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CTO CONNECTION: CHAD DICKERSON                  http://www.infoworld.com
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Wednesday, November 3, 2004

WHEN GOOD VENDORS GO BAD

By Chad Dickerson

Posted October 29, 2004 3:00 PM Pacific Time

The most pervasive problem in running IT is not a specific technology
issue at all. It's dealing with bad vendors. Even if you have been able
to reduce your IT operation down to a pure open source environment on
the software side, hardware still must be purchased through commercial
channels. In the post-boom IT age, the power has supposedly shifted from
vendor to buyer, but IT managers continue to be manipulated by vendors
who don't always act in the customer's best interest. To keep vendors in
line, IT managers need to stay on the ball -- and punish bad behavior
when it occurs by finding new suppliers.

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In particular, watch out for vendors that try to push overblown
solutions. Recently, I was ready to purchase a set of network devices
and called a reseller for one of the leading vendors in the space. Our
IT manager had done exhaustive research and we were ready to issue a
purchase order so it would be charged to our soon-to-close fiscal year
budget. We submitted our order for the equipment via the reseller with
more than three weeks to spare -- no sweat.

But while we were waiting for shipping information, the vendor called to
try to upsell us a higher-end version of the device we had ordered at
double the price. He said he wanted to "make sure" we knew what we were
getting and began pushing the features of the more expensive solution.
Of course, good salespeople consult with customers and, in some cases,
upselling to a more expensive solution is completely reasonable --
particularly if an underpowered item might leave the customer
dissatisfied.

But the salesperson in question left out the most essential part of the
process: He never asked us how we were planning to use the device in
production.

When I brought up that essential detail, it became clear that the upsell
was in his interest, not mine. This unproductive upselling process
delayed the order processing, and by the time the vendor agreed that our
original purchase was the right one, our purchase window had passed. I
canceled the order, and the vendor will no longer get my business.
Although this decision caused implementation delays and aggravated
budget issues, I was willing to pay the price to send a message. That
vendor lost my business forever.

Vendors that upsell compulsively are bad, but there's a worse variety:
Vendors with which you have an established relationship and that provide
you with a key technology -- but that take your business for granted.
These vendors might have been innovators years ago, but now they offer
no credible road map for their product or service. Their product
development is slow and unresponsive to your needs, but somehow their
finance department manages to deliver the (usually high) bill for annual
maintenance like clockwork. IT managers sigh and keep paying the
maintenance bills because they fear the switching costs. Of course,
salespeople exploit that fear while offering few compelling reasons to
stick with the product. The overly conservative IT approach of hanging
on to these vendors avoids short-term disruption in your business, but
who wants to be the last customer standing beside a failing vendor?

If you have a vendor like this, it's time to come up with an exit
strategy. I've got one in my sights right now and I can't wait to kick
the chump to the curb.

Chad Dickerson is CTO of InfoWorld.


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