Skip to main content
Blog

Differentiation, Differentiation, Differentiation

Just as in the early days of IMS, many of the optical equipment vendors seemed focused on the features of their products. It's bigger; it's faster; it's shinier. Mine comes in better colours. We exaggerate somewhat, but it was striking how little attention was given to the value proposition behind the solution. What's more, few vendors sought to achieve differentiation between each other, or, perhaps more importantly, in terms of the differentiation that can be achieved by their customers, if they adopt their solutions.

Written by
Guy Redmill
Published on
15 Sep 2010

Is this an inevitable consequence of a world in which service providers are continually seeking to drive prices lower? One in which purchasing authority seems to be becoming increasingly concentrated in the hands of fewer and fewer individuals - and in which purchasing cycles still haven't been reduced?

We realise we can't have it both ways and that our arguments regarding the commoditisation of application servers would seem to support this, but it's clear that vendors need to do more to really emphasise the value their solutions bring to their customers. In time, of course prices will fall, but the problems arise when price is either the only decision making factor in a purchase round, or when prices remain higher for longer than they should. There is a balance. If you only sell on feeds and speeds, you are immediately saying that you are really in a price battle and you may be neglecting the opportunity to capture additional value through a clear articulation of what you bring to the service provider. Vendors need to make sure that they develop clear value propositions and focus on them with real commitment.

Get in touch

Need more information on what we do? Enter your email address below and we’ll get back to you.

From the blog
The latest industry news, interviews, technologies, and resources
Blog

The advanced telco tech research quandary, Part 2: Do you want to be Steve Jobs… or just a tyre kicker?

In Part 1 of this discussion, we reviewed—deliberately sceptically—some of the congratulatory tone of the T...
28 May 2024
Blog

The advanced telco tech research quandary, Part 1: 700 million euros later, what does Europe, and more importantly, European operators actually have out of 5G PPP?

Back in December 2020, Orange published a really interesting blog about connected vehicles entitled The con...
14 May 2024