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.
When it comes to complex IT purchases, few vendors can match CA for complexity and variability. That's because their product portfolio is so vast and diverse, the company's divisions price autonomously, account teams have latitude in pricing and terms, and the sales tactics at any given time vary based on the company's market share and competitive displacement strategy for specific solution areas.
If you want to secure fair market pricing and terms for your next CA purchase or renewal, be sure to do the following:
- Understand unique CA motivators: CA operates an aggressive, highly motivated sales culture, where regional and account team performance metrics help to drive pricing and discounts. Understanding these factors will give you the leverage you need to negotiate effectively.
- Avoid unjustified implementation fees: CA's professional services fees are nearly twice as high as other vendors, prompting many clients to outsource implementation. Explore the best implementation scenario for your business -- whether fully outsourced or a hybrid approach that enlists CA only for mission critical activities.
- Lock in pricing for long-term savings: CA has challenged its sales team to grow each account by 20%. Translation: It's time to lock in license, support and maintenance pricing to avoid unjustified rate increases.
-- Jeff Muscarella, EVP of IT, NPI