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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news