IT departments are centering their sights on key software and hardware initiatives for 2015, aiming to increase productivity and enhance the entire IT environment. But there’s a pervasive obstacle to those plans that often steals IT’s focus from these goals and robs them of the time to implement them. That IT time-waster is managing the multitude of vendors that an organization works with.
Most IT departments aim for an 80/20 distribution for vendor management: 20 percent of all vendors representing 80 percent of IT’s total spend, with the other 80 percent of vendors representing only 20 percent of the spend. Typically, the biggest players in the IT market – organizations like Microsoft, Oracle, SAP, and IBM – are an organization’s strategic suppliers and fill the top 20 percent. All other vendors represent the long tail. Here’s what that breakdown tends to look like: (more…)