[AMTX & Marketing]
I agree that at this point, marketing is now probably the most important activity for Amati.
My guess is that companies shipping CAP solutions don't care that it's not the best solution for their customers. If they can get their foot into the service provider's door, they feel the battle is half over. When that occurs, they start making money, and have a relationship with the customer. If at a later time, the customer wants a DMT solution, the CAP vendor for that customer base has a huge advantage - they can do whatever it takes to offer that DMT solution, and can offer things like "seamless transitions", or special deals to upgrade from the CAP boxes to DMT boxes, or whatever.
Had they not been there in the first place, though, they probably wouldn't get as good a shot at later opportunities.
I've been reading an excellent book on high-tech marketing, and strongly recommend it for anyone interested in the subject:
"Inside the Tornado : Marketing Strategies from Silicon Valley's Cutting Edge" by Geoffrey A. Moore ISBN: 0887307655
Mr. Moore wrote a book previous to this. I have it on order:
"Crossing the Chasm" by Geoffrey A. Moore ISBN: 0887307175
With respect to the 60% market share number cited as what Cisco looks for, Mr. Moore cites exactly this figure as what is required to become a "gorilla". According to Moore, once you attain "Gorilla Status" in the market, you are the de-facto standard. As such, you get customers coming to you to buy your product (it's a no-brainer to just buy from the market leader), and other companies work to supply products which support yours, because that's where the most customers are. Marketing costs decline, and the money starts pouring in.
Here's to a profitable day for all.
Steve |
