Skip the navigation
Opinion

Telecom: Opportunity, Frustration

By Thornton A. May
August 9, 2004 12:00 PM ET

Computerworld - What does telecommunications mean to you? For most C-level IT managers, it's the greatest source of short-to-intermediate-term cost reductions, the sector of greatest long-term strategic confusion, their self-acknowledged zone of greatest ignorance and the source of their biggest all-around tactical, day-to-day administrative frustration.
These are the conclusions of a survey and a series of interviews conducted at the most recent CIO Solutions Gallery at Ohio State University's Fisher College of Business.
A frenzy of contract renegotiations is delivering cost reductions that could make even the most frugal CFO almost feel guilty. Those pricing improvements, combined with a trend within companies of standardizing the equipment installed in their networks and consolidating their network services to fewer carriers, is putting many telecom suppliers in a tough situation. As one CIO explained, "Prices are dropping all over the place. I am always re-evaluating my technology stack. I am always squeezing my providers. I am currently of the mind that short contracts are generally in your favor, and negotiating a contract midcontract is a good thing to do."
Meanwhile, a general rethinking of telecommunications is under way and contributing to the strategic confusion. Cable, wireless and fixed-line telephone carriers are rapidly entering one another's businesses. What previously were nondecisions are suddenly up for grabs. Who will provide services to us, and what will they supply? Phones have become much more than phones. Handsets take photos, access the Web, and send and receive e-mail. Some even serve as PDAs. More transition is inevitable, with the arrival of the potentially game-changing technologies of wireless and VoIP. Where should wise IT leaders place their bets?
And then there's the ignorance and frustration that telecom causes. Designing, operating, engineering and troubleshooting very large IP-converged networks is growing more difficult, and the skills needed to do all that are becoming increasingly scarce. IT leaders are the first to admit that they don't possess deep technical skills in the telecommunications area. At the CIO Conference in Pebble Beach, Calif., last month, I asked 140 executives (via an interactive electronic polling system) how they would describe their understanding of telecom: 28% said they had an "excellent" understanding, 53% said "average," and 19% said "poor."
But the responses were very different when I followed up with a more specific inquiry. When asked, "If your board of directors asked you to explain the line-item detail of your monthly telecommunications bill, would you be able to do so?" 29% said, "No worries; let's go have a beer," 32% said they were "a little worried,"and 39% said they would be "in a world of hurt." One CTO summed it up this way: "There are no telecommunications vendors today that are doing a great job; they all need to be closely managed. Operational performance leaves much to be desired, and billing performance is even worse."
We are at a pivotal point in the management and deployment of telecommunication services. Future-focused IT leaders would be well advised to spend a little more time with the vendors in this area, do some homework and put together a plan for the future.
Thornton A. May is a longtime industry observer, management consultant and commentator. Contact him at thorntonamay@aol.com.

Read more about Networking in Computerworld's Networking Topic Center.



Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

Networking White Papers
Digital Transformation: Creating New Business Models Where Digital Meets Physical
Individuals and businesses alike are embracing the digital revolution. Social networks and digital devices are being used to engage government, businesses and civil...
Make the Connection: Better Network Connectivity Drives Transformation
Network connectivity is more than just plumbing. Leading organizations today see high-performance network connectivity as a critical enabler of competitive advantage, and not...
Virtualizing Government Infrastructure
All server virtualization solutions are not created equal. The more-with-less agenda for government agencies is tailor-made for server virtualization, which is evolving into...
Moving Service Management to SaaS
Today, organizations can enjoy similarly substantial benefi ts by migrating their IT service management functions to a software-as-a-service model. This paper shows how...
Achieving 360 Degree Network Visibility with Nimsoft
360° network visibility is critical for ensuring continuous availability of networks, servers, and applications-anything less could
have costly bottom-line implications.
All Networking White Papers
Networking Webcasts
Optimizing Networks for the Cloud
Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
Unified Communications 101
What's the best way to implement a unified communications solution for your organization?
Try the OptiView® XG on your network - FREE
The OptiView® XG is the first dedicated tablet with automated network and application analysis -- fastest way to root cause. XG raises the...
Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
All Networking Webcasts
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs