1

Last year I got around 4 quotes from vendors like CDW for two new switches. I turned the lowest quote into our VP for approval and he said we needed to wait until January of this since we were going to miss our project revenue for the year, and because we had some other expensive projects like $1300 tablets for our service and sales teams. I had our quotes refreshed last week and turned in the lowest quote and ask for permission to go ahead and purchase these, I was told to wait until february 1, which is only next week so no big deal.

Last night I got an email from the VP that stated he had forwarded my request to the CEO and to read below for his comments. I scrolled down and read the CEO’s comments and was completely blown away. He has taken the description, not the actual manufacturer part number, and did a search on Amazon. His comments were why are we paying 10x the price at CDW than at Amazon. Of course, the switches were not the exact same models and of course when I looked up the exact models they were maybe 10% lower but they were from companies I had never heard of.

Would you, or do you, buy IT equipment such as tablets, switches, wireless access points, etc from Amazon who is selling them for third parties that are not known vendors? Would you trust them with your IT needs? I was shocked by him doing this search in the first place like I was trying to rip off the company or something, and the fact that he would consider buying from amazon who was selling for someone who could be selling refurbished equipment as new from their garage. Just not comfortable with this approach, are you?

4 Spice ups
2

I pretty much have total purchasing power. I tell them what the need is, search some sites, get some quotes, and place the order. I have been questioned a few times about purchases but as long as I was able to back up my decisions nothing else was said. They trust me enough with the company’s money, they got me a card on the corporate account. I guess that means something.

As far as buying from Amazon, for cables, battery packs, small tools, etc. Yeah! But infrastructure equipment, no way. Not unless it was from a known vendor.

5 Spice ups
3

Business Continuity is of the utmost importance and if that’s the way he runs his business, I hope you get your experience and move on!

2 Spice ups
4

You do whatever the board / CEO tells you to do, but you explain the risks in a written form such as an email that can be archived and have them give approval the same way. There are some things that you can get away with buying from an unknown, because you are purchasing the support from the manufacturer and not the person who sends it over.

I wouldn’t necessarily buy a tablet from some knock-off company from China unless management new the potential costs of the device failing. Having said that, call the manufacturer and maybe ask them about the retailer and get confirmation that they will provide support for the device if you purchase through them.

*Adding: Go back to whoever gave you the lowest quote and see if they will price match the other individual. Most of the time you can get it from the vendor you trust at the better price, and if nothing else it will give you good input from the vendor on the trustworthiness of that third party.

2 Spice ups
5

The answer, generally, is that we purchase from reputable vendors for their support. That can mean assistance with getting an order spec’ed out properly, properly putting together Microsoft licensing, replacing DOA hardware or enforcing warranties, offering solutions for large projects or in areas where you’re less knowledgeable, etc. It’s a relationship. Any CEO worth his salt should understand and relate to that.

As to the bigger issue of why the CEO is second-guessing your bids, that’s another thing entirely. It could be that he’s in a crunch where he has to watch the dollars carefully. It could be that he’s getting chewed out about expenses, either IT or in general. Point is, it could have nothing to do with you.

To answer his concerns, I’d point out the things you already said, add in the “relationship” aspect of dealing with a reputable vendor, and point out that dozens of products from the same manufacturer can have the same description, and that the “little” details found in the specs and fine print are the difference between retail- and enterprise-class, the difference between SMB- and enterprise-class equipment, the difference between manageability and blind deployment, and maybe most importantly, the difference between a new unit with a 5-year warranty and a refurb with a 1-year warranty.

Answer the concerns, and hope that it doesn’t come up again. Understand that he has no idea what the products are or what they do, and his questions are probably not at all a reflection on his opinion on you or your work.

Of course, if you do all that, and it’s still an ongoing issue, then that’s a different situation, and we’ll be here when you post the issue again in six months!

Good luck.

2 Spice ups
6

I typically care about the manufacturer, not the seller. I go for best price once I decide what I need/want.

For switching I try to stick main stream (for business). I like Dell PowerConnect, Netgear, and HP ProCurve. They seem to have reliable equipment with great pricing.

Something to keep in mind when looking at the pricing is the long term cost. If you keep a warranty/maintenance on the switch check to see what the renewal price is for each of the switches that you are looking at.

1 Spice up
7

If the unit arrives damaged, what then? What’s the return process like? Is there a phone number you can call? Assuming that all goes well, who pays for the delay as you sit around waiting?

