Insights for IT Negotiations

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.

It is very clear that, after attending the various product keynotes (Sales Cloud, Service Cloud, Commerce Cloud, Marketing Cloud, Einstein Analytics..etc), Salesforce is going to be aggressively pushing the Customer Success Platform (Customer 360) and all the products it includes into as many customers’ ecosystems as they can and as quickly as they can.

Beyond the announcement of the new partnership with Apple and coverage of Einstein Voice, It is very clear that Salesforce wanted it to be known that they are completely focused on their Customer Success Platform. This focus will bring an aggressive sales organization pushing its customers to adopt more of the products and solutions that it encompasses.

It is an understatement to say that enterprises are severely impacted when their subscribed to cloud solutions are down and not available. Downtime issues can be disastrous and costly. While Service Level Agreements (SLAs) are a standard in cloud subscription agreements, they are often boilerplate that simply don’t cut it. Regardless of which cloud vendor your enterprise is relying on (Salesforce, Microsoft, Workday, ServiceNow, etc.), having the proper SLA structure in place with proper remedies for failure is critical.

With Oracle OpenWorld 2018 just weeks away, Oracle has posted Q1 FY19 earnings that lack luster and have missed Wall Street's expectations. In Q4 Oracle stopped breaking out its revenue streams so it's hard to tell where the company may be struggling with their various products and services. Oracle users aren't seeing a business case to migrate to their cloud solutions.

Oracle’s Thomas Kurian has taken a leave of absence from his role as Senior VP President of Product Strategy. It seems Kurian wants to make more of Oracle’s cloud software run on other cloud platforms such as Azure and AWS, where as Ellison wants everything to run on Oracle. Clients need to be aware of Oracle’s eventual strategy as they become accustomed to using Azure and AWS; they may or may not work with Oracle's software in the near future.

Thomas Kurian, President of Product Development at Oracle is taking a leave of absence. Kurian has been at Oracle since 1996, in his email address to employees his leave hints at being more permanent than temporary, and with Oracle OpenWorld just weeks away, it can be assumed he will be absent for the event. Kurian was responsible for Oracle's move to the Cloud and with poor Cloud financials last quarter it could be speculated there's a correlation.