Types of IT Service Providers
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Thanks for this, I was going to draw up a graphic table which told a similar story.
I'll leave a link to it when it is made.
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I reckon most of the providers I engage with are hybrids.
What I'm not sure about is why any of it matters? Why do you need to define providers in order to "leverage a relationship with them"?
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@Carnival-Boy said:
Why do you need to define providers in order to "leverage a relationship with them"?
Because you have to understand what motivates them or else you will leverage things backwards or against your own benefits. Like getting people motivated to make sales to give you advice about what to buy.
The whole article with the focus on the individual motivations of each type should explain why it is important to know what they are. Because you have to treat each differently.
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@Carnival-Boy said:
I reckon most of the providers I engage with are hybrids.
What I'm not sure about is why any of it matters? Why do you need to define providers in order to "leverage a relationship with them"?
So that you understand your relationship with them appropriately.
For example, you can't expect a reseller/var to give you information that's in your own best interest. Why not? because their interest and your interests are not in sync. They want to get as much money from you as possible, and you want to give them the least possible (OK maybe not the least, but definitely not more than you have to).
So the classic example - you talk to a reseller/var who sells SANs that you need a storage solution - they will only try to sell you a SAN instead of what you probably need, DAS or NAS or internal disk.
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@Dashrender said:
For example, you can't expect a reseller/var to give you information that's in your own best interest.
And because they are up front about being a reseller so they know, that you know, that they are trying to make a sale. There is nothing shady. It's totally up front and honest. But if you ignore this fact, they are left in a weird situation of not understanding you and not doing what you might think that they are doing (sales.)
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@scottalanmiller said:
@Dashrender said:
For example, you can't expect a reseller/var to give you information that's in your own best interest.
And because they are up front about being a reseller so they know, that you know, that they are trying to make a sale. There is nothing shady. It's totally up front and honest. But if you ignore this fact, they are left in a weird situation of not understanding you and not doing what you might think that they are doing (sales.)
But I do think the waters are muddy at the least, and dishonest at the worst. For example, CDW and Zones. Both of these companies claim to have for hire consultancy services. I've never used them so I don't know how unbiased they are, but the fact that they are directly associated with a reseller/var, where most of their income comes from, it's hard to trust that they would be your advocate.
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@Dashrender said:
@scottalanmiller said:
@Dashrender said:
For example, you can't expect a reseller/var to give you information that's in your own best interest.
And because they are up front about being a reseller so they know, that you know, that they are trying to make a sale. There is nothing shady. It's totally up front and honest. But if you ignore this fact, they are left in a weird situation of not understanding you and not doing what you might think that they are doing (sales.)
But I do think the waters are muddy at the least, and dishonest at the worst. For example, CDW and Zones. Both of these companies claim to have for hire consultancy services. I've never used them so I don't know how unbiased they are, but the fact that they are directly associated with a reseller/var, where most of their income comes from, it's hard to trust that they would be your advocate.
But they never claim not to resell things. I think that keeps them essentially all honest. Anyone getting other services from them knows that they make big money on the sales and that all advice is tainted. It's definitely all up front to me as a non-customer of either. They've never hidden the fact that they do sales primarily and that that is where the money is.
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@Dashrender said:
I've never used them so I don't know how unbiased they are, but the fact that they are directly associated with a reseller/var, where most of their income comes from, it's hard to trust that they would be your advocate.
I hear that they are incredibly biased, that all the design is just a sales pitch for high margin items. Nothing you would not be expecting from how they've presented themselves (sales people with just enough tech to allow sales to go through.)
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@scottalanmiller said:
@Dashrender said:
I've never used them so I don't know how unbiased they are, but the fact that they are directly associated with a reseller/var, where most of their income comes from, it's hard to trust that they would be your advocate.
I hear that they are incredibly biased, that all the design is just a sales pitch for high margin items. Nothing you would not be expecting from how they've presented themselves (sales people with just enough tech to allow sales to go through.)
Having seen the non paid side of their consulting, I know this part to be true.. I don't know about their paid consulting side.
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@scottalanmiller said:
Because you have to understand what motivates them or else you will leverage things backwards or against your own benefits. Like getting people motivated to make sales to give you advice about what to buy.
