16 Sep Is the OEM FUD Real? Perceived Risk vs. Actual Risk
Perhaps one of the reasons you’ve come this far in this book is that you have many questions, a little confusion, and maybe even some fear of whether you should consider TPM as a realistic option for your IT infrastructure. What if the TPM provider fails? What if there are major breakdowns and the TPM provider can’t get your system back up? What if we have a major data breach or loss of data? Etc. Etc.
What is FUD?
Maybe you’re past these questions, but you can see how others in your organization could have them, or certainly, you’ve heard this from the OEMs. Creating the illusion that they are the only option to consider is a universal tactic being used by all the OEMs.
I first learned this while I was at Sperry (now Unisys) in 1984. The term we used for it was FUD (Fear, Uncertainty, and Doubt). The theory goes that if you can create FUD in the buyer’s mind about your competitors that will move your sales agenda forward.
So, is FUD real?
In some cases, you certainly need caution, but generally, FUD is way overstated. When it comes to TPM, the OEM sales representatives typically suggest that if you move to TPM your IT world will end. We all know this is not true. Furthermore, while attending a Gartner event in Orlando in September 2018, analyst Christine Tenneson was asked by a user, “how often do users go back to the OEM?” Her response was that, in her 13 years of covering TPM for hundreds of accounts and service providers, she can count the instances on less than 10 fingers. In every case, it involved IBM, and the customer’s reason was a software/firmware issue.
Part of the process is education and knowledge of the true risk vs. perceived risk and understanding the substantial cost reduction in the equation. Ultimately, what is best for any organization is finding that sweet spot that maximizes cost reduction and minimizes risk. This book intends to guide you and give you the tools to find it. In most cases, the answer is not 100% OEM nor is it 100% TPM. However, the OEM would like you to think the answer is 100% OEM maintenance.
We created the infographic to the right to depict this ongoing tension that we see in our clients and prospects. This tension can play out between users and IT, or between IT and procurement, or between IT and C-level executives.
In the end, isn’t that what it’s all about? Getting the information you need to 1) minimize risk while 2) maximizing your cost savings plus 3) gaining the flexibility of service offerings combined with 4) the more customer-oriented business philosophy that TPM provides? Peace of mind isn’t free, but you can certainly get closer by educating yourselves and doing your due diligence. We believe this book will help you get there.