VMware: Running the Product Provider Play

I read a comical article today:

VMware soothes partners’ professional services fears

Click on the link, read the article, then come back here.

OK, up to speed? Good.

So, VMware had to calm the fears of partners because VMware’s Professional Service revenues actually grew a little? PAH-LEEZE. VMware is running a classic Product Provider service strategy. Well documented, well understood, and, by design, very partner friendly.

I have uploaded a PDF version of the chapter in Bridging the Services Chasm which describes VMware’s services strategy profile. Read the chapter, then join me in this joke.

Ch 4 The Product Provider

 

 

 

Brocade: Product Provider Perils

Today, the Wall Street Journal announced storage and networking company Brocade Communications has quietly put itself up for sale

A quick analysis of Brocade’s financial results verify three key trends impacting hard core product providers such as Brocade. The image below compares Brocade’s most recent quarterly results to the same period one year ago:

Brocade Financials

 The three trends relevant to these numbers that have been telegraphed in this blog over the past year are:

Sun and IBM: A Case Study in Services Strategy Profiles

Last week, the San Jose Mercury news reporter Brandon Bailey wrote an article commenting on the potential synergies if IBM purchased Sun (Why would IBM buy Sun Microsystems? Software, services).  I cannot comment on the potential upside or downside of such a merger, but I can observe what the potential failure of Sun says about the viability of enterprise companies that are product-centric.