Cio Forum Presentation 3 09

Reducing Software Licensing and Contracting

Costs

Shannon Muniz, Managing PartnerArtemis Sales

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

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


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!


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!


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


Inputs Process Benefits

Statementof Work

ConsolidatedSoftware Inventory &Contracts Summary

Business As UsualFinancial 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

Providing Solutions to Today’s Complex Licensing IssuesSM

Supplier Negotiation Services

Copyright 2009, Artemis SalesCopyright 2009, Artemis Sales

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……..

Duquesne saved 40% over previously

negotiated pricing – a 7-figure savings!


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……

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


Thank you!

For more information, please contact

Shannon MunizManaging Partner

Artemis Sales(407) 858-5748

[email protected]

Cio Forum Presentation 3 09

Technology

Transcript of Cio Forum Presentation 3 09