In the IT industry, there are companies called “vendors.” Although many people have heard of the term, many people may not understand what role a vendor plays in the IT industry.
In this article, we will explain the roles and types of vendors in the IT industry, the differences between manufacturers, suppliers, users, and offshore vendors, as well as typical IT vendors and points to request. If you don’t know much about IT vendors, please refer to this article to deepen your understanding of the definition of the term IT vendor.
What is an IT vendor?
An IT vendor is a company or organization that provides products and services related to
information technology
. IT vendors develop and sell hardware, software, applications, etc., and also build and operate IT infrastructure and networks.
IT vendors also participate in large-scale system development for large companies and government agencies, and provide technical support. The word “Vender” itself means “seller,” and the above understanding is fine when it comes to IT vendors.
However, the IT industry is a little special, and there are cases where companies that both develop and sell products are referred to as “IT vendors.” Here, it is important to understand that IT vendor has multiple meanings.
Explanation of (related) terms related to vendors
To understand the role of an IT vendor, you may also want to understand the following related terms:
I will explain each in turn.
Manufacturer
Manufacturer refers to a company that develops and manufactures hardware, software, etc. For example, computer manufacturers, smartphone manufacturers, etc. fall under this category.
supplier
A supplier is a company or organization that purchases products or services. For example, when a company purchases software from an IT vendor to implement an ERP system, that company becomes a supplier.
user
A user is an individual or company that uses a product or service. For example, an individual who uses a smartphone is a user to the smartphone manufacturer. Sometimes referred to as an “end user.”
Types of IT vendors
There are the following types of IT vendors, depending on the products and services they sell and how they interact with users.
There are also many people who say, “I’ve heard the term, but I don’t know what vendors do,” so I’ll explain the differences in turn.
software vendor
A company or organization that develops and sells software (programs, applications, etc.) is called a software vendor. A software vendor is a company that develops and sells operating systems, office software, games, etc.
Recently, with the spread of open source software and cloud computing, and new technologies such as AI and IoT, the development of software with more advanced functions is increasing. Online sales and subscription-based sales are also increasing.
hardware vendor
A hardware vendor is a company or organization that develops and sells hardware (equipment, devices, etc.). This applies to companies that develop and sell computers, smartphones, servers, etc.
More and more companies are developing smaller and more powerful hardware than ever before. In addition, hardware vendors are also seeing an increase in demand for Internet-connected devices (IoT devices) that have advanced functions using new technologies such as artificial intelligence and machine learning, and are developing compatible hardware. We are developing.
system vendor
Companies and organizations that develop, construct, and operate large-scale systems are called system vendors. Refers to companies that develop, construct, and operate ERP systems,
CRM
systems, information security systems, etc.
These companies have the hardware, software, and technology needed to build the entire system.
system integrator
A system integrator is a company that integrates products and services provided by multiple vendors and provides them as a single system. We have the technology and know-how necessary to build large-scale systems by combining multiple pieces of software and hardware.
We order and integrate products and services from vendors who provide the hardware, software, and infrastructure necessary for the system to create the optimal system for our customers. We also support businesses in providing appropriate support for their systems to meet customer
needs
.
single vendor
Single vendor refers to a company that provides a specific product or service, and refers to a company that has developed specialized technology and services that specialize in a specific product or service. For example, there are companies that specialize in developing and selling specific ERP systems.
By never combining products and services from other vendors, and by building systems that are used internally by only one manufacturer, there is the advantage of not having to worry about product compatibility due to differences in manufacturers.
In addition, because they specialize in products and services, they are highly specialized and often have detailed knowledge of the products and services. Therefore, they are often excellent at customizing and troubleshooting.
multi vendor
Multivendor refers to a company that provides multiple products and services, or a service that combines various types of products such as hardware, software, and infrastructure. This includes companies that provide computers, smartphones, ERP systems,
cloud
services, etc.
Because we offer a variety of products and services, we have the advantage of being able to centrally handle the products and services our customers need, optimizing costs and performance.
Difference between vendor and offshore
One of the words that is similar to IT vendor is “offshore”. As mentioned above, vendor means “seller” or “distributor,” but offshore means “overseas,” and in the IT industry, it means “outsourcing development to an overseas company.”
The advantages of outsourcing development to overseas companies such as China and India are low development costs and high speed. However, on the other hand, there are also disadvantages such as the risk of information leakage and quality deterioration.
Three representative IT vendors
There are many companies that act as IT vendors, but we will introduce three representative IT vendors as follows.
The names of all of these companies may sound familiar, but we will introduce the characteristics of each company in turn.
Otsuka Shokai
Otsuka Shokai is an IT vendor that provides a wide range of IT products such as software, hardware, and cloud services. We provide a variety of services related to office environments, including office LED lighting and access control systems.
In addition, we are a multi-vendor that selects and provides the most suitable products from multiple manufacturers to meet customer needs, such as copiers, PCs, and servers. It is characterized by many proposals that lead to cost reduction and strong support for small and medium-sized enterprises.
Hitachi, Ltd.
Hitachi, Ltd. is a comprehensive electronics manufacturer and a world-famous IT vendor. We offer a wide range of IT products, including PCs, servers, storage, and multifunction network equipment.
Our support system is unique, and we have a reputation for our high level of responsiveness, such as having a single point of contact for inquiries and providing compassionate support to customers from a comprehensive perspective without leaving it up to the customer to isolate the problem.
NTT data
NTT Data is an IT vendor of the NTT Group, and is a company that mainly provides services such as system construction and data communication. Our parent organization is Nippon Telegraph and Telephone Corporation (NTT), and we have a reputation for introducing data communications and network systems that utilize social infrastructure such as communications.
The system is mainly provided to government agencies and financial institutions.
Points to consider when requesting an IT vendor
If you want to ask an IT vendor to install equipment or develop a system for your company, you may be wondering which IT vendor is the best to ask out of the many IT vendors available. When requesting a project from an IT vendor, it is best to make a decision based on the following two points.
The first thing to do is to find out whether there is a past development track record that seems to be able to address the issues your company wants to solve. This is because IT vendors also have strengths and weaknesses in the services they can provide.
There are a wide variety of issues that companies want to solve, such as “wanting to integrate multiple business systems into one” and “wanting to build a VPN with a high level of security.” If you request an IT vendor that has a similar track record in the past, you can rest assured that they have the implementation know-how and skills.
You should also check how much it would cost to request the same request from another IT vendor. This is because prices vary depending on the IT vendor. Get quotes from multiple IT vendors to make sure you’re getting a fair price.
summary
In this article, we explained the roles and types of vendors in the IT industry, the differences between manufacturers, suppliers, users, and offshore vendors, as well as typical IT vendors and points to request. An IT vendor refers to a company that sells IT-related products and services, but in the IT industry, manufacturers are also sometimes referred to as IT vendors.
The word “vendor” has related words such as “manufacturer,” “supplier,” and “user,” but each has a different position and role, so let’s use this article to understand the differences in meaning of the words.
There are several types of IT vendors, such as software vendors and system integrators, depending on the products and services they provide. Representative domestic vendors include Otsuka Shokai, Hitachi, and NTT Data, but each vendor has different characteristics and strengths.
When requesting a product or system from an IT vendor, it is important to make sure that the company has a track record that is similar to the problem you are trying to solve, and to get quotes from multiple vendors. If you are thinking of requesting products or services from an IT vendor to solve your company’s business issues, please refer to this article and search for a vendor that will be effective in solving your issues.