Author Archives: Kim Addington, NPI

Which IT Sourcing Best Practices Will Deliver the Most Value to Your Organization?

For those of us that live and breathe IT sourcing, we understand that it’s no longer just about cutting costs – it’s about getting the most value from every purchase and renewal, reducing risk and contributing to strategic business imperatives like digital transformation. In a recent webinar, Spend Matters’ Pierre Mitchell and I discussed the challenges and the expectations of the rapidly changing IT sourcing landscape, and eight best practices that can help us tackle them.  All of these best practices are critical for keeping up with the pace of business.

Here’s Why You Should Conduct Price Benchmark Analysis for Every IT Purchase or Renewal

If you remember nothing else about this blog post, remember this statistic: 5%. Those are the odds that enterprises are paying a fair price for any given IT purchase or renewal if they are not performing IT price benchmark analysis. In the first half of 2018, only 5% of the IT purchase quotes reviewed by NPI were priced at fair market value based on market benchmark comparisons. That number is dangerously lower than what it was just a few years ago when “fairly priced” IT purchases and renewals hovered around the 30% mark.

5 Things Procurement Can Do to Stay Ahead of Software License Audits

Enterprises are undergoing vendor-initiated software license audits at an alarming rate. Gartner estimates that 70% of enterprises get at least one audit notification a year. It’s not uncommon for penalties to surpass $1 million, $10 million or more. Audits have become an unspoken part of the routine conversation between procurement and vendors. In that regard, IT sourcing teams represent a first line of defense against noncompliance and audit risk.

6 Questions to Help Optimize Your Next Microsoft EA Renewal

Microsoft EA renewals have always been high-spend, high-stakes. But a number of factors have upped the ante. They include a greater number of software license audits (and higher penalties), changing product terms and the inherent complexity of migrating to Microsoft’s cloud offerings. For IT Sourcing pros tasked with negotiating a renewal, the implications are serious. Their next Microsoft EA renewal shouldn’t be treated as business as usual as it will present greater opportunity for overspending and compliance missteps. On the flipside, it’s also an opportunity to level-set and fine tune the EA for more value, more flexibility and best-match licensing that cuts cost and risk.