Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


IT vendors profit from confusing technology choices

27 November 2012

Unscrupulous IT vendors profit from confusing technology choices

The proliferation of new technology, cloud and server choices in the IT sector is resulting in many New Zealand companies being left out of pocket by unscrupulous IT providers.

Richard Cheeseman, managing director of IT and telecommunications managed service integration company Lume Ltd, said he has encountered several companies recently who have forked out large sums of money for solutions which suited the vendor more than the buyer.

“Kiwi CEOs tell us they are buying technology and solutions they don’t need because they are confused by the sudden overwhelming choice of new technologies, and are struggling to make sense of it all.”

Mr Cheeseman said IT companies by their nature are heavily vested in certain solutions – often as partners or preferred suppliers for multinationals –and they are intent on peddling their particular solution, regardless of whether it's the right one for the client or not.

“For example, the big question for New Zealand businesses at the moment is ‘do I need a new server or not, and is cloud technology a viable solution’?

“Unfortunately most IT companies specialise, and therefore derive a large part of their income, from one or the other. The challenge for a typical Kiwi CEO is made more difficult by the sales process adopted by most technology vendors.

“This usually has one of two stances – bamboozle you with science, or hide the complexity and make it sound so simple and cheap you can’t refuse it. Neither approach gives you the right information to make an informed choice between comparable alternatives, and often they come with onerous lease or rental deals to finance it all, with hidden renewals and exit costs

“And it’s not just the IT industry that’s doing this. The Telecommunications sector has the same problem. The question businesses are asking now is ‘do we need to be doing this?’ And ‘how do I know I’m making the right decision?’

Mr Cheeseman advised company decision makers to get several quotes for both on premise server upgrades and cloud options.

“If you have a trusted IT partner, ask them for their recommendation as well but explain the need for a general review. Refer to your business network for recommendations of companies to ask to tender.”

He said the tendering process need not be complex or onerous.

“Once you know what you need, getting pricing and solutions from vendors is not too difficult, and it should be possible to ensure you are comparing apples with apples in a reasonably transparent process,” he said.

About Lume Ltd

Lume Managed Service Integration is a new service that provides businesses with an independent outsource IT and telecommunications management facility and Helpdesk services - specifically to provide governance around the diverse number of technology suppliers and solutions most companies have to manage nowadays.

IT support companies and vendors have a vested interest in selling their solution, regardless of whether it is the best one for the company or not. Lume LTD is an IT and telecommunications specialist with a passion for independence and a focus on making sure its clients have the best possible solutions and best possible service from vendors.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news