How to Evaluate a Technology Vendor Without a CTO
A vendor just quoted you $150K for a platform your business needs. Is it the right choice? Is the price fair? Here are the questions to ask when you don't have a technical expert on staff.
The sales demo looked great. The vendor's references are solid. The proposal is sitting on your desk with a number that makes your stomach tighten. And you have nobody on your team who can tell you whether this is the right platform, the right architecture, or the right price.
This is one of the most expensive positions a business owner can be in. Here's how to navigate it.
Questions Every Business Owner Should Ask
1. What happens when we outgrow this?
Every vendor will tell you their platform scales. Ask them specifically: what does it cost at 2x our current volume? 5x? 10x? Get pricing tiers in writing. Some platforms that look affordable at your current size become prohibitively expensive as you grow.
2. Who owns the data?
If you leave this vendor, can you export all your data? In what format? How long do they retain it? Some vendors make it easy to get in and nearly impossible to get out.
3. What does integration actually look like?
You need this system to talk to your accounting software, your CRM, and your email. Don't accept 'we integrate with everything.' Ask for the specific integration method (API, file export, manual) and get a realistic timeline and cost for each integration.
4. What's the total cost of ownership?
The license fee is just the beginning. Add implementation, customization, training, ongoing support, and the cost of your team's time during the transition. Ask the vendor to itemize everything. If they resist, that's a red flag.
5. What happens if you go out of business?
Not a comfortable question, but a necessary one. Is the platform based on open standards? Can another vendor support it? If the platform is proprietary and the company folds, what happens to your data and your operations?
6. Can I talk to a customer who almost left?
Every vendor will give you their happiest customers as references. Ask for a customer who had a problem and how it was resolved. That tells you more about the vendor than any success story.
Red Flags
- Won't provide pricing without a demo
- Pushes for annual commitment before a pilot
- Can't explain their architecture in plain English
- References are all from a different industry or size
- Implementation timeline seems unrealistically short
- No clear data export process
When to Bring in an Expert
If the decision involves more than $25K, affects your core operations, or requires technical evaluation you can't do yourself, it's worth getting an independent expert opinion. A few hours of consulting can save you from a six-figure mistake.
That's exactly what our Fractional CTO service provides. Schedule a discovery call to discuss your vendor evaluation.