BusinessWeek writes about progress around self-healing infrastructure. That's good to see. Be interesting to see how the industry prices it, even as US and offshore vendors start to offer remote infrastructure management services. On a trip to Bangalore a few months ago, I saw HP's impressive offerings around network, storage and other management. That pricing reflects labor arbitrage and shared economics across multiple clients.
It also brings me to another question. If the industry can cannibalize this type of systems management labor, why can it not do so around its own systems integration services? There are so many "low-level" services around testing, data conversion, integration, training and other areas. As I wrote here, every dollar in SAP or Oracle license costs between $ 7.50 and 21 in external labor to implement and maintain. I can see IBM and others not wanting to cannibalize their sizable services revenue (half of IBM's revenues) - but Indian vendors are actually even better at application implementation and maintenance than they are at infrastructure management.
Self-healing, self-realization? Sounds like another famous export from India - Yoga.
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Yoga for IT: Self-healing?
BusinessWeek writes about progress around self-healing infrastructure. That's good to see. Be interesting to see how the industry prices it, even as US and offshore vendors start to offer remote infrastructure management services. On a trip to Bangalore a few months ago, I saw HP's impressive offerings around network, storage and other management. That pricing reflects labor arbitrage and shared economics across multiple clients.
It also brings me to another question. If the industry can cannibalize this type of systems management labor, why can it not do so around its own systems integration services? There are so many "low-level" services around testing, data conversion, integration, training and other areas. As I wrote here, every dollar in SAP or Oracle license costs between $ 7.50 and 21 in external labor to implement and maintain. I can see IBM and others not wanting to cannibalize their sizable services revenue (half of IBM's revenues) - but Indian vendors are actually even better at application implementation and maintenance than they are at infrastructure management.
Self-healing, self-realization? Sounds like another famous export from India - Yoga.
Yoga for IT: Self-healing?
BusinessWeek writes about progress around self-healing infrastructure. That's good to see. Be interesting to see how the industry prices it, even as US and offshore vendors start to offer remote infrastructure management services. On a trip to Bangalore a few months ago, I saw HP's impressive offerings around network, storage and other management. That pricing reflects labor arbitrage and shared economics across multiple clients.
It also brings me to another question. If the industry can cannibalize this type of systems management labor, why can it not do so around its own systems integration services? There are so many "low-level" services around testing, data conversion, integration, training and other areas. As I wrote here, every dollar in SAP or Oracle license costs between $ 7.50 and 21 in external labor to implement and maintain. I can see IBM and others not wanting to cannibalize their sizable services revenue (half of IBM's revenues) - but Indian vendors are actually even better at application implementation and maintenance than they are at infrastructure management.
Self-healing, self-realization? Sounds like another famous export from India - Yoga.
November 30, 2005 in Enterprise Software (IBM, Microsoft, Oracle, SAP), Industry Commentary, Offshoring (TCS, Infosys, Wipro, Cognizant), Offshoring Negotiations/Best Practices, Outsourcing (IBM, Accenture, EDS), Outsourcing Negotiations/Best Practices | Permalink