Posts Tagged 'Perception'

December 20, 2010

SoftLayer Market Positioning: Bang v. Buck

SoftLayer's goal is to compete on performance and control, not price. The hosting industry is crowded with competitors undercutting each other on prices, and we don't want run in the race to the bottom.

A few weeks ago, about 18,000 customers officially became SoftLayer customers. Over the past decade, they joined the fold under the banners of The Planet, EV1Servers, RackShack, ServerMatrix and maybe a half-dozen other brands. Each of those brands was positioned to appeal to specific market segments, but they shared the same pursuit of "value" to offer customers the biggest bang for their buck. There are two approaches to providing that kind of value:

  • More bang.
  • Less buck.

In many cases, the "less buck" strategy was adopted. SoftLayer takes the contrary approach by maximizing the "more bang."

If I were to put it more presidentially, I'd say, "The 'less buck' stops here."

I get to chat with customers on Twitter, Facebook, the blog and the forums, and a lot of my interactions have been about pricing: "I used to get X server for Y, but now it costs Z." The trouble is that it's tough to compare many of the offerings apples-to-apples.

If you were to create an apples-to-apples server comparison, you'd see that a SoftLayer server is the equivalent of a server from The Planet with a KVM, a private network, additional geographic network points of presence, increased network capacity, the ability to select where you want your server provisioned, faster provisioning, seamless integration with cloud solutions, and a lot more automation... And these are just the differences that came to me as I was writing.

As a customer of The Planet, you could choose to omit many of the features above. As a customer of SoftLayer, we want you to be able to take advantage of the platform that was designed holistically to making growing and maintaining your hosted environment easier. The platform's architecture was dreamt up in garages and living rooms by folks that live and breathe technology:

"It's not about pop culture, and it's not about fooling people, and it's not about convincing people that they want something they don't. We figure out what we want. And I think we're pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That's what we get paid to do." – Steve Jobs

The reactions I get when I talk about the features included in a SoftLayer server range from, ""Wow. I had no idea," to, "I don't care. I don't need any of that stuff," and as you're reading this post, you may have already decided your stance. If you don't see value in the SoftLayer platform, we might not get your next server-worth of business, but if you have just been looking at the dollars and cents, I'd encourage you to investigate some of the features of the platform and ask questions about how it might make your environment easier to manage.

Along the lines of the platform being built for the future, I have a question for you: What would you change about the SoftLayer platform? What is it missing? What do you want it to do that it doesn't do yet?

-@khazard

September 21, 2007

How do You Want to be Perceived in the Market?

When you look at the names below, what is your first reaction?

Barry Bonds
Bill Belichick
Shoeless Joe Jackson
Pete Rose
Tanya Harding
Ben Johnson
Rosie Ruiz

For most, the common thread is that each has been accused or admitted to cheating in their respective sport. Barry Bonds for using steroids (and don’t tell me he didn’t use them); Bill Belichick for filming the Jets defensive signals; Shoeless Joe and Pete Rose for gambling; Tanya Harding for trying to disable her competition; Ben Johnson for steroid used to sprint faster than any other human being and Rosie Ruiz for only running half a marathon. All of them will forever be associated with scandal first and their accomplishments second.

But sport is not the only place where cheating is running rampant. The financial markets have been and continue to be rocked by financial scandal. We all know about the high profile cases like Bernie Ebbers (Worldcom) and Andrew Fastow (Enron) but a recent university study has shown that from 1978 to 2006, there were 788 Security and Exchange (SEC) and Department of Justice (DOJ) enforcement actions for financial misrepresentation or as the layman would call it, "cooking the books". In those actions, there were 2,206 individuals identified as being culpable for some or part of the financial fraud. While all the sports figures above had their reputations tarnished, only some of them have suffered financial hardship and if I remember correctly, none served jail time for their initial actions. For financial misrepresentation, the penalties are far more severe. Over 93% were fired or left their jobs with another 31% barred from future employment as an officer of director of any publicly traded company. In addition, 617 of these individuals have been charged with criminal violations; 469 were found guilty and sentenced to an average of 4.3 years in jail and 3 years of probation. Needless to say, their financial position suffered as well. On average, these managers lost $15.3 million in stock value once the scandal was revealed and paid $5.7 million each in SEC fines.

Cheating never comes to good end. Most scandals generally start small, then greed sets in and the rest is history. Is cheating worth it? Even if you don't get caught, you will always be looking over your shoulder. And sometimes scandals can occur even with the best of intentions. Compared to other industries, hosting is still in its infancy and is just beginning to address the provisions of Sarbanes-Oxley. Who knows what kind of accounting and operational issues will come to the forefront as some of the leaders in the industry enter the public markets?

Around here we foster an environment of honesty and integrity. What are you doing in your company? How do you want your company to be perceived in the marketplace? Are you ready to face the public scrutiny of the SOX generation? Your customers and the markets are watching.

-Mike

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