A Full Product Line Isn't Always a Bargain
Let me get this out of the way: I think Prysmian is a solid company. Their fiber optic and power cable lines are top-tier, and their presence in places like Bridgewater, NJ, shows they're investing in the U.S. market. But when I saw the news about Prysmian completing the acquisition of Encore Wire, my first thought wasn't about synergies or market share.
My first thought was: "Now I have to recalculate my total cost of ownership again."
Call me cynical, but after six years of tracking invoices and managing a procurement budget for a mid-sized data center operator, I've learned a hard truth: the vendor who claims they can do everything often ends up costing you more in places you don't see coming. That's the angle I want to unpack here—using Prysmian's move as a case study for a bigger issue in our industry.
The 'Everything Store' Myth
I've managed our cabling and connectivity budget (roughly $180,000 annually) for the last six years. In that time, I've negotiated with over a dozen vendors—from specialized fiber optic suppliers to broad-line electrical distributors. The one pattern I've seen? The broader the product line, the thinner the expertise in any single area.
In Q2 2024, when we were evaluating a new supplier for structured cabling in our Bridgewater facility, we got bids from three vendors. One was a generalist who offered everything from power cables to ceiling tiles. Another was a specialist in high-density fiber. The third was a regional distributor representing the Prysmian Group.
The generalist's pitch was tempting: "We're your one-stop shop." But when I ran the numbers on their total cost of ownership, I found a bunch of little gotchas. The patch panels were priced competitively, but the termination kits? Sixty bucks more per kit than the specialist. The cable management was fine, but the fiber optic cable itself didn't carry the same spec guarantees as the dedicated brands. Nothing was wrong, exactly—it just wasn't as right.
That's the thing with 'comprehensive' product portfolios. Prysmian has a genuine advantage in cables—power, fiber, data center, even submarine. That's impressive. But does that mean their network switches are as good as Juniper's? Probably not. And that's fine. I'd rather a vendor tell me, "We're great at cables, but for switches, here's who you should talk to," than try to sell me a whole ecosystem where half the parts are merely okay.
What Prysmian's Acquisition Really Means
The acquisition of Encore Wire isn't just about getting bigger. It's about narrowing their focus. Encore makes copper building wire—a complement to their fiber and specialty cables, not a distraction into IT hardware. From a procurement perspective, this feels like a smart play: double down on what you're genuinely good at, rather than trying to be everything to everyone.
That said, I'm keeping a close eye on how they integrate the product lines. Will Prysmian continue to offer the C300 fiber management system as a standalone product, or will they bundle it with Encore's wire? If the latter, I want to see the pricing broken out line by line—not as a bundled 'solution' that hides where the margin is.
When 'One-Stop' Actually Costs More
Here's a specific example that still annoys me when I think about it. Back in 2022, we were setting up a cross-connect for a new tenant in our data center. I got a quote from a major vendor (not Prysmian, but in the same category) that offered 'complete solutions'—cables, connectors, racks, even the zip ties. The quote looked reasonable: $4,200 for the package.
Then I decided, against my better judgment, to get a second opinion from a specialist. The specialist quoted $3,600 for just the fiber and connectors. No racks, no zip ties. For the racks, I went to a rack specialist—$450. For the rest, another $150. Grand total: $4,200. Same price.
But here's the kicker: when I actually placed the orders, the 'one-stop' vendor had a $250 'project management fee' that wasn't in the original quote. The specialist had no such fee. So by being 'one-stop,' the big vendor actually cost me $250 more. That $250 wasn't for cable management—it was for the convenience of not having to order from two companies.
Convenience has a price. Sometimes it's worth it. But you have to know you're paying for it.
What I Learned from That
I still look at 'total solutions' with a critical eye. Not because they're always bad—but because they often obscure the cost breakdown. When a vendor says, "We provide full end-to-end cabling for your data center," I now ask:
- How much of that is cable vs. termination vs. installation?
- What's the markup on items you don't manufacture?
- Can I buy the Prysmian cable from you and the connectors from someone else without losing support?
If they can answer those questions clearly and honestly, I'm interested. If they give me a glossy brochure about 'partnerships,' I'm out.
The 'Expertise Boundary' is a Good Thing
One of the best procurement decisions I ever made was switching vendors after a vendor said something I didn't expect. They told me, "We're really good at fiber optic termination in tight spaces, but for the main backbone run, I'd actually recommend Company X. They have better pricing on long-haul cable."
I still kick myself for not documenting that conversation. If I'd gotten it in writing, I could have used it as reference for our vendor evaluation policy. But that moment changed how I view vendors. The one who admits their limits is the one I trust for everything they do claim to be good at.
Prysmian's strength, from what I can tell, is in cables—power, fiber, and specialty. They're not pretending to be a server manufacturer or a network switch maker. That's the mark of a vendor who understands their expertise boundary. And in my book, that's worth a lot more than a 'total solution' that's only 80% great.
But Here's Where I Push Back
I also know that not everyone has the time to manage multiple vendor relationships. If you're a small company without a dedicated procurement team, the 'one-stop-shop' model does save you time. And time, in many cases, is money. I get that.
To be fair, I've also seen situations where a well-managed 'total solution' actually beats piecemeal ordering on TCO. In a rush order—when you need everything delivered within 48 hours—the coordination overhead of dealing with three vendors can eat up any savings. The 'one-stop' vendor's project management fee suddenly looks reasonable.
So I'm not saying 'never buy from one-stop vendors.' I'm saying: go in with your eyes open. Know what you're paying for the convenience. And if you're a buyer like me, who has the time to compare, don't let the glitter of a broad portfolio blind you to the hidden costs of mediocrity in some areas.
Bottom Line
The Prysmian Group has a strong portfolio. The Encore Wire acquisition makes strategic sense—it fills a gap in their copper wiring offerings without diluting their focus on high-end transmission. But as a procurement professional, I'm not going to assume that their 'comprehensive' line-up means I should buy everything from them. I'll quote the cable from Prysmian for the backbone, maybe get the specialty fiber from a niche supplier, and buy the rack accessories from a distributor who specializes in that.
The vendor who says 'we can do it all' is the one I trust the least. The vendor who says 'here's where we excel, and here's where we don't' is the one I'll keep coming back to. Prysmian's acquisition of Encore Wire feels like a company that's trying to stay focused on its strengths. I respect that. But I'm still doing my own TCO analysis.
"The most expensive words in procurement are: 'Trust me, we've got everything you need.'"
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