On-Demand Illusion

In our lead news story, CRN Senior Editor Joseph F. Kovar considers the on-demand strategies that have just been rolled out by Hewlett-Packard, Veritas Software, Computer Associates, IBM and even Microsoft, which outlined at WinHEC last week some technology initiatives aimed at delivering on-demand-like functionality down the road.

The problem with the on-demand wars: There is a lot of hype but not much reality. And none, let me say that again, none of the vendors have engineered an on-demand strategy that takes into account the sales and compensation models within their own company or in the channel, where the vast majority of solutions are sold.

There is a big fat disconnect between the ivory-tower on-demand rhetoric from the CEOs of these major vendors and the sales trenches where deals are won and lost. There is no actual sales and channel plan at these companies to drive on-demand computing to businesses.

The hype is another case of the high-tech industry falling prey to the latest technology buzzword and failing to back it up with a plan that brings the technology and products to the full channel ecosystem,from the distributors providing critical financing for the channel to the broad and diverse set of solution providers delivering real-world multivendor solutions to the three vastly different segments of the end-user market: small, midsize and large businesses, each with its own channel dynamics.

What's so incredible about the on-demand movement is that it purports to address the angst of businesses fed up with the disappointing return on investment they have gotten from their IT purchases. Millions of dollars are being spent by spinmeisters to market hype with absolutely no concerted program to engage the channel to deliver the technology and make it real to businesses.

Solution providers are excited about on-demand computing. There are a lot of benefits for their customers and the industry. But until vendors stop putting the cart before the horse and bring the channel into the equation, the benefits of this paradigm shift will not be realized.

What are your thoughts about on-demand computing? Let me know at (781) 839-1221 or via e-mail at [email protected].