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Opening the door to data centre change in Australia

James Henderson | Jan. 25, 2017
With a growing appetite for innovation and digital transformation, Australia sits on the cusp of significant disruption in the data centre.

"We're evolving as our channel evolves and we're making huge strides to ensure we are were our service providers need us to be, ensuring that we align those revenue streams to ensure profit for the channel," he added.

For those transitioning to a service-based business, the importance of revenue models continues to heighten as partners align with vendors demonstrating considerable financial health within the market.

"I'm stuck with technologies that I'm consuming currently and I use the word consume and not buy because they have the right financial model," Oriel CTO at BigAir Group, Richard Mitton, added.

"But as a technologist it saddens me because it's not necessarily the greatest technology, but it's the right commercial model that I need as a sales person to provide the right commercial outcome for my customer."

Louis Tague (Veritas)
Louis Tague (Veritas)

When engaging with vendors, Mitton said the challenge lies in the combination of hardware and software products and the subsequent sale of offerings.

"In an ideal world the vender can separate selling the hardware at cost plus margin, then charge the value of the software on top," he explained.

"Especially in this hyper-converged world because I can then add exponential value through my sales team by having the right technology aligned with the right commercial model."

Yet for those challenger vendors in the market - breaking through the barriers to take on the traditional players - entering the Australian market requires research, knowledge and in-depth go-to-market strategies.

"A lot of vendors enter the market with messaging specific to the US or Europe, but how does it relate to local government in Australia," Thomas Duryea Logicalis national practice manager, Naveen Shettar, said. "Especially within the data centre space, vendors must take the time and effort to enter the industry with relevance.

"The vendors that take technology and translate it into viable customer outcomes across all major market segments are the ones we find easier to partner with.

"It allows us to approach our customer base and get results and success because the vendor has brought something innovative to the table and allowed us to differentiate from the competition."

When outlining the criteria of a successful vendor in the new age of the data centre, Ethan Group account director, Nick Stranks, asked one simple question - "How can we commercially justify investing our time in your?"

"Because ultimately everything costs money and my staff have to either sell or learn, there's not a lot of in between," he explained.

"But once you move past the technology piece will my customer even notice I have a new vendor onboard, and will they even care? Most of our customers don't care what is in the stack they just care about outcomes which changes the conversation.

 

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