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Selection guide

Vendor Market Share

The Risks of the New Kid on the Block

There are solid reasons for choosing a well established vendor, instead of a brand new startup that is dependent on further rounds of VC funding to stay afloat. A well established vendor is less likely to go out of business, the software has had time to settle down and is less likely to be buggy and the vendor has had time to sort out its support/maintenance and upgrade processes.

The Fallacy of Safety in Numbers

Rather than taking the time to carefully compare different software solutions, some companies make a quick, seemingly safe decision: they pick the vendor that seems to have the largest market share.

Of course there are some good reasons for choosing a well-established vendor as opposed to a new start-up. But blindly choosing the largest vendor does not necessarily reduce your risk:

In summary, unless you really need some brand new technology that is only available from a startup, you probably want to compare contract management software vendors that have been around for a while and focus on product quality/applicability and company profitability/debt levels rather than just market share.

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