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Cio Forum Presentation 3 09

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  • 1. Reducing Software Licensing and Contracting Costs Shannon Muniz, Managing Partner Artemis Sales
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. Inputs Process Benefits Providing Solutions to Today’s Complex Licensing Issues SM Supplier Negotiation Services Copyright 2009, Artemis Sales Copyright 2009, Artemis Sales Statement of Work Consolidated Software Inventory & Contracts Summary Business As Usual Financial 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
  • 8. 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……..
  • 9.
    • Duquesne saved 40% over previously negotiated pricing –
    • a 7-figure savings!
    Copyright 2009, Artemis Sales
  • 10.
    • 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 ……
  • 11. 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
  • 12. Thank you! For more information, please contact Shannon Muniz Managing Partner Artemis Sales (407) 858-5748 [email_address]