Yeah, but I think that's just basically a case of being aware that "there is no such thing as a free lunch". Everyone is trying to sell me something. I don't see the need to understand different terms or how different service providers are setup to know that.
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@Carnival-Boy said:
Yeah, but I think that's just basically a case of being aware that "there is no such thing as a free lunch". Everyone is trying to sell me something. I don't see the need to understand different terms or how different service providers are setup to know that.
But you need to know WHAT they are trying to sell you and how their advice is skewed.
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@Dashrender said:
Having seen the non paid side of their consulting, I know this part to be true.. I don't know about their paid consulting side.
It's probaby less biased, but the incentives are still huge for them to keep the bias.
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@Carnival-Boy said:
@scottalanmiller said:
Because you have to understand what motivates them or else you will leverage things backwards or against your own benefits. Like getting people motivated to make sales to give you advice about what to buy.
Yeah, but I think that's just basically a case of being aware that "there is no such thing as a free lunch". Everyone is trying to sell me something. I don't see the need to understand different terms or how different service providers are setup to know that.
Think of it as fixing colour balance on a photo. The first step is determining in what direction the colour is off. You can correct a lot of bias issues when you know what the bias is. Or know when the advice is so biased as to be worthless or actively negative.
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@scottalanmiller said:
But you need to know WHAT they are trying to sell you and how their advice is skewed.
Isn't that going to be obvious when they're talking to me? They can't sell me anything without telling me what they're selling.
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@Carnival-Boy said:
@scottalanmiller said:
But you need to know WHAT they are trying to sell you and how their advice is skewed.
Isn't that going to be obvious when they're talking to me? They can't sell me anything without telling me what they're selling.
No, it's not obvious - but that's a failing of IT more than of the vendor selling something. You're company has a problem it needs to solve, they should not be asking a reseller/var for a solution, they should either have internal IT do the research or hire a consulting firm to do that research to find the best solution.
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@Carnival-Boy said:
@scottalanmiller said:
But you need to know WHAT they are trying to sell you and how their advice is skewed.
Isn't that going to be obvious when they're talking to me? They can't sell me anything without telling me what they're selling.
Nope, you can't tell how they are skewing the advice. How could you? You don't know where they are making their money, what part is a best practice, etc. All you know is the result.
If you believe that ALL of what they are giving you is a sales pitch, why would you listen to it at all (which is often the advice.) If you believe that they have zero value or only negative value, then you know to avoid them. If you want advice and believe everyone has a bias, then you need to learn to look for and identify bias, combine it with the knowledge and resources you have to attempt to filter advice to know which parts are genuine, which parts are bias, etc.
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@Carnival-Boy People get sold things that they've never even saw / read / heard about all of the time.
Just because you bought X, doesn't mean it doesn't include Y and Z as well, especially as line items.
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I'm not claiming buying is easy, I've been doing it for years and I wouldn't consider myself a decent purchaser but I am a professional buyer, I'm not an idiot. I'm just wondering about the necessity of understanding the technical details of the provider's business model in order to identify potential bias. I'm just wondering how this wouldn't come out in conversation with a company - how it is possible to be duped because of failure to understand terms.
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The terms, often overlap, as you could easily hire an MSP to consult on a new project.
But that same MSP will recommend a solution (software or hardware) that also aligns with their sales departments goal. Because that's the hardware they're licensed to sale. Or simply want to sell because of Markup Value on said item(s).
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@Carnival-Boy said:
I'm just wondering about the necessity of understanding the technical details of the provider's business model in order to identify potential bias.
Let me just give a contrived, sample example:
Company 1 tells you that you need a SAN. You know that they are SAN salesmen and make a fortune selling SANs. By knowing this you know that this advice is literally worthless and must be thrown out. You are left with no advice.
Company 2 makes no money selling SANs but does make lots of money building storage systems. They recommend a SAN against their own financial interests. You have a good idea that they are being not only honest in recommending something that doesn't make them money but doing so against their own interests. Their advice about the SAN is likely from a sincere position of honest belief. You should at least consider this advice.
