These are trying times for the world economy or what? Here's a short synopsis of my analysis of the crisis and what it means to enterprises and their suppliers of communications equipment, technologies and services. This is in the format of Take Action Memos (a favorite tool of mine).


Major financial institutions around the world including Bear Stearns, AIG, Lehman Brothers, WaMu, Wachovia, Fortis, Dexia SA, Northern Rock, Bradford & Bingley, and others are failing to meet their cash obligations, causing disruption in the credit market. US Congress has refused (so far) to authorize Treasury Department to purchase 'toxic securitized mortgage-backed assets' causing much disappointment on the world's stock exchanges.


First of all, financial services customers are struggling to raise liquidity and have implemented strategies to conserve cash so as to survive the troubles. This may mean canceling or delaying projects and purchases. This mayhem is spreading. Companies in other markets are naturally, being particularly cautious with cash. The uncertainty of access to credit will likely delay decisions to proceed with network upgrades and capital outlays.


Figure out how to position your product as a professional service, where instead of paying $25,000 for a system, the customer pays $1,000/month over three years. Depending on your role in the supply chain, you should partner with a services organization, a financial services organization and or equipment suppliers to convert product sales into services.

This crisis will significantly accelerate the transition to managed services. See Brockmann report on Managed Services.


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