How come ‘the big guns’ pull out of the DCIM market?
To many it seems strange that yet another key player is withdrawing their DCIM product from the market. As you may know: Commscope has announced that it will no longer actively promote iTRACS as their DCIM product and stop any further developments. We have seen this before when CA Technologies withdrew their DCIM as well. What is going on?
Of course we have no detailed knowledge of what went on in the Commscope boardroom when this decision was made. But we DO know the DCIM space because we are a long time DCIM solutions provider ourselves.
From our point of view it was a predictable outcome from the largely overblown market expectations that these companies had. Driven by the predictions by Gartner, IDC and other analysts they all wanted ‘a piece of the action’.
The ‘juggernauts’ of the data centre industry invested heavily in their DCIM platform or simply bought an existing DCIM player, like Commscope did with iTRACS. These (mainly) stock listed companies were very eager to be in this high potential segment. They made sure that they became the sweethearts of the media. At the same time they played along with the same players that pushed them in this market: the analysts. This way they were sure to obtain a position inside the ‘magic quadrant’ or whatever fancy name was used to identify the ‘winners’.
By now it is clear that these forecasts were severely overestimated. Investments are not paying off as anticipated and since DCIM is not a core business for these players it is simply abandoned. Their shareholders are paying the bill and their customers have to sort out what to do next. Surely they need to write off some serious money paid for their ‘solution’.
When this is done everybody starts looking again at the analysts to predict THE NEXT BIG THING where they can spend their budgets on. An expensive report from Gartner simply cannot be ignored, can it?
So what does it mean for DCIM providers like us?
We, Perf-iT are a medium sized DCIM solution provider based in the Netherlands, active in DCIM since 2007. We have been studying the marketing collateral by these juggernauts for some years now and noticed that:
- Their products were never close to the stage that the marketing wanted us to belief
- There were hardly any (paying) customers
- There were no journalists actually reporting this discrepancy
We must admit, it was frustrating at times when our solution was again ignored by reviews in magazines or when we didn’t show up in any ‘quadrant’ let alone the ‘magic’ one. But we had our customers and our customers became our ambassadors. Our business grew steadily and so did our product. We knew that this was the proper way forward: building the product from the bottom up. Because we were in contact with actual customers, we understood what they required and expanded our solutions accordingly.
What will the future bring to the DCIM business?
In retrospect it has been weird to see these puffed up competitors entering the DCIM arena with their highly exaggerated promises to both customers and investors. They were like body builders entering a boxing match: Looking huge and impressive but not equipped for the fight. There was neither content nor stamina. The audience (media and analysts) were cheering and applauding the body builders while the real fighters had to make sure to make it through to the next round, knowing that the inflated body builders would collapse sooner or later.
The future looks good. Now that the numbers on the table are more realistic then they were before. The data centre business is about cost savings, like any other business. To save costs one needs to know what is going on and therefore is DCIM an indispensable tool. So yes, DCIM is and will be alive and we are looking forward playing our role in this great industry !
Perf-iT is a DCIM solutions provider from the Netherlands. We have a strong customer base all over Europe and the Middle-East and take pride in having long lasting relationships with our customers and partners. We are equally proud of our solutions which help data centre managers to manage their ever growing flow of infrastructure-data. This keeps them focussed on their main goal: keeping the IT-floor operational at all times at acceptable costs.
If you too are looking for a long lasting relationship with a DCIM provider or if you need to find an alternative for your existing DCIM, feel free to contact us.