Modern Middle Manager
Primarily my musings on the practical application of technology and management principles at a financial services company.
Vendor Extortion

Wednesday, June 04, 2003  

Ahem. I mean vendor maintenance. Sorry, I get those confused. Apparently I'm not the only one; CIO Magazine has an article about vendor maintenance and the costs involved in keeping hardware and software up to date. We spend about 15% of our budget on maintenance and have renegotiated with a couple of vendors to knock those prices down. I have also stopped maintenance on hardware that is not part of a mission-critical system -- we architected our network with that in mind. Some of our vendors have told us pretty much their way or the highway. Others have a range of choices that we can select with significant price points.

Our CRM vendor, Onyx Software, was very accommodating and willing to shift maintenance based on license count. Cisco has several kinds of maintenance available with significant price points so we adjust what we covered to save money. Network Appliance surprised me by having a weak price break between 7x24 coverage and 8x5 coverage. They apparently jacked up their maintenance contracts as well. They've been the most expensive and least flexible this year. We'll see what next year brings.

posted by Henry Jenkins | 6/04/2003 02:50:00 PM

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