Organizations encounter significant capital expenditures, when building or updating their aging data center facilities, are faced with a difficult build vs. buy decision.
Ongoing management of the Service Level Agreement (SLA) and co-location contract is critical for a successful co-location engagement. Assessments should be conducted at least annually to ensure the co-location vendor is complying with the agreement. Review and manage co-location vendor performance annually to ensure ongoing success.
Basic services for co-location are a commodity amongst vendor offerings. Understanding the business needs helps to narrow down the list of vendors and aid in the selection process. Choose a set of criteria to base the decision on, before approaching co-location vendors.
Managed services offerings build on basic co-location with added services provided by the vendor. Regardless of immediate needs, IT should include managed services criteria in the vendor selection process. Choose a set of criteria based on current and future business needs before approaching co-location vendors for managed services.
The data center build versus buy decision is essentially a cost decision. Many organizations that gather requirements and forecast data center costs into the future will find that over time, a co-location strategy is the less expensive alternative. Evaluate the build versus buy costs to determine the best option for the organization.
Driven by cost pressures and a desire for increased business agility, offshoring of IT services has seen consistent growth since the 90s that paused briefly during the global recession but is now rebounding. Both large and small organizations need to understand the environment that is driving this momentum, to better leverage its benefits and avoid its risks.
Any enterprise can be adversely impacted by poor vendor performance - especially when it is a key vendor. These vendor problems can be especially traumatic for small enterprises with little or no recourse. As a result, IT managers should make it a priority to review key vendor performance and take appropriate actions if there are major concerns.
It is definitely feasible for small enterprises to try and provide the same service levels as their larger counterparts. However, budget limitations, available work force, and limited vendor influence can make this a difficult challenge. In addition, actual business unit service level needs must be identified and validated to make the correct choices.
IT depends heavily on external vendors to deliver key services such as telecommunications, software maintenance and hardware delivery. To ensure that vendors understand the customer's expectations and deliver to them, organizations should follow the five stage process described in this video.
Enterprises are becoming increasingly focused on pricing when selecting a vendor or negotiating an agreement. In many cases, however, giving prime attention to pricing can be counter-productive. Understand the factors, other than price, that influence vendor choice and tackle those factors in agreements with vendors.
Organizations encounter significant capital expenditures, when building or updating their aging data center facilities, are faced with a difficult build vs. buy decision.
A co-location Service Level Agreement (SLA) provides a definition of performance for the negotiated service. SLAs ensure accountability on the part of the service provider and also determine the price of the service. Understand and develop expectations on co-location vendor SLAs using a real world example and template.
After defining the organization's requirements for data center co-location service offerings, expectations for the engagement methodology should be defined. Many organizations run into trouble in the co-location agreement when a vendor's business practices and processes do not reflect that of their own. Align business practice expectations with selection criteria to aid in the co-location vendor selection process.
Organizations in the selection process for a data center managed services vendor may find it difficult to differentiate vendor offerings in a highly commoditized market. TELUS Corporation is a leading vendor in Canada with a range of offerings from customer managed services to fully managed services on shared, dedicated and virtualized platforms with unique additions such as cloud computing and tiered Storage Area Networks (SAN). Understand and evaluate TELUS service offerings to determine if it is a fit for the enterprise's data center outsourcing needs.
Organizations in the selection process for a co-location vendor should issue an RFP to gather required information from vendors and make an informed decision. After finalizing selection criteria that is relevant to the organization's needs, use this RFP template to narrow the search for a co-location vendor.
A well-written contract ensures that the selected vendor meets the company's specific expectations and objectives for the purchase. During the evaluation process, the team will determine whether the selected vendor will have any difficulty meeting original purchase objectives. The negotiating team, therefore, must reach agreement on which objectives will require negotiation and what an acceptable outcome will be.
Enterprises are dependent on vendors to obtain IT hardware, software and services. The Vendor Management process includes the identification, selection, contracting with, and ongoing management of vendors or suppliers, and is an essential part of the IT management process.
The growth of wireless devices, voice and data services, and mobile applications is straining the internal capabilities of enterprises that embrace mobility. The answer for many enterprises is to outsource wireless telecom management to experienced Telecom Expense Management (TEM) Business Process Outsourcing (BPO) vendors. Make sure to shortlist the TEM BPO vendors that best meet the requirements of the enterprise.
Hosted VoIP represents a compelling enterprise IP Telephony (IPT) option that is being increasingly explored by smaller organizations. Considering the current bloat within the hosted VoIP market and the risks associated with outsourcing telephony services, IT decision makers need to be particularly prudent when evaluating potential service providers and offerings.
Enterprises investigating hosted VoIP services face a wide array of providers and solution offerings from which to choose. Considering the still moderately-high risk associated with outsourcing voice services, it is incumbent on IT leaders to conduct a thorough and extensive evaluation of potential providers and services. Use this guidance to direct a comprehensive assessment of hosted VoIP service providers.
Many organizations are assessing the business case for outsourcing their data centers. This videocast explores the various drivers including building costs, outsourcing costs, and strategic implications.
IT organizations are starting to explore decentralization as a means of cost optimization. This videocast explains how and when decentralization can save money, focusing on key drivers, such as server consolidation, application requirements, and network traffic.
One effective way to cut costs is to negotiate reduced pricing with IT vendors. Recent Info-Tech research suggests that there are three key questions that IT professionals should ask themselves before entering into a contract negotiation.
Vendors are often hesitant to reduce pricing during contract negotiations. Learn how 24 IT professionals cut costs for their organizations by successfully opposing vendor arguments against price reductions.
Navigating the contract negotiation process can seem daunting at first. However, there are strategies that IT professionals can use to manage negotiations. Learn how to navigate effectively and efficiently through the negotiation process by employing several best practices.
There is no need for IT managers from small enterprises to feel intimidated going into a contract negotiation. Info-Tech recently interviewed 24 IT professionals and identified several negotiation strategies that can be successfully used by enterprises of all sizes. Achieve price reductions when negotiating with IT vendors by knowing when to use which negotiation strategies.
One low pain, high gain way for small enterprises to cut costs is to negotiate for reduced pricing with IT vendors. Use this tool to learn which negotiation strategies to use in different situations in order to achieve cost reductions for the organization.
It is possible to achieve price reductions during contract negotiations; however, IT managers often need to respond to vendor opposition in order to get the pricing that they desire. This note highlights several arguments that vendors commonly use to avoid reducing their prices during a contract negotiation and provides advice on how to counter these claims to achieve a successful price reduction.
IT managers from small organizations shouldn't feel intimidated going into a contract negotiation, even when negotiating with large vendors. Small enterprises can approach negotiations like the pros by carefully reviewing the contract proposed by the vendor, as well as assembling a strong negotiation team with clear targets and a solid negotiation strategy.
The ability to negotiate a reduced price with vendors is a crucial skill for IT professionals, who are often under pressure to reduce costs. There are a number of strategies that IT can use when negotiating for a reduced price on an IT contract. However, not all strategies are created equal and not all strategies should be used in every negotiation situation. Use this tool to help choose which negotiation strategies to use based on the organization's particular situation.