Choosing the right technology vendor can make all the difference in your organization’s success. To guide you in this critical decision-making process, we gathered insights from CEOs and founders on the key factors to consider when selecting a technology partner. From evaluating the vendor’s financial stability to assessing their reliability and support, these eighteen expert insights will empower you to make informed choices that align with your business goals. Here are the top factors to consider when choosing technology vendors for your organization:
- Evaluate Vendor Health and Stability
- Prioritize Ecosystem Strength
- Prioritize Data Security and Privacy
- Evaluate Total Cost Of Ownership
- Assess Vendor Sustainability
- Focus On Business Needs
- Review Stability And Development
- Prioritize Vendor Accessibility
- Prioritize Solution Scalability
- Prioritize Solution Flexibility
- Consider Compatibility And Growth
- Assess Negotiation Willingness
- Ensure System Compatibility
- Evaluate Project Management Style
- Align With Business Goals
- Provide Technical Support
- Prioritize Vendor Security
- Assess Vendor Reliability
Evaluate Vendor Health and Stability
When selecting technology vendors for your organization, an underrated factor to consider is the company’s health and stability. Every buyer understands that product demos and pricing reviews are essential, but they often overlook critical aspects such as the vendor’s ownership status, funding stability, and growth trajectory.
Our business specializes in assisting organizations with comprehensive software-vendor evaluations, ensuring that they partner with providers who are not only capable but also reliable and innovative.
We delve deeper into understanding whether a vendor is privately owned or part of a larger corporation, examine their funding sources, and assess their hiring trends to gauge growth. A vendor that is actively growing and investing in their team is more likely to be committed to continuous improvement and innovation.
We don’t suggest exclusively partnering with the largest vendors. However, our experience shows that some boutique vendors may face challenges such as acquisitions or stagnation in product development, which can disrupt your operations. By evaluating the stability and future prospects of a vendor, we help clients avoid such pitfalls and choose partners who are committed to delivering ongoing value.
Incorporating a review of the vendor’s company health into the selection process has proven to be a game-changer for our clients. It ensures that they engage with stable and forward-thinking providers, fostering long-term success and minimizing risks associated with vendor instability. For organizations aiming to make informed and sustainable technology investments, assessing the vendor’s overall stability is an indispensable tactic.
Brett Ungashick, CEO & CHRO, OutSail
Prioritize Ecosystem Strength
When selecting technology vendors for our organization, one of the most important factors I consider is the strength of the ecosystem they bring to the table. No single vendor or partner can meet all of an organization’s needs, so it’s crucial to have a network of partners that work together seamlessly. This collaboration is especially vital when it comes to security, where gaps or misalignments can pose serious risks.
I look for partners that not only offer robust solutions but also assist with the integration and maintenance of their hardware and software across a multi-vendor environment. By doing so, we optimize the return on investment (ROI) and ensure that we’re maximizing the value of our technology stack from an agnostic perspective. The ability to maintain harmony across systems ultimately drives the success of any implementation.
Kelly Nuckolls, CMO, Jeskell Systems
Prioritize Data Security and Privacy
When choosing technology providers, especially in the education industry where we handle private data about students and families, data security and privacy are top priorities. This element is about establishing trust with our users and protecting their personal data, not only about following laws. Our vendor-choosing process has revolved mostly around this.
When assessing suppliers, we seek those who have put strong security policies into effect. This covers routine security audits, multi-factor authentication, end-to-end encryption for data in transit and at rest. We also give vendors who follow industry-standard security models, such as SOC 2 or ISO 27001, top priority. These certifications guarantee that the vendor has set and adheres to rigorous information security policies and practices.
Another important quality is following pertinent laws. For educational data, this usually means following FERPA (Family Educational Rights and Privacy Act) in the United States; for platforms that might gather data from children under 13, COPPA (Children’s Online Privacy Protection Act); and various state-specific data protection laws. Globally, rules such as GDPR in Europe create high standards for data security that businesses have to satisfy.
We also take vendor data handling policies into account. This covers data collecting, storage, application, and deletion. Clear data retention policies and quick data deletion or return capability for vendors will help to ensure that they should also be open about any outside services they make use of that might have data access.
Finally, we seek suppliers who approach security actively. Regular updates and patches to solve vulnerabilities, continuous staff security best practice training, and a dedication to keep ahead of new dangers in the cybersecurity scene follow from this.
Giving data security and privacy top priority during our vendor-choosing process guarantees not only data protection but also a basis of trust necessary for any technology platform used in the education industry. We have become a reputable partner for more than 1,000 companies across the country thanks in great part to this strategy.
Darian Shimy, Founder & CEO, FutureFund
Evaluate Total Cost Of Ownership
As a managed IT-services director, I always advise businesses to carefully evaluate the total cost of ownership when selecting a technology vendor. Beyond the initial investment, it’s crucial to understand long-term costs related to technology support, device management, and upgrades. Equally important is ensuring that the organization maintains full ownership and control of its technology infrastructure.
