Networking Equipment Market “Sands” Do Shift

I’ve been having a few discussions on box & semi networking markets where the thread leads to the phrase “they just don’t get it” and then to either “They are making it too complex” or “They are making it too simple/fixed”.

Vendors do get it. It’s just that market preferences shift over time. Sometimes markets favor “complex” products and sometimes they favor “volume” products. This changes. Here are some bullet points.

What Does the Market Want from Box/Semi Guys?

Background on Volume and Complex models

  • G Moore’s latest book “Dealing With Darwin” talks about two biz models “volume”and “complex”
  • these two are yin/yang and they flow in & out of favor.
  • if you do one … changing to the other is death.

Which model is in favor today?

  • The answer is both. In their respective segments. But “favorites” are changing.
  • Why? Where?
  • Given that the core of the internet is not gonna change much …
    telco’s are beginning to accept equipment from “volume” model companies. ( ie Huawei & BRCM {I’m still
    not sure where they really fit }) This is a big change ❗

  • The complex guys “in box land” have to dig at the application/service layer
    • which is why I believe Cisco is acquiring so much of this “application/service” stuff
    • this is why FFIV thrives & survives.
  • Consumer networking markets have long been the bastion of “volume” models.

The Segmentation of the Networking Market has changed

  • this is why I’ve been so big on my IP Stack Model
  • … it highlights this new segmentation of the Networking market …

Which is better — complex or volume?

  • I don’t think it matters. Moore describes many successes in both worlds. One just needs to know who they are, and then execute accordingly.
  • In the case of complex model companies – here is a big strength to leverage
    • a “complex” model company crushes everyone where relationships are required.
    • a “complex” model company can’t compete where relationships aren’t required.
    • a “complex” model company has to address “tech change/complexity” first and not “volume/price”.
      • not everyone agree’s with me on this 😦

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