
The Cloud...
Other peoples computers that you have no control over, and might get shut down or go bust...
Manchester-based failing cloud biz Outsourcery is to undertake a pre-pack administration with Vodafone partner GCI Network Solutions waiting in the wings to buy the company’s assets. The move, exclusively revealed by The Register last week, was confirmed by AIM-listed Outsourcery to the London Stock Exchange this morning. “ …
It's 2013. A silence descends. The door at the far end of the bare bones-empty warehouse opens. The four figures in their equidistant chairs remain perfectly still as a figure enters through. It is a man. An outsourcery man. He stops a few feet in front of them - a crazy mismatched assortment comprising of a grizzled Scottish pensioner with dyed hair and a permanent scowl, a ten foot toff with his nose skywards and a couple more wannabees. Pointedly, an empty chair is directly in front of him, in line with the others seated.
He begins.
(Nervous cough) "Hello Dragons. My name is Piers, and I'm here today to offer 0% return on a £20m investment. My plan is to fill that chair there by conning you and the TV producers into thinking I have some credibility. My USP is that I'll choose the latest thing in tech which none of you know anything about, but is getting super hyped so you'll appear to be cool and down with the kids by association. The beauty is you and the TV people don't need to know anything technical because I've been practicing my straight face routine with Vodafone for years - I know I can surely pull it off in front of the cameras. Ratings will soar because the audience will see how progressive you are in keeping up with the times - all the old money like hotels from Jock here brings was looking a bit dated. Just jump on the bandwaggon with Piers, and it'll all work out right in the end."
(Fill in the rest yourselves...)
This illustrates how difficult it is to build a profitable business purely based on a recurring revenue stream. This is made especially tricky, given the amount of investment that is required from the outset to build a cloud based platform like this. The main issue I believe was down to focus from the outset as it only become clear recently that the organisation planned to focus on Skype for Business and Unified Communications. What will happen to all of their existing customers given the critical service they are currently providing? Will it just be switched off or will they try and migrate them to other providers?
Yes. It is difficult. But sticking other people's tech in a data centre lacks innovation and shows why the whole channel telecoms market sits in the brink of extinction. Because this is what most are peddling when you look at it.
A new player will arrive with a ground up platform that properly meets the demand that is definitely there.
Skype for business is a nightmare. I've never met anyone that likes it or make money from selling it.
The whole operational business is being purchased, and all services will continue as they currently do, for both IaaS (VMs in the Outsourcery cloud) and SaaS (primarily Skype for Business). Except now there's financial stability and an experienced management team. Onwards and upwards.