I can somewhat understand citizens of Orlando getting upset about the optics of the City’s apparent no-bid award to Workday. But for competitive vendors to howl about it is, well, a bit hypocritical.
Sole sourcing runs our industry:
a) Most software vendors get automatic maintenance renewals, even though customers have third party maintenance and self-maintenance options
b) HCL says $ 180 bn in outsourcing contracts will come up for rebid in next 3 years. I would bet $ 40 to 50 billion of that never go out to an formal bid. The incumbent provider will go to the customer with a somewhat better set of economics and harp on the hassle of the bidding process and transition to a new provider – and succeed.
c) How many of us buy third party consumables for our printers? There are plenty of pretty high quality non-OEM refillers and new cartridges available these days.
d) How many iPhone customers are still with AT&T in spite of well publicized network issues with the early versions and with continued outrageous roaming charges? This even though Verizon and Sprint now offer competitive offerings.
I could go on.
The reality is brand loyalty, apathy, inertia all help keep incumbents in place. So, those who want to protest every no-bid they were not invited to, ask yourself this: are you willing to open up every no-bid that you yourself benefit from like examples above?
In fact, go back and watch Dirty Harry and answer Clint and his Magnum 44:
Do I feel lucky? Well, do ya, punk?