In technology buying situations, I’ve often heard this phrase many times throughout the years in justifying a buying decision:
“Well, no one got fired for picking Known Vendor Brand X.”
As a top consulting firm in technology, we advise you to take the phrase, soak it in lighter fluid, and light it on fire. Because that’s how much value it has today. This risk-mitigation excuse is used by too many executives today. Why do we feel that strongly? Let me explain.
Many of the large multi-billion dollar technology companies have 50+ individual product offerings. How many of those 50+ offerings are a top 2 service in that specific segment? I’d say, on average, 2 to 3. The 47 – 48 other offerings fall into a spectrum of “very competitive” to “also-ran”. That tech company is just hoping that its name-brand and client lack of desire to research alternatives is enough to avoid having to compete with superior offerings in those 47-48 segments.
A great example of this? Cisco.
They have an excellent array of technology products that undoubtedly contain market leaders in certain segments. But in all segments? No. But does the Cisco name often sway clients to buy sub-par Cisco offerings? Yes. We have heard plenty of clients buy Cisco simply due to the Cisco halo... and then be disappointed because the solution just doesn’t perform, is difficult to manage, isn’t fully baked, etc.
So why did you buy it then? Because you felt that there was safety in buying ANY product from a known name brand. I have news for you – big successful companies who spent a lot on marketing are just as capable as anyone else of making CRAPPY PRODUCTS.
Oftentimes a tech company decides that it wants to play in a space they don’t play in today.
The Ultimate Choice Then Arises
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A) “Do we build our own product from the ground up and potentially lose much time in the battle for market share as we research, prototype, build, beta-release, re-design, re-release, fix, patch, and then go GA”? |
Or B) “Do we take the easy route of buying a smaller company, shoe-horning that company, it’s product, culture, people, management portals, future product offerings into our own and reduce our go-to-market time?” In the current time, the answer is very often B. |