More on EDS' strategy.........
EDS Demos New Wholesale Web Services at SUPERCOMM
New Business Model Aimed at the Emerging Needs of the Telecom Industry
As the Internet continues to change the way companies do business, new opportunities arise. EDS has responded to these needs by recently launching a market-driven wholesale business model, a comprehensive portfolio of wholesale Web computing services and an innovative channel partner strategy initially targeted at key players in the telecommunications industry.
Today's telecommunications industry is in the throws of a revolution. Business customers are demanding more than phone service: they want the latest Web-enabled solutions to drive their e-business efforts. In response, EDS launched a new wholesale Web services portfolio, designed to help telecom companies meet these new customer demands quickly, profitably and with minimum investment.
John Wilkerson, president of EDS Global Indirect Markets since 1999, recently briefed the press on this new wholesale business model at SUPERCOMM in Atlanta. The interest was high and the questions were lively as EDS unveiled this truly unique approach to changing market needs.
Q - What was the strategy behind EDS' new wholesale business model?
A - The telecommunications industry has been challenged by their business customers to expand their Internet product offerings, or risk a severe loss of market share. The most efficient way the telcos can accomplish this goal is through outsourcing to a reliable vendor who can deliver what their customers are demanding at a cost that doesn't undermine their profitability. By offering wholesale Web computing services on a monthly rental basis, EDS can use our established resources to penetrate new markets, meet the needs of an industry, and expand our customer base beyond our traditional model.
Q - Other companies outsource similar services. What makes EDS unique in the market?
A - EDS has some significant advantages over the competitors, not the least of which is owning one of the most secure and reliable hosting facilities in the world. EDS is the first company of its size and breadth to develop a strategy to sell these types of services to the reseller channel. The power of the infrastructure we already have in place, in combination with our competitive pricing, gives us a unique position in the market. Remember too, telecom companies have to answer to a huge number of end-users. The last thing they want is questionable service. With 1 million square feet of raised data center floor under management and 1.5 million square feet more available for immediate use, there's no question we can provide a reliable solution to their customer's demands and, in turn, help these telcos build their market share.
Q - Can you give us an overview of the new wholesale services portfolio?
A - This portfolio is broken down into three key areas: Wholesale Web Hosting, Applications on Demand and Storage on Demand. Let me give you a brief look at each:
Wholesale Web Hosting
Basically, these provide a rapid entry into the Web hosting marketplace, with options created to meet the needs of clients at various stages of their digital development. That means telecoms can offer their business customers the services they need now and provide upgrade options as customer needs grow. All Web Hosting Services are set in EDS' world-class Web Service Management Center and include asset management, centralized back-up, facilities management, implementation and physical security.
Applications On-Demand
We've logically packaged the most popular, easily installed, function-based applications, and offered these packages with flexible per user/per month pricing. The application portfolio has been segmented around major categories around messaging, collaboration, E-commerce, CRM business support, ERP and vertical market. Each of these categories has major segments; for example, E-commerce includes applications in sales and marketing, procurement, order management, customer service and support.
Storage On-Demand
This component delivers a full range of services that address the high availability, dynamic growth requirements of businesses already engaged in the digital economy. The packaging is unit-based, per gigabyte per month with discounts incorporated as the amount of storage increases. This offering includes storage assets, facilities, installations, maintenance, as well as technology refresh and other professional services.
Q - Are these stand-alone packages?
A - Yes, they can be sold as standalones, but one of our key differentiators is the fact that our services are integrated-working together as needed to meet clients' e-business demands. That means an end-user can start with a basic package, and add applications or storage easily as needs change. The fact that we offer tiered service levels enables us to accommodate end-users ranging from Web-entry-level to super e-competitors requiring robust, sophisticated offerings.
Q - How does this benefit the telecom resellers?
A - Telecom service providers are continually challenged to build customer loyalty. By offering integrated, scalable packages, our resellers meet their customers' needs at all phases of their business growth and reduce the risk of losing a customer who outgrew the telecom's portfolio offering.
Q - Any final thoughts?
A - We're excited about the opportunity we see in this emerging marketspace. This new approach is just one example of EDS' quick response to competing in the new business landscape. Providing wholesale services to telecommunications firms that want to expand their revenue streams is only the first of the exciting business developments you'll see throughout the year.
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