Case Study:
Software Vendor Negotiation
Client Description
The client is a university with an annual software budget of about $700,000.
Client Situation
This client approached ISAM with concerns about one of their largest software vendors. They were about 30 days away from an upgrade and were told they had the final proposal from the software vendor. They were certain there was nothing that could be done with the price increases but wanted to see if ISAM could help.
Process for Software Vendor Negotiation
Once the vendor negotiation objectives were confirmed, the ISAM process included:
- Signed confidentiality and non-disclosure agreements.
- Collected the client’s software contracts for review.
- Compared the unit software cost and total software cost on each contract.
- Compared the client’s pricing to industry “best practice” and “best in class” targets.
- Products were reviewed for functional redundancy, elimination or replacement.
- Developed and presented a “Business As Usual (BAU)” report with specific product and pricing recommendations.
- ISAM met directly with the vendors to discuss pricing (based on industry data) and terms and conditions (based on industry best practices).
- ISAM stayed at the center of negotiations until the contract were signed.
Results & Benefits
- The Software Vendor Negotiation was completed in three weeks.
- ISAM negotiated on the client’s behalf with specific industry data.
- Total contract savings: $110,000 (from an annual budget of $700,000).