What is a Fair Split Between a Vendor and a Service Provider? Randy Hudson's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links Mike Nasch and Intopia may have unrealistic goals for increasing their service presence. Intopia’s service organization is an unknown startup with unknown capabilities. Failure to deliver on this deal can lead to a very negative service reputation. The potential also exists to damage the relationship with NetOps who may decide to partner with an Intopia competitor. Considering the limited breadth of its products, Intopia cannot build a sustainable services business around network components alone. Components are typically very reliable and are not maintenance intensive. The revenue is on the front and the back-end of the storage devices and the hosts.