Competing with the big boys

Years ago, my dad and I would sit and talk about the logic behind buying a business, and competing with established players in a particular market. He would always ask why you would buy and existing business, when you can open up shop across the street, offering a better deal and thus gaining the business for “free”. It is not always as easy as that, and entering a new market, or one with established players in not for the faint hearted. Why make a radical change in our business? Well, the old adapt or die saying is super true in our case. While we are far from dead, the writing is on the wall and before we go on life support, we’d rather change what we do. Several things have changed in our industry, and I firmly believe the “reseller” model is going the way of the dinosaur. Buying a piece of technology developed by someone else and slapping a single digit markup on it to sell it to an end user customer is just not sustainable. Just ask the big players who love their turnover vanity (big numbers) but are operating on annual losses. Getting out of that game is our drive. While we’ll be buying loads of fancy legos, how we piece them together and what we do with them will be our competitive edge. To busy to improve? Entering a space with a few players seems to give some investors comfort, as they think that while they may not get to dominate a market, they can view a slice of an established business sector that is known to work. Less risky… Geoffrey A. Moore wrote a bunch of amazing books about high tech marketing, and how you deal with the Gorillas on Main street, the entrenched and well established players. You also get guys like Richard Branson, who enter established markets (airlines, railways, cellular) and bring a fresh approach to an old idea. I think the cloud computing market is set for a big shake up in South Africa, and the rest of Africa too. The question is, how do you compete with massive and established players such as Amazon, and up and coming players with loads of resources, like Google and Microsoft. It is not as difficult as you may think…Each of the new up and coming players painted a big target on Amazon’s back, and they have claimed some wins. Google is now renowned for how quickly they actually start instances up, and some flexibility with their services that Amazon does not have. One has to remember, that Amazon built the first of these mega platforms, and the IT world collectively crapped themselves. Loads of cloud stack vendors now try and at least mimic the Amazon feature set, as that does provide a good baseline of functionality. Amazon now also have a massively scaled, but “legacy” system, so turning that big ship around to plug some holes is not as easy as it seems. This creates opportunities for players like us, and that is why we’ll thrive in this business. Where does this leave me and my new platform? I do not have dreams of global domination, but I do dream of African domination. The time is right for a new innovative player to enter the local market, breaking the mould in terms of service offering, service experience, ease of use and feature set. If all goes well, in 16 weeks our platform launches in V1.0 state, but the V2.0 onwards stuff will blow your mind… I’ll keep the blog updated with our progress…

About Thomas Lee

I am a technology entrepreneur, father of two young boys, and husband to Mari. Love technology, audio and stuff with wheels.
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