications so reinventing the basic technology will be not such a huge problem, as the disposable application won't live so long. Although here is for example a question if Microsoft relative highly-prized positioning is really the best way to create such a disposable applications.