The old technology stalwarts like Cisco Systems, Inc. (NASDAQ:CSCO), EMC Corporation (NYSE:EMC) and Oracle Corporation (NYSE:ORCL) are coming up with almost similar strategies to maintain their dominance over the technology market. The companies were facing huge problems due to commoditization. The production of open source software at mass level had started to damage their high-profit businesses, and these companies would have been reduced to insignificance.
But they managed to hold on their own working on the principle of instinctive response either to adapt or to die. Each company has rags to riches story, and their metamorphosis has been highly impressive and predictable. These companies have evolved from smaller level to building IT systems at a higher level.
To keep up their hold and adapt to the growing changes around them, the EMC and the Cisco both decided to improve their performances and feature axis. They did not give up to the baiting of commodity products in the early days. However, today the need is to add the feature of services to its axis so that the deviating economic model can be brought under control.
Adding Third Feature to the Axis
Both EMC and the Cisco have now realized that it is not possible for them to make an impact on the market using the same old performance and price game. These companies finally have realized that the businesses, nowadays progress more on competitive advantage and outcomes and the feeds and speeds do not carry the same value.
That is the reason the old bluebloods from the IT world, including HP, Oracle, Dell, EMC and Cisco now are representing themselves as full stack providers of IT instead of just product segment leaders. Each company now is trying to expand stepping in the expertise zone of the other and trying to promote themselves as the one stop solution for IT.
Despite these collisions in between the IT vendors, some of the former allies, including Cisco and EMC still are facing the similar threats from the open source software and the commodity hardware. The recent comments from both these companies reveal that both are coming up with similar strategies for handling the situation.