Re-posted from Jan. 2008
I think I am tired of the concept of comparing apples to apples. I think it is a lazy way for people to presume that they are eliminating all variables so that they can simply choose the lowest price. In my position, I am often asked to compare the proposals from several companies “apples to apples”. I finally decided that there is no such thing.
Let’s talk about a simple product like Internet access. Presumably, with Internet access one would only need to look at bandwidth to compare two companies. There are three standard types of high speed Internet acess; DSL, Cable and T-1. But those three products are delivered so differently that it is impossible to choose one over the other based solely on bandwitdh. For instance, a T-1 to the Internet is considered the gold standard but it only delivers a maximum of 1.544 MBps for one T-1. There are cable companies that claim to deliver up to 15 MBps, 15 times more bandwidth, for only about twice as much money. So why doesn’t every company just purchase the cable Internet and forget about T-1? Because those of us who have been around the industry know instinctively that a T-1 is still the best bet for reliable, efficient delivery of high speed Internet.
Are there situations where cable is the best choice for a company? Yes.
Are there situations where DSL is the best choice for a company? Yes.
Are there situations where T-1 is the best choice for a company? Yes.
So if you can’t whittle down your choice based on price, how do you make these important decisions? The answer is simple. 1) Find a trusted advisor who is knowledgable and experienced in the telecommunications industry. 2) Make sure to tell him or her everything about your current situation and your plans. 3) Let your trusted advisor make a recommendation based on their research and knowledge of the industry. 4) Trust your gut and run with it.
Think of a subject in which you feel very knowledgeable. You may be thinking of your own industry, a hobby or a subject that you have studied extensively. Ask yourself, do you not feel that you could make a better decision about this subject than a novice, even with the most complete spreadsheet? Don’t you feel that the right answer is obvious sometimes, regardless of the seemingly insignificant differences to the “bottom line” when trying to use some objective criteria?
If you were at the grocery store trying to decide between the “red delicious” and “granny smith” and the produce manager happened to walk up behind you and say “this batch of red delicious is particularly juicy and tasty”, would your decision NOT be made at that very moment, regardless of the price?
Let’s talk about a simple product like Internet access. Presumably, with Internet access one would only need to look at bandwidth to compare two companies. There are three standard types of high speed Internet acess; DSL, Cable and T-1. But those three products are delivered so differently that it is impossible to choose one over the other based solely on bandwitdh. For instance, a T-1 to the Internet is considered the gold standard but it only delivers a maximum of 1.544 MBps for one T-1. There are cable companies that claim to deliver up to 15 MBps, 15 times more bandwidth, for only about twice as much money. So why doesn’t every company just purchase the cable Internet and forget about T-1? Because those of us who have been around the industry know instinctively that a T-1 is still the best bet for reliable, efficient delivery of high speed Internet.
Are there situations where cable is the best choice for a company? Yes.
Are there situations where DSL is the best choice for a company? Yes.
Are there situations where T-1 is the best choice for a company? Yes.
So if you can’t whittle down your choice based on price, how do you make these important decisions? The answer is simple. 1) Find a trusted advisor who is knowledgable and experienced in the telecommunications industry. 2) Make sure to tell him or her everything about your current situation and your plans. 3) Let your trusted advisor make a recommendation based on their research and knowledge of the industry. 4) Trust your gut and run with it.
Think of a subject in which you feel very knowledgeable. You may be thinking of your own industry, a hobby or a subject that you have studied extensively. Ask yourself, do you not feel that you could make a better decision about this subject than a novice, even with the most complete spreadsheet? Don’t you feel that the right answer is obvious sometimes, regardless of the seemingly insignificant differences to the “bottom line” when trying to use some objective criteria?
If you were at the grocery store trying to decide between the “red delicious” and “granny smith” and the produce manager happened to walk up behind you and say “this batch of red delicious is particularly juicy and tasty”, would your decision NOT be made at that very moment, regardless of the price?