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Should I choose a multi-vendor or a single vendor?

Posted by Caroline Le Brun | February 1, 2017 5:30 PM

Nowadays, technology occupies a prominent place in our lives, especially for businesses. Adopting technology is your best move to make your life much easier at home and at work, but how do you manage all the information it generates? Many software have been created and optimized to help you manage everything technology-related. Question is: how do you decide between engaging a single vendor or multiple vendors to automate all the countless tasks that can benefit from technology adoption?

Well, it’d be best to compare the characteristics of the two scenarios, now wouldn’t it? In the spirit of helpfulness, here’s a point-by-point list of things to consider to make the right decision for your organization!

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Factors to consider when deciding between a single vendor vs. multi-vendor

1.        Best-of-breed

The name is pretty explanatory, but just in case: A best-of-breed product is acknowledged (by the genuinely knowledgeable) as the best product of its type. Importantly, this more often than not refers to a specific module or product that focuses on one specific feature. The simple fact of the matter is, it’s hard to be the best at everything. An integrated solution might be fantastic overall, but not every component module is going to be best-of-breed. That’s why many businesses cobble together solutions that take individual components from separate vendors. With particular regard to vendor types:

  • Single vendor – it’s very unlikely to get best-of-breed functionality for every feature with a single vendor. With careful selection, you should be able to find a single vendor that will likely be the best in one-to-several areas. Make sure you do your homework if you take this option!
  • Multi-vendor – this is basically the key advantage of choosing a multi-vendor solution. If we consider HR software, you will find that most solutions offer an employee self-service portal and time tracking capabilities, but not all solutions will offer the accounting capabilities or project management features you’ve been looking for. Even though they might offer these functionalities, you might prefer using another vendor because it is more user-friendly or provide the setup you need out of the box.

2.        Complexity

Here, I’m referring to the complexity inherent in integrating and implementing solutions for your business. Although there’s definitely a trend toward making everything compatible, there are still a great many legacy systems out there that weren’t built using common underlying software architectures or principles.

  • Single vendor – should have the advantage – the single vendor only has to worry about integrating its own product with your pre-existing systems. That can be challenging, but it’s at least a closed set of details to fuss over.
  • Multi-vendor – the onus here is on you to integrate everything. With multiple systems and a wide tranche of details, very few outside vendors will be able to integrate everything into a single cohesive whole – at least, not without great cost. And speaking of which…

3.        Cost

There’s no getting around it – pricing is going to be different across the two categories.

  • Single vendor – typically, this will be lower in price, thanks to better volume discounts.
  • Multi-vendor – price will be higher because you’ll be forced to buy separate individual modules to constitute your solution.

4.        Implementation difficulty

This is reference to the challenges that you’ll likely encounter for installing and setting up whichever system you ultimately purchase.

  • Single vendor – it will generally be less challenging to install single-vendor solutions because it’s only one set of programs/protocols to integrate into your existing systems.
  • Multi-vendor – multi-vendor solutions typically will require more effort to put into place because you’ll have to coordinate the integration of disparate (and potentially incompatible) systems.

5.        Procurement effort

Systems don’t just purchase themselves, right? The question is, how hard will it be to get them? The answers are pretty straightforward, however!

  • Single vendor – (relatively) simple –It’s going to require more efforts from you to choose the right software for your needs, but once you’re past that, you’re only dealing with one vendor, after all!
  • Multi-vendor – more effortful – you have a lot of different vendors with whom to negotiate contracts, and not every contract is going to run the same length and/or will be renewed at the same time, if at all!

6.        Product upgrades

We live in an age of ultra-rapid product updates and upgrades. What can we expect from the vendor packages?

  • Single vendor – you’ll probably see major updates to single vendor solutions much more infrequently. The updates/upgrades will likely be much more comprehensive!
  • Multi-vendor – because you’re using and seeing smaller packages from each vendor, you should be getting upgrades more often. That could cause some problems with integration, however.

7.        Staff training

The thing with software (and business IT in general, really), is that you do need training to take maximum advantage of your solution. That is true of most things, of course, but with technology, it seems especially true! The question here then, is just how much support you’re going to get in this domain (and how much you’re likely to get).

  • Single vendor – you and your staff will likely need less training overall, but you’ll likely get longer training sessions  because there’s everything to learn from this one vendor.
  • Multi-vendor – you and your staff will likely need more different trainings overall, but you’ll likely get smaller trainings since your purchase will represent a smaller order for the vendor and you’ll learn small pieces from every vendors.

8.        Vendor survival

Well, this is pretty important. You want your vendor to supply you with product(s), upgrades, and service/support for years to come, right?

  • Single vendor – if it’s a big single vendor (especially if it’s an established one), it’ll likely stay in business for the long-haul.
  • Multi-vendor – here’s where things can get tricky. On the one hand, smaller companies might be best-in-breed in particular areas, but because of their size, they might not get volumes of business necessary to stay afloat. Alternately, they may just reach a level of success where the bigger players will buy them out. After which, there’s no guarantee that the product will stick around…

A handy-dandy summary chart!

For your convenience, here’s a neat little summarizing table:

FACTOR

SINGLE VENDOR SOLUTION

MULTIPLE VENDOR SOLUTION

Best-of-breed choices

Impossible on a per-feature basis

Possible

Complexity

Vendor handles it

Customer handles it - outside vendors may not know the intricacies of all systems

Cost

Lower
(because of volume discounts)

Higher
(because of separate smaller service packages purchased)

Implementation challenge

Lower

Higher

Procurement effort

Lower

Higher

Product upgrades

Slower, but much more comprehensive upgrades

Faster
(at least, they should be) but less comprehensive

Staff training

Gives more per vendor

Gives less per vendor

Vendor survival

A large vendor is more likely to survive

Smaller vendors are constantly at-risk for shuttering or being bought out

Well, we hope that this was helpful! At Cimpl we believe that there is the right vendor mix for you. We will help you manage all of your vendor information in one platform for multiple service types. It does not matter what environment you are in, we’ve helped multiple customers save money, save time and manage their service inventory accurately.

If you need more information on business process automation and the benefits of adopting technology and telecom expense management, don’t hesitate to contact us. We’re Cimpl, we are leading the revolution in technology expense management! Our signature product is an all-in-one software solution that lets you easily track, monitor, and control your IT, telecom, and technology assets. So no matter if you choose a single vendor or multiple vendors, we’ll help you to keep track, manage everything and optimize your business processes; all in one platform!

 

Contact us or get your free demo today!

 

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Topics: Business Automation, SaaS

Written by Caroline Le Brun

Having worked in marketing for 16 years, Caroline has significantly improved Cimpl’s online presence and industry recognition as Marketing Director. Working closely with analysts and highly focused on keeping up with IT industry trends, she is most knowledgeable in the realm of technology and IT expense management best practices. As a passionate, driven marketer, she works side by side with her marketing team to bring Cimpl beyond its greatest achievements.

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