It’s not just about the money…

So now we’ve crept into 2011, what plans have you got to ‘do better deal’s this year? One thing I often get asked is what areas other than price should procurement be focussing on when negotiating with a software supplier. Well here are a few tips to get you focussed in 2011:

  • Define actual and potential license usage and select the usage terms that best suit your user profiles.
  • If looking to rollout an implementation, set a payent profile that ramps up as you rollout.
  • Include functional definitions of licensed software to avoid unwanted cost hikes later when the supplier re-names the software and tries to claim it is not a new release but a new product.
  • Focus on maintenance protections, particularly the ability to reduce, terminate or park maintenance in a downturn.
  • Software suppliers are doing more audits – ensure you have robust software asset management to avoid exposure.
  • Check invoices and make sure they match your contractual expectations.
  • Some suppliers (such as Oracle) rarely change contract terms and conditions during a negotiation. But they are very flexible on price and discounts; so focus your negotiating time where it will bear most fruit.

So there you go; welcome to 2011. And I make no apologies about the last bullet point above; sometimes it is all about the money, so go for it!

And if you think we can help you in 2011, call or email us.

Happy New Year.

Mark Bartrick

Tags: ,

Leave a Comment