Hardware Turning to Services
Services is the name of the game. If you doubt that, just look at recent moves by Dell when they acquired Perot Systems, Xerox purchasing ACS, and even when HP acquired EDS last year. But what do these deals mean to IT service pros?
For a long time, software and hardware companies saw a distinction between the products they created versus having the services needed to implement them. The game has changed and hardware companies are looking to services to redefine themselves and further embed themselves into their customers’ business processes.
This is an interesting debate, especially with those business moves in the last year. From Dell to Xerox and everyone in between, many hardware companies have tried to change their business model and add services to provide a total solution for their customers.
However, pundits are debating whether or not the leap into services is a smart move, and if companies like Dell and HP are overextending themselves and are trying to be all things to all people.
Maybe they should stick to what they know best. But then again, look at the success IBM had with services.
Will the gamble pay off? Only time will tell.
But one thing is for certain: services is a complicated and “messy” business that commands a different business model. It requires serious investment and a smart strategy to drive a superior customer experience.
Peter Cannone is the CEO of OnForce a trusted national network that provides access to onsite IT and CE service technicians, connecting service demand with local supply through an online marketplace. OnForce just celebrated its one millionth work order milestone. Guest blog entries such as this one are contributed on a monthly basis as part of The VAR Guy’s 2009 sponsorship program.