RESELLER PROFILE -- Predictive Systems Stays Ahead Of
Technology Curve
July 7, 1998
COMPUTER RESELLER NEWS via NewsEdge
Corporation : Many resellers shy away from brand new,
nonstandard technologies. Predictive Systems Inc.,
though, is no ordinary reseller. From digital subscriber
lines (DSL) to the hottest network architecture,
Predictive embraces nascent technology to position
itself ahead of the curve-and to catch the most profitable
sales.
From the start, Robert Belau, president of this New York
high end network consulting and integration firm, has
done things a little differently.
For one, he is agnostic about brands and technology.
Given this approach, it is perhaps no surprise that Belau
shuns the reseller moniker, preferring to be called a
consultant. Even less surprising is that most of
Predictive's revenue comes from services rather than
products.
"Without this agnostic thinking, you are just selling a
product line. It must be a religion that business objective
is always in the console. I mean that in the figurative, not
the literal, meaning. I can't tell you how many times I've
been asked for a brand or technology in the absence of a
compelling business objective. It is a lot like asking
whether a Mercedes or a pickup truck is better. The right
question is, 'What are you going to use it for?' " said
Belau.
The bottom line for this reseller-no, consultant-is the
bottom line. Belau has even branded the company's
approach "BusinessFirst," a process of matching a
business application to a technology. He started with
this mantra and continues to follow it.
"To get invited to the dance, you must understand the
technology. The piece no one else had was the ability to
translate [a need] from a business objective and then to
the technology," Belau said.
"In my mind, networks and communication systems in
general either make you money, save you money or
both. Otherwise, you are only dabbling in technology, "
he said.
The 35-year-old pioneer learned the trade on big iron but
realized that the then-lowly PC was the future. He also
knew that the concept of sharing a mainframe's power
would migrate to the PC.
"Networking was a new concept when I started out.
Sharing horribly expensive disk drives and laser printers
was a natural. I've been in networking ever since," Belau
said.
Today, Predictive's main business areas are enterprise
network management, performance management,
internetwork design and engineering, and information
security. Headquartered in New York, the company has
offices nationwide, including San Francisco; Dallas;
Boston; Santa Cruz, Calif.; Herndon, Va.; Detroit; and
Atlanta.
As a network consultant, Predictive resells almost no
products, instead working with clients to put that
element of a project out to bid.
"It's very difficult to resell product and remain agnostic,"
Belau said. "A litmus test for our business is if a
customer is willing to pay more than the market price for
a solution, then you are really providing value.
Otherwise, it is a sham."
DSL is a natural progression for the company. Belau
likes to play in technologies where there are relatively
few competitors and where the company can establish a
foothold as an expert.
John Burgess Jr., a managing consultant with Predictive
who has helped develop DSL specifications with
industry consortiums, said that even in its infancy, DSL
is going to make a tremendous wave throughout the
industry.
"People in DSL trials don't want to give it up. They get
addicted to the speed," Burgess said. "Right now is a
window of opportunity for resellers. The RBOCs are
slow and just now ramping up to offer the service, and
they will have trouble rolling it out."
Burgess said resellers need to play the niches with DSL,
particularly in alternative markets such as universities
and other "realestate" markets, such as apartment
buildings.
"Resellers can do it much quicker and more nimbly than
the RBOCs, but they have to do it now because the giant
has awakened from its slumber," Burgess said.
Which is why Predictive is pinpointing DSL for future
growth and as a complement to its networking and
integration business.
"In the embryonic stage, DSL is probably not going to
be profitable, and near-term all the emphasis will be on
the telcos, which is a natural path. Those that get out in
front, however, will make money in the long term," said
Belau.
"But DSL has to take hold soon because, otherwise,
other innovations may take hold. It will be like other
technology that had great promise but never got into
play."
Copyright - 1998 CMP Media Inc.
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