Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Choose Vendors Wisely

    Written by

    Aaron Goldberg
    Published April 18, 2005
    Share
    Facebook
    Twitter
    Linkedin

      As an IT professional, you have no more important task than vendor selection.

      The choice of vendors—which ones and how many—affects your staffs ability to manage vendors without wasting time and money, as well as your ability to integrate disparate components into complete systems.

      IT organizations with too many vendors, or poor vendor management practices, spend too much of their precious staff resources in vendor dog-and-pony shows, adjudicating interoperability conflicts among vendors and trying to herd all the vendors into a cohesive IT resource.

      The drive to increase the efficiency of IT organizations has largely ignored the tax that is exacted from the staff each time a new vendor is added to the roster.

      One CIO I know quantified the cost in man-hours of dealing with a vendor. She estimated that a one-product vendor requires more than 80 hours of staff time each year in a best-case scenario. And some vendors can chew up 150 to 200 hours with their demands for meetings, nondisclosure events and other activities that may be less than valuable from the perspective of getting things done.

      Quantifying the cost of using a vendor can be a very important counter-weight to decisions, often made by the purchasing group, that might save you $12 on a product but cost you thousands of dollars in staff time.

      A good way to get a handle on things is to place vendors in three tiers according to how much time and how many resources you commit to each. The top-tier vendors are your strategic partners in software, hardware and services. Smaller companies may choose only two top-tier vendors, and even the largest businesses may have only four.

      The middle tier is where the trouble can start. This tier comprises vendors that have a product or service that is essential to your organization but may not have the product range to be a top-tier supplier. Too often, there is a great push to add best-of-breed vendors to this middle tier. However, the investment you make in time to support these middle-tier vendors can be substantial.

      Then there are the lowest-tier vendors, those that supply standard products or services. These vendors usually require little interaction. Such vendors may wish to become more important, but you should try to keep interactions with them as infrequent as possible.

      IT staffs have decreased, but the demands on them have expanded to include far more involvement with line-of-business staff and a myriad of new compliance issues. Its not possible to spend as much time as you once did with IT vendors. Streamlining and managing your vendor relationships with a documented structure is an excellent way to generate substantial efficiencies without adversely impacting IT operations.

      Aaron Goldberg is a vice president of Ziff Davis Market Experts. Free Spectrum is a forum for the IT community and welcomes contributions. Send submissions to free_spectrum@ziffdavis.com.

      Check out eWEEK.coms for the latest news, reviews and analysis on IT management.

      Aaron Goldberg
      Aaron Goldberg
      Mr. Goldberg is a renowned analyst, columnist, and strategic visionary covering the computer and Internet industries. His point of view is well known for its succinct, realistic, and down to earth style. His ability to integrate the technology, market and human factors in forecasting high technology is legendary.He has more than 22 years experience in understanding the product/channel/customer equation in these industries and has the unique ability to understand the inter-relationships among these factors. This allows Mr. Goldberg to uniquely present scenarios on industry and vendor directions that are uncannily accurate.In his current role at Ziff-Davis, Mr. Goldberg is charged with developing comprehensive market analyses and building integrated marketing programs and customer development programs for Information Technology vendors. His ability to understand the dynamic between customers, products, services, and their usage trends enables him to build hard hitting, unique programs that deliver the results for tactical and strategic marketing programs. This position demands the ability to work with senior executives in these IT firms as well as key partners in the media world.Mr. Goldberg is also charged with presenting key industry trends and research findings at major industry events and in various web sites and publications.At the present time he is a regular contributor to ZDNet, Availability.com and contributor for Upside Magazine, Wall Street Journal, Marketing Computers, and eWEEK.Prior to his current role, Mr. Goldberg was Executive Vice President at Ziff-Davis Market Intelligence, building state of the art go-to-market systems for high tech vendors. He has also served as Chief Executive Officer of InfoCorp. Prior to Ziff-Davis, Mr. Goldberg was employed at International Data Corporation for 15 years. He worked in a number of positions, and ended his employment there as Senior Vice President of the Desktop Computing Group.Mr. Goldberg received a BS degree from Bentley College in Marketing/Management, with directed studies in statistics and organizational behavior. He resides in Massachusetts with his family.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×