Organizations should avoid situations where critical systems, such as network management or cybersecurity tools, are hidden behind proprietary controls, accessible only by an outsourced IT vendor. By maintaining transparency and ownership, businesses can ensure their IT environment remains adaptable and secure, with the flexibility to manage their technology either in-house or with the assistance of trusted IT-consulting services.
John Marta, Business Manager, Go Technology Group
Assess Vendor Sustainability
One critical factor we consider when selecting technology vendors is their commitment to sustainability. This includes assessing the vendor’s environmental practices, such as energy efficiency, use of renewable resources, and waste reduction initiatives. Partnering with vendors who prioritize sustainability aligns with our mission to minimize our environmental impact and supports our broader goals of promoting eco-friendly practices within our industry.
Benjamin Alford, Environmental Consultant, Aerem
Focus On Business Needs
Flashy tech doesn’t always mean better results. Case in point: when we were looking for a new inventory management system, we almost got suckered into this AI-powered thing that promised the moon. But here’s what we did instead: We sat down and hammered out exactly what we needed—which for us, was real-time tracking of our products across multiple states, each with different regulations.
We didn’t just listen to sales pitches; we tried out the prototypes and had our warehouse team, our compliance folks, and others test-drive these systems. When we did a cost-benefit analysis, the AI system looked cool, but when we crunched the numbers, a simpler solution actually met our needs better and at half the cost.
I would always recommend that you get feedback from your team and the people actually using the tech to see if it’s making their lives easier, and if not, then pivot.
Don’t get blinded by bells and whistles; rather, focus on what your business actually needs, not what looks good in a demo.
Dennis Sanders, Founder, Burning Daily
Review Stability And Development
Two of the main factors that we consider when reviewing and selecting tech vendors are their managerial stability and product development path.
If we invest in and deploy a new piece of tech, it’s critical that the business has the right financial support, corporate structure, and managerial team to give the business stability. With the cost and time required to incorporate tech into our business, for that business to go under or fail would be extremely costly to us.
Technology changes fast, so any product or vendor needs to be able to demonstrate a strong development plan and the resources to execute it. Too often we get sold big ideas, only to see them never materialize due to lack of vendor funding or a skill shortage.
Ben Hilton, Founder & Managing Director, Switch Jam Digital
Prioritize Vendor Accessibility
When selecting technology providers for our organization, a specific and important thing I always consider is whether the vendor believes in being as accessible as possible. This is important because it embodies their mission to develop technology that is accessible to everybody, even those with disabilities. We have to find vendors who take the idea of universal design seriously and ensure that their products and services are usable by everyone on our large team.
I look closely at the vendor’s past performance and continued commitments to accessibility features in upgrades and releases. This investment in improving accessibility is essential because technology and user demand change. A supplier that is committed to making their products more inclusive not only shares our commitments but also demonstrates foresight and agility.
When we pick such a vendor, not only are we making room for all our employees (in-house and future), but we are also making a testament to our commitment to inclusiveness and equality in all aspects of our operations. This way, we can cultivate a more inclusive culture and elevate our brand image as a responsible business.
Alex LaDouceur, Co-Founder, Webineering
Prioritize Solution Scalability
When selecting technology vendors for an organization, one of the most critical factors to consider is the vendor’s ability to provide scalability in their solutions. In a rapidly-evolving business landscape, it’s essential to choose technology partners whose products and services can grow alongside your organization. This ensures that your investment remains valuable and relevant over time, accommodating new business requirements and technological advancements without necessitating frequent, costly replacements or upgrades.
A scalable solution prevents bottlenecks and performance issues, maintaining efficiency and productivity as demands increase. For example, in the context of a data platform, it’s vital that the system can support growing amounts of data and concurrent users without compromising speed or reliability. This capability is crucial for organizations that anticipate growth or fluctuating business needs.
By prioritizing it, organizations can ensure that they select technology vendors whose products provide long-term value, supporting both current operations and future strategic initiatives. This approach minimizes risk, enhances operational efficiency, and positions the organization to leverage new opportunities as they arise.
Ira Prevalova, Growth Marketing Director, Adverity
Prioritize Solution Flexibility
When selecting technology vendors for my organization, one of the most critical factors I consider is the flexibility of their solutions. In a business landscape characterized by constant change and evolving needs, it’s essential to partner with vendors whose products can adapt to diverse requirements and seamlessly integrate with existing systems.
Flexible technology allows organizations to tailor solutions to their unique business processes, ensuring smoother implementation and better alignment with strategic goals. This adaptability is key to maximizing the value of your technology investment, enabling you to respond proactively to new opportunities and challenges.
This includes supporting different data types, integrating with existing IT infrastructure, and accommodating future technological trends. A flexible solution allows organizations to customize and configure the technology to meet unique business requirements, avoiding the limitations of rigid, one-size-fits-all products.
Prioritizing flexibility when choosing technology vendors ensures that your organization is equipped with solutions that can evolve alongside your needs. Flexible technology empowers you to make adjustments without significant disruptions or costly overhauls, allowing you to remain agile and responsive in a fast-paced market. By selecting vendors that offer adaptable solutions, you create a robust foundation for long-term growth and innovation, ultimately enhancing your ability to stay competitive and meet changing business demands with confidence.
