Out On A LIMS.
GeoMetrick Enterprises
Helping Companies

What You Should Know About
Software Vendors vs. Service Providers

Should you allow your software vendor to provide services to your project, such as implementation services? Should you allow your services provider to create large blocks of custom code for you? Before I answer these questions, let me outline the skills differences a software vendor needs versus those of a services provider in order to do their daily work.

Who’s Who?
Software vendors write software that they sell to the public. Service providers help you with specific tasks, either because you need an extra hand or because you lack the specific expertise that they bring.

Software vendors sometimes provide services as well as sell software, which means that some software vendors are also service providers. Keep in mind that these are two entirely different tasks however, and, for the purposes of implementation, you should consider them separate in your RFP evaluations.

Service providers not only provide a variety of services, including customizing your LIMS product using some form of coding language, but they will also write an entire custom solution for you. Theoretically, when a service provider writes code, especially an entirely custom solution, they become a software vendor, but let’s leave theory out of this particular discussion.


Their Focus
A software vendor builds software for a “market.” A service provider works with an individual customer. On that note, building software for a particular customer and then expanding it to meet a market’s needs might provide software that isn’t as flexible as something that was initially created with the “market” in mind.

You can sometimes tell when a service provider has created something for a particular customer that they are trying to sell to other customers. Similarly, you can tell when a software vendor is trying to sell you a less-than-properly researched module, as the options don’t quite fit the industry, and the names of the items in the module are specific to the original customer’s needs and confusing to everyone else.


Software Build
There is a difference between building software for a market and for an individual customer. Software vendors should select a specific methodology to follow, which means that documentation and changes should remain fairly consistent across their versions of software.

Service providers often make the methodology and documentation consistent with the company or division’s standards to which they are providing service. This is partially done so the customer can more easily maintain it all, if desired or required.


Mindset
Here are the generalizations that people in the industry like to throw at each other:

  • Software vendors think there’s nothing better than their software and can’t understand why you’d want to change it.
  • Services providers think the software stinks and should be highly modified to meet each customer’s needs.
I mention these stereotypes because I hear these accusations bandied about quite often. I have worked with companies that match these stereotypes, but I also have worked with companies that don’t. I put it to you that neither of the stereotypes are practical nor reasonable.

Upgrades and Maintenance
Software has a lifecycle. Past the concept, creation, and documentation of software, there is an ongoing lifecycle of maintenance and upgrades. Software vendors must learn to manage this lifecycle. Service providers, however, more commonly create one version of the software, and the customer often takes over its maintenance. The service provider is very likely to never return to that customer to do any more work with that software.

Although some large companies contract for support of their custom/customized system, this work is not necessarily done by the same company that handled the initial implementation. Companies that provide ongoing maintenance services tend to have different cost structures and different expertise to go along with this task.

Of course, with purchased software, the customer pays an annual support fee to allow for upgrades and maintenance, and these costs are spread across many users. With custom development, the customer pays for all upgrades and maintenance separately, bearing the entire burden.


Back to the Questions
Question:  Should you allow your software vendor to provide services?
Answer:   Keep in mind that a software vendor’s number one focus will always be their product. Services are the poor cousin. If their people make comments to the effect that their product is so great that you shouldn’t want/need to change anything about it, avoid them. If they think services are just something that are “thrown in” along with the product, that’s another bad sign.

Question:  Should you allow your service provider to create custom software for you?
Answer:  As much as possible, you want to get the things you need to do business included in the software you purchase so that its upgrade maintenance is included in your annual support fees. This is especially important with large items. If your software vendor is uninterested in developing the item you need or won’t create it in the timeframe you need, only then should you consider custom development and only when the custom module significantly benefits your operations. Make sure you discuss all of this directly with your software vendor, and it can be helpful to include your service provider as well. If your service provider and software vendor are one and the same, discuss potential additions to the core system with someone responsible for that, rather than passing the requests through the person(s) doing the implementation. They will rarely be the same people.

 
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