BSF debacle may cost IT suppliers up to £3.7bn

[Polish]

Hi,

 

I am the chief reporter at IT publication MicroScope and have been following the developments regarding BSF for some time.

 

New research indicates that IT suppliers may lose contracts worth up to £3.7bn due to the government's recent actions.

 

BSF debacle may cost IT suppliers up to £3.7bn in lost business

 

Hope you find it of interest

 

Regards

 

Polish

[AyatollahPies]

Hi,

 

I am the chief reporter at IT publication MicroScope and have been following the developments regarding BSF for some time.

 

New research indicates that IT suppliers may lose contracts worth up to £3.7bn due to the government's recent actions.

 

BSF debacle may cost IT suppliers up to £3.7bn in lost business

 

Hope you find it of interest

 

Regards

 

Polish

 

Add to that the price increases a lot of suppliers appear to have just brought in for one reason or another.

[Polish]

Any names, detals of price increases?

[AyatollahPies]

Not directly BSF related but IBM kit seems to have gone up from our main supplier (can't name) by about 30-40%.

 

Budgets are well and truly going to be squeezed.

[Polish]

Did they provide a good reason? Other than general opportunism

[Dos_Box]

Not directly BSF related but IBM kit seems to have gone up from our main supplier (can't name) by about 30-40%.

 

Budgets are well and truly going to be squeezed.

 

From what i can gather it is mainly down to the strength (or rather lack) of the pound. Most major IT companies are US based and their products priced\converted accordingly.

[AyatollahPies]

Did they provide a good reason? Other than general opportunism

 

Not really. Turns out HP seems have gone up too.

 

Of course, we may simply have a poor supplier.

[Dos_Box]

One of the sponsors did give us notice about a month back to a big price hike due to exchange rates. I can't remember who it was now.

[Soulfish]

I've been told by 3 suppliers that Dell prices are being increased on the 19th so not just HP + IBM!

[Polish]

So it may be related to this?

 

Consumer PC prices bow to currency and component pressures

[broc]

It's not just PC prices going up.... I believe Honda cars have a price rise planned for July. The exchange rate is being blamed.......

 

Regardless of what happens to BSF, school budgets are going to be under acute pressure. School ICT spending will be cut too, equipment will have to last longer, printing costs will have to be reduced..... I predict lean times ahead for ICT suppliers large & small. Pushing prices up will mean schools get even less.

[WStore_Dan]

One of the sponsors did give us notice about a month back to a big price hike due to exchange rates. I can't remember who it was now.

 

That would be WStore! They went up at the time and they are going up again. Dell are increasing all prices on Monday 19th and I'm sure other manufacturers will follow

 

It's grim out there at the moment folks, hang on tight!

[m25man]

We were advised that all Equallogic prices are to go up by 15% on the 19th

[Polish]

The impact of BSF on IT suppliers is starting

 

RM cuts BSF contractors and restructures bidding team

 

Did the prices go up on the 19th? Who were the culprits and which products were increased? Did others follow Dell/ EqualLogic?

 

Apologies but I've been away

[teejay]

Weird, just ordered some machines off Dell and they were cheaper than the same spec we ordered 3 weeks ago!?!?

[Disease]

I will just do what I normally do now, squeeze suppliers until I get the best price, I have no sympathy for them. Those suppliers who put their prices up will find they will lose custom, simple.

[WStore_Dan]

Sympathy for suppliers? I dont think they are lookng for sympathy, they have to make money to survive so if prices are forced up due to no fault of their own then they in turn have to increase pricing to the customer. The margins in IT are very small with a lot of deals going through at 2-3% sometimes. I know Dell have i the past sold at a loss based on the potential for future business on servers, storage etc

 

Squeeze suppliers all you like but a business still has to make a profit at the end of the day

[Disease]

I agree suppliers have to make a profit, thats expected. I am not going to feel sorry for them, I will continue to squeeze them as a much as possible as most suppliers are willing to cut each others throats to get business, that makes it advantage schools, not disadvantage.