Soledad Galli, Data Scientist | Owner, Train In Data
Consider Compatibility And Growth
I consider compatibility and growth potential when selecting a technology supplier for my business. Over time, I’ve appreciated the role of vendors in meeting current needs and scaling up as the company expands. For instance, vendors who can handle service expansion without disrupting operations are crucial during periods of rapid growth. This foresight ensures that technology remains an enabler, not a constraint, as business requirements evolve, providing a sense of security and control.
Equally important, the product must be responsive, and the company must be committed to effective communication. Any delay or miscommunication can be detrimental, particularly in fast-paced industries. In my past experiences, I have found that vendors who are transparent about their efforts, keep me informed, and offer prompt, specialized assistance have been the most effective. This approach helps address potential technical issues and instills confidence in the vendor to keep the project on track.
Joe Reale, CEO, Surplus Solutions
Assess Negotiation Willingness
Their willingness to negotiate. When going through the vendor-selection process, we take their willingness to negotiate and work collaboratively with us seriously. Vendors serve businesses in different industries, and we need to know they are okay with what we need to the T. We ask a couple of questions relating to the industry, our needs, and legal to see their reaction. Based on their reaction, we determine whether the vendor is flexible and whether they are willing to accommodate our specific needs and preferences.
Oliver Page, Co-Founder & CEO, CyberNut
Ensure System Compatibility
One of the essential factors I consider when selecting technology vendors for my organizations is their capability to integrate with our existing systems. We use various tools for different aspects of search optimization. The chosen technology needs to be compatible and capable of seamlessly integrating with our current tech stack. We once incorporated an analytics tool that offered excellent features but was incompatible with our CRM system.
The result was data silos and a hefty time investment in manual data consolidation. Moving forward, we realized that ensuring integration capabilities upfront saves time, promotes efficiency, and mitigates the risk of data fragmentation.
Jim Kreinbrink, CEO, Hyper Dog Media
Evaluate Project Management Style
Beyond vendor experience and technology, a crucial factor is their project-management style. In the mobile technology landscape, the scale and complexity of projects can be quite daunting. I’ve found that a vendor’s ability to navigate through the project lifecycle without compromising quality can be a game-changer.
Transparency in communication and meticulous resource management are hallmarks of successful project management, which I learned after partnering with a vendor who used Agile methodologies. Their ability to adapt to changes and manage resources effectively made a significant difference.
This is something I always consider when evaluating vendors, by reviewing past projects and speaking with previous clients.
Brandon Bryler, Chief Executive Officer, Coimobile.io
Align With Business Goals
One of the most important factors I consider when selecting a technology vendor is their ability to align with our long-term business goals. It’s not just about finding a solution that works for today but identifying a partner who understands where our organization is headed. For instance, in our industry, telecommunications marketing is constantly evolving, so the vendor must provide technology that can adapt and scale with changing market demands.
I prioritize vendors who demonstrate a forward-thinking approach. This means their products are not only cutting-edge but also flexible enough to integrate with new innovations as they emerge. Vendors that continually invest in research and development—ensuring their technology evolves alongside our business—are crucial to our long-term success. This reduces the risk of having to switch providers or implement costly overhauls in the future.
Oliver Aleksejuk, Managing Director, Techcare
Provide Technical Support
When selecting technology vendors, one critical factor we prioritize is their ability to provide robust technical support and long-term partnerships. A vendor’s commitment to after-sales service, regular updates, and a clear roadmap for future innovations ensures that our organization remains competitive and adaptable to evolving technological demands.
Rene Ymzon, Marketing manager, Advanced Motion Controls
Prioritize Vendor Security
When selecting technology vendors, security is paramount for my company. As Salesforce security experts, we rely on tools and platforms with robust data protection and permissions management. For example, we built our flagship product, Permissions Assistant, on the Salesforce platform due to its built-in security, compliance, and governance features.
We also consider vendors’ expertise and specialization. Companies focused on a specific technology or industry typically offer deeper experience and solutions custom to clients’ needs. Our team’s niche Salesforce security and permissions background allows us to solve complex challenges other generalists can’t. We leverage point solutions from equally specialized vendors to improve our service.
Finally, vendor partnership and communication are key. Technologies rarely operate in isolation, so collaborative vendors that share our vision to provide comprehensive solutions are vital. We vet prospective vendors to find those as dedicated to responsiveness, transparency, and customer success as we are. Our clients benefit from a tight-knit vendor ecosystem where each component seamlessly integrates with the whole.
Scott Covert, Founder, Tython
Assess Vendor Reliability
First, assess our organization’s specific needs and objectives to ensure the vendor’s offerings align with our goals.
Evaluate the vendor’s reputation and track record by reviewing customer testimonials and case studies. It’s also essential to consider the vendor’s support and service capabilities, ensuring they provide reliable and timely assistance.
Compare costs and ensure the vendor’s pricing structure fits within our budget while still delivering value.
One important factor to consider is vendor reliability. A reliable vendor ensures consistent performance, timely updates, and minimal downtime, which is crucial for maintaining smooth operations and achieving long-term success.
Robert Williams, Chief Technology Officer, Jersey Shore Federal Credit Union
