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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.


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