Archive for the ‘IT Market’ Category

Making IT Fit Like a Good Shoe. Or, 10 years later, and RampRate has a long way to go!

Sunday, July 4th, 2010

“Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.”

- Rebecca Johnson

In 1996, I recognized a problem in the way IT services were bought and sold. The sales process wasn’t set up to solve a customer’s problems. Instead, it was set up to close a deal. Unfortunately for IT buyers, there really weren’t any better alternatives.

Information Technology IT Fit Like a Shoe

And the process wasn’t much better for the sellers either. Vendors were burdened with trying to provide excess requirements for the least cost, regardless of market value or actual need. In the middle, a massive amount of cash was being lost as the two tried to come together. Where did that cash go? Mostly into sales and marketing, which is ultimately about bringing two sides together to do a deal?

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Posted in IT Market, RampRate News | 2 Comments »

Where’s My Flying Car … and an Efficient IT Market?

Wednesday, May 5th, 2010

Where’s My Flying Car & an Efficient IT Market?Trust is a double-edged sword.  If you trust in the right things and the right people, you can accomplish much more than you ever could alone.  In falling for myths and liars, you fail not only yourself, but also all those who trusted you.  Today’s subject is how our misplaced trust eats away at the crown jewels of American industry – putting IT services on the same complacent path that greatly contributed to the last mainstay of the country’s wealth — auto manufacturing. (more…)

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IT Services Vendor Reviews – Can You Believe It?

Friday, February 26th, 2010

Like many, I look for reviews of products and services on the internet in order to help my buying decisions. And like many, I often find that there seem to be crazy rantings of people that populate otherwise stellar reviews for products and services of all types.

Where do these rantings come from? The screen shot below tells a pretty clear story (more…)

Posted in IT Market, Outsource/Insource, Outsourcing Advisory | No Comments »

YouTube Google’s Phantom Loss Leader

Wednesday, June 17th, 2009

YouTube as a millstone around Google’s profitability is a mirage. Contrary to Credit Suisse’s estimates of a $470M annual loss, Google is more likely losing a fraction of that amount, due to peering for 73% of its traffic, buying bandwidth from some of the lowest-cost Tier 1 providers, using unprecedented bulk purchasing power to secure very favorable wholesale rates, and running data centers far away from

expensive locales. RampRate estimates that, based on our experience working with other top Internet, e-Commerce, and media firms, Google’s maximum loss is no more than $174M without challenging Credit Suisse’s revenue assessment. Far from being an infrastructure money pit, YouTube is key to reducing operational costs for other Google initiatives while also allowing Google to catch up to the superior network performance of competitors like Microsoft, which currently boasts 10 times as many peers and 17% fewer hops to remote reaches of the Internet.
Google is no doubt thrilled to let YouTube be known as a financial folly. In the dangerous waters of online content, a whiff of potential profit is an irresistible lure for predators such as copyright lawyers circling user generated content monetization and content partners that are all too ready to turn on their distributors in a feeding frenzy.

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Posted in Content & Content Devices, IT Market | No Comments »