At Kensai International, Ltd. we tend to prefer established vendors with a customer base of 100 or more publishers, that said solutions from new vendors usually offer unique advantages over that of more established vendors.
These advantages include;
a. Features not offered by their larger competitors.
Example, iPub ( http://www.ipubtech.com/ ) and HiPoint ( http://www.hisoftwareinc.com/ )solutions offer integrated EDI processing, a feature for which some competitors charge $15 to $25K.
b. Newer Technology
New vendors are more likely to have software built using the latest software development tools.
c. Lower Pricing
With newer solutions that have a small customer base there is a risk that they will be here today and gone tomorrow.
To evaluate this risk we recommend that a publisher consider three factors;
- Is their customer base growing?
- Can they cover their operating expenses?
- Do they have "glowing" references?