As you sow….

It started with T-Mobile. Now every carrier is on the “don’t wait 2 years to upgrade your device” bandwagon. It’s their defensive strategy to hold on to first-gen smartphone customers. But they can advertise all they want, customers long ago realized cell networks sucked and used wifi for much of their new data needs. A new device will not change that – so many are extending lives of existing devices. Concepts like UBreakiFix which repair/refurbish electronics are growing by leaps and bounds. And many smartphone customers are going with cheaper data plans from MetroPCS, Walmart, Virgin and others and forcing the incumbents to offer shared plans and other concessions.

A similar trend is playing out in the ERP and infrastructure outsourcing market.  Many 3-5-7 year deals are coming up for renewal, and many customers are trading in three contracts for software maintenance, hosting and apps support for one SaaS contract. Others are re-bidding and going with newer, much more efficient providers. Most of the incumbent providers failed to impress in their multi-year opportunities. Now most customers can see many are jut flashing shiny new innovation areas as their value proposition to continue. 

High prices, so-so service when they had the chance...now they will have to get much more creative to retain the business.