Conversations with customers I’ve recently conducted have garnered some feedback about the vendor market and providers who are simply repackaging existing products to sell or failing to deliver on promised functionality.
With legacy vendors in particular you see this still being a common problem, or with companies that are acquisition happy and simply repackaging a newly acquired offering under fresh branding. Here’s a common dilemma: the functionality in a product you already own ends up in a “new” product, with the vendor trying to sell you a product that you essentially already have and only 20% in new capabilities.
We’re finding more and more customers who are frustrated with the dollars invested for limited returns and are thus considering migrating to the cloud. I think a lot of vendors are still making the mistake of running off an outdated business model: living off an installed client base and spending maintenance fees on exploring new markets or acquiring the competition, and in the process pushing their existing customers to the breaking point.
In that sense, I see the concept of open source and cloud computing, in all its hosted formats, addressing many of these old-school issues via more open architectures, and taking some of the financial weight off their own shoulders by giving customers more freedom.