Efficient Outcomes: Selling Service. Buying Service. No “IT”

Jeff Nolan has two recent posts on IT. In “IBM Moves in FIrefox’s direction,” He says

The interesting dynamic that I referenced in the beginning of my comments is that these large companies are adopting many open source projects without any expectation of support from a providing vendor. They are going it alone. Obviously in the case of Linux itself there are large vendors providing services, and many large projects like Apache and Sendmail have strong support organization, but the vast majority of open source projects don’t so when a large enterprise IT organization officially supports them it is their intention to be the first and last line of support, and this should strike fear into the hearts of every enterprise software company out there

In “The End of Corporate IT” he taks about corporate customers prefering hosted applications because they don’t want to deal with their own IT departments. He says <blockquote, there is an unavoidable conflict developing. Increasingly I find myself doing customer reference calls for companies offering hosted solutions and when I ask them about how IT responds to their desire to have a hosted application I am told that NOT having IT involved is a major incentive to go with hosted apps.

So it looks like the trend is towards vertical integration of software stacks by hosted app providers. If you are doing vertical integration you get efficiency by sharing costs through support of open source projects. Companies don’t want IT. They want to buy a hosted app or sell a hosted app. Anything in between allows someone to blame someone elsse.

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