Insights for IT Negotiations

Salesforce reported FY22 Q3 earnings this week and, once again, Salesforce posted a strong revenue growth of 27% while also raising full year guidance. Additionally, Salesforce now has two (2) business units or “clouds,” that being Service Cloud and Sales Cloud, that have an annual run rate of $6B. It was also announced that Bret Taylor will work with Marc Benioff as the co-CEO of Salesforce. Salesforce Practice Leader, Adam Mansfield, discusses where Salesforce will focus and what tactics they will deploy to reach their FY22 revenue target of $26.4B, as well as their FY23 revenue target of $31B. He also shares his thoughts on Bret Taylor’s promotion to the co-CEO role and what it could mean for Salesforce customers moving forward. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

This is the third podcast in our three-part series covering SAP Support Model Case Studies. Listen to part one on SAP RISE here bit.ly/3k0SGEe and part two on the “Do It for Me” model here https://bit.ly/3mMGFnB SAP customers migrating their SAP workload to the cloud have four primary support models to choose from. These include the “Do It Yourself” model, the “Do It for Me” model, the professional model, and SAP RISE. In this case study, a client chose the “Do It Yourself” model to move their SAP hosting services, infrastructure services, and infrastructure to the cloud leveraging their own internal resources. This was an existing ECC customer who had some hyperscaler relationships within pockets of their organization. In their situation, it was appropriate, manageable, and scalable to select this support model because they had the in-house expertise to successfully do so. They chose to lift and shift their SAP on-premise relationship and existing cloud relationships into a single instance on the hyperscaler. There was a focus on hyperscaler optimization and the hyperscaler strategy drove a lot of their decision making. In this podcast, IT Sourcing & Commercial Advisory Practice Director, Chip Hanna, discusses the benefits of the DIY model as well as some key considerations for anyone interested in this option. For more details on all four models and client examples for each, download our on-demand webcast, Defining Your SAP Cloud Strategy: Azure, AWS, GCP and RISE Compared bit.ly/3pQp40a Host: Chip Hanna: bit.ly/37gknCk SAP Commercial Advisory Services: bit.ly/3yjImwb

This is the second podcast in our three-part series covering SAP Support Model Case Studies. Listen to part one on SAP RISE here https://bit.ly/3k0SGEe SAP customers migrating their SAP workload to the cloud have four primary support models to choose from. These include the “Do It Yourself” model, the “Do It for Me” model, the professional model, and SAP RISE. In this case study, a client who was focused on their existing on-premise SAP ECC migration to S/4HANA chose the “Do It for Me” model, where they leveraged a 3rd party who takes care of the SAP hosting services and infrastructure services specific to SAP and sits on top of a hyperscaler of their choice. This particular customer managed their applications themselves and had a highly customized environment with many 3rd party integrations. They wanted to move to S/4HANA in the cloud but since the RISE application stack excludes customizations, extensions, and 3rd party applications, RISE would have created challenges and was not the best support model for their ECC to S/4 transformation. In this podcast, IT Sourcing & Commercial Advisory Practice Director, Chip Hanna, discusses why this client chose to leverage a hyperscaler and the “Do It for Me” model and the benefits of doing so in their situation. For more details on all four models and client examples for each, download our on-demand webcast, Defining Your SAP Cloud Strategy: Azure, AWS, GCP and RISE Compared https://bit.ly/3pQp40a Host: Chip Hanna: https://bit.ly/37gknCk SAP Commercial Advisory Services: https://bit.ly/3yjImwb

ServiceNow once again posted subscription revenue growth of 31%, beat previous guidance, and raised full-year guidance. ServiceNow also now has 1,266 customers paying over $1M per year with an average annual spend of $3.6M. ServiceNow is so confident in their ability to execute to their land and expand strategy that they continued to reinforce the fact that they are on a clear path to achieve $15B by 2026. In this podcast, ServiceNow Practice Leader, Adam Mansfield, discusses where ServiceNow will focus to accomplish their goal of growing from a $5B company to a $15B company. This includes a sales pitch tied to selling as many products within each of their workflows (e.g., IT workflows, customer workflows, employee workflows, and creator workflows) as possible. He also shares how customers could potentially take advantage of some of these key insights in their upcoming ServiceNow negotiations and renewals. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt

