We help resolve software contract negotiation to your advantage.
We help resolve software contract negotiation to your advantage.
The impulse to purchase management, collaboration and communication tools via web related to the need to be operational remotely is leading to an increase in software licenses to manage.
According to Gartner, global spending on enterprise software has grown by 10,8%: since licensing costs account for a sizeable portion of the IT budget, companies would like to establish and negotiate with vendors the most advantageous contractual conditions to lower costs on scale. But they often do not have the skills of Contract Management to guide the negotiations in their favor.
Each vendor has its own policies and no specialized knowledge of definitions, metrics, license models, clauses, terms and conditions, verification obligations of their contractual universe, including that of related services such as maintenance and support, there is a risk of not having sufficient elements to counter the proposals put forward. This is accompanied by a lack of awareness of what has already been contracted and used.
We support companies in negotiations with software vendors, providing tools and knowledge to better manage trading. As Contract Management experts, we identify any unfavourable conditions or unclear situations that may lead to unexpected disbursements and we require the best conditions for renewals taking into account the present and future needs of the company.
According to Gartner, global spending on enterprise software has grown by 10,8%: since licensing costs account for a sizeable portion of the IT budget, companies would like to establish and negotiate with vendors the most advantageous contractual conditions to lower costs on scale. But they often do not have the skills of Contract Management to guide the negotiations in their favor.
Each vendor has its own policies and no specialized knowledge of definitions, metrics, license models, clauses, terms and conditions, verification obligations of their contractual universe, including that of related services such as maintenance and support, there is a risk of not having sufficient elements to counter the proposals put forward. This is accompanied by a lack of awareness of what has already been contracted and used.
We support companies in negotiations with software vendors, providing tools and knowledge to better manage trading. As Contract Management experts, we identify any unfavourable conditions or unclear situations that may lead to unexpected disbursements and we require the best conditions for renewals taking into account the present and future needs of the company.
Aggregating data on use contracts and their deadlines takes up a lot of time and resources, which often leaves the status quo unchanged.
To help companies negotiate software contracts on more favourable terms, WEGG adopts the following strategy:
Let’s take stock of the contractual situation
We ask customers to share their contracts with the vendor as fully as possible. Contracts often have articulated structures and include multiple documents, we analyze them in detail and identify ownership, or how the license assigns the right to use the software. We pay attention to the definitions used, contractual conditions, audit terms, indicating if there are "gray areas" for compliance, limitations unfavourable to the customer, verification obligations not clearly defined. We have experience of licensing policies of major software vendors (Microsoft, Oracle, SAP etc.), so we know what elements we can review to prevent them from weighing on the cost balance.
Analysis of the IT environment
Later, the magnifying glass shifts to the company’s IT environment For two reasons, to have an accurate count of software consumption and to know in detail the hardware infrastructures on which programs are run. The number of processors/cores, for example, can have an impact on license models. We obtain, with the support of advanced recognition tools, an accurate HW and SW inventory, inside which the data are normalized to recognize applications in a homogeneous way. The analysis detects all machines connected to the corporate network, both physical and virtualized, and the software running on these machines.
We verify compliance with contract terms
We make a matching between license usage rights and consumption data. Based on the correspondence, we determine whether or not the use of the applications complies with the interpretation of the license terms and conditions. This analysis allows us to determine if there are non-conformities, to be remedied with further purchases or contract revisions, and if there is waste, that is, a higher use of the software than contracted.
Definition of business needs
Once we have clearer the status quo, we deepen in detail the business needs: procurement methods, performance and technological standards, future projects. The management of hybrid infrastructures, the implementation of self-service IT portals, the activation of new technologies (e.g. RPA), are all elements to be taken into account when negotiating the contract, considering their impact on licensing and its management. To reduce costs, companies conclude multi-year contracts, so you have to be clear about the direction you are going.
Benchmarking and what-if analysis
We don’t limit ourselves to just one option: we do a benchmark analysis in order to assign a score to each supplier and we also evaluate alternative scenarios, such as open source. Comparing and monitoring the performance of different cloud service providers, for example, allows you to negotiate expectations and defining SLAs from a strong position. In an age of expensive cloud deployments, it’s helpful to predict the most profitable scenarios and allocate your resources to service providers that best meet the cost/benefit ratio.
Getting to the heart of the negotiation
After collecting all the necessary information to better manage the negotiations, we sit with the customer at the vendor’s table to conclude the most advantageous conditions. By passing on our skills through training or support sessions or by managing the negotiation yourself.
To help companies negotiate software contracts on more favourable terms, WEGG adopts the following strategy:
Let’s take stock of the contractual situation
We ask customers to share their contracts with the vendor as fully as possible. Contracts often have articulated structures and include multiple documents, we analyze them in detail and identify ownership, or how the license assigns the right to use the software. We pay attention to the definitions used, contractual conditions, audit terms, indicating if there are "gray areas" for compliance, limitations unfavourable to the customer, verification obligations not clearly defined. We have experience of licensing policies of major software vendors (Microsoft, Oracle, SAP etc.), so we know what elements we can review to prevent them from weighing on the cost balance.
Analysis of the IT environment
Later, the magnifying glass shifts to the company’s IT environment For two reasons, to have an accurate count of software consumption and to know in detail the hardware infrastructures on which programs are run. The number of processors/cores, for example, can have an impact on license models. We obtain, with the support of advanced recognition tools, an accurate HW and SW inventory, inside which the data are normalized to recognize applications in a homogeneous way. The analysis detects all machines connected to the corporate network, both physical and virtualized, and the software running on these machines.
We verify compliance with contract terms
We make a matching between license usage rights and consumption data. Based on the correspondence, we determine whether or not the use of the applications complies with the interpretation of the license terms and conditions. This analysis allows us to determine if there are non-conformities, to be remedied with further purchases or contract revisions, and if there is waste, that is, a higher use of the software than contracted.
Definition of business needs
Once we have clearer the status quo, we deepen in detail the business needs: procurement methods, performance and technological standards, future projects. The management of hybrid infrastructures, the implementation of self-service IT portals, the activation of new technologies (e.g. RPA), are all elements to be taken into account when negotiating the contract, considering their impact on licensing and its management. To reduce costs, companies conclude multi-year contracts, so you have to be clear about the direction you are going.
Benchmarking and what-if analysis
We don’t limit ourselves to just one option: we do a benchmark analysis in order to assign a score to each supplier and we also evaluate alternative scenarios, such as open source. Comparing and monitoring the performance of different cloud service providers, for example, allows you to negotiate expectations and defining SLAs from a strong position. In an age of expensive cloud deployments, it’s helpful to predict the most profitable scenarios and allocate your resources to service providers that best meet the cost/benefit ratio.
Getting to the heart of the negotiation
After collecting all the necessary information to better manage the negotiations, we sit with the customer at the vendor’s table to conclude the most advantageous conditions. By passing on our skills through training or support sessions or by managing the negotiation yourself.
Let us make sure that we are clear about our own contractual situation.
We offer information to make the best decisions.
We plan renewals already taking into account the future needs of companies.
We are experts in negotiation and Contract Management
Let us make sure that we are clear about our own contractual situation.
We offer information to make the best decisions.
We plan renewals already taking into account the future needs of companies.
We are experts in negotiation and Contract Management
Would you like to negotiate software contracts on more favorable terms?
OUR OFFICES
OUR OFFICES
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Via Arnaldo Fusinato 42, 35137
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Viale Enrico Forlanini 23, 20134
ROME
Viale Giorgio Ribotta 11, 00144
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