- Too often, organizations fail to achieve economy of scale. They neglect to negotiate price holds, do not negotiate deeper discounts as volume increases, or do not realize there are already existing contracts within the organization.
- Understand what to negotiate. Organizations do not know what can and cannot be negotiated, which means value gets left on the table.
- Integrations with other applications must be addressed from the outset. Many users buy the platform only to realize later on that the functionality they wanted does not exist and may be an extra expense with customization.
Our Advice
Critical Insight
- Buying power dissipates when you sign the contract. Get the right product for the right number of users for the right term and get it right the first time.
- Getting the best price does not assure a great total cost of ownership or ROI. There are many components as part of the purchasing process that if unaccounted for can lead to dramatic and unbudgeted spend.
- Avoid buyer’s remorse through due diligence before signing the deal. If you need to customize the software or extend it with a third-party add-in, identify your costs and timelines upfront. Plan for successful adoption.
Impact and Result
- Centralize purchasing instead of enabling small deals to maximize discount levels by creating a process to derive a cost-effective methodology when subscribing to Sales Cloud, Service Cloud, and Force.com.
- Educate your organization on Salesforce’s licensing methods and contract types, enabling informed purchasing decisions. Critical components of every agreement that need to be negotiated are a renewal escalation cap, term protection, and license metrics to document what comes with each. Re-bundling protection is also critical in case a product is no longer desired.
- Proactively addressing integrations and business requirements will enable project success and enable the regular upgrades the come with a multi-tenant cloud services SaaS solution.