Unlike the choppy waters faced by IT companies in the recent past, the business-to-business internet services sector, led by market leader Internet Solutions, continues to impress. A recent study by BMI-TechKnowledge Group indicates that the internet non-access services sector will grow to 18% of the total IT services market by 2006.
The growth experienced by Internet Solutions is in no small way due to a focus on customer care and product innovation, coupled with good staff retention and motivation.
The cost of bandwidth, whilst a hindrance to normal competitive market behaviour, has not deterred the company from progressing its strategy of introducing value-add services and products aimed at clearly differentiating themselves in what is becoming a commoditised industry.
Chief Operating Officer, Jason Goodall, adopts a philosophical viewpoint when it comes to the subject of the Telkom monopoly and the cost of bandwidth. "We have to accept that the prices of bandwidth are gazetted by Government. Whilst we play a role in bringing to the attention of the Minister and Icasa, the telecommunications governing body, our concerns on the impact this is having on the country`s economy, we realise that the opening up of the sector will take time and time is on Telkom`s side."
As a consequence, Internet Solutions has concentrated on working within these constraints and together with key IS partners has developed a range of innovative services and products which ensure that the client offering is continually enhanced. A strategy that adds value to customers and broadens the potential revenue base of the business.
One of the examples he cites is the launch of .Net, an Infrastructure Provision Service (AIP) that will provide customers with the option of delivering essential Internet based Application Services within an outsourced environment.
"The business benefits of AIP-.Net guarantee an advantage to our clients in terms of efficiency, time to market and overall infrastructure management", says Alison Vorster, General Manager of Internet Solutions` Business Gateway. "Together with IS` state-of-the-art data centre, 24 x 7 customer care and highly reliable base architecture for client application we are bringing to market a platform that may be shared across customers on a `software as a service` business model."
Goodall exhudes the confidence one would expect from a market leader who believes that healthy competition is good for business.
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