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It’s a risky play. At my enterprise company, we’re not allowed to use a single vendor for everything, we explicitly must use different companies if a favoured vendor hits a certain spend threshold.

This is to prevent cost overruns and solution capture, where every solution to your company’s problems becomes “give it to X vendor” and then X vendor kills a product line and you’re toast.

Salesforce needs to be careful or else they’ll hit that threshold where companies don’t want to use them because you as a client are too small. Google is facing this problem right now.




Is this somewhat common? It makes intuitive sense, but the big 3 or 4 or whatever number it is (IBM, P&Y, etc) consultancies have "use us for everything" as their explicit strategy / part of their sales pitch.

So while they might lose customers like you, there is clearly ridiculously large piles of money up for grabs if they diversify their products, rather than remain specialized. And, of course, any sufficiently good specialist is at risk of being acquired by one of these behemoth generalists.


Although there is a good % of the market that works in a similar way to your business, it is worth noting that when a deal is exceptionally good, executives will create exceptions. MS Suite and some of its satellite offerings (PowerBI,Sharepoint,etc) is a good example of an exception.

There are also cases where a company will pick multiple vendors in an attempt to de-risk and/or for negotiating tactics. If you are fully dependent on a single vendor, the cost of migrating tends to skyrocket and the negotiating power moves towards the vendor.


> If you are fully dependent on a single vendor, the cost of migrating tends to skyrocket and the negotiating power moves towards the vendor.

This is particularly important with SaaS, as you lack the leverage to walk away. If you're fighting with a vendor, you had best resolve it by your contract date, as they will happily shut you off and wait for you grovel (and pay).


Interesting! I haven't seen that requirement before, but it does make sense.


I’ve seen requirements by Target and Walmart to not use any AWS infrastructure in the service you are providing them.


I've seen that with retailers too-- but this is often driven by a fear/hate of Amazon rather than any real IT policy.


Yes, that seems more like Walmart/Target not wanting to support their main competitor in the retail space (Amazon) even though it's a different division.


It also happens to be Amazon's most profitable division, so it kinda makes sense.

Actually does Amazon's marketplace make any profit?


What are these spend thresholds?




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