Think vertical to gain focus

James Harris talks up the need to get specific when selling potential networking deals to enterprises

Every customer is trying to save money right now and that is unlikely to change any time soon. Some networking vendors are attempting to overcome customers’ reluctance to spend on new infrastructure by having a more converged approach, bringing servers, networking and storage together with virtualisation, cloud and a suite of all-encompassing management software.

The end-user customer - and vendors are actually targeting enterprise customers here - is promised a cost reduction. But for many, that will not be enough. They will still be forced into what is, for the most part, a massive rip-and-replace project.

This proposition is too radical for many cash-strapped customers at the moment. It also uses too broad a brush in this market. It simply will not convince decision makers and, unsurprisingly, they are not responding.

However, customers in specific verticals are much more likely to respond to technology pitches geared towards current issues or point problems they have in their businesses.

For example, providing wireless access has become vital for hotels and clubs. There is a definite need to deploy reliable and effective Wi-Fi to boost coverage and to provide consistent and reliable performance.

More customers should be upgrading to 802.11n to receive those benefits. So many customers are now using tablets or smartphones, wanting to receive richer content on their devices. It makes sense for them to invest 10 to 20 per cent more.

In healthcare and in schools, there is a similar, very strong argument for adopting Gigabit Ethernet on the backbone. The extra bandwidth would support multimedia-rich traffic and enable adoption of cost-saving technologies such as VoIP as well as more robust remote backup and disaster recovery offerings.

The appeal of the latter applications should not be underestimated. Many of those working in the public sector are now much more aware of the dangers of data loss and are interested in mitigating that risk.

It is common sense to put forwards specific technology solutions for specific problems. This approach allows customers to see exactly how the investment will benefit them right away.

The broader converged infrastructure approach mentioned earlier is, in fact, simply a way for the vendor to try to articulate a value proposition that will appeal to the whole market, encouraging a new wave of spending.

Immediate benefits

The trouble is that every business is different, and saving money while reducing risk and protecting existing investments are the priorities. Yes, customers will invest in new networking offerings, but only if these deliver benefits and savings immediately.

More focus takes more time and more effort. You need to think about it. But this is exactly where the reseller can add value. I do not know many resellers who think much of the endless stream of verbiage and inflated diction that vendor marketing departments tend to generate for their benefit. What really counts is what the reseller can actually do for the customer.

By giving a little more thought to the problems that customers in specific industries face, and then building a proposition that meets those needs, resellers will get further than by simply regurgitating vendor marketing messages.

And by focusing on specific opportunities, rather than trying to press enterprise customers to sanction a general upgrade of their networks, resellers can appeal more directly to their own customers in the markets in which they already have a presence.

They can differentiate themselves from competitors, open up good new opportunities and deliver great RoI for their customers, thus building a healthy and loyal client base. It makes sense to think vertically.

James Harris is head of product management at ZyXel