Download - Cio Forum Presentation 3 09
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Reducing Software Licensing and Contracting
Costs
Shannon Muniz, Managing PartnerArtemis Sales
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IT Contract Negotiation Challenges
• Limited Resources– Too many contracts to review/approve– Inadequate Internal Resources– Limited Time to Fully Analyze Existing
Licenses / Negotiate New Agreements
• Automatic Renewal of Agreements
• Software industry is
dynamic
Copyright 2009, Artemis Sales
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Software License Issues
$ No Enterprise License Agreements$ Lack of Volume Purchase Agreements $ Duplicate Licenses Across Enterprise$ Global Marketplace $ Divestitures$ Mergers & Acquisitions$ Corporate Consolidations$ Complexity of IT Administration
Copyright 2009, Artemis Sales
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Procurement Challenges
• Evolving Technology– Release of New Software Technology– Availability of New Hardware– Evolving License Models– Complex IT Environments
Procurement teams can’t
keep up!
Copyright 2009, Artemis Sales
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What if you had access to trained negotiators that….
• Understand current software licensing issues
• Understand what’s important to software vendors
• Had strong legal background
• Were on your side during the negotiation
• Do this for a living!
Copyright 2009, Artemis Sales
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Trigger Events
– Selection of New Technology– Hardware Upgrades– Expansion of Current Footprint– Supplier Forced License Conversions– Supplier Audits– Mergers & Acquisitions– Expiration of Existing Term/Renewals
Copyright 2009, Artemis Sales
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Inputs Process Benefits
Statementof Work
ConsolidatedSoftware Inventory &Contracts Summary
Business As UsualFinancial Model
Perform Analysis•T’s & C’s•Financial
Create Strategic Plan Leveraging:•Vendor Relationships•Software Company Experience•Pricing Model Knowledge•Business Policies & Practices
Negotiate Contract•Jointly or•Independently
Reduced Costs•Immediate•Long Term
Increased Profit
Predictable Spend$
Greater Flexibility
Providing Solutions to Today’s Complex Licensing IssuesSM
Supplier Negotiation Services
Copyright 2009, Artemis SalesCopyright 2009, Artemis Sales
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Success Stories 2008 - Duquesne Light:• Entering multi-million $ agreement with SAS• Procurement negotiated a 75% savings
Contract Review:• Discovered Duquesne was being sold twice as
much software as needed• Expensive pricing model used to determine cost
Negotiation Results:• Contract was adjusted for actual software needs• Requested use of another pricing model
RESULTS……..
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Duquesne saved 40% over previously
negotiated pricing – a 7-figure savings!
Copyright 2009, Artemis Sales
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Saved Large Bank More Than $25.5M over 5 Years
Reduced Existing License Renewal Fees by 27% for Major
Automotive Company
Reduced Fortune 500 Company’s New License Fees by 60%
More Success……
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Benefits of Smart Supplier Negotiations
• Enhanced Supplier Intelligence
• Predictable Spend
• Maximum License Flexibility
• Contract Terms that meet your business needs
• Substantial Cost Reductions
• More strategic supplier relationships
Copyright 2009, Artemis Sales
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Thank you!
For more information, please contact
Shannon MunizManaging Partner
Artemis Sales(407) 858-5748