ESG Lab Review
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Most IT managers know QLogic as a trusted and market-leading provider of Fibre Channel host bus
adapters. A growing number of IT managers are aware that QLogic now offers a reliable, interoperable
and affordable line of SANbox stackable Fibre Channel switches. Few are aware that QLogic has
recently expanded its storage and server connectivity offerings to include SANbox 9000 “Designed to the
Core” switches, iSCSI host adapters and InfinibBand host channel adapters and switches. Many might
be surprised to learn that QLogic is using this expanded network connectivity layer as a platform for the
delivery of higher level data and network services. For example, the SANbox 8000 platform which
provides data services including online migrations is a powerful new services platform that was recently
announced by QLogic.
ESG Lab believes that network services are exactly what is needed by IT managers who are planning
next generation grid architectures based on service-oriented architectures. A network services
abstraction layer can be used to mask hardware complexity while enabling consolidation, virtualization,
performance optimization, quality of service and security.
Geoffrey Moore, the influential and respected author of Crossing the Chasm, describes the value and
challenges of adopting a platform provider strategy in his latest tome, Dealing with Darwin
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.
Platform innovation provides a layer of abstraction that masks an underlying complexity
of legacy systems. Future offers are thereby freed from having to engage with this
complexity. Instead, they simply interface to the platform and the platform takes care of
all the rest…. The challenge with delivering a platform system is figuring out how to
present the platform to third parties as the center for a new and potentially vibrant
ecosystem. Every market leader in the technology sector is contemplating this
challenge…. The key principles [for success] are to bring two highly valuable assets to
the would-be partner community: access to a market they otherwise would struggle to
reach and access to functional capability they otherwise would struggle to create
.
Noting the key principles for success in Mr. Moore’s quote above, QLogic’s “access to market” strength is
well known in the industry. QLogic’s OEM relationships with storage and systems vendors, and a two-tier
distribution model with value-added resellers and integrators provides a well developed and successful
sales and support model for QLogic’s core host bus adapter and emerging switch businesses. In addition
to this market reach into enterprises, QLogic has invested heavily in the past years in recruiting and
educating channel partners in the small to medium sized business market segments. Taken together,
QLogic provides broad “access to market” for their would-be partner community. And finally, it should be
noted that via a series of recent strategic acquisitions and product announcements QLogic is providing
“access to functional capability they otherwise would struggle to create.” The storage services platform
and InfiniBand intellectual property acquisitions recently made by QLogic are in particular excellent
examples. Both products are targeted at emerging market opportunities that QLogic’s partners and
resellers can use to bring high value network services to end-users shopping for storage network
connectivity from QLogic.
Understanding that there are significant risks and challenges associated with adopting a platform-based
strategy, ESG believes that QLogic is well positioned for success with its expanding product line and
emerging services platform strategy.
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Dealing with Darwin
, Geoffrey Moore, Penguin Books, 2005, pages 93 and 97.
Enterprise Strategy Group
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