Beware of Vendor Vultures
Most Managed Service Providers (MSPs) are in the commodity business. They target companies with up to 250 employees, but they are not focused on delivering quality service or fostering growth. Instead, they're hunting for stable, low-growth clients they can exploit through excessive software licensing markups. These are the Vendor Vultures, and they're circling overhead, ready to swoop down on unsuspecting businesses.
The Vendor Vulture Strategy
The core of the Vendor Vulture strategy is simple: continuously add more licenses from an ever-expanding roster of vendors, all provided through the MSP. While this may seem like a way to offer comprehensive solutions, it often results in:
Inflated costs for the client
A complex web of software that may not be fully utilized
Subpar support due to lack of specialization
The Hidden Costs
MSPs employing this strategy are not primarily profiting from their managed services. Instead, they're padding their bottom line through substantial markups on software licenses. This can lead to businesses paying far more than necessary for their IT infrastructure, without seeing a corresponding increase in value or performance.
The Support Nightmare
Perhaps even more concerning than the financial impact is the degradation of service quality. As these MSPs add more and more vendors to their offerings, their staff becomes stretched thin, trying to be jacks-of-all-trades but masters of none. The result?
Back-and-forth support tickets
Slow response times
Simple issues taking days to resolve
This lack of specialized knowledge not only frustrates employees but can significantly impact a business's productivity and growth potential.
A Better Way: Tenger Thrive
Fortunately, not all MSPs operate this way. Tenger Ways (tengerways.com) offers a refreshing alternative with their Tenger Thrive service. Unlike the Vendor Vultures, Tenger Thrive is specifically designed for growing organizations with evolving needs.
Key differences include:
All software licensing is provided with ZERO markup
Focus on scalable solutions that grow with your business
Specialized expertise in core technologies
Emphasis on rapid problem resolution
Transparent pricing without hidden licensing markups
Protecting Your Business
To avoid falling prey to Vendor Vultures, businesses should:
Scrutinize licensing costs and markups
Evaluate the breadth and depth of an MSP's expertise
Ask for clear SLAs regarding response and resolution times
Consider providers like Tenger Ways that align with growth-oriented businesses
In conclusion, while the IT landscape can be treacherous, awareness is the first step in protection. By understanding the tactics of Vendor Vultures and seeking out growth-focused alternatives like Tenger Thrive, businesses can ensure their IT partner is truly an asset, not a liability.
Want to learn more?
Tenger Ways helps with all of your needs across the IT Operations space. We’re your strategic partner with world-class technical chops. Most importantly, we hang our hats on using modern practices, such as “continuous everything” and “bring joy to the workplace” to help you realize business value faster and with happier team members and more satisfied clients. It’s not just hyperbole! Reach out and let us show you how Tenger Ways is vastly different.