Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom, transportation and energy.
With 26 percent market share, EMC is the world's largest storage provider. As the clear leader in a technology market with exponentially growing demand, EMC gets fierce competition from players like IBM, HP and Dell in this crowded space. EMC customers and enterprises looking to make new storage purchases (as well as renew their current support agreements) are poised for big savings in 2012 if they are armed with the right vendor and pricing insight. Here are four ways you can cut EMC costs:
Establish a Beachhead for Savings. Historically, EMC has done a good job of being the sole storage provider for its clients -- which has led to higher customer costs. The solution? Introduce new competition in a low-risk, non-strategic area of your business. Once this competitive "beachhead" has been established, you'll have more negotiating leverage.
Keep Your Reseller Honest. Many EMC resellers have more flexibility on discounting and terms than they may lead you to believe. Resellers should go through the same rigorous benchmarking process as vendors. By benchmarking pricing, margins and discounts, you can create a level playing field for negotiations.
Sanity Check Your Support. EMC support pricing can be tricky. Oftentimes, it's not directly tied to your initial purchase price. Furthermore, fewer companies choose to outsource EMC support to third-party providers, which grants increased leverage to EMC. Be sure your support pricing is within a fair range!
Find the Dead Weight. Every year, companies spend millions of dollars paying for support on unused or underutilized storage hardware. Don't be one of them. Identify decommissioned hardware in your storage portfolio, then negotiate those costs out of your support agreements.
-- Jeff Muscarella, EVP of IT, NPI