discoposse

Disruption versus Incumbency - The Woes of the 800 lb Gorilla

Blog Post created by discoposse Expert on Apr 16, 2015

Despite what we think about the laws of physics applying to business, it seems that not everything that is in motion stays in motion.  Inertia seems to be something that many big companies have been relying in with strong channel ecosystems and wide customer bases.  What those big organizations didn't account for was that they could be upended by smaller players that attained velocity. 

 

I read a great article on LinkedIn which tells the story very well.  One thing that stood out from this was the reasoning for disruptive technology companies making strong inroads into the market share of traditional incumbents:

 

Some well-known tech gorillas are like this. They're rolling downhill, smashing everything in sight, all the while pretending that there is no bottom to the hill. These giants have built up incredible market momentum by building an army of paid evangelists (certified engineers), an huge install base that costs a fortune to replace, and a lot of FUD about "inferior products."

From the article, some key points are noted:

  1. They rely on momentum
  2. The focus on marketing over innovation
  3. Outrageously high prices
  4. Incentives to sell specific products
  5. Armies of fanboys
  6. Manipulating the channel
  7. Organization complexity

 

I'm really excited by the disruption happening across the ecosystem, and it has been a little disheartening seeing the amount of vendor-to-vendor negative marketing that has been happening. 

 

Read the full article from Matt Wagner on LinkedIn here and let me know what you think about the current state of IT.  Are you more likely to move ahead with an incumbent vendor, or are you exploring the real value that you can get when choosing new technology partners to get the best of breed solution? 

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