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How To Get The Best Deal On Your
Microsoft And Oracle Negotiations
Mark Bartrick, Senior Analyst
Joe Galuszka, VP & Princi...
Joe Galuszka Mark Bartrick
We have been advising companies on how to
negotiate with Microsoft, Oracle & SAP for over 20
ye...
© 2014 Forrester Research, Inc. Reproduction Prohibited 3
Agenda
› Microsoft Negotiations - Office 365
and alternatives
› ...
© 2014 Forrester Research, Inc. Reproduction Prohibited 4
Microsoft Negotiations
© 2013 Forrester Research, Inc. Reproduction Prohibited 5
Microsoft’s desire for monopoly drives its strategy
Persuade
cus...
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
Multi-year programs (ie. EA and Cloud)
represent a growing share...
© 2014 Forrester Research, Inc. Reproduction Prohibited 7
Microsoft’s challenges
› Microsoft needs to keep new revenues
fl...
© 2014 Forrester Research, Inc. Reproduction Prohibited 8
Microsoft claims that SA includes 26 “benefits”
Source: Microsoft
© 2014 Forrester Research, Inc. Reproduction Prohibited 9
Microsoft will push you to Office 365
Source: July 12, 2012, “Ho...
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
Moving to the Cloud means Office 365 isn’t the
only game in tow...
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
Collaboration and productivity suites alternate
vendors
April 2...
© 2014 Forrester Research, Inc. Reproduction Prohibited 12
Collaboration and productivity suites alternate
vendors
April 2...
© 2014 Forrester Research, Inc. Reproduction Prohibited 13
Oracle Negotiations
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
Oracle closes 40% of its sales in its Q4
© 2014 Forrester Research, Inc. Reproduction Prohibited 15
Oracle wants you to buy all its stack
› You can get negotiation...
© 2014 Forrester Research, Inc. Reproduction Prohibited 16
Oracle’s ULA’s accelerate its short-term revenue
growth, at the...
© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Oracle’s profits come from support
WHILE SALES AND MARKETING IS...
© 2014 Forrester Research, Inc. Reproduction Prohibited 18
Oracle’s maintenance revenue growth is
stalling
Oracle’s mainte...
© 2014 Forrester Research, Inc. Reproduction Prohibited 19
How Forrester Can Help
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Forrester has Helped Thousands of Companies
Negotiate Better De...
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Forrester uses research-based
knowledge to help you get a bette...
© 2014 Forrester Research, Inc. Reproduction Prohibited 22
The Forrester Consulting difference
Primary
research
Vendor
int...
© 2014 Forrester Research, Inc. Reproduction Prohibited 23
Next Steps
1. If you’re negotiating with these vendors in the n...
Thank you
Mark Bartrick
Software Contract Negotiation
mbartrick@forrester.com
Joe Galuszka
Software Contract Negotiation
j...
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How To Get The Best Deal On Your Microsoft And Oracle Negotiations

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With Oracle's financial year end looming on May 31 and Microsoft's on June 30, you will be negotiating a software deal in the next couple of months. This presentation discusses best practices you can use in your upcoming Microsoft and Oracle negotiations. Learn more about software contract negotiation best practices: http://forr.com/1fSdhWx

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Transcript of "How To Get The Best Deal On Your Microsoft And Oracle Negotiations"

