With the technology boom peaking in the 1990s - and then rapidly bursting - the entire IT landscape has changed. Customers have revolted and are holding technology suppliers to ransom by demanding that vendors do more serious partnering and, instead of simply dumping technology, actually take a serious look at assisting with the real business issues.
This is according to Douglas Reed, MD of premier Internet service provider (ISP), DataPro.
"We have seen a definite shift in the balance of power between buyers and sellers. Sellers were sought-after a few years ago, buyers are know calling the shots and are stating exactly what they want in terms of solutions, both hardware and software, and in terms of business relationships.
"In a survey published recently by Goldman Sachs, nearly two-thirds of IT managers in America think that their ability to command better pricing terms from suppliers is increasing, placing an unusual amount of pressure on computer vendors."
Reed said the new shift of power changes the entire business landscape - from what companies` IT needs are, the products and services they will offer, as well as how staff and top management view their jobs and create value.
"What is happening now is that customers are playing vendors off against one another in an effort to drive down prices. Moreover, they are no longer simply accepting proprietary solutions - they want vendors to provide more generic, or transparent solutions. Many customers are also extending the time frames between hardware and software upgrades, making sure that vendors remain flexible and keen to negotiate on prices - but while still delivering premium solutions and services.
"Companies are not just looking for new hardware or software, they are looking for assistance so that they can get more out of their current IT systems to drive down costs and boost efficiencies.
"This means that the customer might enjoy the balance of power for quite some time. They want quicker delivery times and want to see an immediate return on their investment. In this new IT order, vendors have to spend more time understanding the customer and must be able to show a deep understanding of the customer`s business, or risk losing out on the business opportunity. Long-term strategic partnerships are also the order of the day and vendors, in order to fill their company coffers, are going to have to realise that business is no longer a sprint like it was in the halcyon days - it is more like a marathon."
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