How Good Is Your Crystal Ball? Cost vs. Future Needs

How Good Is Your Crystal Ball? Cost vs

How Good Is Your Crystal Ball? Cost vs. Future Needs

We all go into business with a plan to grow and prosper. No one runs a business working to run it into the ground. We look at where we are, and where we plan to be in the future, and make decisions based on these predictions. Sometimes our projections are overly aggressive and sometimes they are overly cautious.

When it comes to buying network equipment many companies tend to go for overkill. They want the biggest, bestest, newest hardware for their network. They over project what their needs will be. They spend money needlessly now only to find that technology changes quicker than their growth pattern or that what they bought no longer meets their needs for a number of reasons.

That's why I normally suggest that you look to have a balance between costs now and future needs. If you are going to make an error, make it on the side of caution. Don't spend more money than you need to without concrete proof in the form of new customers or verified backlog of orders.

Remember, with a good network equipment supplier you can get additional equipment, upgrades, etc., overnighted and quickly implemented. There's not need to tie up cash flow with equipment or capabilities you don't need now and may not need in the near future. Save your money!

I can tell you that hardware manufacturers don't want you to know this because they are hoping you will buy more now. In fact, many of their sales projections are based on selling you things that it is not prudent for you to commit to buying now.

Now, please don't get me wrong. I believe in planning for future needs. In fact, it's important to do so. What I am cautioning you about is the desire to buy for your future based on projections that would take you past a 1 or 2 year future need. Economic conditions change, technology changes, customer preferences change, and even your company's ability to grow can change based on employee turnover and other internal factors. Don't try and outguess your long term needs.

In the tech field it's accepted fact that equipment capacity, speed and capabilities grow every year to eighteen months or faster. Don't spend a lot of money locking yourself into an expensive network that you believe will get you through the next five to ten years with just minor upgrades. History will prove you wrong. Get with a trusted supplier who will help you find a suitable solution that won't require a flawlessly clear crystal ball and will leave you with flexibility and a few spare dollars in your account.

Hal Stevens

CEO, NetworkEquipment.net

HStevens@NetworkEquipment.net

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