  1. 1. How To Get The Best Deal On Your Microsoft And Oracle Negotiations Mark Bartrick, Senior Analyst Joe Galuszka, VP & Principal Consultant April 22, 2014
  2. 2. Joe Galuszka Mark Bartrick We have been advising companies on how to negotiate with Microsoft, Oracle & SAP for over 20 years.
  3. 3. © 2014 Forrester Research, Inc. Reproduction Prohibited 3 Agenda › Microsoft Negotiations - Office 365 and alternatives › Oracle Negotiations - ULAs and growth challenges › How Forrester can help your negotiating team.
  4. 4. © 2014 Forrester Research, Inc. Reproduction Prohibited 4 Microsoft Negotiations
  5. 5. © 2013 Forrester Research, Inc. Reproduction Prohibited 5 Microsoft’s desire for monopoly drives its strategy Persuade customers to standardize on its stack Lock you in for three years Eliminate competitors Renew existing revenue stream and add 10% Grow the business, revenue and profit Defend Office business from Google
  6. 6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6 Multi-year programs (ie. EA and Cloud) represent a growing share of Microsoft’s total revenue
  7. 7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7 Microsoft’s challenges › Microsoft needs to keep new revenues flowing in. › Its main products are fully mature. - How can it keep persuading customers to purchase a new version of Office every three or four years? › Many customers skip product releases. - SA’s price assumes triennial upgrades.
  8. 8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8 Microsoft claims that SA includes 26 “benefits” Source: Microsoft
  9. 9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9 Microsoft will push you to Office 365 Source: July 12, 2012, “How To Negotiate A Better Microsoft Office 365 Deal” Forrester report
  10. 10. © 2014 Forrester Research, Inc. Reproduction Prohibited 10 Moving to the Cloud means Office 365 isn’t the only game in town….
  11. 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 Collaboration and productivity suites alternate vendors April 2013 “Answer Five Questions When Selecting A Cloud Collaboration And Productivity Suite”
  12. 12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 Collaboration and productivity suites alternate vendors April 2013 “Answer Five Questions When Selecting A Cloud Collaboration And Productivity Suite”
  13. 13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13 Oracle Negotiations
  14. 14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14 Oracle closes 40% of its sales in its Q4
  15. 15. © 2014 Forrester Research, Inc. Reproduction Prohibited 15 Oracle wants you to buy all its stack › You can get negotiation leverage from the products you might buy, as well as those you already own or will definitely buy.
  16. 16. © 2014 Forrester Research, Inc. Reproduction Prohibited 16 Oracle’s ULA’s accelerate its short-term revenue growth, at the expense of subsequent years Note. This graph exaggerates the effect to illustrate the point and are not meant to reflect the actual numbers 1. Customer A buys a ULA in 2010, so buys nothing in 2011 or 2012 2. Customers B and C buy ULAs in 2011, so buy nothing in 2012 3. Oracle needs to sell 3 similar ULAs in 2012 to replace this revenue and show growth too
  17. 17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17 Oracle’s profits come from support WHILE SALES AND MARKETING IS THE LARGEST EXPENSE CATEGORY
  18. 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 Oracle’s maintenance revenue growth is stalling Oracle’s maintenance renewal rate appears to have fallen in the last three years.
  19. 19. © 2014 Forrester Research, Inc. Reproduction Prohibited 19 How Forrester Can Help
  20. 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 Forrester has Helped Thousands of Companies Negotiate Better Deals with Microsoft, Oracle and SAP
  21. 21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21 Forrester uses research-based knowledge to help you get a better deal › Structured Best Practice Process › Decision Support › Vendors’ Policies › Latest Deals › Strategic Insights Microsoft Volume Licensing Product Use Rights Worldwide English | October 2012
  22. 22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22 The Forrester Consulting difference Primary research Vendor interactions Proprietary global data Client engagements Research-based consulting delivered with speed, depth, and objectivity. Forrester’s intellectual capital is leveraged for every consulting engagement.
  23. 23. © 2014 Forrester Research, Inc. Reproduction Prohibited 23 Next Steps 1. If you’re negotiating with these vendors in the next few months, check out some of our research on the topic including: - “HOW TO NEGOTIATE A BETTER MICROSOFT 365 DEAL” - “A QUICK GUIDE TO HELP YOU PREPARE FOR AN ORACLE SOFTWARE NEGOTIATION” 2. Contact your Forrester Account Manager to leverage Forrester’s team of negotiation advisers to ensure you get the best deals from Microsoft and Oracle (and SAP).
  24. 24. Thank you Mark Bartrick Software Contract Negotiation mbartrick@forrester.com Joe Galuszka Software Contract Negotiation jgaluszka@forrester.com
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