Is Your Data Center RFP Making These Super-Common Mistakes? (Screencast) - YouTube

Channel: SP Home Run Inc.

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Is Your
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Data Center RFP Making These Super-Common Mistakes?
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Writing a request for proposal is as much an art as a science.
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Providing clear, unbiased buying criteria, creating compelling reasons for vendors to
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bid on your data center RFP, and ensuring you provide enough time to respond to your
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competition are some of the fundamental elements technology service providers look for when
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deciding whether or not to bid.
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Here are five of the biggest errors we’ve seen data center clients make, and ways you
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can avoid them.
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1.
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Writing Your RFP with Unfair Bias to a Single Vendor
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When a technology vendor looks at an RFP it usually evaluates the opportunity cost based
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on:
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Can we win this business?
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Is it worth winning?
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What other business are we pursuing, and can we bid the RFP and still win other business?
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Do we have an existing relationship with the client?
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Does our competition have a relationship with the client?
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If a vendor sees messaging in a data center RFP which makes it seem as if the competition
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has already been won by another vendor, it might choose to no-bid the business.
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Though you will likely get a number of offers to write your RFP from data center service
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providers, you should write the RFP in a way which is transparent and doesn’t seem as
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if it favors any one managed service provider.
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2.
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Not Giving Bidders Enough Time to Bid on the RFP
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You might need delivery of services to start quickly once you have the budget to do so.
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You might have been provided some direction to complete a contract quickly and get additional
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managed storage or server capacity for a new project.
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If you want to get a reasonable number of proposals, don’t provide a short period
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of time for vendors to submit their bids.
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Resist the temptation to request multiple hard copies of proposals and complex packaging
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of proposals in an obscure way.
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Electronic bids can save vendors on printing costs and transportation costs.
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3.
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Difficult Proposal Format Some government proposals ask vendors to provide
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technical answers on their response grid where you have to restate the question they asked,
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refer to technical documentation in technical manuals, and work within a complex Word template.
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When you are writing your RFP, remember not only does someone have to respond to it, but
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you then have to thoroughly evaluate proposals and their answers.
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Do everyone a favor and make the RFP easy to answer and easy to review.
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IT vendors love the classic “Yes, No, Yes with Qualification” chart for technical
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responses
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4.
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Providing Legal or Financial Terms Which are Potentially Problematic
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Have you ever waded through twenty pages of legalese or terms and conditions of an RFP
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before you could even find out what the client wanted?
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Always keep in mind: as much as you want to contract for data center services, there are
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many customers which need to be served.
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If a potential bidder feels pursuing your business puts them into potential legal or
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financial risk, they simply won’t bid.
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Fixed bid contracts, unrealistic service level agreement requirements, and other high risk
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clauses can make your RFP go into the recycle bin, and a vendor move on to business pursuits
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which aren’t as potentially risky.
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5. Make Sure the RFP Process Isn’t Just a Market Study
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Like the boy who cried wolf, some organizations issue RFPs just to see what products and services
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are available for future initiatives.
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Or after the services RFP process is over, they try to renegotiate terms, or get vendors
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to jump through a lot of hoops to get your business.
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Having a short list of vendors and a “bake off” of services is one thing, but don’t
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make vendors go through another round of proposals as a negotiation tactic.
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The data center RFP process is an opportunity for a public sector organization, company,
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or non-profit association to contract with vendors in a way which provides provisions
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for price, value, and levels of service that are clearly established from the outset.
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If you are seeking data center services, make sure you craft an RFP which you would bid
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on if you were in a vendor’s shoes.
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What other data center RFP errors have you seen?
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Please share your thoughts in the Comments section below.
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To follow up on the tips in this article, be sure to download your free guide to Lead
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Generation Best Practices for Colocation Data Centers.