Spend Matters welcomes this guest article by Jeff Muscarella, partner, IT and telecommunications at NPI, a spend management consultancy, focused on eliminating overspending on IT, telecom and shipping.
There are numerous content-sharing services available to users these days, but only a handful meet the demands of the enterprise sector. One of those is Box, which has grown to be one of the most secure, enterprise-friendly content platforms in the industry. While many of its competitors focus on content sharing, Box aims to be an enterprise platform that sits at the very heart of IT – not so different than what Salesforce.com has accomplished with its Force.com platform.
But, Box’s ambitions to be a platform play can muddy the sourcing process. Here are 3 tips to prevent overspending during the Box sourcing and renewal event:
- Apply pricing pressure in an increasingly competitive market. Historically, Box has been priced higher than its competition due in part to its open development platform and robust security functionality. But the competition has started to catch up. Vendors like Google and Microsoft are now providing comparable secure content-sharing capabilities at lower price points. Leverage this competitive environment to attain more flexible pricing.
- Select the most cost-effective subscription option and contract term for maximum discounting. Box offers 3 business subscription options for its content platform – including an enterprise license agreement – which range in price per user, per year. Understand your unique usage requirements to reduce the risk of overbuying. Also, keep in mind that Box is often willing to apply heavy discounts to multi-year contracts.
- Understand Box’s long-term customer and product strategy. Box’s goal to be the enterprise content platform residing at the center of IT has led to increased innovation across its services. For some customers, this means paying for unneeded bells and whistles. For other customers, specifically those that offer Box a beachhead into target industries and mega-enterprise deals, it translates into higher discounts and more pricing flexibility. Know where your business fits into the vendor’s long-term product and sales strategy. Ultimately, this insight will give you leverage during the sourcing event.