More technology vendors are bundling managed services with their products. The reasons are clear: Technology products are increasingly complex, and many organizations lack the expertise to adopt and use them effectively. The persistent tech shortage exacerbates these challenges. Managed services allow vendors to mask some of the complexity and capture more of the technology spend.
These bundled managed services can be valuable to customers, with some caveats. Managing too many vendors can create a different set of headaches, particularly when those vendors don’t have the organization’s best interests at heart.
Here are four tips for selecting and managing technology vendors.
Evaluate All Vendors Thoroughly
When choosing a solution with bundled managed services, it’s important to look at the vendor’s policies and processes as well as the capabilities of the underlying product. Look beyond the sales team at the groups who will perform the day-to-day services. Is the vendor responsive, flexible and innovative? In some cases, the biggest vendor might not be a good fit for smaller organizations that might get lost in complex, rigid processes.
Of course, it’s important to look at long-term value as well as short-term goals. Consider the vendor’s reputation, experience, financial stability and technology roadmap. It may be helpful to develop a framework for evaluating relevant metrics.
Focus on Building Collaborative Relationships
Managed services shouldn’t be transactional. For managed services to be successful, both parties should work together to cultivate a proactive, collaborative relationship.
That won’t be possible if the vendor simply wants to make a sale and maximize profit margin, or the customer just wants to minimize costs. The relationship must deliver value on both sides. Building such a relationship starts with honesty and trust. Vendors should take the time to understand the customer’s concerns, objectives and priorities, and offer specifics about how the product will address those needs. There should also be clear channels of communication and meaningful reviews on a regular basis.
Continue Monitoring the Vendor’s Performance
No vendor relationship is static. It is essential to continue monitoring the vendor’s performance throughout the relationship. Is the vendor delivering as promised? Are SLAs being met? While these metrics may be transactional, they point to the overall value being derived and how much the vendor is invested in the relationship. Frequent calls for support may also point to an immature product or one that isn’t a good fit.
Performance evaluations should be conducted regularly so that issues can be addressed promptly. Costs should also be tracked to gain a complete picture of the solution’s total cost of ownership. For example, the provider with the lowest bid might seem attractive initially but end up costing more in the long run.
Work with an Independent MSP
Vendor managed services programs have value but are no substitute for working with a managed services provider (MSP). Qualified MSPs work independently, overseeing the entire IT environment to ensure that it’s secure and performing optimally. They can help evaluate various vendor solutions, then serve as an overarching management layer that ensures the solutions deliver value.
Many of the same criteria go into evaluating an MSP. Look for a provider with proven expertise and a track record of success. Ask for customer references. Find out about the MSP’s processes, procedures and technology investments. Visit the MSP’s facilities and talk to the technicians. Sit down with management to get a sense of company culture and commitment to quality.
Verteks is here to serve as your long-term managed services partner. We invite you to thoroughly vet our capabilities to see if we would be a good fit for your organization.
