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Leverage the recession - negotiate hard

The recession is driving down prices.

Forrester say

Rapidly deteriorating market conditions led to a shift in the major enterprise apps vendors' overall software licensing and pricing strategies

Expect to see the same across all software, hardware and services. Now is the time to negotiate hard. thisn is especially true on new deals btu also applies to renewals.

  • Ensure all procurement selection is strongly driven by price. increase the weighting of this criteria. Remind everyone of the potential for discounts.
  • Don't overdo it. Vendors have to stay in business. If they cut too deep they will cut service levels in response.
  • make sure contract administrators find all automatic contract rollovers and report them to management so they can be revisited and renegotiated.
  • Analyse contracts to find those where you may be paying top dollar and seek renegoatiation for more reasonable terms, whatever the period of the ciontract may be.
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