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ms.akkineni
ms.akkineni
11/8/2017 2:50:13 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
Very ture. Some of the companies are tending to understand and realize that is the way things are working in present market. Such companies are planning proactively with that constraint included in their process. Others who are still sruggling to digest that factor are the ones that are still continuing to struggle longer.

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batye
batye
11/7/2017 11:15:28 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
@ms.akkineni I could not agree more as this is the way life in IT/Tech. happening this days... 

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batye
batye
11/7/2017 11:14:26 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
@DHagar thank you :)  yes as it also a process trying to save while keep ROI in check... as new technology most of the time winning at the end... 

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mhhf1ve
mhhf1ve
11/7/2017 10:29:10 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
> "The old aphorism "sunk costs are irrelevant" was coined to apply to decision-making when you couldn't recover the costs..."

True, the original economic principle refers to the ideal case where the "sunk cost" is an item without utility, but in practice there is a spectrum of utility and/or obsolescence. When considering a migration to a cloud provider from an existing leased/owned datacenter, it's a tradeoff of different kinds of ongoing costs -- and you're right that the key is to make them lower. But the differences of the ongoing costs may not make that calculus entirely apparent -- especially when "owned" hardware is rapidly aging compared to newer technologies. 

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DHagar
DHagar
11/7/2017 5:33:34 PM
User Rank
Platinum
Re: You all need to do the things that we want you to ....
@JohnBarnes, interesting reflection.  It is true that the finesse comes from the scalability and the ability to deliver the solutions the customer needs.

I would propose, however, that the "Big system platform" that Huawei has developed is needed to deliver the economies of scale and new deliverable solutions with NFV and virtuallized network.  The key, I would think comes from their application and if they can truly deliver a mass customized solution.

They do get points for identifying the size of the mountain, we will see if they can climb it successfully!

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DHagar
DHagar
11/7/2017 5:29:26 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
@batye, very true.  And it gives you the capacity to develop new growth and produce new value; which yields much higher returns than the additional revenues produced by simply cutting costs.

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ms.akkineni
ms.akkineni
11/7/2017 4:04:28 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
@batye:

Yes, and to me that is not out of the norm because that is the whole point. It is a different argument if that is feasible in all scenarios. Any initiative would start after certain level of planning, forecast in terms of value proposition etc. So when things change too frequently companies would obviously struggle with costs that may not hold much longer and that would make it challenging for them to target profits.

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JohnBarnes
JohnBarnes
11/7/2017 2:56:23 PM
User Rank
Platinum
You all need to do the things that we want you to ....
Xue appears to want the clients to crave getting out of the silo, integrating their functions around common models, and unifying the resulting large systems. This is not surprising -- Boeing wants clients to buy airplanes and rockets, Toyota wants people to buy cars, and so on. If you provide a thing, of course you want people to want it.

The curious thing, though, is it's all phrased in terms of Huawei's needs; why are departmental clouds too small if they work? Why does everything need to be to a common standard if it works within the company and there's no particular reason to share it beyond? And before we decide that widgets, whatsits, and gizmos should be unified under the cloud, perhaps we should pause and ask "What are they going to do with being unified?"

It's interesting how little problem there is for such a big solution.

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JohnBarnes
JohnBarnes
11/7/2017 2:50:09 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
mhhf1ve,

I'm not sure something you're still getting net positive gain from can be considered "sunk." The old aphorism "sunk costs are irrelevant" was coined to apply to decision-making when you couldn't recover the costs and you still needed something for the original purpose of the expenditure -- e.g. buying a non-refundable used truck whose engine blew up, where a new engine and the labor to get it installed might well cost more than a replacement truck.  

Much of the alleged benefit of the cloud is some mixture of fashion (being up to date and current and part of the new future) or of some vague notion of reducing overhead (typically by outsourcing to a one-size-fits-all supplier). When the benefits are dubious and the existing, paid-for system works, the important thing is not that the costs are sunk -- but that they are low.

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batye
batye
11/6/2017 7:54:46 PM
User Rank
Platinum
Re: A lot of "sunk costs" in older network tech...
@DHagar  for me adaptabilty is survival skill a must have to be alive in this new age of technology :) 

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