Insights for IT Negotiations

The sourcing and selection of your IT Services partner often spans over several months and requires significant time and effort from your cross-functional teams. Closing your services contract on time while preserving the complete integrity of your negotiated commercial construct requires a plan. You must maintain momentum throughout the process and execute an approach that helps mitigate the risks of unforeseen hurdles in a low-leverage environment.

Despite the upbeat and high-fiving tone of SAP’s Q3 2018 earnings call, analysts were not enthusiastic about SAP’s latest results. Although SAP reported 41% growth...

Microsoft had another strong quarter with earnings and revenue beating expectations. Commercial Cloud revenue is up 47% driven by Office 365 commercial revenue growth of 36%, Dynamics 365 grew 51% and Azure revenue is up 76%. Current and potential customers should expect Microsoft to continue to aggressively push adoption of their strategic cloud bundle, Microsoft 365, which includes Office 365, Windows 10, and Enterprise Mobility and Security. It is critical that all organizations ensure they have the proper downstream protections and the appropriate level of flexibility in place as Microsoft will look to increase revenue per user over time.

ServiceNow had another strong quarter. Subscription revenue was up an impressive 39% with 25 net new deals with over $1M in annual contract value. With the goal of landing more net new customers and upselling their current base, ServiceNow has changed their go-to-market approach. They now describe their product portfolio as the Now Platform and three (3) workflow clouds (IT, Employee Experience and Customer Service). ServiceNow will continue to rely heavily on their established CIO relationships and partner ecosystem to sell more ServiceNow products while also ramping up both their company and product brand awareness.

After attending Oracle OpenWorld sessions focused on Universal Credits and Bring Your Own License (BYOL), Oracle Practice Leader, Jeff Lazarto, shares what customers should know about these pricing options. Those considering these options should proceed with caution and take steps to ensure they are making the best choice for their organization before making a commitment.

Larry Ellison made some bold statements in his opening keynote at this year's OpenWorld conference. Oracle redid its entire cloud infrastructure and claims that this second generation cloud offering is very different and better than anything else out there. Ellison then spent a significant amount of time taking aim at Amazon's AWS. Listen to Oracle practice leader, Jeff Lazarto's quick recap for more opening keynote highlights.

Too many companies fail to negotiate the right cloud deal with their cloud vendor come renewal. Ultimately, the common culprit is simply poor preparation. Failing to allocate the necessary amount of time, relying to heavily on a perceived strong relationship, and being overly confident in your standard processes can all lead to an unfavorable cloud deal.

Back in April of this year, SAP finally provided some guidance on how it planned to address Indirect Access, or as SAP refers to it, “Digital Access,” for current and future customers. Specifically, they articulated three options for existing customers: Do Nothing, License Exchange or Contract Conversion. New customers would be licensed under the new model, measured by the 9 document types defined in the SAP ERP Pricing for the Digital Age.

Too many ServiceNow customers are starting to see a less accommodating and flexible ServiceNow. Especially when it comes time to renew their cloud subscription. Unexpected price increases being forced onto their customer base with contract terms that are less favorable than what have been in place previously are too common. It is critical that you prepare appropriately for these changes as you embark on your renewal negotiations.

Thomas Kurian's leave of absence results in him leaving Oracle altogether. According to various news outlets, the main reason for his leaving was due to a dispute with Larry Ellison over whether or not to allow Oracle's Cloud software to work with other Cloud software such as AWS and Azure.