Does the fly-by-night vendor take purchase orders? How long is the approval process when you select a brand new vendor for each item based on Amazon’s lowest price?

If you buy something on Amazon and it turns out to be unsupported by the vendor because it’s gray market, who picks up the tab for the replacement or repair?

I buy small items, disk, memory, etc., on ebay or Amazon. But I don’t buy switches or firewalls.

3 Spice ups
8

My initial reaction was just that…time to move on!!! What kind of company am I working for? The company was privately owned when I hired in, but now it’s owned by company and the original owners have left, and the CEO has been here less than a year. Not the same company I started working for 9 years ago, for sure.

2 Spice ups
9

I am in control of what can get approved. I may look at Amazon, but I agree. If it’s not a reputable place, i will not purchase something as important as a switch. We have ordered hard to find motherboard replacements, but not network backbone pieces.

3 Spice ups
10

CDW is also going to find and recommend the add-ons you need like proper licensing or software assurance through the proper channels to ensure you have the necessary support should the need arise.

Some Amazon storefronts are run by three guys in a garage buying refurbished equipment and marking it up minimally to attract CEOs that don’t have enough confidence in people that have been running their systems for 9 years.

I’ve heard of similar experiences. Said CEO will happen to “know a guy” and will bring him on to complete this task. Not only will it cost three-fold, but your insight will be ignored.

I feel for you!

1 Spice up
11

Well, he missed his numbers. You know what that means, time to buckle down and do some CEOing! Like wasting time analyzing switch quotes. Let the downward spiral begin.

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12

I’d be interested to know specifics on the makes and models.

You see stuff on Amazon at discounted prices, but bottom line is if it’s brand new like for like enterprise gear it simply cannot be 10% of the price.

Somewhere there will be a catch.

2 Spice ups
13

It’s not realistic to expect the CEO to know the details of IT equipment. But you can’t blame him for asking the question.

I have state representatives reviewing my budget. They ask me why I have to buy Office licenses when they get the student version for free. Or why I need UPSes when we have a generator. Or why we have to pay 200k in application support fees.

So, you answer and explain as best you can. Then you say, “You hired me for my expertise and I’m giving you my best suggestions.”

14

I posted not too long ago about pricing on a LaserJet that I thought was too good to be true. I went ahead and took a chance. I have since purchased two more from the same source. Total savings compared to my regular vendor? $600 On three printers.

15

Printers are one thing, but switches are a completely different thing. If the firmware has been modified or tampered with you could end up with a backdoor on your switch. Actually, you could technically end up with the same issue with those printers too but it’s a little less likely. I don’t see why a company making money with their technology would not invest in good equipment from reputable vendors, the risk is not worth saving a few hundred dollars when the equipment will pay for itself fairly quickly.

16

CDW is a VAR (like others), so the relationship you build with their sales team adds value to the purchase and helps you make informed purchasing/planning decisions. While that value may be difficult to quantify for your CEO, you can remind him of the generous return policy, the expert attention (that may have led you to the switch you chose), available NET-30 payment terms, and support options (extended warranties, support renewals, etc.).

VARs have their place, and they normally don’t like getting bogged down in low-volume orders for keyboards etc. But networking infrastructure equipment is a good reason to buy from a VAR.

If you found the exact same switch for less elsewhere, contact your rep and be honest, let him know the CEO is concerned, and ask for a better price. Chances are they’ll drop it a bit to keep everyone happy, and hope to make up the difference on future business.

Many CEOs have strong accounting backgrounds, so he’s likely just focusing on costs as cash flow is squeezed. Also, switches are sort of intangibles to the finance guys – a tablet they can hold and use directly, but nobody appreciates a switch’s functions – until it’s down. You may need to justify the switch you chose for the brand, features, warranty, etc.

Overall, it sounds like your CEO is not getting the full picture from the VP (who may not understand either). So it’s your job to respectfully inform him.

Good luck!

Full disclosure: I do not work for CDW!

17

Well, still no new switch and two weeks ago I was told my job is being eliminated and that all IT functions are being outsourced. Okay, now I get it…

I am working through April to help with the transition and in return they are giving me a decent severance package but I think this company is going downhill, we had the worse year ever in the history of the company since I started here. All under the watchful eye of our new CEO.

Thought this was worth sharing.