This is the first podcast in our three-part series covering SAP Support Model Case Studies. SAP customers migrating their SAP workload to the cloud have four primary support models to choose from. These include the “Do It Yourself” model, the “Do It for Me” model, the professional model, and SAP RISE. In this case study, a client chose the SAP RISE model where they were able to choose the hyperscaler but everything else is managed under contract through SAP with a single agreement. This particular company had different ERP systems through acquisitions and divestitures, but they wanted SAP ECC to be their platform for the future. This was going to be a greenfield deployment for SAP and did not have a lot of 3rd party applications within the scope of RISE. However, even in completely greenfield deployments, companies need to approach SAP with a high degree of sophistication because of the nuances, traps, and hidden costs inside RISE. In this podcast, IT Sourcing & Commercial Advisory Practice Director, Chip Hanna, discusses why this client chose SAP RISE, the benefits of doing so in their situation, and what companies who select this support model should do to avoid the many challenges of moving to RISE. For more details on all four models and client examples for each, download our on-demand webcast, Defining Your SAP Cloud Strategy: Azure, AWS, GCP and RISE Compared. https://bit.ly/3pQp40a Host: Chip Hanna https://bit.ly/37gknCk SAP Commercial Advisory Services: https://bit.ly/3yjImwb Related Blog: https://bit.ly/3CvSQKV

Microsoft beat analyst expectations, posting FY22 Q1 total revenue of $45.3B. Once again, Microsoft’s success is largely being driven by the success of the Microsoft Cloud (which includes Azure, O365, LinkedIn, Dynamics, and other cloud properties). Microsoft will continue to push enterprise customers to adopt (and use) as many pieces of the Microsoft Cloud as they possibly can, including motivating these same customers to use the most robust (and costly) editions (i.e., M365 E5). Microsoft CEO, Satya Nadella, also mentioned that the Microsoft Cloud and the collective set of digital technology that comes with it, provides a deflationary force in an inflationary economy that will help customers navigate these times. In this podcast, Microsoft Practice Leader, Adam Mansfield, discusses how Microsoft’s focus on selling customers as many pieces of the Microsoft Cloud as possible will provide an opportunity for customers to optimize their go-forward commercial relationship and overcome Microsoft price increases coming in March 2022. For more actionable advice, join our upcoming webinar, How to Tackle Microsoft’s 2022 Price Increases. https://bit.ly/3Clpb7f Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

Oracle is getting more aggressive with their Java inquiries and has even created a Java sales team which is separate from their application and technology sales teams and their LMS audit teams. This separate unit is compensated for closing Java sales and they are using creative ways to identify and advance sales opportunities, often being very aggressive. Some customers have even said that at times, they seem to be more aggressive than the regular Oracle sales representatives. In this podcast, Oracle Practice Leader, Jeff Lazarto, discusses how the Java sales team has been approaching companies and how what starts as a simple inquiry can quickly diverge into an aggressive sales cycle and potentially a technology audit. He also shares three items you must know if you’re contacted by Oracle, especially if they are contacting you regarding Java. Host: Jeff Lazarto: https://bit.ly/37eCXdN Oracle Commercial Advisory Services: https://bit.ly/3jdtF7p Related Blog:

Oracle has increasingly been including its Cloud Learning Services in their cloud proposals, often without the client even asking for it. Should your company invest potentially millions into purchasing these services to gain access to a series of learning and training solutions from Oracle University? Oracle Practice Advisor, Erwann Couesbot, discusses what Oracle’s Cloud Learning Services are and the three solutions it consists of (Cloud Learning Subscriptions, Guided Learning, and Oracle Learning Explorer which is the only free option). He also discusses discounts we've seen Oracle give and the steps you should take whether you decide you need the services now or not. For more information, read the blog An Enterprise Guide to Oracle Cloud Learning Services. Host: Erwann Couesbot: https://bit.ly/3zuYPO1 Oracle Commercial Advisory Services: https://bit.ly/3jdtF7p Related Blog: https://bit.ly/39kDSu8

Workday acquired Configure Price Quote (CPQ) software provider, Zimit, which will allow Workday to offer quote-to-cash process automation to companies in services industries. While Workday has been doing very well in their recent earnings and are continuing to build out their solution offerings, aggressive growth through acquisitions, hiring, partnerships, and geographic expansion, can make it difficult to maintain the corporate culture that has been so integral to their success thus far. Workday Practice Leader, Jeff Lazarto, discusses what customers should expect and keep in mind as Workday continues to grow and make acquisitions. He also shares how these growth activities can present opportunities for customers to negotiate improved commercial terms and course-correct areas of their Workday relationship if needed. Host: Jeff Lazarto: https://bit.ly/37eCXdN Workday Commercial Advisory Services: https://bit.ly/3A6KOXt

Microsoft recently announced they are going to be increasing many Office 365 suites as well as the all-in cloud bundle, Microsoft 365 E3 pricing. Beyond increasing the ARPU (Average Revenue Per User), there are several other motivating factors driving Microsoft to make this decision. In this podcast, Microsoft Practice Leader, Adam Mansfield, discusses why Microsoft is hitting their enterprise customers with this price increase and how customers need to start to prepare for what will be very challenging renewal discussions ahead. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX