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System integrators Companies VS vendors Companies

By fabishi ·
Hello all,
I would like to discuss the role of the System integrators Companies (project management companies) VS vendors Companies.
Lately, I have being seeing system integrator companies taking some request from federal and government agency for large orders such as requesting $20 Million of CISCO or Juniper products or $15 Million of fujitsu Siemens or SUN Servers , etc?
What I see now, is that these government and federal agency are sending quotation request to both types of companies to compete on that.

My question, which one mostly likely will deliver and succeed on that type of request and what roles and advantage can distinguish each of these types of companies from another.

Thank you,

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At a guess

by HAL 9000 Moderator In reply to System integrators Compan ...

The companies who have never dealt with Governments before will win the contract/tender.

Just because they have absolutely no idea of just how complicated and expensive supporting and supplying Governments actually is. They will jump in with a low Tender/Bid and when they win will go broke in the process with the Government owning them Millions.

The System Integrators have the know how to offer what is needed not what is asked for.

While the Vendors will sell anything asked for as it moves the stock and there is no comeback for incorrect model shipment.

Of course both will need to be prepared to wait anything up to 18 months to get paid for the original delivery but provided they don't go broke in the process after that they will have a steady Income Stream.


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i agree to what you said

by fabishi In reply to At a guess

The result of this means that beside government agencies and semi government agency, also, most companies are moving now to place orders from system integrator companies.
What do you think the future the Vendor Business? Since they are missing the project management role ( most of them) and most of their concentration on shipping out the stocks they have?

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Well Vendors will always have the ability to ship product

by HAL 9000 Moderator In reply to i agree to what you said

After all it has to come from somewhere so by approaching System Integrators the Government & Agencies are just shifting the original purchase point. What the Vendors will do is either start offering this service or Pay Integrators to push their product so that they no longer have the problems of waiting to get paid and have a more secure income. Of course the Integrators will then be in a position of needing to pay their suppliers for product that they have yet to be paid for.

About all it is doing is increasing the original Purchase Price as only the Vendors have the ability to enter into Government Prices that will remain Stable and Real. In past years Vendors took a hit on product to retain the existing contract when prices went up and hoped for a price decrease or at least the Countries Money to lift on the International Monetary Exchanges.

Integrators will never be in that position and their Purchase Price will always be greater than their Buying Price and since most will source from Vendors the Government is effectively paying more for the same thing, but maybe with better support when it comes to Integration.

Though I doubt that if something is seriously wrong the Integrators will be as effective in curring the situation as the Vendors could be.

Integrators just lack the resources to deal effectively with Governments. When it's all said & done this is best performed by the Vendors who have much bigger resources to fall back upon.


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