Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom and transportation.
Fiscal year-ends for EMC, IBM and SAP are almost here. If you're making a new purchase or renewing with these vendors, be prepared to negate substantial price increases. These price increases are being driven by three factors:
- Changes in licensing and pricing – some enterprise software vendors have made significant changes in the past year to the way they license and price products and services – for example, Microsoft's "qualified device" pricing.
- Aggressive audits – vendors are highly focused on capturing more licenses and are aggressively increasing the number and scope of audits being conducted.
- Opaque contractual terms and definitions – changing terms and definitions related to device licensing, third-party application access and mobility have put many clients at risk for higher spending in 2013.
This is the time to benchmark your current vendor agreements, establish fair market value pricing and terms, and become intimately familiar with important licensing and pricing changes happening across the enterprise IT landscape.
With fiscal year-ends in December, customers will be under increased pressure to renew and make new purchases with these vendors. The difference between understanding and not understanding these changes can be a cost differential of 15-40%.
- Jeff Muscarella, EVP of IT, NPI