Monday, February 06, 2006

Standard Operating Environment II

EDS has just announced the first consortium in bid for Singapore $1.5 billion SOE tender. As expected, it is made up of industry heavyweights - Singapore Computer Systems, Avanade, Cisco Systems and Microsoft.
EDS, SCS and Avanade are exclusive members of oneMeridien, which means that they will not be part of any other consortiums that are expected to be bidding for the tender. Cisco Systems and Microsoft are non-exclusive, but they are also part of the EDS Agility Alliance, a partnership of 10 firms. While EDS and SCS are product- and platform-neutral service providers, Avanade is owned jointly by Accenture and Microsoft.
So it seems like the Microsoft technologies will indeed gain the upper hand and dominate the Government sector. While the SOE project is beneficial to the Government, expecting to cut 30-40% of IT expenses, it is definitely not good news to the existing vendors and suppliers. From the signs of things to come, the local SMEs, notably the smaller players in the IT industry, as feared, will be increasingly sidelined in the Government sector.
Is this a fair level field of play? The Government is "encouraging" the SMEs to focus their attention overseas, but at their own backyard, they are already disadvantaged. It is analogous to a tree without strong roots, how will the branches and leaves grow?
Everyday, I have been seriously thinking how to survive being "a small fish in a big pond"? Recalling historical stories from "The Spring Autumn Warring States Chronicles" and "The Romance of the Three Kingdoms", the smaller states (but not necessarily weak) need to band together in order to survive. But unlike larger states, each states have its own manifest and they more than often, united only in name but not in hearts.

4 Comments:

Blogger Garfield said...

are you affected?

2:07 PM  
Blogger totoro said...

Yep, our biz will be somewhat affected. Not only in govt sector. We also fear that MNCs may take a cue from the government to implement similar SOE, resulting in an industry shakeout.We will then be hard pressed to either grow faster and bigger or ally with the bigger boys, or in worst case, be marginalized...

In years to come, probably biz will lease hardware and software like utility, instead of owning term?

11:57 AM  
Blogger Garfield said...

hmm.. That is the current trend in the IT industry now.

5:20 PM  
Blogger Gerald said...

Well it seems the big boys won. Unfortunately for SMEs, size matters because size allows you to scale up for big projects. You're right that other large coys will probably follow suit to implement similar SOEs. SMEs will have to find a niche that the big boys can't fit into, or to be their sub-contractors.

Of course success stories like Facebook are another path to emulate.

12:11 AM  

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