Episode 8: Summary of technology procurement basics

Technology procurement can feel complex, but the foundations are straightforward once the core building blocks are understood. By breaking technology down into manageable themes, anyone can approach procurement with more clarity and confidence.

Understanding the core building blocks of technology

Technology is often seen as intimidating, yet it largely comes down to three things: hardware, software, and services.

Hardware is physical and needs to be deployed or hosted somewhere. Software introduces licensing considerations and decisions about how it will be used. Services require clarity on whether the organisation needs a defined outcome or an ongoing managed service.

Understanding these three fundamental areas helps procurement teams navigate what they are buying and the practical implications of each choice.

How the technology supply chain fits together

The technology supply chain spans a wide range of providers. At one end are basic service providers and resellers, and at the other are large system integrators that deliver more complex solutions. Each tier offers a different level of capability.

To buy effectively, organisations need a clear view of what they are trying to achieve, understand their internal capability, and then select the right partner based on the support required.

A simple view of the technology stack

The concept of a technology stack brings structure to the layers that make up modern technology environments. This stretches from data centres at the foundation, through various infrastructure and platform components, up to applications at the top.

Recognising how these elements fit together helps procurement professionals understand the interdependencies involved and what they are actually purchasing at each stage.

Building confidence in technology procurement

Procurement professionals who understand commercial principles already hold a strong advantage. With a grasp of the technology basics, they can progress into more advanced areas of technology buying, including cloud, sustainability considerations, cost optimisation models, legal factors, and data protection.

The foundations covered so far give anyone entering technology procurement the confidence to take on more advanced topics in the future.

For organisations looking to build confidence in technology procurement and strengthen their understanding of the basics, get in touch.