If You Can’t Laugh At Yourself…

September 29, 2009 at 9:38 am 1 comment

“Remind people that profit is the difference between revenue and expense.  This makes you look smart.”
Dilbert creator Scott Adams

It was inevitable:  Sometime, somewhere, there would come into being a snarky list of things your networking salesperson knew in their heads but would never say out loud. So it shouldn’t be a surprise that your loyal servants at Vyatta would be the ones to do it.

It’s not like the Big Proprietary Networking Vendors couldn’t have seen the jokes coming.  After all, they’re the ones smart enough to figure out how to get customers to pay astronomical premiums for underpowered gear, or to engage in forklift hardware upgrades for the most asinine of reasons.

Any vendor pulling that much wool would have to know that they would get punk’d sooner or later.

After all, their gross margins DWARF the margins of other world-class IT companies.  Check out the earnings statements of a Big Proprietary Networking Vendor (yes, look at more than just one of them).  They’re doing nearly 70% of gross margin!  Yet world-class HP is doing 25%, and Dell is at 19%.  How in the name of Gates do the networking guys get away with it?  Do they have a picture of each of their customers with a duck?

It’s mind-boggling that they get away with it at a time when networking standards rule.  In every other market, price-levelers like TCP/IP, Ethernet, and multi-core CPUs are the things that allow customers to pay competitive prices for things, not usurious ones.  It’s why price-per-MIP on today’s computers is so small that the metric isn’t even followed any more, and why we can get huge bandwidth into our houses for less than we used to pay for long distance telephone calls.

Like it says on our PR boilerplate, “Our customers are smarter, better looking, and drive much nicer cars than purchasers of big-name products.”  They also have a distinct appreciation of snark aimed at proprietary vendors simply because they’ve looked behind the curtain and discovered it’s mostly smoke and mirrors.  Kudos to the Vyatta Community!

10 Things Big Networking Vendors Never Say >>


Entry filed under: Uncategorized.

A Yankee Dandy Scaling Networks the x86 Way: Vyatta/Intel vs Cisco

1 Comment Add your own

  • 1. Virtually Speaking mobile edition  |  October 8, 2009 at 4:32 am

    […] way to make their points. Vyatta’s CEO, Kelly Herrell, pointed out a fun slide deck in a recent blog post in which he dissects what the Big Proprietary Networking Vendors wouldn’t say in one fell, […]


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