I recently attended an analyst forum presented by IBM’s System and Technology Group (STG). A session on how IBM plans to create a competitive advantage caused me to think about key selection criteria executives of Small to Medium Businesses (SMBs) should apply when selecting a hardware supplier.
Although this isn’t a complete list of selection criteria, each of these points would help an executive wade through all of the material and the promises being made by vendors:
- Does the supplier have a reputation of following through on its promises? Can customers count on a supplier not to sell off a complete business unit to a third party? IBM, for one, has a reputation of following through on its promises. Customers know that the company is not going to sell, for example, IBM Power Systems to a third party. This means that customers trust what IBM says. Do the suppliers being considered have as good a reputation?
- Are the systems being proposed reliable and manageable? Can they be counted on to perform their function for the entire life of the system? Can ongoing costs of hardware be reliably projected or would the selection of a vendor mean that long term planning is likely to be a hit or miss proposition? Customers don't like surprises and suppliers such as IBM seldom offer them.
- Does the supplier have a long, continuing history of investing in research and development? What significant technological advances can the supplier claim? Is it clear that the supplier is going to be an innovator for the foreseeable future?
- Has the supplier been a good partner over time? Some companies wait for partners to develop a market and then swoop in to try to take over that market. Even the best partners of a supplier like that will be tentative when dealing with a potential competitor. IBM’s track record is really good in this area. IBM might buy a partner to gain a strong entry into an emerging market, but the company seldom displays predatory behavior patterns.
- Is the supplier working on a holistic approach that encompasses hardware, software and services? IBM’s Smarter Computing programs and services are examples of holistic thinking.
- Does the supplier offer “Purpose built systems” or a “computer science project”? Making life easier for customers and partners can be a very important element in customer satisfaction.
- Is the supplier always looking for ways to lock in customers and keep them from utilizing other suppliers’ products and services? IBM's investments in open standards and its practice of welcoming everyone to the party can make everyone feel more comfortable starting with or adding IBM products later.
- Does the supplier operate worldwide or is it focused on a single country or region. A supplier that has a worldwide footprint is likely to be a better partner to SMBs hoping to grow through international sales and partnerships.
Although certainly not a complete list of decision criteria, this list of things to consider could be very helpful in the vendor selection process.
This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet.
