The way private capital approaches software purchasing is changing. In the old days, single vendors ruled the market - to the detriment of their clients. However, a new generation of disruptive software companies are shaking things up – and clients can reap the rewards.
In this article, we’ll look at the benefits these smaller vendors can bring to their clients, as well as how we do it at LemonEdge.
A new era
Historically, private capital firms would have to go to one vendor for their software as there wasn’t a wide range of options in the marketplace. For larger clients, a vendor would build bespoke solutions that would deliver against their specific needs, but you would have to take what you were given if you didn’t have that spending power. After all, it’s difficult for one solution to be the best of breed in accounting, onboarding, portfolio monitoring and everything else you need in a private capital system.
Eventually, some pioneering independent vendors entered the market with more targeted solutions for specific use cases. But, clients still needed to manually build connectors to make these disparate systems work together. It wasn’t ideal.
Today, however, we’re at a new stage. The latest systems can automate the flow of data between different solutions within a single organisation. It means companies can buy in best of breed technologies for multiple functional areas and connect them together. It makes the whole greater than the sum of its parts.
Why a multi-vendor environment works
When purchasing software, the first thing you should do is assess whether you have the time and financial resources to manage a multi-vendor ecosystem.
However, you should still find that switching to multi-vendor will enhance your experience, whether it’s for investors, portfolio companies, internal users or anything else. This is because you can buy from individual vendors who are the best at delivering against your key requirements – and you no longer have to create your own connectors to automate data flow.
Another great advantage of creating a multi-vendor ecosystem is that it minimises your risk. Nobody expects their software implementation to fail, but 90% of the time. Because your best of breed solutions have lower startup and implementation costs, the risk of being tied into a system that doesn’t operate correctly is significantly reduced.
Finally, your total output will be higher and more efficient because you’re using the best available solutions for each function. For a COO or CFO, you get to deliver the optimum experience without being restricted to a single vendor.
How LemonEdge enhances a multi-vendor system
Creating a best of breed environment achieves:
- Better connectivity between solutions
- Better user experience
- Solutions delivering exactly what you require, but only what you require
Where LemonEdge fits in is that we provide APIs that enable vendors to create cross-network relationships. We help the vendor and client communities get more from their solutions – so everybody wins.
LemonEdge also helps clients minimise risk with a trial period, so you can check out the solution before committing long-term.
