In this standout interview, ETR talks with the Director of Information Technology for a global industrials and manufacturing enterprise, who describes software and hardware price increases from vendors offering little room for negotiation. Read on to see how this company has deployed generative AI across multiple business lines, why they favor best-in-class solutions over bundled security, how they consolidated its logistics and productivity toolset, and which vendors it leverages for Observability
AI Overload
As AI products continue to flood the market, companies are being forced to make careful decisions. The IT Director expressed concerns about AI overload: "Every product in our service catalog has an AI component. Do we really need all 200? Or should we pick the best-in-class?" explained the IT Director. This cautious approach highlights the challenges of navigating AI hype, with organizations focusing on identifying AI tools that offer real operational benefits rather than adopting them simply for novelty.
Among the AI vendors evaluated, C3.ai stands out for its tailored approach to different industries. “Just because I’m in retail doesn’t mean I’m the same as every other retailer. It’s difficult to find somebody who wants to understand your use cases rather than retrofit a retail solution.” This capability to customize without commoditizing clients makes C3.ai a strong contender in the crowded AI space.
The company is also closely monitoring Microsoft Copilot, although concerns around licensing remain. “I want it to be a production tool; I want people to actually ask for a trial period,” the IT Director said, indicating their cautious approach despite Copilot’s promising integrations.
Beyond productivity AI, the company is also exploring AI/ML in data warehousing but remains wary of potential silos between different AI tools. "Will these tools communicate effectively, or will they remain siloed? We don’t know how that’s going to play out yet,” the IT Director cautioned, emphasizing the need for seamless AI interoperability.
Additional Takeaways
Observability. The shift toward more innovative IT monitoring solutions has seen Datadog and Splunk rise to prominence, with companies opting to move away from legacy vendors like SolarWinds. “Datadog has transformed from just an APM tool into a comprehensive observability vendor,” said the IT Director. Meanwhile, Splunk’s evolution into a network monitoring powerhouse allows for greater consolidation of tools, replacing older platforms like SolarWinds. “A lot of people are using APM and ITOM for monitoring, and AI can proactively address alerts, where in SolarWinds, that’s sort of an afterthought.”
Security. In the realm of security, AI is playing an increasingly important role. The company utilizes Wiz for cloud-native application protection (CNAPP) and CrowdStrike Falcon for endpoint security, both valued for their ability to provide quick, effective assessments. Aqua Security is also favored for its focus on API security, addressing vulnerabilities in data connections that may often be overlooked.
“Security is one of those things I don’t want to drive based on price. I want solutions that work because cutting costs here can end up being more expensive in the long run,” said the IT Director. While they appreciate some aspects of Microsoft Defender, they regard it as merely adequate. “In a lot of areas, Microsoft security offerings are table stakes—they’re good, but they’re not great. Certain components stand out, but the question is, does your organization need ‘great’?”
Productivity. As businesses reassess their productivity needs, the emphasis has shifted toward streamlined, effective solutions. The interviewed company has simplified its productivity toolset, relying on Asana for project management and Smartsheet within IT teams. Zoom, once a mainstay, is being replaced by more tightly integrated collaboration tools like Microsoft Teams, which streamline workflows through native integrations with other Microsoft products.
Rising IT costs. Across the board, inflation and geopolitical tensions are driving up prices for both software and hardware, leaving companies with little room for negotiation. “We’ve seen price hikes as high as 10% for software, and vendors are making it clear: take it or leave it,” said the IT Director. This environment has led organizations to reassess their priorities, slow down project implementations, and focus on cost-effective solutions that don't compromise on quality.
Despite the challenges, the company remains committed to maintaining best-in-class security and AI tools, even in a tight financial landscape. Multi-year agreements and discounts are less common, particularly for hardware, but the focus is on long-term value rather than short-term savings.
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