IT sourcing

Future of IT Sourcing Negotiations

IT Sourcing By Alex Veytsel – One of the panels I most regret missing at Data Center Dynamics annual London show last week, where our CEO spoke was a discussion of the future of data centers in 10-20 years. Fortunately I got to participate in the prep session for it in the speaker’s lounge, where brilliant folks like Ian Bitterlin, David Gauthier, and Ed Ansett kicked around ideas ranging from the pragmatic to the futuristic under the steady guiding hand of Ambrose McNevin (and I hope I got a shout-out if there was mention of pendulums or whale oil). Which got me to thinking – whether the amount of change is great or small, how will the way services are bought change over that time? What will be the sourcing process in 10 years?

The short answer: buyers will demand more transparency; suppliers will give them just enough to continue finding more margin and feed the sales machine; and sourcing advisors will build a toolset to fit the right service for your business more automatically, with more just-in-time adjustment.

First, I would say that the commercial aspects of outsourcing are still the most stubbornly un-changeable ones. Just this year, I have reviewed a still-active contract written on Exodus Communications paper and multiple invoices based on racks and square feet in an age where everyone thinks of watts consumed as the primary / sole metric.

And 12 years in, RampRate’s mission has not changed much – there’s still billions in wasted IT spend through bad decisions; still too many people listening to salespeople instead of seeking out data, and a great terror of being exposed for one’s incompetence that leads buyers to run from their best sources of improvement.