Cio Forum Presentation 3 09


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Cio Forum Presentation 3 09

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