Getting all or most of your software from a single vendor has several advantages. First, the acquisition costs are lower because you don't have to go through the RFP processes repeatedly, and you can negotiate a volume discount. Second, integration costs are typically minimized since the software components have been pre-tested to work with each other. Third, it's often easier to find a single implementation partner that is familiar with all the constituent pieces and therefore has a lower price. And finally, the support burden is lessened since there's always just one vendor to contact.
Retailers understand that best-of-breed often brings with it complexity and complexity is the enemy of IT. Building a strategic partnership with a software vendor can be a win-win proposition. Gander Mountain is another example of a retailer that's gone down this path. As Pitou Keo, Senior Director of Information Services at Gander Mountain puts it:
"Oracle is a valued partner and we are pleased to build on our strategic relationship with them. We expect to achieve a number of significant, short-term benefits from our investment in the Oracle Retail solutions while also establishing a strong foundation to support our long-term growth."
But building such a strong relationship takes time and trust. Luckily I've been seeing more of these recently, and so has Joe Skorupa over at RIS News. According to a blog posting, he's seen the 10 point spread between software selection philosophies (integrated solutions suites vs best-of-breed) increase to 16 points during the latest round of surveys.
I guess if its easier to get all you groceries from one store, it makes sense for software as well.
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