Vendor Warning Signs

Over at CIO Update, Henry Newman writes about Vendor Warning Signs.

“There are warning signs that buyers of technology should be aware of before they buy technology from any company. These signs are not absolutes, but when combined with other factors, you might want to look elsewhere, or at least wait and see what happens before buying technology from that company. Hopefully you’ll be able to apply them to some of the storage and server vendors from whom you’re considering buying products.”

One point in the article relates to financial issues;

Financial Issues – This is generally the easiest one to spot Ã?— at least for publicly-traded companies.

Non-public companies are particularly hard to value. They usually don’t publish their financial data because, in most cases, they are not required to. But their credit records, however, can be obtained through Dun & Bradstreet for a nominal fee.

A purchasing agent I know did this once for a vendor, while negotiating a long-term contract. The vendor’s record was abysmal, indicating the vendor might not be around long enough to support the contract. So he said to the engineer, “No way in heck are we doing this.”

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