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When making a technology purchase, how much does a particular vendor's financial health affect your decision?
Please take the poll at the bottom left hand corner of the Finance Focus Page
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2 Answers
Based on my experience in buying products and selecting partners, the importance of a vendor's financial health will depend on the product (is it special, differentiated?), the price (expensive?) and the vendor (do I like the people?). I'm not looking for financial dominance or even profitability sometimes. If I like the product and the people, I'm looking for financial survivability. This is especially true for products that are expensive to buy, are challenging to implement, and require decent vendor services and support. Financial survivability has three components:
1. Enough cash to survive an extended period without additional investment
2. Demonstrated top-line growth and cash flow (tough in these times, eh)
3. Established, reputable backers
For private companies, I would also demand audited financial statements to prove these points. If your business matters enough to the vendor, they'll provide such statements. It's big red flag for me if a private company doesn't have those statements and they are also an unknown commodity,
FYI, your link takes you to the results page. You may want to post a link for the survey page. Also, send me (mschmier@focus.com) or Michael Dortch your poll, and we will put it on one of our function resource centers - we just implemented a poll tool this week.
Thanks Michael - the LinkedIn poll tool seems flaky - can't figure out how to share the poll itself - apparently can only share the results.
Just sent you an e-mail - would MUCH rather have it posted here.
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