Vendor
A vendor is a company or supplier that produces and sells goods, services, or software to other companies or end customers.
Simply put:
an official supplier or manufacturer of a product
Where the term “vendor” is used
- IT
- software and SaaS
- retail
- equipment and hardware
- B2B
- telecommunications
- e-commerce
What a vendor does
- manufactures the product
- supplies solutions
- supports customers and partners
- updates and develops the product
- may train and certify partners
Examples of vendors
IT vendors:
- Microsoft
- Cisco
- Oracle
- HP
- SAP
Hardware vendors:
Manufacturers of:
- servers
- point-of-sale equipment
- hardware
- network devices
Vendor in marketing and business
Often the term means:
a company that supplies services or technologies.
For example:
- CRM vendor
- cloud vendor
- software vendor
How a vendor differs from a distributor
Vendor
creates the product.
Distributor
handles the distribution and sale of the product.
Example
A company develops a CRM system and sells it to businesses.
It is a vendor of the CRM solution.
What is important when working with a vendor
- product quality
- technical support
- company stability
- partnership terms
- updates and security
- SLA and service
Why the term is especially popular in IT
Because companies often:
- purchase software
- use cloud services
- integrate third-party solutions
- work with technology partners
Key takeaway
A vendor is a supplier or manufacturer of a product, service, or technology that provides its solutions to customers or partners.
